BEFORE THE UTAH STATE TAX COMMISSION

____________________________________

XXXXX, )

Petitioner, : ORDER

v. : Appeal No. 95-0907

COLLECTION DIVISION OF THE : Account No. XXXXX

UTAH STATE TAX COMMISSION, :

Respondent. : Tax Type: Income Tax

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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 in the amount of $$$$$ along with approximately $$$$$ in interest for XXXXX and penalties in the amount of $$$$$ with approximately $$$$$ in interest for XXXXX were assessed against Petitioner relating to the late filing or payment of income tax.

At the hearing Petitioner explained that he had worked in XXXXX for XXXXX until XXXXX then he moved to Utah and continued to work for XXXXX until XXXXX. In XXXXX he took a voluntary layoff with severance pay, sick leave vacation and XXXXX cashed him out of all his retirement. Apparently Petitioner's accountant had divided the resulting liability over the years XXXXX, XXXXX and XXXXX and the issue arose as to the liability for the portion of retirement and benefits that Petitioner had earned in XXXXX, which had not been subject to tax. Petitioner was audited for XXXXX and states that the audit was not resolved until XXXXX when an additional $$$$$ in tax was assessed against him which he paid and does not dispute.

Respondent explained that a %%%%% late filing penalty plus the $$$$$ legal filing fee had been assessed against Petitioner for the XXXXX tax year. Respondent stated that for the tax year XXXXX Petitioner had filed and paid late. Both a %%%%% late payment penalty and a %%%%% late filing penalty had been assessed. Respondent asserted that the penalties and interest had been validly assessed and Petitioner had not met the requirements for reasonable cause for waiver of the penalties. Respondent pointed out that interest is waived only in the event an error on the part of the Tax Commission contributed to the late filing or payment.

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

Based upon the information presented at the hearing, and the records of the Tax Commission, the Commission finds sufficient cause has not been shown to waive the penalties totalling $$$$$ and interest totalling approximately $$$$$ assessed relating to Petitioner's income tax for the years XXXXX and 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 11 day of October, 1995.

BY ORDER OF THE UTAH STATE TAX COMMISSION.

W. Val Oveson Roger O. Tew

Chairman Commissioner

Joe B. Pacheco Alice Shearer

Commissioner Commissioner