96-2194

Income

Signed 12/23/96

BEFORE THE UTAH STATE TAX COMMISSION

____________________________________

PETITIONER, :

Petitioner, : INFORMAL DECISION

:

v. : Appeal No. 96-2194

:

COLLECTION DIVISION OF THE : Account No.#####

UTAH STATE TAX COMMISSION, :

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. As provided for by Utah Code Ann. §63-46b-5, this decision is being based solely upon the documentary evidence or record contained in the Tax Commission's file.

FINDINGS

This matter involves income tax for 19YY. A 10% late payment penalty of $$$$$ was imposed with approximately $$$$$ having accrued in interest. In this instance, Petitioner had received notice from his escrow company that the check had been sent to the bank and deposited in a timely fashion. However, according to the bank, the letter was placed in the wrong post

office box by the postal service and was delivered to a local branch of a different bank. The check that Petitioner wrote to cover his taxes did not clear until the payment was forwarded to the correct bank from the bank that it had been delivered to in error. Under the circumstances, Respondent has recommended waiver of the penalty. Since Petitioner, and not the Respondent, had use of the funds until this matter was cleared up, no reasonable cause exists to waive the interest.

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 has been shown to waive the penalty but not the interest associated with this matter. It is so ordered.

DATED this 23rd day of December, 1996.

BY ORDER OF THE UTAH STATE TAX COMMISSION.

W. Val Oveson Richard B. McKeown

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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