91-0034
Corporation
Franchise
Signed 5/21/91
BEFORE THE UTAH STATE TAX
COMMISSION
_____________________________________
In Re: ) INFORMAL DECISION
XXXXX ) Appeal No. 91‑0034
) 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. Petitioner had initially requested a hearing
in this case, which had been set for XXXXX, but later requested that the case
be decided upon the information contained in the Tax Commission's file.
FINDINGS
The tax in question in this case is
corporate franchise tax for the period XXXXX through XXXXX. Petitioner states that it did not receive
the appropriate form (form TC‑20) from the Tax Commission for filing its
taxes for the period in question, but did receive a booklet containing four (4)
forms TC‑20 ES, Utah Estimated Corporation Franchise Tax Prepayment
forms. Petitioner cites the
Commission's attention to a paragraph in the general information section of the
TC‑20 ES booklet that reads as follows:
"Every corporation
subject to a corporate franchise tax by the State of Utah and expecting to have a Utah tax liability of $$$$$ or
more in the current year, or every
corporation which had a tax liability of
$$$$$ or more in the previous tax year, must make estimated tax prepayments of not less than 90% of
the anticipated tax liability."
Petitioner did not anticipate any tax
liability for the period in question.
In the previous tax year, Petitioner had a tax liability, which it paid,
in the amount of the $$$$$ minimum tax.
Based on the above, the Petitioner concluded that there was no tax
liability for the period in question and, therefore, did not file a
return. The instructions included with
the forms TC‑20 ES did not state that a minimum tax was required.
Although Petitioner should have been
aware of the requirement to pay the $$$$$ minimum tax for the period in
question because Petitioner had made that payment in previous years, the Tax
Commission finds that the Penalty should be waived because Petitioner had
received the wrong tax forms and instructions from the Commission which was the
cause of the confusion in this case. To
a taxpayer in Petitioner's situation, the instructions cited by Petitioner
could be confusing if the taxpayer relied solely upon those instructions. However, although the Commission finds that
the penalty should be waived, the Commission emphasizes that Petitioner should
have obtained and relied upon the complete instructions included with the usual
return (form TC‑20), with which Petitioner was familiar because
Petitioner had filed the form TC‑20 in the past.
DECISION AND
ORDER
The Tax Commission finds sufficient
cause does exist to waive the penalty associated with Petitioner's corporation
franchise tax for the period XXXXX through XXXXX. Interest shall be adjusted to account for the waiver of the
penalty. The XXXXX hearing date is
stricken. It is so ordered.
DATED this 21 day of May, 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
NOTICE: You
have twenty (20) days after the date of the final order to file a request for
reconsideration or thirty (30) days after the date of final order to file in
District Court a petition for judicial review.
Utah State Tax Commission Administrative Rule R861‑5A‑l(p)
and Utah Code Ann. '63‑46b‑14(3)(a).
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