BEFORE THE STATE TAX
COMMISSION OF UTAH
_____________________________________
XXXXX
Petitioner, :
v. : INFORMAL DECISION
COLLECTION
DIVISION OF THE : Appeal No. 87-0903
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
XXXXX. An Informal 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 XXXXX changed its year end for book purposes during the XXXXX
year. Consequently, its year end books
differed from its year end for tax purposes.
A breakdown in communication during this changeover. XXXXX timely filed its federal extension,
but assumed that its accounting firm would file the state extension. The accounting firm assumed that XXXXX would
file the state extension. Consequently,
no state extension was ever filed. Petitioner agreed with the assessment of
interest but requested an abatement of the penalty, noting a history of timely
filing and the fact that XXXXX is not profitable this year. Respondent assessed a penalty of $$$$$ and
interest of $$$$$ as of XXXXX on a tax due of $$$$$. The balance due as of XXXXX amounted to $$$$$.
FINDINGS
Petitioner
had the burden of proof to establish that Respondent assessed penalty and
interest in error. Petitioner failed to
meet this burden of proof.
DECISION AND ORDER
It
is the Decision and Order of the Utah State Tax Commission that Petitioner's
request for waiver of penalty on corporation franchise tax account No. XXXXX
for the fiscal year XXXXX be denied.
The assessment of penalty and interest by the Collection Division of the
Utah State Tax Commission is hereby affirmed.
DATED
this 5 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