BEFORE THE UTAH STATE TAX COMMISSION
In Re: )
: INFORMAL DECISION
XXXXX ) Appeal No. 91-0928
: 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. No hearing was requested, therefore, this decision is based upon information contained in the Tax Commission's file.
Petitioner's corporate franchise tax return for XXXXX was due on XXXXX. It was filed on XXXXX and established a tax liability of $$$$$. Payment of the tax was made on XXXXX. Commission staff imposed a $$$$$ penalty against Petitioner for late filing of the return and an additional $$$$$ penalty for late payment of the tax due.
XXXXX was the only year Petitioner was required to file a franchise tax return. Petitioner's owner was unaware of the filing deadline. She was also preoccupied with her imminent wedding at the time. When the tax return was filed by her accountant, Petitioner's owner did not understand that any tax was due. She paid the tax as soon as she learned it was due.
DECISION AND ORDER
Utah law imposes a penalty of $50 or 10% of the tax, whichever is larger, for late filing of a tax-due return. An equal penalty is imposed for late payment of tax. The Commission may waive, reduce, or compromise such penalties upon a showing of reasonable cause. (Utah Code Ann. §59-1-401)
In view of Petitioner's lack of experience with franchise tax filings and the small amount of tax actually due, the Tax Commission finds sufficient cause does exist to waive the penalty associated with the Petitioner's corporate franchise tax for XXXXX. Interest charges are not waived, but will be recomputed to reflect the waiver of penalty granted by this decision. It is so ordered.
DATED this 29 day of May, 1991.
BY ORDER OF THE UTAH STATE TAX COMMISSION.
R. H. Hansen Roger O. Tew
Joe B. Pacheco G. Blaine Davis