96-2384

Income Tax

Signed 3/11/97

BEFORE THE UTAH STATE TAX COMMISSION

____________________________________

PETITIONER, :

:

Petitioner, : INFORMAL DECISION

:

v. :

:

COLLECTION DIVISION OF THE : Appeal No. 96-2384

UTAH STATE TAX COMMISSION, :

: Account No. #####

:

Respondent. : Tax Type: Income Tax

_____________________________________

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 February 25, 1997. Gail S. Reich, Administrative Law Judge, heard the matter for and on behalf of the Commission. Present and representing Petitioner was PETITIONERS REP.. Present and representing Respondent was RESPONDENT REP. of the Collection Division.

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

FINDINGS

This matter involves income tax year of 1995. A $$$$$ penalty was imposed for failure to file in a timely fashion. Approximately $$$$$ in interest has accrued. Since this constitutes first time error for this Petitioner, the Division has recommended that the penalty be waived.

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 does exist to refund the penalty, but not the interest that has been paid associated with the 1995 income tax year. It is so ordered.

DATED this 11 day of March, 1997.

BY ORDER OF THE UTAH STATE TAX COMMISSION.

_____________________________

GAIL S. REICH

ADMINISTRATIVE LAW JUDGE

The agency has reviewed this case and the undersigned concur in this decision.

DATED this 11 day of March, 1997.

BY ORDER OF THE UTAH STATE TAX COMMISSION.