Signed 11/24/98

BEFORE THE UTAH STATE TAX COMMISSION

____________________________________

PETITIONER, :

: ORDER

Petitioner, :

: Appeal No. 98-1111

v. :

: Account No. #####

AUDITING DIVISION OF THE :

UTAH STATE TAX COMMISSION, : Tax Type: Penalty & Interest

Respondent. : Presiding: Davis

_____________________________________

Presiding:

G. Blaine Davis

Appearances:

For Petitioner: PETITIONER

For Respondent: Mr. Dan Engh and Ms. Angie Hillis, from the Auditing Division.

STATEMENT OF THE CASE

This matter came before the Commission for a Status Conference and was therein converted to an Initial Hearing on October 1, 1998.

Petitioner's accountant made an error on his income tax return, and a correction was made by the Internal Revenue Service to his federal return. Petitioner came to the State of Utah and wanted to know the amount of tax due, but they did not advise him to file an amended return, and told him to wait until he received a statement of the amount due from the State. When the statement came, it included a $20.00 late payment penalty and interest at the statutory rate. Petitioner has requested a waiver of the penalty and interest .

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

Based upon the foregoing, the Commission finds that sufficient cause has been shown to justify a waiver of the penalty, but sufficient cause has not been shown to justify a waiver of the interest associated with the income tax return of Petitioner. 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 24 day of November, 1998

____________________________________

G. Blaine Davis

Administrative Law Judge

BY ORDER OF THE UTAH STATE TAX COMMISSION:

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

DATED this 24 day of November, 1998.

Richard B. McKeown R. Bruce Johnson

Chairman Commissioner

Joe B. Pacheco Pam Hendrickson

Commissioner Commissioner