96-0686

Income Tax

Signed 7/11/96

BEFORE THE UTAH STATE TAX COMMISSION

____________________________________

XXXXX,

Petitioner, : ORDER

:

v. : Appeal No. 96-0686

:

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. G. Blaine Davis, 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 of the Collections Division.

Petitioner requested an extension of time in which to file his XXXXX Utah Individual Income Tax Return. Payment of the amount of taxes was not made, and Petitioner did not comply with the prepayment requirements.

When Petitioner's extension expired and the return was due on XXXXX, Petitioner just did not have the money to pay the amount due so the return was filed without payment. Petitioner received a statement from the Utah State Tax Commission showing an amount due, including penalty and interest of $$$$$, and giving Petitioner until XXXXX in which to pay said amount. When the amount was not paid by that date, a 10% penalty was imposed for failure to pay. Petitioner paid within a few days after XXXXX and has requested that the penalty for failure to pay be waived.

The primary reason requested for the waiver of the penalty is because it was paid within a short time after XXXXX and because Petitioner feels it is a substantial penalty for such a short period of time. However, Petitioner has not presented any reason which meets the Commission standards of reasonable cause.

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

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 either the penalties or interest assessed for the XXXXX income tax return of Petitioner.

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 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

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