96-0112

Income

Signed 4/1/96

BEFORE THE UTAH STATE TAX COMMISSION

____________________________________

XXXXX,

Petitioner, ) INFORMAL DECISION

:

v. )

:

COLLECTION DIVISION OF THE ) Appeal No. 96-0112

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. Jane Phan, Administrative Law Judge, heard the matter for and on behalf of the Commission. Present and representing Petitioner by telephone conference call 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

Petitioner is appealing the assessment of $$$$$ in penalties and interest relating to his late filing and payment of individual income tax for the XXXXX tax year.

At the hearing Petitioner explained that in XXXXX he was injured in an accident and became disabled. He provided the determinations from the Social Security Administration, Workers Compensation and a private disability insurance carrier, each of which found that Petitioner had become 100% disabled from the injuries and each of these organizations paid Petitioner disability payments. Petitioner, who was at that time and continues to be a California resident, stated that during XXXXX he had sold some property in Utah. He said that because of his disability he did not realize that he needed to file a return in Utah for that year.

Petitioner stated that he has had some partial recovery from his injury and was able to begin working part time in XXXXX, with significant accommodation on the part of his employer. He stated that in XXXXX he felt well enough to focus on income tax issues, both California and Utah and realized then that he should have filed a XXXXX Utah return.

Respondent's representative stated that because this had been Petitioner's first time filing in Utah, in addition to the disability, she recommend waiver of the penalty.

Respondent stated that interest is generally waived only in the event that the late payment or filing was the result of an error on the part of the Tax Commission or a Tax Commission employee. Since no error of this type was indicated Respondent requested that the assessment of interest be sustained.

Petitioner asserted that the interest which had accrued from XXXXX should be waived because Petitioner felt that he had paid the amount of tax in XXXXX by the prepayment he had made to obtain an extension for filing a XXXXX Utah return. Petitioner did not however, file his return for the year XXXXX until XXXXX and because the return had not been filed the Commission would have no way of knowing it should apply the prepayment to the XXXXX liability, or how much to apply.

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 penalties of $$$$$ associated with the late filing and late payment of Petitioner's income tax for the year XXXXX. Sufficient cause has not been shown for waiver of the interest. It is so ordered.

DATED this 1 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

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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