BEFORE THE STATE TAX COMMISSION
OF UTAH
_____________________________________
XXXXX, )
:
Petitioner, )
:
v. ) INFORMAL DECISION
:
)
COLLECTION
DIVISION OF THE : Appeal No. 86 0398
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 corporation franchise account No. XXXXX for the calendar year
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.
Petitioner
stated that XXXXX is a family corporation which was set up to care for a
sixty-five year old retarded sister in the family. The only income is interest which amounts to approximately $$$$$
per year. Petitioner admitted that the
return was filed late but requests a waiver of the penalty for the following
reasons:
1. Both the president and vice president of the
corporation are on extended overseas assignments. The delay in correspondence was a contributing factor to the late
filing.
2. With a net income of only $$$$$, the minimum
tax alone amounted to 25% of the income.
The combination of federal and state taxes and penalties approaches 54%
of net income.
Petitioner
submitted documentation showing that the Internal Revenue Service waived the
penalty on Petitioner's federal taxes.
Petitioner requests a waiver of the penalty and interest.
Respondent
assessed a penalty of $$$$$ and interest of $$$$$ on a tax of $$$$$.
FINDINGS
Petitioner
stated that when the president and vice president left on extended assignments,
they put XXXXX, a Certified Public Accountant, in charge of taxes. Petitioner should have foreseen the
potential delays in the filing of taxes when the president and vice president
accepted overseas assignments, and should have taken steps to avoid
problems. One alternative would have
been to file for an extension of time for filing a return. Petitioner failed to file for an extension.
DECISION AND ORDER
It
is the Decision and Order of the Utah State Tax Commission that Petitioner's
request for waiver of penalty and interest on corporate franchise tax account
No. XXXXX for the calendar 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 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