96-1090

Income

Signed 9/26/96

BEFORE THE UTAH STATE TAX COMMISSION

____________________________________

XXXXX, )

:

Petitioners, : INFORMAL DECISION

:

v. :

:

COLLECTION DIVISION OF THE : Appeal No. 96-1090

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. Gail S. Reich, Administrative Law Judge, heard the matter for and on behalf of the Commission. Present and representing Petitioner was XXXXX and XXXXX. Present and representing Respondent was XXXXX of the Collections Division.

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

FINDINGS

This appeal involves the late filing penalty of $$$$$ for the 19YY income tax year. Approximately $$$$$ of interest has accrued. Petitioner has withdrawn the request for waiver of penalty and is focusing on the amount of interest caused by Tax Commission error.

The filing for the 19YY income tax year did not occur until April 19YY. Additional years were also involved in late filings. Petitioner attempted to return refund checks and request that they be applied to years in which the accounts had outstanding balances. This task was complicated by the numeroud late filings. Respondent was able to determine that $$$$$ of the interest was attributable to Commission error in timely applying the return refund checks to the account.

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 foregoing, the Tax Commission finds sufficient cause has been shown to waive $$$$$ of the interest imposed for the 19YY income tax. It is so ordered.

DATED this 25th day of September, 1996.

BY ORDER OF THE UTAH STATE TAX COMMISSION.

W. Val Oveson Richard B. McKeown

Chairman Commissioner

Joe B. Pacheco Alice Shearer

Commissioner Commissioner