BEFORE THE UTAH STATE TAX
COMMISSION
____________________________________
In Re: )
: INFORMAL
DECISION
XXXXX )
: Appeal No.
90-1682
:
: Account
No. XXXXX
___________________________________
STATEMENT OF CASE
This
matter came before the Utah State Tax Commission pursuant to the Administrative
Procedures Act and the rules of the Utah State Tax Commission for informal
proceedings. No hearing was requested,
therefore, this decision is based upon information contained in the Tax
Commission's file.
FINDINGS
The
Petitioner filed for an extension of its XXXXX corporation income and franchise
filing date. As had been its custom in
previous years, the Petitioner did not include payment of any estimated tax
due.
When
the Petitioner filed its return at the end of the extension period, it included
payment of its entire tax liability of $$$$$.
Because the Petitioner had not included payment of its tax liability at
the time it filed for an extension, Tax Commission staff considered the
Petitioner's extension request to have been ineffective. A late filing penalty of $$$$$ was imposed,
along with a $$$$$ penalty for Petitioner's failure to include tax payment with
the extension request. Later, when the
Petitioner submitted its tax payment of $$$$$, that payment was applied first
to accrued penalty and interest. As a
result, a portion of the tax liability remained unpaid. Another $$$$$ penalty was imposed for late
payment. Finally, a $$$$$ "legal
fee" was assessed, for a total penalty of $$$$$.
DECISION AND ORDER
Prior
to XXXXX, the Tax Commission would have recognized the Petitioner's extension
request, even though payment of the tax was not included with the request. After XXXXX, an extension request that did
not include payment of the tax liability was considered ineffective. This change in practice may have contributed
to the Petitioner's failure to properly file and pay its tax liability. The Tax Commission finds sufficient cause
does exist to waive all but $$$$$ of the penalty associated with the
corporation income and franchise tax for the XXXXX period. The Petitioner's liability for interest for
the XXXXX period is not waived, but will be recomputed in accordance with this
decision. It is so ordered.
DATED
this 10 day of April, 1991.
BY ORDER OF THE UTAH STATE TAX COMMISSION.
R. H. Hansen Roger
O. Tew
Chairman Commissioner
Joe B.
Pacheco G.
Blaine Davis
Commissioner Commissioner