90-1620 - Corporation Franchise

 

BEFORE THE UTAH STATE TAX COMMISSION

____________________________________

In Re: ) FINDINGS OF FACT,

: CONCLUSIONS OF LAW,

XXXXX ) AND FINAL DECISION

:

: Appeal No. 90-1620

: 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 corporate franchise tax.

2. The periods in question are the tax years XXXXX through XXXXX, and XXXXX through XXXXX.

3. Petitioner began business on XXXXX, and elected to have its tax year be from XXXXX through XXXXX for each tax year. For the tax year XXXXX through XXXXX, Petitioner tried to do its own tax return and filed the return with the wrong filing period. When Petitioner brought the return to their professional tax preparer in early XXXXX, he found that error and filed an amended return for the period from XXXXX, when Petitioner began business operations, to XXXXX, which was the end of Petitioner's tax year. The tax preparer also prepared the return for Petitioner for the tax year XXXXX through XXXXX.

4. The payment and filing of the tax for the period XXXXX through XXXXX was not made until XXXXX. The filing and payment for the tax year XXXXX through XXXXX was not made until XXXXX. The due dates for the returns were XXXXX and XXXXX, respectively.

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

It is apparent that the untimeliness of Petitioner's filing and payment of the taxes in question was due to the negligence of Petitioner, and the negligence penalties which have been assessed are therefore appropriate and should not be waived. Interest should also not be waived because the state was deprived of the use of the tax funds in question for a period of time, through no fault of its own, and should be compensated for that loss of use.

Based upon the foregoing, the Tax Commission finds that sufficient cause has not been shown which would justify a waiver of the penalty and interest associated with the tax years XXXXX through XXXXX, and XXXXX through XXXXX. It is so ordered.

DATED this 12 day of April, 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