96-0198

Income Tax

Signed 7/11/96

BEFORE THE UTAH STATE TAX COMMISSION

____________________________________

XXXXX,

Petitioner, : INFORMAL DECISION

:

v. :

:

COLLECTION DIVISION OF THE : Appeal No. 96-0198

UTAH STATE TAX COMMISSION, :

: Account No. XXXXX

:

Respondent. : Tax Type: Income Tax

_____________________________________

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 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.

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

FINDINGS

This appeal involves penalties and interest imposed as a result of the XXXXX income tax year. A correction at the federal level resulted in a correction at the state level which resulted in $$$$$ of penalties and $$$$$ being accrued in interest. After reviewing the matter, the Respondent indicated that, in addition to Petitioner's perfectly clean record, there were overpayments in every year that would have compensated for the amount involved. As a result, the Respondent has recommended waiver of all penalties. The substantial amount of overpayments which were eventually utilized to clear the account, justify waiver of the interest as well.

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 and interest associated with the XXXXX income tax year and to award the Petitioner a refund of the amounts already paid in penalty and interest. It is so ordered.

DATED this 11 day of July, 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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