86-0237 - Corporate Franchise

BEFORE THE STATE TAX COMMISSION OF UTAH

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XXXXX

:

Petitioner, )

:

v. ) INFORMAL DECISION

:

)

COLLECTION DIVISION OF THE : Appeal No. 86 0237

STATE TAX COMMISSION OF UTAH, ) Acct. No. XXXXX

:

Respondent. )

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STATEMENT OF CASE

An Informal Hearing was scheduled for XXXXX. The Petitioner did not appear, and subsequently requested an Informal Decision based on the materials in the file.

Petitioner asserts that its corporation franchise tax return was filed late because it was in the process of requesting a change of accounting period from the Internal Revenue Service. Petitioner desired to change its tax year end from January 31, XXXXX, to April 30, XXXXX, and therefore, a short period filing would be required for the period between February 1, XXXXX, and April 30, XXXXX. The Internal Revenue Service approved Petitioner's request for change, but not until September 26, XXXXX. Respondent's records indicate that the return for the short period was filed and the taxes paid on October 15, XXXXX.

FINDINGS

1. Utah Code Ann. § 59-13-18 (1953) provides that where the taxpayer changes its accounting period from one fiscal year to another the net income shall with the approval of the Tax Commission be computed on the basis of such new accounting period. There is no indication in the materials in the file that such approval was given.

2. Utah Code Ann. § 59-13-19 (Supp. 1986) provides for a separate return for the period between the close of the former fiscal year and the date designated as the close of the new fiscal year where the taxpayer with the approval of the Tax Commission changes its accounting period from one fiscal year to another.

3. Utah Code Ann. § 59-13-22 (Supp. 1986) requires that returns made on the basis of a fiscal year shall be made on or before the 15th day of the 4th month following the close of the fiscal year. Section 59-13-19 also provides that the Tax Commission may grant a reasonable extension of time, not to exceed six months, for filing returns when the Commission finds a good cause exists for an extension. Petitioner changed the end of its fiscal year from January 31st to April 30th. Its corporation tax return was, therefore, due on or before September 15, XXXXX, the 15th day of the 4th month following the close of the fiscal year. Petitioner filed its corporation tax return and paid its tax on October 15, 1985, but did not apply for an extension of time in which to file the return.

DECISION AND ORDER

Based on the foregoing facts, it is the Decision and Order of the Utah State Tax Commission that Petitioner's request for waiver of penalty and interest be denied.

DATED this 20 day of November, 1986.

BY ORDER OF THE STATE TAX COMMISSION OF UTAH.

R. H. Hansen Roger O. Tew

Chairman Commissioner

ABSENT

Joe B. Pacheco G. Blaine Davis

Commissioner Commissioner