95-1107

Income

Signed 11/14/95

BEFORE THE UTAH STATE TAX COMMISSION

____________________________________

XXXXX, )

:

Petitioner, : ORDER

:

v. : Appeal No. 95-1107

:

COLLECTION DIVISION OF THE : Serial No. XXXXX

STATE TAX COMMISSION, :

STATE OF UTAH, :

Respondent. : Tax Type: Income

_____________________________________

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. Gail Reich, Administrative Law Judge, heard the matter for and on behalf of the Commission. Present and representing Petitioner was XXXXX. Present and representing Respondent was XXXXX of the Collection Division.

This appeal involves penalty and interest imposed for the XXXXX and XXXXX income tax years. Penalties of $$$$$ were assessed and interest has accrued in the amount of approximately $$$$$, all but approximately $$$$$ having already been satisfied. Petitioner referred to earlier letters that had been sent to the Collections Division which went unanswered regarding his financial hardship during XXXXX and XXXXX which resulted from unemployment, illness, and disability as a result of an automobile accident. Respondent, recognizing that financial hardship is not a criteria for waiving the penalty or interest, explained the offer in compromise procedure. Respondent agreed to pursue the possibility of offer in compromise with the Petitioner, separate and apart from the outcome of this appeal.

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 refund the penalties and interest assessed for the XXXXX and XXXXX income tax year, but will waive any outstanding balance due on Petitioner's account for the XXXXX and XXXXX income tax year.

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 14 day of November, 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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