97-0153

INCOME

Signed 5/1/97

BEFORE THE UTAH STATE TAX COMMISSION

____________________________________

PETITIONER, )

:

Petitioner, ) DECISION

:

v. )

:

COLLECTION DIVISION OF THE ) Appeal No. 97-0153

UTAH STATE TAX COMMISSION, :

STATE OF UTAH, ) 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 adjudicative proceedings. A hearing was held on April 16, 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 Laurie Allred and Vickie Christoffersen of the Collection Division.

Based upon the evidence in the file and presented at the hearing, the undersigned makes the following:

FINDINGS

This appeal involves a late payment penalty imposed for the 1995 income tax year. However, the record shows that Petitioner made a prepayment in a timely fashion and that the penalty was imposed in error. Based on that, the Division has recommended that the late payment penalty by waived and the two percent underpayment assessment be reduced to reflect the unpaid balance from April 15 through September 14, 1996, when full payment was made.

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 undersigned finds sufficient cause does exist to waive the penalty imposed for the period in issue and reduce the two percent assessment per month to reflect only the underpayment from April 15, 1996 through September 14, 1996.

DATED this 1 day of MAY, 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 1 day of MAY, 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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