BEFORE THE STATE TAX
COMMISSION OF UTAH
_____________________________________
XXXXX
Petitioner, : INFORMAL DECISION
v. :
COLLECTION
DIVISION OF THE : Appeal No. 87-0311
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 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
represented the Petitioner. Petitioner
stated that the employee who prepared taxes for the corporation thought that
Petitioner owed no taxes in Utah since there was no business in Utah during the
period in question. Line 9 of the
return stated that "tax is %%%%% of line 8, $$$$$ minimum per corporation
(see Instruction 2)." Petitioner
was unable to obtain Instruction 2 in spite of repeated attempts to contact the
Tax Commission. Petitioner assumed that
Instruction 2 would exempt companies which did not do business in Utah during
the filing period. Petitioner requests
a waiver of penalty and interest.
FINDINGS
Line
9 of the Form TC-20 clearly sets forth that there is a $100.00 minimum tax per
corporation. It was unreasonable for
Petitioner to assume that Instruction 2 stated otherwise. Respondent properly assessed penalty and
interest in this matter.
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 20 day of October, 1987.
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