92-0078 - Corporate Franchise

BEFORE THE UTAH STATE TAX COMMISSION

___________________________________

In Re: ) FINDINGS OF FACT,

: CONCLUSIONS OF LAW,

XXXXX & ) AND FINAL DECISION

XXXXX :

) Appeal No. 92-0078

: Account No. XXXXX

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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, XXXXX 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 period in question is the year XXXXX.

3. Petitioner filed its XXXXX Corporate tax return and paid the tax in the amount of ($$$$) on XXXXX. A $100.00 penalty was assessed, plus interest.

4. XXXXX is an accountant and the brother of the owner of XXXXX. He timely prepared the extension request for XXXXX and the check to cover the taxes.

5. He gave the extension request and check to his brother to mail.

6. It wasn't until Petitioner received the notice and demand for payment of taxes dated XXXXX that XXXXX learned that his brother had not mailed the documents he had been given.

7. XXXXX later found the unmailed extension request tucked away in a file. He never found the check.

8. His brother failed to mail the request and check due to an oversight.

9. Petitioner is requesting a waiver of the penalty 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

The Tax Commission did not receive Petitioner's return and check because of Petitioner's mishandling of the documents. Under these circumstances the Commission cannot waive the penalty and interest associated with the period in question.

Based upon the foregoing, the Tax Commission finds that sufficient cause has not been shown which would justify a waiver of the penalty and interest associated with the year XXXXX. It is so ordered.

DATED this 15th day of April, 1992.

BY ORDER OF THE UTAH STATE TAX COMMISSION.

R. H. Hansen Roger O. Tew

Chairman Commissioner

Joe B. Pacheco S. Blaine Willes

Commissioner Commissioner