86-0247 - Corporation Franchise

BEFORE THE STATE TAX COMMISSION OF UTAH

_____________________________________

XXXXX, )

:

Petitioner, )

:

v. ) INFORMAL DECISION

:

)

COLLECTION DIVISION OF THE : Appeal No. 86 0247

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 penalty and interest on corporate franchise tax Account No. XXXXX for the fiscal year ending October 31, XXXXX. An Informal Hearing was held on XXXXX, in the offices of the Utah State Tax Commission. James E. Harward, Hearing Officer, heard the matter for the Tax Commission. XXXXX represented the Petitioner.

XXXXX is related to XXXXX. The principal bookkeeper for XXXXX, was arrested in XXXXX, for embezzlement of funds. The bookkeeper was eventually convicted of theft of monies taken during XXXXX, XXXXX, XXXXX and the first half of XXXXX. One of the techniques of embezzlement was to falsify tax reports and deposits and to alter financial reports.

Once the information was reconstructed, Petitioner filed the return on XXXXX. The return was due on XXXXX. Respondent assessed a penalty of $$$$$ and interest of $$$$$ for a total balance due of $$$$$. Petitioner agrees to the assessment of interest, but requests a waiver of the penalty.

Due to the unusual circumstances of this appeal, and because Petitioner has an excellent filing history, the Tax Commission waives the penalty.

DECISION AND ORDER

It is the Decision and Order of the Utah State Tax Commission that the penalty on corporate franchise tax Account No. XXXXX for the fiscal year ending October 31, XXXXX, be waived.

The Collection Division of the Utah State Tax Commission is ordered to adjust its records in accordance with this decision.

DATED this 7 day of October, 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