95-0275

Income Tax

Signed 5/31/95

BEFORE THE UTAH STATE TAX COMMISSION

____________________________________

XXXXX, )

:

Petitioner, : ORDER

:

v. : Appeal No. 95-0275

:

COLLECTION DIVISION OF THE : Account No. XXXXX

UTAH STATE TAX COMMISSION, :

:

Respondent. : Tax Type: Income Tax

_____________________________________

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, and Alice Shearer, Commissioner, heard the matter for and on behalf of the Commission. Although duly notified of the date and time of the hearing and the procedures for appearing by telephone conference call Petitioner did not appear. Present and representing Respondent was XXXXX.

Penalties of $$$$$ with interest of approximately $$$$$ for XXXXX and penalties of $$$$$ with interest of approximately $$$$$ for XXXXX were assessed against Petitioner relating to income tax. Petitioner had requested waiver of the penalties and interest from the Collection Division Waiver Unit which was denied. The underlying amount of income tax owed for XXXXX was $$$$$ and for XXXXX was $$$$$.

In his letter requesting the appeal Petitioner stated that he had been told by a Tax Commission employee that they would accept XXXXX monthly payments of $$$$$ each as payment in full for all tax, penalty and interest relating to Petitioner's income tax for the years XXXXX and XXXXX. Petitioner's letter stated that he did make the required payments in reliance on this verbal agreement. Apparently there was no written payment agreement.

Respondent stated that the Tax Commission records indicate that Petitioner did make the XXXXX monthly payments of $$$$$ each. This amount paid by Petitioner was equal to the underlying tax liability and most of the interest. Respondent stated that there was no indication of an arrangement for the payment plan other than Petitioner's regular monthly payments which Respondent felt pointed to an error on the part of a Tax Commission employee. Because an error by the Commission is considered to be reasonable cause, Respondent recommended accepting the payments made by Petitioner as payment in full for all tax, interest and penalty liability relating to Petitioner's income tax for XXXXX and XXXXX.

DECISION AND ORDER

Based upon the information presented at the conference, and the records of the Tax Commission, the Commission finds sufficient cause has been shown to waive the penalties and reduce the interest assessed relating to Petitioner's income tax for the XXXXX and XXXXX tax years so the amount of XXXXX already paid by Petitioner in monthly installments is payment in full of the underlying tax, penalties and interest.

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 31st day of May, 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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