96-2211

Income Tax

Signed 3/11/97

BEFORE THE UTAH STATE TAX COMMISSION

____________________________________

PETITIONER, :

:

Petitioner, : ORDER

:

v. : Appeal No. 96-2211

:

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

UTAH STATE TAX COMMISSION, :

:

Respondent. : Tax Type: Income Tax

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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 January 28, 1997. Gail S. Reich, Administrative Law Judge, heard the matter for and on behalf of the Commission. Present and representing Petitioner was PETITIONERS REP., CPA. Present and representing Respondent was RESPONDENT REP. of the Collection Division.

This appeal involves the 1995 income tax year. Filing date for 1995 income tax was April of 1996. Petitioner had a valid extension and did not file until June 28, 1996. Payment was not made until August 15, 1996. An underpayment penalty of two percent (2%) per month was imposed from April through filing date in June, which resulted in approximately $$$$$ of penalty. As a result of the June filing, a deficiency still existed in the amount paid. Petitioner was notified and given 30 days to pay the deficiency. Failure to pay the deficiency amount within 30 days of the filing resulted in a late payment penalty of $$$$$ being imposed. Petitioner argued that leeway should be granted beyond the 30 day period for payment. However, no justification was given which would rise to the level of reasonable cause to justify a waiver of the penalty imposed in this instance.

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 the penalties and interest assessed for the 1995 income tax year.

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 March, 1997.

BY ORDER OF THE UTAH STATE TAX COMMISSION.

W. Val Oveson Richard B. McKeown

Chairman Commissioner

Joe B. Pacheco Alice Shearer

Commissioner Commissioner

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