92-0996 - Corporate Franchise

 

BEFORE THE UTAH STATE TAX COMMISSION

_______________________________

In Re: )

:

XXXXX ) FINDINGS OF FACT,

: CONCLUSIONS OF LAW,

: AND FINAL DECISION

:

: Appeal No. 92-0996

: 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. Present and representing the Petitioner was XXXXX, Petitioner's accounting manager.

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 XXXXX through September XXXXX.

3. The penalties assessed for the period in question have been waived previously by the Tax Commission.

4. Petitioner is requesting a waiver of the interest.

5. Petitioner's fiscal year ends XXXXX.

6. On XXXXX, Petitioner filed for an extension for the year in question and paid $$$$$ in prepayment. The previous year, Petitioner paid $$$$$ in total corporate franchise taxes.

7. On XXXXX, Petitioner filed its corporate franchise tax return and owed an additional $$$$$.

8. Penalty and interest was assessed.

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).) Pertinent to this case is the following statute:

every corporation... expecting to have a tax liability of $$$$$ or more in the current tax year... shall make payments of estimated tax in the same manner as provided for corporations in the I.R.S. Code...

(2) If a quarterly estimated tax payment is not made or is underpaid... there shall be added a penalty...

(3) The penalty or interest may be waived... if(a)the total estimated tax payments for the tax year equal or exceed the tax liability for the previous year; (b) the total estimated tax payments for the tax year are equal to 90% of the current year tax liability; or (c) the total estimated tax payments equal 90% of the tax liability computed on the current year's income using the previous year's tax law. (Utah Code Ann. 59-7-122.5 (1-3).

DECISION AND ORDER

In accord with the Utah Code Ann. 59-7-122.5(3), the Tax Commission previously waived all penalties assessed. The interest that was assessed on the quarterly payments that Petitioner should have been paying is not waived.

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

DATED this 20th day of August, 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