91-0836 - Corporation Franchise

 

BEFORE THE UTAH STATE TAX COMMISSION

_______________________________

In Re: ) FINDINGS OF FACT,

: CONCLUSIONS OF LAW,

XXXXX ) AND FINAL DECISION

:

: Appeal No. 91-0836

: Account No. XXXXX

_____________________________

STATEMENT OF CASE

This matter came before the Utah State Tax Commission for a formal hearing on XXXXX. Alan Hennebold, 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 period in question is the tax year XXXXX.

3. The Petitioner's tax return was due XXXXX. Petitioner obtained an extension of six months, making the return due XXXXX. The Petitioner filed the return on XXXXX, by certified mail, and included its check in the amount of $$$$$ to pay the tax liability established by the return.

4. The Commission has no record of receiving Petitioner's payment. In early XXXXX, Commission staff notified Petitioner that payment of the tax liability had not been received. The Petitioner reviewed its bank records, discovered that its prior check had not been presented for payment, and immediately issued check number XXXXX in payment of the tax liability.

5. As a result of the Petitioner's delay in paying the tax, Commission staff assessed a late payment penalty of $$$$$, together with interest in the amount of $$$$$ as of XXXXX. The penalty was subsequently waived by the Commission, leaving the interest still due.

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

In the present case, the evidence establishes that the Petitioner filed and paid its XXXXX corporate franchise tax in a timely fashion. Through no fault of the Petitioner, its check in payment of the tax was not cashed, and the tax liability was not satisfied until the end of XXXXX.

The Commission has previously waived all penalty charges assessed against the Petitioner. The Petitioner now seeks the waiver of interest charges for that period of time between its filing of the tax return in XXXXX and the payment of the tax in XXXXX. However, during that period of time the Petitioner had use of the funds which should have been paid to the Commission. Interest charges represent a reasonable charge for Petitioner's use of the funds.

Based upon the foregoing, the Tax Commission finds that sufficient cause has not been shown which would justify a waiver of the interest associated with the XXXXX corporate franchise tax assessment of the Petitioner. It is so ordered.

DATED this 27th day of August, 1991.

BY ORDER OF THE UTAH STATE TAX COMMISSION

R. H. Hansen Roger O. Tew

Chairman Commissioner

Joe B. Pacheco S. Blaine Willes*

Commissioner Commissioner