86-0335 - Corporate Franchise

BEFORE THE STATE TAX COMMISSION OF UTAH

_____________________________________

XXXXX, )

:

Petitioner )

:

v. ) INFORMAL DECISION

:

)

COLLECTION DIVISION OF THE : Appeal No. 86 0335

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 Account No. XXXXX for the calendar year XXXXX. XXXXX (Petitioner) c/o XXXXX waived its right to an oral hearing. Therefore, the Commission decides this matter based on the pleadings before it.

Petitioner paid the tax of $$$$$ for the tax year XXXXX on XXXXX. Respondent assessed a penalty of $$$$$ and interest of $$$$$ on this account for a total of $$$$$.

On XXXXX, Petitioner filed a Petition for Chapter 11 Bankruptcy with the U.S. Bankruptcy court in XXXXX, Alaska. The bankruptcy court confirmed Petitioner's plan of reorganization in XXXXX. Petitioner stated that a 72 month payment plan was agreed upon with representatives of the Internal Revenue Service and the Department of Revenue for the State of Alaska. Both the IRS and the Alaska Department of Revenue agreed that penalty should not be assessed and that interest should be assessed only from XXXXX, the effective date of the plan. Petitioner requests that the Tax Commission also waive the penalty and assess interest only from XXXXX.

Petitioner had the burden of proof to show that the penalty and interest as assessed by Respondent was in error. Petitioner did not meet this burden of proof.

DECISION AND ORDER

It is the Decision and Order of the Utah State Tax Commission that the request for waiver of penalty and interest on Account No. XXXXX for the tax year, XXXXX, be denied.

The assessment of penalty and interest by the Collection Division of the Utah State Tax Commission is hereby affirmed.

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