95-1336

Income
Signed 1/30/96

BEFORE THE UTAH STATE TAX COMMISSION

____________________________________

XXXXX, )

:

Petitioner, : ORDER

:

v. : Appeal No. 95-1336

:

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 was XXXXX. Present and representing Respondent was XXXXX.

This appeal involves a request for refund of penalty and interest for income tax years XXXXX and XXXXX. A late filing and late payment penalty was imposed. The XXXXX return was due XXXXX. It was filed XXXXX and final payment was made on XXXXX. The due date of the XXXXX return was XXXXX. The return was filed and paid on XXXXX. Petitioner has relied on financial hardships as the basis for the claim.

Respondent asserted that financial hardship does not constitute sufficient grounds for waiver of penalty or interest under the criteria relied upon by the State. Since Petitioner has already paid the amount, Respondent indicated that the Offer in Compromise process which considers financial hardship is not an available avenue in this circumstance.

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 assessment 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 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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