95-1654

Income

Signed 3/11/96

BEFORE THE UTAH STATE TAX COMMISSION

____________________________________

XXXXX,

Petitioner, ) INFORMAL DECISION

:

v. )

:

COLLECTION DIVISION OF THE ) Appeal No. 95-1654

UTAH STATE TAX COMMISSION, :

) Account No. XXXXX

:

Respondent. ) Tax Type: Income

_____________________________________

STATEMENT OF CASE

This matter came before the Utah State Tax Commission pursuant to the Administrative Procedures Act and the rules of the Utah State Tax Commission for informal proceedings. An Informal Hearing was held on XXXXX. Gail 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.

Based upon the evidence in the file and presented at the Informal Hearing, the Commission makes its:

FINDINGS

This case involves a request for wavier of penalty and interest for the XXXXX income tax year. A late payment penalty was imposed for $$$$$, with interest accruing in the approximate amount of $$$$$. Petitioner asserts that payment was made by check in a timely fashion but that the Commission did not show receipt of the check. Petitioner was able to provide the necessary documentation to Respondent to show that the check was made out in sequence, that sufficient funds were available at the appropriate time, and that a stop payment had been placed on the check. As a result, Respondent has recommended waiver of the penalty. However, Respondent has not recommended waiver of interest since the taxpayer, rather than the Commission, had the benefit of the funds until actual payment was received.

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 Tax Commission finds sufficient cause does exist to waive the penalty but not the interest associated with the XXXXX income tax year. It is so ordered.

DATED this 11 day of March, 1996.

BY ORDER OF THE UTAH STATE TAX COMMISSION.

W. Val Oveson Roger O. Tew

Chairman Commissioner

Joe B. Pacheco Alice Shearer

Commissioner Commissioner

NOTICE: You have twenty (20) days after the date of a final order to file a Request for Reconsideration with the Commission. If you do not file a Request for Reconsideration with the Commission, you have thirty (30) days after the date of a final order to file a Petition for Judicial Review by trial de novo in district court. (Utah Administrative Rule R861-1A-5(P) and Utah Code Ann. '63-46b-13 et. seq.)

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