95-1655

Income Tax

Signed 4/17/96

BEFORE THE UTAH STATE TAX COMMISSION

____________________________________

XXXXX,

Petitioner, : ORDER

:

v. : Appeal No. 95-1655

:

COLLECTIONS DIVISION OF THE : Account No. XXXXX

UTAH STATE TAX COMMISSION, :

:

Respondent. : Tax Type: Income Tax

_____________________________________

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 late filing and late payment penalty for XXXXX, XXXXX and XXXXX. The penalties total approximately $$$$$ and the interest has accrued in the approximate amount of $$$$$.

Petitioner was an out of state student and was advised by the university office for international students regarding tax obligations. Petitioner secured a letter indicating that he was advised that no Social Security tax was required. Respondent has indicated that it was reasonable for the Petitioner to assume that this also indicated that no income tax was due. Based upon the circumstances, Respondent has recommended that the penalties be waived. Since Petitioner and not the Tax Commission had the benefit of the funds until payment, there is no indication that there are any grounds for the waiver of the interest.

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

Sufficient cause has been shown to waive the penalties but not the interest assessed for XXXXX, XXXXX and XXXXX income tax years.

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 17 day of April, 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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