INCOME

97-0673

Signed 1/27/98

BEFORE THE UTAH STATE TAX COMMISSION

____________________________________

PETITIONER, )

:

Petitioner, ) DECISION

:

v. )

:

AUDITING DIVISION OF THE ) Appeal No. 97-0673

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 provisions of Utah Code Ann. '59-1-502.5 An Initial Hearing was held on November 6, 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 were XXXXX and XXXXX, of the Auditing Division.

This is an appeal for waiver of penalty and interest imposed as a result of 1992 income tax. Additional tax became due and owing as the result of a federal adjustment. Petitioner was assessed a 10% negligence penalty for failing to file an amended return with the State within 90 days of the federal adjustment. The penalty was $$$$$. Approximately $$$$$ of interest has accrued as a result of this matter. The record indicates that this constitutes the first time that the Petitioner was required to file an amended return based on an adjustment at the federal level.

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

After a thorough review of this matter, the Tax Commission finds sufficient cause does exist to waive the penalty imposed in this matter. Sufficient cause does not exist to waive the interest since the interest simply reflects the fact that the Petitioner and not the Tax Commission had the benefit of the funds during the interim period. It is so ordered.

This Decision does not limit a party's right to a Formal Hearing. Any party to this case may file a written request within thirty (30) days of the date of this decision to proceed to a Formal Hearing. Such a request shall be mailed to the address listed below and must include the Petitioner's name, address, and appeal number:

Utah State Tax Commission

Appeals Division

210 North 1950 West

Salt Lake City, UT 84134

Failure to request a Formal Hearing will preclude any further appeal rights in this matter.

DATED this _____ day of ____________, 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 27 day of January, 1998.

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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