BEFORE THE UTAH STATE TAX
COMMISSION
____________________________________
In Re: ) FINDINGS OF FACT,
: CONCLUSIONS
OF LAW,
XXXXX ) AND FINAL DECISION
:
: Appeal No.
90-1578
: 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 were
XXXXX and XXXXX, President of Petitioner.
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 tax.
2. The period in question is the tax year
XXXXX.
3. In XXXXX Petitioner relocated from XXXXX to
XXXXX, Utah. When filing its income tax
return for the year in question, Petitioner alleges that it also filed an
extension with that return. No
prepayment, however, was filed with that extension because Petitioner did not
earn any Utah income the previous year and felt that no prepayment was
required.
4. In making the above assumption, Petitioner
relied on instructions contained with form TC-867 regarding the filing of
extensions on corporate tax returns.
The language to which Petitioner draws the Commission's attention is as
follows:
The
prepayment amount(s) must equal the minimum tax or 90% of the current year's
tax, whichever is greater, or 100 percent of the previous tax period.
5. Research into Tax Commission records does not
show that an extension was filed.
Petitioner filed its tax return on XXXXX.
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
Although
the instructions from the Tax Commission referred to by Petitioner can be
confusing as to the actual amount of the prepayment in a situation such as that
of Petitioner, a prudent taxpayer would elect to make some prepayment even
though the previous year's Utah income equaled zero. Even if this were not so, however, since according to Tax
Commission records Petitioner did not file an extension, then Petitioner's
filing in XXXXX was untimely.
Based
upon the foregoing, the Tax Commission finds that sufficient cause has not been
shown which would justify a waiver of the penalty associated with the tax year
XXXXX. It is so ordered.
DATED
this 6th day of February, 1991.
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