BEFORE THE UTAH STATE TAX
COMMISSION
_____________________________________
In Re: )
: INFORMAL
DECISION
XXXXX ) Appeal No. 91-1244
: 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.
FINDINGS
The
fiscal year of the Petitioner ended on XXXXX.
On XXXXX, the Petitioner had prepaid a sum of $$$$$ to apply to the
corporation franchise tax. The
Petitioner presumably filed a timely extension request, and then filed their
return on XXXXX, the due date of the return with an extension request. The amount of tax due was $$$$$, less the
$$$$$ prepayment, for a balance due of $$$$$.
A penalty was imposed in the amount of $$$$$ for failure to meet the
requirement to pay at least %%%%% of the tax, and interest was also added.
A
later additional penalty in the amount of $$$$$ was added because Petitioner
did not timely pay the penalty amount, although they did timely pay the
interest.
The
fiscal year ended XXXXX, was the first year of operation in Utah for the
Petitioner, so they were not required to meet the 90% prepayment requirement because
they had no tax for the prior period.
Therefore, the $$$$$ penalty was later abated, so, the $$$$$ penalty
which still remains on this account is a penalty which was imposed for failing
to timely pay a penalty which has now been abated.
DECISION AND ORDER
The
Tax Commission finds sufficient cause does exist to waive the penalty
associated with the corporation franchise tax for the fiscal year ended
XXXXX. 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