97-1249

INCOME

Signed 9/17/97

BEFORE THE UTAH STATE TAX COMMISSION

____________________________________

PETITIONER, )

:

Petitioner, ) DECISION

:

v. )

:

COLLECTION DIVISION OF THE ) Appeal No. 97-1249

UTAH STATE TAX COMMISSION, :

) Account No. #####

:

Respondent. ) Tax Type: Income

_____________________________________

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 August 27, 97. Gail S. Reich, Administrative Law Judge, heard the matter for and on behalf of the Commission. Present and representing Petitioner was PETITIONERS REP.. Present and representing Respondent Laurie Allred of the Collections Division.

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

FINDINGS

This appeal involves income tax year of 1995. A $$$$$ late filing penalty and a $$$$$ late payment penalty were imposed for failure to file and pay until March 17, 1997 for the 1995 income tax year. Petitioner indicated that there had been misunderstanding between communications with the CPA and delay in getting all the necessary documentation. The Respondent argued that no reasonable cause existed that justified the extensive delay, emphasizing that even an extension applies only to the filing and not the payment. Nevertheless, filing and payment occurred even beyond any available extension 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

After a thorough review of the entire record and consideration being given to all of the issues raised by each of the parties, it has been determined that sufficient cause does not exist in this case to justify waiver of the penalties that were imposed for the period in issue. It is so ordered.

DATED this 17 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 17 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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