87-1035 - Corporate Franchise

 

BEFORE THE STATE TAX COMMISSION OF UTAH

_____________________________________

XXXXX

Petitioner, :

v. : INFORMAL DECISION

COLLECTION DIVISION OF THE : Appeal No. 87-1035

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 tax account No. XXXXX for the period 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 corporation had planned to liquidate in XXXXX, but that due to the actions of two dissident stockholders the corporation was liquidated in XXXXX. This accelerated the due date of the return by approximately three months. Petitioner had sold coal property on an installment basis and was expecting a payment in XXXXX. Had Petitioner liquidated in XXXXX as originally planned this payment would have been received in time to pay the Utah tax liability. Since Petitioner liquidated in XXXXX this XXXXX payment was not received in time to pay the tax on the accelerated due date. Petitioner requests a waiver of penalty and interest.

FINDINGS

Petitioner was negligent in failing to apprise itself of the laws of the state of Utah when it decided to chance its liquidation date which decision accelerated the due date of the return.

Respondent properly assessed penalty and interest on this account.

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 tax account No. XXXXX for the period 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 15 day of October, 1987.

BY ORDER OF THE STATE TAX COMMISSION OF UTAH.

ABSENT