95-1321

Income

Signed 1/30/96

BEFORE THE UTAH STATE TAX COMMISSION

____________________________________

XXXXX, )

:

Petitioner, : ORDER

:

v. : Appeal No. 95-1321

:

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 S. Reich, Administrative Law Judge, heard the matter for and on behalf of the Commission. Present and representing Petitioner by telephone was XXXXX. Present and representing Respondent was XXXXX.

This appeal involves a request for waiver of penalty and interest for the XXXXX income tax year. A $$$$$ negligence penalty was imposed for failure to file an amended return within 90 days of a correction by the Federal government in the Federal return. A $$$$$ late payment penalty was also imposed.

Respondent had submitted that the $$$$$ late payment penalty should be waived because the appeal process had already begun at the time it was imposed. However, the negligence penalty was imposed according to State law for Petitioner’s failure to comply with the requirement that an amended return be filed within 90 days of the adjustment by the Federal government on the Federal return. No argument was made to justify waiver of interest, since Petitioner enjoyed the benefit of the money for the additional period of time.

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 Commission has reviewed the entire file and the arguments presented at the hearing. Based upon the information presented at the hearing, and the records of the Tax Commission, the Commission finds sufficient cause has been shown to waive the $$$$$ late payment penalty but neither the $$$$$ negligence penalty nor the interest assessed for the period in issue.

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 30th day of January, 1996.

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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