BEFORE THE UTAH STATE TAX
COMMISSION
_________________________________
In Re: )
FINDINGS OF FACT,
: CONCLUSIONS
OF LAW,
XXXXX ) AND FINAL DECISION
:
: Appeal No.
91-0346
: Account
No. XXXXX
______________________________
STATEMENT OF CASE
This
matter came before the Utah State Tax Commission for a formal 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, CPA.
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 and XXXXX.
3. During the years in question, Petitioner was
in the process of going out of business.
Petitioner's last year of operations was in XXXXX, and Petitioner went
formally out of business in XXXXX.
4. In XXXXX there were changes in Petitioner's
stock ownership. When Petitioner filed
its extension for the XXXXX tax year, Petitioner, which was previously a
subchapter S corporation, was under the impression that there were no out of
state shareholders existing at that time.
Therefore, Petitioner made no tax payment with the extension. When the return was later prepared, it was
discovered that there was one nonresident shareholder, and that tax was,
therefore, due
5. In XXXXX, Petitioner filed its extension,
but did not file any payment with that extension. Petitioner believed that the $$$$$ tax had been paid with the
extension, but this was apparently not the case.
6. Petitioner has paid the tax and interest,
but not the penalty assessments.
Petitioner requests that the penalty be waived based upon the above
facts.
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
The
Tax Commission finds that reasonable cause to waive the penalties in this case
does not exist. Petitioner was assessed
a negligence penalty for each of the years in question. This penalty is appropriate since Petitioner
was negligent in neglecting to timely file and pay its taxes under the
circumstances noted above.
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 Petitioner's
corporate franchise tax for the tax years XXXXX and XXXXX. It is so ordered.
DATED
this 25th day of June, 1991.
BY ORDER OF
UTAH STATE TAX COMMISSION.
R. H. Hansen Roger
O. Tew
Chairman Commissioner
ABSENT
Joe B.
Pacheco G.
Blaine Davis
Commissioner Commissioner