94-1629

Income

Signed 4/11/95

BEFORE THE UTAH STATE TAX COMMISSION

____________________________________

XXXXX

:

Petitioner, ) INFORMAL DECISION

:

v. )

:

COLLECTION DIVISION OF THE ) Appeal No. 94-1629

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

At the hearing Petitioner's representative stated that Petitioner had filed a request for an extension, then filed his income tax return and paid the tax due in XXXXX which was within the extension period. Petitioner's representative thought that this meant Petitioner had filed timely. Because he thought the filing to be timely, Petitioner's representative stated that he had requested information on why the penalty had been assessed but had received no explanation from the Tax Commission.

Respondent explained that the penalty was an extension penalty and it was assessed because Petitioner did not make the required prepayment of either 90% of XXXXX's tax liability or 100% of XXXXX's tax liability.

Petitioner's representative acknowledged that no prepayment had been made and stated that Petitioner just wanted an explanation of the penalty.

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 not exist to waive the penalty of $$$$$ and approximately $$$$$ in interest relating to income tax for XXXXX.

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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