98-1368

Income Tax

Signed 4/29/99

BEFORE THE UTAH STATE TAX COMMISSION

____________________________________

PETITIONER, :

: ORDER

Petitioner, :

: Appeal No. 98-1368

v. :

:

AUDITING DIVISION OF : Tax Type: Income Tax

THE UTAH STATE TAX )

COMMISSION, : Judge: Phan

:

Respondent. :

_____________________________________

Presiding:

Jane Phan, Administrative Law Judge

Appearances:

For Petitioner:

For Respondent: Frank Hales, Assistant Director Auditing Division

Dan Engh Manger, Income Tax Auditing

Angie Hillas, Agent

STATEMENT OF THE CASE

This matter came before the Utah State Tax Commission for an Initial Hearing pursuant to the provisions of Utah Code Ann. §59-1-502.5, on March 17, 1999. The matter had originally been scheduled for a Status Conference but was converted to the Initial Hearing.

Petitioner had originally filed an appeal of the assessment of income tax as well as interest for the 1992 tax year. Respondent had notified Petitioner of the assessment with a Statutory Notice of Audit Change which was issued on April 9, 1998. However, Petitioner now conceded the assessment as to the tax amount. However, he asked that the interested be waived. He explained that he is now retired and living on a fixed income.

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

Interest is generally waived only in the event that an error on the part of a Tax Commission employee caused the late payment or filing of the tax. From the information provided by the parties there was no such error. Being on a fixed income or financial hardship are not grounds for waiver on interest. However, financial hardship is considered in the offer and compromise process with the Collection Division and Petitioners are not precluded from pursuing this process regardless of the outcome of this appeal.

Based on the foregoing, the Commission finds there is insufficient reasonable cause for waiver of interest and the Statutory Notice of Audit Change issued April 9, 1998, is sustained. 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 29TH day of April, 1999.

____________________________________

Jane Phan

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 29th day of April, 1999.

Richard B. McKeown Pam Hendrickson

Chairman Commissioner

R. Bruce Johnson

Commissioner

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