CORPORATE FRANCHISE

86-0526

Signed 1/15/87

BEFORE THE STATE TAX COMMISSION OF UTAH

_____________________________________

XXXXX, )

:

Petitioner, )

:

v. ) INFORMAL DECISION

:

)

COLLECTION DIVISION OF THE : Appeal No. 86 0526

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 corporate franchise tax account No. XXXXX for the fiscal year ending XXXXX. An Informal Hearing was held on December 16, 1986, in the offices of the Utah State Tax Commission. James E. Harward, Hearing Officer, heard the matter for the Commission. XXXXX represented the Petitioner.

Petitioner stated that the corporation uses an old computer, an Inoton Model 100. Petitioner discovered in XXXXX that something was wrong with the software programs and that some of the "batch" sales were not being recorded. In XXXXX, Petitioner hired an accounting student to help straighten out the problem. Petitioner filed an extension with the Internal Revenue Service and thought that an extension was also filed with the Tax Commission but did not have proof of this. When Petitioner straightened the problem out, the return was filed.

The tax due for the fiscal year ending XXXXX, was $$$$$. Respondent assessed a penalty of $$$$$ and interest of $$$$$ as of XXXXX. Petitioner requests a waiver of the penalty.

DECISION AND ORDER

It is the Decision and Order of the Utah State Tax Commission that penalty and interest be sustained and the waiver request be denied.

DATED this 15 day of January, 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

NOTICE: You have 30 days after the date on the Mailing Certificate to request a Formal Hearing.

^^