97-0466

INCOME

Signed 9/3/97

BEFORE THE UTAH STATE TAX COMMISSION

____________________________________

PETITIONER, )

:

Petitioner, ) DECISION

:

v. )

:

COLLECTION DIVISION OF THE ) Appeal No. 97-0466

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 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. Present and representing Respondent was 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 the imposition of penalties for late filing and late payment for 1992, 1993 and 1995 income and the interest that has accrued. The money has been paid in full and Petitioner is requesting a refund of penalty and interest. Petitioner is basing the request on a house fire which occurred in June of 1994. Respondent points out that at the time of the fire, the 1992 year was already late and penalties had already been assessed. The Respondent further indicated that the record shows no indication of an extension filed for the 1993 year and, without an extension, filing and payment were already late and penalties already indicated prior to the fire. Additionally, Respondent points out that the matter was not resolved until November 25, 1996 and, by Petitioner=s own admission, he did not attempt to resolve the matter until 1996, two years after the fire.

However, as for the 1995 year, the record does show that Petitioner had checked the box on his 1994 return to have his refund applied to 1995. Had that been honored, the penalty would not have been assessed. Therefore, justification does exist for waiver of the penalty imposed for the 1995 tax year.

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 entire matter has been reviewed and consideration has been given to all of the issues and arguments presented by both the Petitioner and the Respondent. It has been determined that sufficient cause does not exist to waive the penalty or interest associated with the 1992 or 1993 tax year, but sufficient cause does exist to justify waiver of the penalty imposed for the 1995 tax year. It is so ordered.

DATED this 3 day of SEPTEMBER, 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 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

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