86-0427 - Corporation Franchise

BEFORE THE STATE TAX COMMISSION OF UTAH

_____________________________________

XXXXX, )

:

Petitioner )

:

v. ) INFORMAL DECISION

:

)

AUDIT DIVISION OF THE : Appeal No. 86 0427

STATE TAX COMMISSION OF UTAH, )

:

Respondent. )

_____________________________________

STATEMENT OF CASE

This matter came before the Utah State Tax Commission on XXXXX, for an Informal Hearing. James E. Harward, Hearing Officer, heard the matter for the Tax Commission. XXXXX and XXXXX appeared representing the Respondent. XXXXX appeared representing the Petitioner.

Petitioner presented argument that he wished to seek an exception to Utah Code Ann. § 59-13-7(14), which provides for carry back deduction. The Petitioner requested that it be allowed to carry forward the deduction since the statute of limitations had run on the carry back provisions.

The Respondent argued that there is not an option to carry forward or carry back. The statute is specific that the loss must first be carried back to the earliest of the three preceding years and then to the second preceding year and then to preceding year with any remaining loss being carried forward. Utah Code Ann. § 59-13-43(2)(b) provides for a statute of limitations of thirty nine and one half months after the end of the loss year in which to claim a refund. The Petitioner has exceeded the statute of limitations, and is therefore, not allowed to use the carry back provisions, or the carry forward provisions to the application of 59-13-7(14).

DECISION AND ORDER

It is the Decision and Order of the Utah State Tax Commission that the Petitioner exceeded the statute of limitations for the carry back provisions of Section 59-13-7(14). Because of the statutory language of the Section 59-13-7(14) the Petitioner is not allowed the option to carry forward the loss.

The Commission will follow the strict language of the statute and will deny the Petitioner's request.

DATED this 4 day of February, 1987.

BY ORDER OF THE STATE TAX COMMISSION OF UTAH.

ABSENT

R. H. Hansen Roger O. Tew

Chairman Commissioner

Joe B. Pacheco G. Blaine Davis

Commissioner Commissioner