90-1559 - Corporation Franchise

 

BEFORE THE UTAH STATE TAX COMMISSION

_____________________________________

In Re: )

: FINDINGS OF FACT,

: CONCLUSIONS OF LAW,

XXXXX : AND FINAL DECISION

:

: Appeal No. 90-1559

: Account No. XXXXX

_____________________________________

STATEMENT OF CASE

This matter came before the Utah State Tax Commission for a formal telephone hearing on XXXXX. Joseph G. Linford, Presiding Officer, heard the matter for and on behalf of the Commission. Present and representing the Petitioner was XXXXX.

Based upon the evidence and testimony presented at the hearing, the Tax Commission hereby makes its:

FINDINGS OF FACT

1. The tax in question is corporation franchise tax.

2. The period in question is XXXXX to XXXXX.

3. Petitioner timely filed an application for extension of time on XXXXX. With that extension, Petitioner remitted a check in the amount of $$$$$ which Petitioner represented to be the minimum tax due in order to give effect to the extension.

4. Petitioner's tax liability for the year ending XXXXX was $$$$$. This consisted of the minimum tax liability of $$$$$ each for Petitioner and three other related corporations plus an additional $$$$$ for the educational funding tax, all of which was included under Petitioner's tax account number.

5. Petitioner submitted only $$$$$ with its XXXXX extension because two of the previous year's corporations were no longer operating in Utah and the educational funding tax had been repealed. Petitioner assumed that the $$$$$ minimum tax for each of the two remaining corporations was the amount required to validate the extension.

6. Based upon the foregoing, the Petitioner requests that the penalty assessed in this case be waived. Petitioner also questions the propriety of the amount of the penalty and contests that the amount is in error and does not conform to the provisions of Utah law.

7. Research into Tax Commission records indicates that Petitioner's contention as to the amount of the penalty is correct. The Commission has apparently imposed an additional XXXXX penalty beyond the appropriate amount. See Utah Code Ann. 59-1-401 and form TC-559 (Rev. 7-84).

CONCLUSIONS OF LAW

The Tax Commission is granted the authority to waive, reduce, or compromise penalties and interest upon a showing of reasonable cause. (Utah Code Ann. 59-1-401(8).)

DECISION AND ORDER

The Tax Commission finds that Petitioner's position has merit and that the penalty should be waived.

Based upon the foregoing, the Tax Commission finds that sufficient cause has been shown which would justify a waiver of the penalty associated with the period XXXXX to XXXXX. Interest shall be adjusted to account for the waiver of the penalty. It is so ordered.

DATED this 12 day of February, 1991.

BY ORDER OF THE UTAH STATE TAX COMMISSION

R. H. Hansen Roger O. Tew

Chairman Commissioner

Joe B. Pacheco G. Blaine Davis

Commissioner Commissioner