95-0089

Income Tax

Signed 8/18/95

BEFORE THE UTAH STATE TAX COMMISSION

____________________________________

XXXXX, )

:

Petitioner, : ORDER

:

v. :

:

COLLECTION DIVISION OF THE : Appeal No. 95-0089

UTAH STATE TAX COMMISSION, :

: Account No. XXXXX

:

Respondent. : Tax Type: Income Tax

_____________________________________

STATEMENT OF CASE

This matter came before the Utah State Tax Commission for an Initial Hearing pursuant to the provisions of Utah Code Ann. §59-1-502.5, on XXXXX. Jane Phan, Administrative Law Judge, heard the matter for and on behalf of the Commission. Present and representing Petitioner by telephone conference call was XXXXX. Present and representing Respondent was XXXXX.

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

At the hearing Petitioner stated that he had moved out of the State of Utah and was not aware that he owed any further taxes for the XXXXX tax year until XXXXX when the notices caught up with him. Petitioner admitted that he had moved around without notifying the Tax Commission of his changes of address. Petitioner felt that because of the delay in letting him know that he owed additional taxes the penalties and interest should be waived. Petitioner stated that he thought when he mailed in his check for payment of the additional taxes in XXXXX that he had written a restrictive endorsement on the check which stated the check was payment in full.

Although during the hearing Respondent felt the penalty and interest should not be waived because the delay in Petitioner's receiving notice was caused by Petitioner's failure to notify the Commission of address changes, after the hearing Respondent obtained a copy of Petitioner's check for payment of the additional taxes. Upon examination of Petitioner's check Respondent found that Petitioner had placed a restrictive endorsement on the check which stated that the check was payment in full. Because of the restrictive endorsement Respondent recommended waiving the penalty and interest.

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 of $$$$$ and the interest associated with Petitioner's income tax for the year XXXXX.

This decision does not limit a party's right to a Formal Hearing. However, this Decision and Order will become the Final Decision and Order of the Commission unless any party to this case files a written request within thirty (30) days of the date of this decision to proceed to a Formal Hearing. Such a request shall be mailed to the address listed below and must include the Petitioner's name, address, and appeal number:

Utah State Tax Commission

Appeals Division

210 North 1950 West

Salt Lake City, Utah 84134

Failure to request a Formal Hearing will preclude any further administrative action or appeal rights in this matter.

DATED this 18th day of August, 1995.

BY ORDER OF THE UTAH STATE TAX COMMISSION.

W. Val Oveson Roger O. Tew

Chairman Commissioner

Joe B. Pacheco Alice Shearer

Commissioner Commissioner

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