96-2292

Signed 3/19/97

BEFORE THE UTAH STATE TAX COMMISSION

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PETITIONER, :

:

Petitioners, : ORDER

:

v. : Appeal No. 96-2292

:

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

UTAH STATE TAX COMMISSION, : and #####

:

Respondent. : Audit Period(s): 1992

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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 13, 1997. Gail S. Reich, Administrative Law Judge, heard the matter for and on behalf of the Commission. Present and representing Petitioner were PETITIONER. Present and representing Respondent were Dan Engh and Frank Hales of the Auditing Division.

This involves income tax year 1992. Tax involved is $$$$$. Late filing and late payment penalties were imposed in the approximate amount of $$$$$. Interest has accrued in the approximate amount of $$$$$. Petitioner was in active duty with the U.S. Navy from 1963 until September of 1992, with Defense Depot, Ogden, Utah, as his final duty station. At time of entrance into the U.S. Navy, Petitioner was a resident of the State of Ohio and therefore taxable to that state. Upon discharge, Mr. Correll was discharged to an Ogden, Utah address. Petitioner paid income tax to the State of Ohio in 1992 but concedes that he was a resident and should have paid to Utah. However, since he has already paid to Ohio, he is requesting that Utah waive the tax, penalty and 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 Commission has reviewed the entire matter and the position of both parties. Based upon the information presented at the hearing, and the records of the Tax Commission, the Commission finds the tax remains due to the State of Utah, but sufficient cause has been shown to waive the penalty and interest assessed for the period in issue.

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 19 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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