98-0711

Income Tax

Signed 4/11/98

BEFORE THE UTAH STATE TAX COMMISSION

____________________________________

PETITIONER, :

: ORDER

Petitioner, :

: Appeal No. 98-0711

v. :

: Account No. #####

AUDITING DIVISION OF THE :

UTAH STATE TAX COMMISSION, : Tax Type: Income Tax

:

Respondent. : Presiding: Hendrickson

_____________________________________

Presiding:

Pam Hendrickson, Commissioner

Appearances:

For Petitioner: PETITIONER

For Respondent: Mr. Brent Taylor, from the Auditing Division

Ms. Becky McKenzie, from the Auditing Division

STATEMENT OF THE CASE

This matter came before the Utah State Tax Commission for a Status Conference and was therein converted to an Initial Hearing to be conducted pursuant to the provisions of Utah Code Ann. 59-1-502.5, on October 15, 1998.

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).

DISCUSSION

Petitioner, PETITIONER, filed resident returns with the State of Utah for the 1994 and 1995 tax years. Respondent received information from the Internal Revenue Service indicating discrepancies between the federal and state returns. On March 31, 1998 and April 8, 1998, Respondent made the appropriate changes to the 1994 and 1995 tax years and issued Statutory Notices of Audit Change. Petitioner has been assessed interest on the underpayment of the tax for the 1994 and 1995 tax years. Petitioner paid the additional amount in a timely manner and requests that the interest charges associated with the years 1994 and 1995 be waived.

Respondent requests that the Commission sustain the Statutory Notice of Deficiency against the Petitioner and sustain the interest assessment.

DECISION AND ORDER

Based upon the foregoing, the Commission finds that sufficient cause has not been shown to justify a waiver or reduction of the interest assessment associated with the 1994 and 1995 tax years. The State of Utah was denied the use of the funds during the period when the tax was due and payable to the State. It is so ordered.

This decision does not limit a party's right to a Formal Hearing. However, this Decision and Order will become the Final Decision and Order of the Commission unless any party to this case files 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 4 day of November, 1998.

____________________________________

Pam Hendrickson

Commissioner

BY ORDER OF THE UTAH STATE TAX COMMISSION:

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

DATED this 4 day of November, 1998.

Richard B. McKeown Joe B. Pacheco

Chairman Commissioner

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