97-1316

INCOME

Signed 2/23/98

BEFORE THE UTAH STATE TAX COMMISSION

____________________________________

PETITIONER, )

:

Petitioner, ) DECISION

:

v. )

:

COLLECTION DIVISION OF THE ) Appeal No. 97-1316

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 October 22, 1997. Gail S. Reich, Administrative Law Judge, heard the matter for and on behalf of the Commission. Present by telephone and representing Petitioner was PETITIONER. Present and representing Respondent were Ms. Laurie Allred and Ms. Vickie Christoffersen, 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 1996 income tax year. Penalties for this period have already been waived based on first time error. After the circumstances surrounding the payment of the taxes were explained by Petitioner, Respondent recommended waiver of the interest, since an extension period was still valid and the interest should not have been imposed.

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 matter, it is determined that the interest is to be waived. 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 23 day of February, 1998.

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 February, 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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