98-0090

Income Tax

Signed 5/1/98

 

BEFORE THE UTAH STATE TAX COMMISSION

____________________________________

PETITIONER, :

:

Petitioners, : ORDER

:

v. : Appeal No. 98-0090

:

COLLECTION DIVISION OF THE : Account No. #####

UTAH STATE TAX COMMISSION, :

STATE OF UTAH, :

:

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 March 25, 1998, Gail S. Reich, Administrative Law Judge, heard the matter for and on behalf of the Commission. Present and representing Petitioner was NAME. Present and representing Respondent were Ms. Laurie Allred and Ms. Vickie Christoffersen, of the Collection Division.

This appeal involves the 1996 income tax year. Penalties were imposed. A 2% extension penalty in the amount of $$$$$ and a late payment penalty in the amount of $$$$$ were imposed. Petitioner indicated that the money was timely paid but apparently got lost in the mail. Petitioner was able to show evidence of the original check, the subsequent stop payment and that sufficient funds were available at the time the original check was made out. Based on the evidence submitted, the Respondent recommended that the penalties be waived. No justification exists to waive the interest since the interest merely represents the fact that the Petitioner and not the Tax Commission had the benefit of the funds during the interim period.

APPLICABLE LAW

The Tax Commission is required to oversee the just administration of property taxes to ensure that property is valued for tax purposes according to fair market value. (Utah Code Ann. §59-1-210(7).)

Petitioners have the burden of proof to establish that the market value of the subject property is other than that as determined by Respondent.

DECISION AND ORDER

After a thorough review of the entire matter, it has been determined that sufficient cause does exist to justify waiver of the penalties but not the interest imposed for the period 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, Utah 84134

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

DATED this 1 day of May, 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 1 day of May, 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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