91-1316 - Corporation Franchise

 

BEFORE THE UTAH STATE TAX COMMISSION

________________________________

In Re: )

:

XXXXX, ) FINDINGS OF FACT,

: CONCLUSIONS OF LAW,

: AND FINAL DECISION

: Appeal No. 91-1316

_____________________________

STATEMENT OF CASE

This matter came before the Utah State Tax Commission for a formal hearing on XXXXX. Lisa L. Olpin, Presiding Officer, heard the matter for and on behalf of the Commission. Present and representing the Petitioner was XXXXX Vice President of XXXXX.

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 corporate franchise tax.

2. The periods in question are the years XXXXX and XXXXX.

3. Petitioner is a corporation that owns XXXXX in XXXXX. These XXXXX contain XXXXX. The XXXXX for these XXXXX is XXXXX at present, thus this corporation is nearly defunct. Petitioner hopes that there will be a need for these XXXXX in the future.

4. Vice-President, XXXXX, helped to buy out the corporation in XXXXX. The President, prior to the new ownership, was XXXXX. XXXXX was relieved of his duties after it was determined that he was XXXXX and had not been properly taking care of the company's financial obligations, such as paying taxes, for several years.

5. XXXXX obtained treatment for his XXXXX at the XXXXX after his departure.

6. XXXXX states that the corporation has recently paid over $$$$$ in back taxes to both the state and federal governments.

7. Petitioner is now before the Commission for failing to timely file and pay taxes in the amount of $$$$$ for the year XXXXX. Petitioner did not file and pay until XXXXX. A $$$$$ penalty plus interest was assessed.

8. Petitioner also failed to timely file and pay taxes in the amount of $$$$$ for the year XXXXX. Petitioner did not file and pay until XXXXX. A $$$$$ penalty plus interest was assessed. (The $$$$$ is derived from the $$$$$ per month charge for failing to pre-pay at the time of the extension request.)

9. Petitioner is requesting a waiver of both penalties and interest.

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

Based upon the foregoing, the Tax Commission finds that sufficient cause has been shown which would justify a waiver of the penalty associated with the tax years of XXXXX and XXXXX. It is so ordered.

DATED this 19th 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