95-1486

Income

Signed 2/29/96

BEFORE THE UTAH STATE TAX COMMISSION

____________________________________

XXXXX,

Petitioners, : ORDER

:

v. : Appeal No. 95-1486

:

COLLECTION DIVISION OF THE : Account No. XXXXX

UTAH STATE TAX COMMISSION, :

:

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 Petitioners by telephone was XXXXX. Present and representing Respondent was XXXXX.

This appeal involves penalties and interest imposed for the XXXXX and XXXXX income tax years. Late filing and late payment penalties of $$$$$ were imposed for the XXXXX year with interest accruing in the amount of approximately $$$$$. Late filing and late payment penalties of $$$$$ were imposed for the XXXXX year with interest accruing in the amount of approximately $$$$$. The records of the parties differ on the actual filing date but they do agree that it was beyond the filing date required of April 15 of the following year. The actual date of filing would not affect the amount of the penalty imposed since there is no dispute over the lateness of the filing. Final payment for the two years in issue was made in XXXXX. An audit was conducted for each of the years in issue. Petitioner asserts that the interest should be reduced because of attempts to resolve this at an earlier date. Respondent indicated that the interest is appropriate since Petitioner had the benefit of the funds and the State was deprived of the benefit of the funds for the period of time until final payment was made.

In large part, Petitioner’s argument is one of financial hardship. The process of Offer In Compromise was explained in detail to Petitioner. Petitioner was apprised of the ability to pursue the Offer In Compromise process separate and apart from 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 waive the penalties or 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 29 day of February, 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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