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