97-0611

INCOME

Signed 6/23/97

BEFORE THE UTAH STATE TAX COMMISSION

____________________________________

PETITIONER, )

:

Petitioners, ) DECISION

:

v. )

:

COLLECTION DIVISION OF THE ) Appeal No. 97-0611

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 June 11, 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 1995 income tax year. Late payment penalty of $$$$$ was imposed with approximately $$$$$ of interest having accrued. The Division has recommended waiver of the penalty based on first time error. No grounds exist to waive the interest since Petitioner and not the Tax Commission had the benefit of funds during the interim period.

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 1995 income tax year. It is so ordered.

DATED this 23 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 23 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

^^