86-0365 - Corporation Franchise

BEFORE THE STATE TAX COMMISSION OF UTAH

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XXXXX, )

:

Petitioner, )

:

v. ) INFORMAL DECISION

:

)

COLLECTION DIVISION OF THE : Appeal No. 86 0365

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

:

Respondent. )

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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 XXXXX. An Informal Hearing was held on XXXXX, in the offices of the Utah State Tax Commission. David J. Angerhofer, Hearing Officer, heard the matter for the Commission. XXXXX represented the Petitioner.

Tax for the fiscal year ending XXXXX, was due by XXXXX. Petitioner asserted that the return was timely filed and presented a copy of check No. XXXXX made out to the Tax Commission in the amount of the tax due for the fiscal year ending XXXXX. This check was dated XXXXX. Petitioner presented photocopies of the next three checks in sequence following check No. XXXXX to support Petitioner's allegation that check No. XXXXX was written on XXXXX. Petitioner also presented copies of his bank statement showing that Petitioner had sufficient funds on or about XXXXX, with which to cover the check.

Petitioner stated that he asked the Tax Commission for a copy of the envelope in which the return was filed. The postmark on the envelope would show that Petitioner filed late if he did, in fact, mail the return after the due date. The Tax Commission did not have a copy of the envelope.

Respondent assessed a penalty of $$$$$ and interest of $$$$$ as of XXXXX, on a tax due of $$$$$. Respondent's records show that the tax was paid on XXXXX.

FINDINGS

Petitioner had the burden of proof to show that the return was timely filed. Petitioner met this burden of proof by introducing the copies of the checks in sequence and the bank statements showing that Petitioner had sufficient funds. The Commission hereby waives the penalty on corporation franchise tax account No. XXXXX.

Interest was properly assessed on this account. The Petitioner had the use of the money from XXXXX, the day the Tax Commission would have received it, until the date the check finally cleared.

DECISION AND ORDER

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

The assessment of interest on this account is hereby affirmed.

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

DATED this 12 day of November, 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