91-0853 - Corporation Franchise

 

BEFORE THE UTAH STATE TAX COMMISSION

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In Re: )

: INFORMAL DECISION

XXXXX ) Appeal No. 91-0853

: Account No. XXXXX

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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's calendar year ended XXXXX and on or before the due date Petitioner requested a six month extension in which to file its tax return but Petitioner did not enclose any payment with its application for extension.

Thereafter, Petitioner filed the required tax return within the extension period and it showed a minimum corporation franchise tax in the amount of $$$$$, which amount was paid with the filing of the tax return. The extension request was deemed to be invalid because of the failure to comply with the payment requirements, so a $$$$$ late filing penalty and a $$$$$ late payment penalty were both imposed, making the penalty amount 100% of the tax due.

DECISION AND ORDER

In view of the small amount of tax due, and the fact that the Petitioner did file a timely extension request, even though it was without payment the Commission exercises its discretion to waive the late filing penalty, but does not elect to waive the late payment penalty.

The Tax Commission finds sufficient cause does exist to waive the late filing penalty, but does not exist to waive the late payment penalty associated with the Corporation Franchise Tax for the calendar year ending XXXXX and the total penalty is therefore reduced to $$$$$. It is so ordered.

DATED this 8 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