91-1312 - Corporation Franchise

BEFORE THE UTAH STATE TAX COMMISSION

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In Re: :

XXXXX, ) INFORMAL DECISION

: Appeal No. 91-1312

: 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 contained in the Tax Commission's file.

FINDINGS

Petitioner is a Colorado business. In XXXXX, Petitioner incurred a tax liability in Utah when one of its partnerships purchased oil and gas properties. Petitioner was first apprised of this new income source when it received the K-1 Form from the Internal Revenue Service in late XXXXX. Petitioner filed its XXXXX Utah corporate franchise return and paid the tax due in the amount of $$$$$ on XXXXX, approximately six months late. A $$$$$ penalty plus interest was assessed accordingly.

Petitioner has paid its subsequent returns and payments on time.

DECISION AND ORDER

The Tax Commission finds sufficient cause does not exist to waive the penalty associated with the corporate franchise tax due on the year XXXXX in that it is Petitioner's duty to ascertain its income sources and to handle the obligations deriving therefrom in a timely manner. It is so ordered.

DATED this 2 day of October, 1991.

BY ORDER OF THE UTAH STATE TAX COMMISSION.

ABSENT