98-0024

Income Tax

Signed 4/1/98

BEFORE THE UTAH STATE TAX COMMISSION

____________________________________

PETITIONER, :

:

Petitioners, : DECISION

:

v. :

:

COLLECTION DIVISION OF THE : Appeal No. 98-0024

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 A Telephone Initial Hearing was held on March 17, 1998. G. Blaine Davis, Administrative Law Judge, heard the matter for and on behalf of the Commission. Present on the telephone and representing Petitioners was NAME. Present and representing Respondent was Ms. Vickie Christoffersen, from the Collection Division.

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

FINDINGS

Petitioner claims he filed his 1987 individual income tax return the summer of 1989. Petitioner claims that he did timely file the return and mail a check with it, but the return and check were never received by the Utah State Tax Commission.

Respondent made a determination that the return had not been filed, and sent notices in 1992, but Petitioner testified he never received it. The notices were sent to his former address, and he had moved.

In January 1994, Petitioner became aware of a judgment in favor of the Tax Commission because of a notation on his credit report. He thereafter obtained a photocopy of his 1987 return and filed it with the Tax Commission. He alleges that he made efforts to obtain photocopies of the canceled checks, but the bank had destroyed all checks during the time period at issue because it had been so long.

Even though Petitioner claims he had paid the income tax with the return, he made agreements to pay $$$$$ per month until the amount of the tax was paid by November, 1997. He now represents that he has paid the sum of $$$$$ for the tax on two separate occasions, and he is asking that the penalty in the amount of $$$$$ and the interest in excess of $$$$$ be waived. Petitioner has had no other delinquencies on his income tax return, so this is a first time problem.

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

The Tax Commission finds sufficient cause does exist to waive the penalty associated with the income tax return for 1987, and further finds sufficient cause to waive the interest related to that penalty. However, there is no cause to waive the interest which was charged on the tax. 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 1 day of April, 1998.

BY ORDER OF THE UTAH STATE TAX COMMISSION.

G. BLAINE DAVIS

Administrative Law Judge

The agency has reviewed this case and the undersigned concur in this decision.

DATED this 1 day of April, 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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