BEFORE THE UTAH STATE TAX
COMMISSION
_________________________________
In Re: )
:
: FINDINGS
OF FACT,
XXXXX, : CONCLUSIONS OF LAW,
: AND FINAL
DECISION
: Appeal No.
91-1338
________________________________
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, President and owner.
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,
XXXXX, and XXXXX.
3. On XXXXX, Petitioner filed and paid its
corporate franchise taxes in the amount of $$$$$ for the years in
question. Petitioner was assessed a
penalty for lateness in filing and payment for each of the three years $$$$$.
4. From XXXXX to XXXXX, XXXXX employed XXXXX,
XXXXX and XXXXX to handle his company's tax matters. Any tax correspondence received by Petitioner was automatically
forwarded to XXXXX. XXXXX was not a
certified public accountant.
5. Petitioner began receiving late tax
notices. XXXXX questioned XXXXX about
the problems. XXXXX told him that
everything was being taken care of.
6. In XXXXX, XXXXX employed XXXXX C.P.A., to
handle his financial affairs. Upon assuming XXXXX responsibilities, XXXXX
discovered the past due corporate taxes.
7. Petitioner immediately filed his returns and
paid the taxes in question on XXXXX.
8. Petitioner has timely filed and paid his
taxes since that time.
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
Under
the circumstances of this case, the owner was aware of the probability of tax
deficiencies when he continued to receive late notices over a three year
period. The owner waited too long
before addressing the problem directly.
Based
upon the foregoing, the Tax Commission finds that sufficient cause has not been
shown which would justify a waiver of the penalty associated with the corporate
franchise taxes assessed on the years XXXXX, XXXXX, and XXXXX. It is so
ordered.
DATED
this 29th day of January, 1991.
BY ORDER OF THE UTAH STATE TAX COMMISSION.
ABSENT
R. H. Hansen Roger
O. Tew
Chairman Commissioner
Joe B.
Pacheco S.
Blaine Willes
Commissioner Commissioner