87-0283 - Corporate Franchise

 

BEFORE THE STATE TAX COMMISSION OF UTAH

_____________________________________

XXXXX

Petitioner, : INFORMAL DECISION

v. :

COLLECTION DIVISION OF THE : Appeal No. 87-0283

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 tax account No. XXXXX for the fiscal year ending XXXXX. A telephone conference 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, Controller, represented the Petitioner. XXXXX, Compliance Investigator, represented the Respondent. Respondent assessed a penalty of $$$$$ and interest of $$$$$ as of XXXXX, on a tax due of $$$$$. Respondent asserted that an extension request was not timely filed. Petitioner asserted that an extension request had been timely filed and introduced a copy of an extension request prepared by XXXXX. Petitioner requests a waiver of the penalty and the interest.

FINDINGS

An application for an extension of time for filing returns must be accompanied with a payment in the amount "equal to at least %%%% of total amount of tax due with return when filed, or the minimum tax due under Section 59-13-3, whichever is greater" Utah Code Ann. 59-13-25(1) (1953) (New Section 59-7-126). The application for an extension of time for filing returns as submitted by Petitioner, if it was timely filed, still did not meet the requirements of Section 59-13-25. Tax Commission records indicate that the first payment towards the tax liability for the fiscal year ending XXXXX, was on XXXXX. The form as submitted by Petitioner does not estimate the tax due, does not indicate the tax paid on the prior year's return, and does not indicate that tax payment was remitted.

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 corporation franchise tax account No. XXXXX for the fiscal year ending XXXXX, be denied. The assessment of penalty and interest by the Collection Division of the Utah State Tax Commission is hereby affirmed.

DATED this 7 day of August, 1987.

BY ORDER OF THE STATE TAX COMMISSION OF UTAH.

R. H. Hansen Roger O. Tew

Chairman