96-2575

Income Tax

Signed 3/28/97

BEFORE THE UTAH STATE TAX COMMISSION

____________________________________

PETITIONER, :

:

Petitioner, : INFORMAL DECISION

:

v. :

:

COLLECTION DIVISION OF THE : Appeal No. 96-2575

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 March 19, 1997. Gail S. Reich, Administrative Law Judge, heard the matter for and on behalf of the Commission. Present and representing Petitioner PETITIONER. Present and representing Respondent Vickie Christoffersen.

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

FINDINGS

This appeal involves 1992 income tax. A penalty was imposed for failure to file an amended return within 90 days of an adjustment at the federal level. The penalty was for $$$$$ and approximately $$$$$ of interest has accrued. Petitioner filed the appeal in a timely fashion from the statutory notice from the Auditing Division. The request was inadvertently processed through collections rather than auditing. However, the record shows that this constitutes first time error for the Petitioner and first time failure to file an amended return within 30 days. However, the fact remains that Petitioner and not the Tax Commission has the benefit of the funds since the original due date of the 1992 income tax return of April 15, 1993.

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 a thorough review of the matter, it has been determined that sufficient cause does exist to waive the penalty but not the interest associated with the 1992 income tax return. 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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