91-1174 - Corporation Franchise

 

BEFORE THE UTAH STATE TAX COMMISSION

___________________________

In Re: ) FINDINGS OF FACT,

: CONCLUSIONS OF LAW,

XXXXX ) AND FINAL DECISION

: Appeal No. 91-1174

: Account No. XXXXX

___________________________

STATEMENT OF CASE

This matter came before the Utah State Tax Commission for a telephone prehearing conference on XXXXX. XXXXX, Administrative Law Judge, and XXXXX Presiding Officer, heard the matter for and on behalf of the Commission. Present and representing the Petitioner on the telephone was XXXXX. It was agreed that the prehearing conference would be converted to a formal telephone hearing.

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 Corporation Franchise Tax.

2. The period in question is the Fiscal Year ended XXXXX.

3. Petitioner is a multi-state corporation and their operations are based in XXXXX.

4. The Petitioner filed a federal extension and believed the federal extension would constitute a valid state extension. The Petitioner did not make any prepayment of the tax at the time the federal extension was filed.

5. The Petitioner filed the state tax return within the extension period and at that time they calculated and paid the penalty and interest for failure to prepay.

6. The Petitioner has been assessed a failure to file penalty and a failure to pay penalty, and is asking only that the failure to file be waived because of the valid federal extension.

7. The balance of the interest due is caused by the imposition of the failure to file penalty.

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

Because the Petitioner filed a valid federal extension and filed a copy of that extension with the state return, and further because they have already calculated and paid the failure to pay penalty in amount of 10% of the tax, together with interest due thereon, the remaining failure to file penalty and the balance of the interest should be waived.

Based upon the foregoing, the Tax Commission finds that sufficient cause has been shown which would justify a waiver of the failure to file penalty and the balance of the interest associated with the fiscal year ended XXXXX, Corporation Franchise Tax. It is so ordered.

DATED this 6th day of December, 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