97-0398

INCOME

Signed 9/3/97

BEFORE THE UTAH STATE TAX COMMISSION

____________________________________

PETITIONER, )

:

Petitioner, ) DECISION

:

v. )

:

COLLECTION DIVISION OF THE ) Appeal No. 97-0398

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 proceeding. A hearing was held on May 8, 1997. Gail S. Reich, Administrative Law Judge, heard the matter for and on behalf of the Commission. Present and representing Petitioner PETITIONERS REP., CPA. 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 Commission makes its:

FINDINGS

This appeal involves the 1994 income tax. A late payment penalty of $$$$$ was imposed as the result of Petitioner=s failure

to pay the complete amount of tax within the extension period ending October 16, 1995. In this case Petitioner did make a pre-payment on April 17, 1995 and filed timely at the end of the extension period on October 16, 1995. However, the check that was sent to the Tax Commission did not clear the bank rendering the payment by replacement check on November 19, 1995 late. Respondent indicated that this does not constitute first time error for the Petitioner.

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 Commission has reviewed the entire matter and the positions of both the Petitioner and the Respondent. The Tax Commission is unable to find sufficient cause to justify waiver of the penalty associated with the period in issue. It is so ordered.

DATED this 3 day of SEPTEMBER, 1997.

BY ORDER OF THE UTAH STATE TAX COMMISSION.

W. Val Oveson Richard B. McKeown

Chairman Commissioner

Joe B. Pacheco Pam Hendrickson

Commissioner Commissioner

^^