96-2563

Income Tax

Signed 3/28/97

BEFORE THE UTAH STATE TAX COMMISSION

____________________________________

PETITIONER, :

Petitioner, : INFORMAL DECISION

:

v. : Appeal No. 96-2563

:

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

UTAH STATE TAX COMMISSION, :

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. As provided for by Utah Code Ann. §63-46b-5, this decision is being based solely upon the documentary evidence or record contained in the Tax Commission's file.

FINDINGS

This appeal involves 1990 income year. Petitioner has requested a waiver of penalty and interest. A $$$$$ penalty was imposed for failure to file an amended return after an adjustment at the federal level. However the statutory notice informing Petitioner of that negligence penalty was issued in September of 1995. Petitioner did not file a petition until December of 1996. That petition is beyond the 30 day period which Petitioner was entitled to appeal the $$$$$ negligent penalty. The filing in December of 1996 was within the 30 days of the placement of an additional late payment penalty of $$$$$. Since Petitioner did timely file the request regarding the late payment penalty of $$$$$ and since that constitutes first time error for Petitioner, the Division has recommended waiver of that penalty. The interest which has accrued in the amount of approximately $$$$$ does not justify waiver. No grounds exist which would justify waiver of that amount since it is not Tax Commission error and the Petitioner and not the Respondent had the benefit of the funds since the original due date of April 15, 1991.

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 foregoing, it is hereby determined that sufficient cause does exist to waive the $$$$$ late payment penalty but not the remaining negligence penalty or the interest. It is so ordered.

DATED this 28 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 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

NOTICE: You have twenty (20) days after the date of a final order to file a Request for Reconsideration with the Commission. If you do not file a Request for Reconsideration with the Commission, you have thirty (30) days after the date of a final order to file a Petition for Judicial Review by trial de novo in district court. (Utah Administrative Rule R861-1A-5(P) and Utah Code Ann. §63-46b-13 et. seq.)

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