BEFORE THE UTAH STATE TAX
COMMISSION
____________________________________
XXXXX,
Petitioner, : FINDINGS OF FACT,
: CONCLUSIONS
OF LAW,
v. : AND FINAL DECISION
:
COLLECTION
DIVISION OF THE : Appeal No. 90-1561
UTAH STATE TAX COMMISSION, :
: Account
No. XXXXX
Respondent. :
_____________________________________
STATEMENT OF CASE
This
matter came before the Utah State Tax Commission for a formal hearing on
XXXXX. Paul F. Iwasaki, Presiding
Officer, heard the matter for and on behalf of the Commission. Present and representing the Petitioner was
XXXXX, attorney at law.
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 corporate income tax.
2. The period in question is the fourth quarter
XXXXX.
3. The Petitioner corporation was formed with
the sole purpose of acquiring property located in XXXXX.
4. After the Petitioner entered into a contract
to purchase the property, its plans changed.
Thereafter the Petitioner sold its contract to another party, thus
creating a taxable gain. That
transaction was the sole transaction the Petitioner did in Utah.
5. The Petitioner had employed a management
corporation whose responsibility was to manage the accounting and tax functions
of the Petitioner.
6.
When the proceeds from the sale were
received by the management company, the funds were deposited in an account
separate from the Petitioner's. It was not until sometime after the transaction
that the sales were booked into the records of the Petitioner.
7. In XXXXX, an audit of their books by the
management company revealed that the tax on the gains made by the Petitioner
had not been paid. A return was
immediately filed along with an estimate of the tax due. That occurred on or about XXXXX.
8. As a result of the untimely filing and
payment of the $$$$$ in tax due, a penalty in the amount of $$$$$ was assessed
as well as interest applied at the statutorily prescribed rate.
9. The Petitioner seeks waiver of the penalty
amount only.
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
Based
upon the foregoing, the Tax Commission finds that sufficient cause has been
shown which would justify a reduction of the penalty associated with the fourth
quarter XXXXX corporate income tax to the amount of XXXXX of the tax due. It is so ordered.
DATED
this 27 day of November, 1990.
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