96-2436

IFTA

Signed 3/28/97

BEFORE THE UTAH STATE TAX COMMISSION

____________________________________

PETITIONER, :

:

Petitioner, : ORDER

:

v. : Appeal No. 96-2436

:

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

UTAH STATE TAX COMMISSION, :

STATE OF UTAH, :

Respondent. : Tax Type: IFTA

_____________________________________

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 of the Auditing Division.

This involves an IFTA matter uncovered in an audit covering the period July 1, 1992 through June 30, 1995. Petitioner has requested waiver of penalties and interest imposed for this period. The penalty of $$$$$ was imposed as a 10% negligence penalty for failure to place reasonable controls to insure accurate records for tax purposes, i.e. trip miles not properly allocated, etc. The audit resulted in more than doubling the amount of tax due when compared to the original return.

Petitioner indicated that he was unaware of the proper way to keep records to insure accurate reporting.

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. 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 penalty or interest associated with the audit 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 28 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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