92-0868 - Corporate Franchise

BEFORE THE UTAH STATE TAX COMMISSION

____________________________________

In Re: )

:

XXXXX, ) FINDINGS OF FACT,

: CONCLUSIONS OF LAW,

) AND FINAL DECISION

:

) Appeal No. 92-0868

: Account No. XXXXX

_____________________________________

STATEMENT OF CASE

This matter came before the Utah State Tax Commission for a formal hearing on XXXXX. XXXXX, Presiding Officer, heard the matter for and on behalf of the Commission. Present and representing the Petitioner was XXXXX, president. 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. Petitioner filed and paid its XXXXX, XXXXX and XXXXX corporate franchise tax on XXXXX.

4. Petitioner owed $$$$$ for each year in question. It was penalized $$$$$ plus interest for each year.

5. Petitioner became incorporated in XXXXX. The president of the company employed an accountant at that time.

6. In XXXXX, Petitioner received a notice and demand for payment of the taxes in question. This was the first time XXXXX ever received a notice from the Tax Commission regarding the payment of corporate franchise tax.

7. Tax Commission records show that the first mailing of such notice to Petitioner was sent in XXXXX.

8. XXXXX had no knowledge of corporate franchise tax liability. He states that at the time he started his business no information was given him regarding the tax. Further, none of Petitioner's accountants told XXXXX about corporate franchise tax filings or billings.

9. Upon receipt of the XXXXX notice, XXXXX contacted his present accountant who explained to him that the tax was legitimate.

10. XXXXX then paid the tax.

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 penalties associated with the years in question. Interest is not waived. It is so ordered.

DATED this 20th day of August, 1992.

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