96-2344

Income Tax

Signed 3/24/97

BEFORE THE UTAH STATE TAX COMMISSION

____________________________________

PETITIONER, :

:

Petitioner, : ORDER

:

v. : Appeal No. 96-2344

:

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

UTAH STATE TAX COMMISSION, :

STATE OF UTAH, :

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

This appeal involves penalty and interest imposed for the 1992 income tax year. A ten percent (10%) negligence penalty was imposed for failure to file an amended state return within 90 days of an adjustment at the federal level. Petitioner indicated he was unaware of this requirement. The record shows no evidence of there being a prior circumstance of Petitioner’s failure to file an amended return within the prescribed statutory time period.

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 been shown to waive the penalty. However, since the Petitioner and not the Tax Commission had the benefit of the funds during the interim period no grounds have been shown to waive the interest.

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 24 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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