BEFORE THE UTAH STATE TAX
COMMISSION
____________________________________
In Re: )
:
XXXXX, ) FINDINGS OF FACT,
: CONCLUSIONS
OF LAW,
) AND FINAL
DECISION
:
) Appeal No.
92-0368
: Account
No. XXXXX
_____________________________________
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. Petitioner was represented by XXXXX by telephone.
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 years in question are XXXXX and XXXXX.
3. Petitioner filed and paid its corporate
franchise tax for the year ending XXXXX on XXXXX, nearly four months late.
4. Petitioner filed and paid the same tax for
the year ending XXXXX on XXXXX, nearly five months late.
5. For each period, Petitioner owed the minimum
tax of $$$$$.
6. The Tax Commission assessed Petitioner two
$$$$$ penalties for late payment and late filing for each quarter in
question. Petitioner's owner acknowledged
he began receiving penalty notices for the periods in question in XXXXX.
7. Tax Commission records show that late
notices were sent in XXXXX.
8. Owner XXXXX Testified that the company was
involved in a $$$$$ breach of contract lawsuit in XXXXX that caused financial
hardship over the succeeding years.
9. Internal Revenue Service audits resulted in
further problems. When federal taxes
were paid, the I.R.S. waived a portion of the penalties.
10. In addition to the financial hardship,
Petitioner asserts that the penalties should be waived because he believes that
the three year statute of limitations has run on this case.
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
Both
Petitioner and the Tax Commission agree that Petitioner was notified of the tax
deficiencies for the years in question within three years of the franchise tax filing
deadlines. Under these facts, there is
no viable statute of limitations defense.
The penalties were assessed on the dates Petitioner filed the returns;
the Commission notified Petitioner of the deficiencies within three years.
In
light of all of the circumstances of this case, the Tax Commission finds that
sufficient cause has not been shown which would justify a waiver of the
penalties in question for the years XXXXX and XXXXX. Interest is not waived.
It is so ordered.
DATED
this 7th day of January, 1993.
BY ORDER OF THE UTAH STATE TAX COMMISSION.
R. H. Hansen Roger
O. Tew
Chairman Commissioner
Joe B.
Pacheco S.
Blaine Willes
Commissioner Commissioner