97-0021

INCOME

Signed 3/18/97

BEFORE THE UTAH STATE TAX COMMISSION

____________________________________

PETITIONER, )

:

Petitioners, ) INFORMAL DECISION

:

v. )

:

COLLECTION DIVISION OF THE ) Appeal No. 97-0021

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 4, 1997. Gail S. Reich, Administrative Law Judge, heard the matter for and on behalf of the Commission. Present and representing Petitioner by telephone was PETITIONERS REP. Present and representing Respondent was XXXXX of the Collection Division.

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

FINDINGS

This involves penalties and interest imposed as a result of a non-filing audit for the 1989 and 1990 income tax year. Petitioner was not living in Utah in the two years in issue but did move back in 1991. Petitioner inquired as to the tax liability for the years in issue but had been told that since he was out of the state for the entire year and did not earn any income in the state he did not have a tax liability. Petitioner acted upon that information and did not file. Upon being assessed the amount in the non-filing audit, Petitioner now concedes the tax was due and owing and in fact has paid the tax. He is appealing the late filing and late payment penalties imposed for 1989 in the amount of $$$$$ and the interest that has accrued in the amount of approximately $$$$$. He is also appealing for 1990 the penalties imposed in the amount of $$$$$ and the interest that has accrued in the amount of approximately $$$$$. Respondent does not dispute that this information was given to the Petitioner. Respondent has recommended waiver of the penalty based on first time error. Reliance on information provided by the Tax Commission does constitute grounds for waiver of the interest in circumstances of this type.

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

It is hereby determined that sufficient cause does exist to waive the penalties and interest associated with the 1989 and 1990 income tax years. It is so ordered.

DATED this _____ day of ____________, 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 18 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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