97-0187

INCOME

Signed 5/1/97

BEFORE THE UTAH STATE TAX COMMISSION

____________________________________

PETITIONER, )

:

Petitioners, ) DECISION

:

v. )

:

COLLECTION DIVISION OF THE ) Appeal No. 97-0187

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 adjudicative proceedings. A hearing was held on April 17, 1997. Gail S. Reich, Administrative Law Judge, heard the matter for and on behalf of the Commission. Present and representing Petitioner were PETITIONER AND PETITIONER. Present and representing Respondent was Laurie Allred 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 income tax for the 1995 year. A late payment penalty of $$$$$ was imposed. The Division indicates that this constitutes first time error for the Petitioner. Based on that, the Division has recommended waiver of the penalty. Since Petitioner and not the Respondent had the benefit of the funds during the interim period until final payment, no grounds exist to waive the interest.

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 penalty but not the interest associated with the period in issue.

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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