BEFORE THE UTAH STATE TAX
COMMISSION
_____________________________________
XXXXX
:
Petitioner : FINDINGS OF FACT,
: CONCLUSIONS
OF LAW,
v. : AND FINAL DECISION
:
: Appeal No.
89-0633
COLLECTION
DIVISION OF THE :
STATE TAX COMMISSION
OF UTAH )
: Acct No.
XXXXX
Respondent :
_____________________________________
STATEMENT OF CASE
This
matter came before the Utah State Tax Commission pursuant to the Rules of
Administrative Procedure and the Administrative Procedures Act for formal
adjudicative proceedings on XXXXX.
Joseph G. Linford, Presiding Officer, heard the matter for and in behalf
of the Tax Commission. The Petitioner
was represented by XXXXX, C.P.A. There
were no representatives from Respondent present at the hearing.
Based
upon the recommendation of the Presiding Officer and the facts and evidence
presented at the hearing, the Tax Commission makes its
FINDINGS OF FACT
1. The tax in question is income tax.
2. The period in question is XXXXX.
3. During the period in question, Petitioner
recognized income from the sale of property which was owned by Petitioner. This sale was unusual for Petitioner and
extremely complex. Such a transaction
had never before been experienced by Petitioner. Because of the extremely complicated nature of this transaction,
involving several parties, it took Petitioner several months to obtain the
information needed to prepare and file its return.
4. Petitioner alleges that an extension was
prepared and filed. However, no such extension is on file with the Utah State
Tax Commission.
5. As a result of the above, the Petitioner's
tax return was not timely filed though Petitioner did all it could to file the
return timely and did file it as soon as circumstances would permit.
6. Petitioner also alleges that some breakdown
in communication between it and the Tax Commission complicated the matter. This breakdown occurred because
correspondence from the Tax Commission was sent to the address listed on Petitioner's
tax return, which apparently is the address of one of the attorneys involved in
the transaction in question. This
attorney evidently has not been forwarding such correspondence on to
Petitioner, or at least has not been doing so in a timely fashion.
CONCLUSIONS OF LAW
1. 6B Utah Code Ann. §59-1-401 (1987 Rep., 1989
Supp.) provides that penalties shall be assessed for the late filing of tax
returns.
2. 6B Utah Code Ann. §59-1-402 (1987 Rep.)
provides that interest in the amount of 12% per annum shall be applicable to
tax provisions administered directly by the Tax Commission.
3. 6B Utah Code Ann. §59-1-401(8) (l987 Rep.,
1989 Supp.) provides that upon reasonable cause shown the Tax Commission may
waive or reduce any penalties or interest imposed under the above statutes.
DECISION AND ORDER
The
Tax Commission hereby finds that due to the circumstances of this case, i.e.,
the unusual nature of the complicated transaction involved, the penalty
assessed against Petitioner should be and is hereby waived. However, interest in the amount of $$$$$ or
such amount as shall be determined by the Collection Division of the Utah State
Tax Commission as of the date of this order shall be yet due and payable by the
Petitioner. It is so ordered.
DATED
this 5th day of October, 1989.
BY ORDER OF THE UTAH STATE TAX COMMISSION.
ABSENT
R. H. Hansen Roger
O. Tew
Chairman Commissioner
Joe B.
Pacheco G.
Blaine Davis
Commissioner Commissioner