94-1628

Income

Signed 4/11/95

BEFORE THE UTAH STATE TAX COMMISSION

____________________________________

XXXXX

:

Petitioner, ) INFORMAL DECISION

:

v. )

:

COLLECTION DIVISION OF THE ) Appeal No. 94-1628

UTAH STATE TAX COMMISSION, :

) Account No. XXXXX

:

Respondent. ) Tax Type: Income

_____________________________________

STATEMENT OF CASE

This matter came before the Utah State Tax Commission pursuant to the Administrative Procedures Act and the rules of the Utah State Tax Commission for informal proceedings. An Informal Hearing was held on XXXXX. Jane Phan, Administrative Law Judge, heard the matter for and on behalf of the Commission. Although notified of the date, time and location of the hearing Petitioner was not present. Present and representing Respondent was XXXXX.

Based upon the evidence in the file and presented at the Informal Hearing, the Commission makes its:

FINDINGS

Penalties in the amount of $$$$$ and interest in the amount of approximately $$$$$ were assessed against Petitioner relating to income tax for XXXXX. Petitioner had requested a waiver of the penalties and interest from the Collection Division Waiver Unit which was denied. Petitioner now appeals this denial.

Petitioner's letter of XXXXX requesting the appeal and documents provided with the letter stated that Petitioner had written a check for $$$$$ (the remaining amount of income tax owed) and mailed it along with the income tax form on XXXXX. Petitioner thought the tax was paid until he was notified by the Tax Commission that the check had not been received. In the letter Petitioner stated that he immediately sent in a new check along with a copy of the stop payment on the missing check. Petitioner enclosed a copy of his check register which indicated that the check had been written in sequence with other checks on that date and a copy of his bank statement which indicated funds were available.

Respondent, after reviewing the information provided by Petitioner, stated that Petitioner had met his burden of showing sufficient reasonable cause to waive the penalty.

In considering Petitioner's request for waiver or reduction of the interest the Tax Commission applies more stringent reasonable cause standards because Petitioner continued to enjoy the benefit of the use of the funds and the State of Utah was denied the benefit of the use of the funds from the time the underlying taxes were due until they were actually received by the Tax Commission.

APPLICABLE LAW

The Tax Commission is granted the authority to waive, reduce, or compromise penalties and interest upon a showing of reasonable cause. (Utah Code Ann. '59-1-401(10).)

DECISION AND ORDER

The Tax Commission finds sufficient cause does exist to waive the $$$$$ penalty relating to the Petitioner's income tax for XXXXX. Sufficient cause does not exist to waive the interest.

DATED this 11 day of April, 1995.

BY ORDER OF THE UTAH STATE TAX COMMISSION.

W. Val Oveson Roger O. Tew

Chairman Commissioner

Joe B. Pacheco Alice Shearer

Commissioner Commissioner

NOTICE: You have twenty (20) days after the date of a final order to file a Request for Reconsideration with the Commission. If you do not file a Request for Reconsideration with the Commission, you have thirty (30) days after the date of a final order to file a.) a Petition for Judicial Review in the Supreme Court, or b.) a Petition for Judicial Review by trial de novo in district court. (Utah Administrative Rule R861-1A-5(P) and Utah Code Ann. '63-46b-15.)

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