95-1658

Income

Signed 2/29/96

 

BEFORE THE UTAH STATE TAX COMMISSION

____________________________________

XXXXX,

Petitioners, : ORDER

:

v. : Appeal No. 95-1658

:

COLLECTIONS DIVISION OF THE : Account 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 waiver of penalty and interest for the XXXXX income tax year. Late payment penalty of $$$$$ was imposed and interest has accrued in the approximate amount of $$$$$.

Petitioner filed on time and expected the check to clear earlier than it did. The check went through on XXXXX, and at that time there was a lack of funds to cover the check. Numerous attempts on the part of Petitioner to remedy the problem were apparently thwarted by mis-communications. As a result, the Collections Division has reduced the interest from approximately $$$$$ to the current amount showing of $$$$$, to accommodate for the prolonged period in resolving the matter.

The delay in resolving this matter, however, does not affect the initial imposition of the late payment penalty for failure of the check to clear when initially processed. The remaining interest represents the fact that Petitioner and not the Commission had the benefit of the funds during the period of resolution and prior to actual payment to the Commission.

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 matter and considered the positions of both the Petitioner and the Respondent.

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 reduce the interest any further for the XXXXX income tax 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 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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