86-0431 - Corporation Franchise

BEFORE THE STATE TAX COMMISSION OF UTAH

_____________________________________

XXXXX, )

:

Petitioner, )

:

v. ) INFORMAL DECISION

:

)

COLLECTION DIVISION OF THE : Appeal No. 86 0431

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

:

Respondent. )

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STATEMENT OF CASE

This matter came before the Tax Commission for an Informal Hearing on XXXXX, at 11:30 a.m., in the Heber M. Wells Building, 160 East 300 South, Salt Lake City, Utah. Petitioner failed to appear. Thereafter, an Order to Show Cause was issued for the Petitioner to show cause why the matter should not be dismissed for his failure to appear. By letter dated XXXXX, Petitioner waived its right to an oral hearing on the matter and requested that the matter be submitted on the documentation in the file.

Based upon the foregoing, the Commission will review the matter on the documents on the record and issue a decision.

Taxpayer is a Corporation which had no commercial domicile or gross income in Utah. Its only activity was the payment of rentals on certain oil and gas leases. It timely extended and filed its federal income tax return and filed its Utah return within the same time period as the federal income tax return. It intended at all times to file the Utah return and knew it has no taxable income. The Petitioner contends that "its only mistake was to not mail a copy of the federal extension to Utah; this is a very easy oversight, particularly for a non-resident corporation."

DECISION AND ORDER

Based upon the foregoing, it is the Decision and Order of the Utah State Tax Commission that the penalty is properly assessed and affirms the same without adjustment.

DATED this 9 day of January, 1987.

BY ORDER OF THE STATE TAX COMMISSION OF UTAH.