BEFORE THE UTAH STATE TAX
COMMISSION
___________________________
In Re: ) FINDINGS OF FACT,
: CONCLUSIONS
OF LAW,
XXXXX ) AND FINAL DECISION
:
: Appeal No.
91-0347
: 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 Petitioner's
fiscal years of XXXXX through XXXXX, and XXXXX through XXXXX.
3. Petitioner began operations in Utah in
XXXXX, and was not aware that tax would be due for that year in Utah. Petitioner had just changed its CPA firm and
did not expect sufficient income in Utah upon which to pay tax for the year
XXXXX to XXXXX. Therefore, no extension
was filed, and the return and payment were filed late.
4. For the year XXXXX through XXXXX, an
extension was filed by Petitioner, but without the required prepayment. This extension was, therefore, invalid and
Petitioner's later filing of the return and payment of the tax was,
accordingly, untimely.
5. Petitioner requests that a waiver of the
penalty and interest be granted for the years in question.
CONCLUSIONS OF LAW
1. 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).)
2. Utah Code Ann. §59-10-516 and Utah
Administrative RuleR865-9I-23 provide that, in order for an extension to be
valid, a taxpayer must pay with the extension a prepayment of at least 90% of
the current year's tax liability or 100% of the previous year's tax liability.
DECISION AND ORDER
The
Petitioner has not presented anything which would indicate that reasonable
cause exists for waiver of the penalty and interest for the years in
question. Petitioner was negligent in
failing to properly file its extensions, and in timely filing and paying its
taxes. Therefore, the negligence
penalty and interest assessments are appropriate.
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
Petitioner's corporate franchise tax for Petitioner's fiscal years XXXXX
through XXXXX, and XXXXX through XXXXX.
It is so ordered.
DATED
this 25th day of June, 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