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operating in Utah and the educational funding tax had been repealed.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