97-0464

INCOME

Signed 6/30/97

BEFORE THE UTAH STATE TAX COMMISSION

____________________________________

PETITIONER, )

:

Petitioner, ) DECISION

:

v. )

:

COLLECTION DIVISION OF THE ) Appeal No. 97-0464

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 was PETITIONER REP.. Present and representing Respondent were Vickie Christoffersen and Laurie Allred of the Collection Division.

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

FINDINGS

This appeal involves late payment and late filing penalties imposed for 1994 and 1995 income tax years plus interest. Petitioner was able to secure documentation of serious illness and based on that, Division has recommended waiver of the penalties. Since Petitioner had the benefit of the funds rather than the Tax Commission during the interim period no grounds exist to justify waiver of 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 penalties but not the interest associated with the periods in issue. It is so ordered.

DATED this 30 day of JUNE, 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 30 day of JUNE, 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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