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.
R. H. Hansen Roger O. Tew
Joe B. Pacheco G. Blaine Davis