BEFORE THE STATE TAX
COMMISSION OF UTAH
_____________________________________
XXXXX,
:
Petitioner )
:
v. ) INFORMAL DECISION
:
)
COLLECTION
DIVISION OF THE : Appeal No. 86 0068
STATE TAX
COMMISSION OF UTAH, ) Acct. No. XXXXX
:
Respondent. )
_____________________________________
STATEMENT OF CASE
This
is an appeal to the Utah State Tax Commission from a decision of the Collection
Division of the Utah State Tax Commission (Respondent) to assess a penalty on
Corporate Franchise Tax Account No. XXXXX for the tax year XXXXX. An Informal
Hearing was held on August 15, XXXXX, in the offices of the Utah State Tax
Commission. XXXXX, Hearing Officer,
heard the matter for the Tax Commission.
Petitioner
had requested and received an extension through October 15, XXXXX, for filing a
XXXXX Utah state income tax return.
Petitioner paid $$$$$, the estimated tax for XXXXX, with the extension
request. Petitioner prepared the return
by June 15, XXXXX, which return showed a refund due of $$$$$, but misplaced the
return and did not file the return until December 7, XXXXX.
Respondent
assessed a penalty of 5% per month for two months for a total of $$$$$ because
Petitioner had failed to file a return on time. No interest was charged since the tax had been prepaid.
FINDINGS
The
penalty of 5% per month, not exceeding 25% of the aggregate, may be assessed if
a taxpayer fails to timely file a return.
Utah Code Ann. § 59-13-27 (1953).
However, if it is shown that the failure to file the return is due to
reasonable cause and not willful neglect then the penalty shall not be
assessed.
There
is no willful neglect in this case since Petitioner had remitted $$$$$ with the
extension request, an amount greater than the actual tax due.
A
$$$$$ civil penalty is properly assessed against any person who, without
fraudulent intent, "fails to make, render, sign, or verify any return, or
to supply any information within the time required by or under the provisions
of this [Franchise and Privilege Tax]
chapter." Utah Code Ann. § 59-13-56(1) (1953). Petitioner failed to timely file the Corporate
Franchise Tax Return for the tax year XXXXX, and is consequently liable for the
$$$$$ civil penalty.
DECISION AND ORDER
It
is the Decision and Order of the Utah State Tax Commission that the penalty on
account No. XXXXX for the tax year XXXXX be reduced to $$$$$.
The
Collection Division of the Utah State Tax Commission is ordered to adjust its
records in accordance with this decision.
DATED
this 15 day of October of 1986.
BY ORDER OF THE STATE TAX COMMISSION OF UTAH.
R. H. Hansen Roger
O. Tew
Chairman Commissioner
Joe B.
Pacheco G.
Blaine Davis *
Commissioner Commissioner
* Since the hearing on this case,
Chairman Mark K. Buchi has resigned and R. H. Hansen has been appointed as the
Chairman for the Commission. G. Blaine
Davis has been appointed as a Commissioner and has been duly advised of the
facts and circumstances regarding this case and is qualified to sign this
decision.