97-1504

INCOME

Signed 3/3/98

BEFORE THE UTAH STATE TAX COMMISSION

____________________________________

PETITIONER, )

:

Petitioner, ) DECISION

:

v. )

:

COLLECTION DIVISION OF THE ) Appeal No. 97-1504

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 February 18, 1998. Gail S. Reich, Administrative Law Judge, heard the matter for and on behalf of the Commission. Present on the telephone and representing Petitioner was PETITIONERS REP., CPA. Present and representing Respondent were Ms. Vickie Christoffersen and Ms. Laurie Allred.

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

FINDINGS

This case involves 1991 through 1995 income tax. Penalties for late filing and late payment were imposed in the amount of $$$$$. Petitioner is appealing the penalties imposed based on the fact that he was unable to obtain records from his wife to file a joint return. Ultimately, in April and May of 1997 he filed separately. The Division asserted that the circumstances of this case do not rise to the level of reasonable cause and do not fall within the intended meaning of unattainable records as a criteria to justify waiver. The Division=s representative indicated that Petitioner could have filed separately, as he ultimately did, earlier and amended the return once the records of his wife=s business were evaluated.

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 and the positions presented by each of the parties, it has been determined that sufficient cause, unfortunately, does not exist under the criteria established by the Utah State The Tax Commission to justify waiver of the penalty imposed for the years in issue. 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 3 day of March, 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 3 day of March, 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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