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