BEFORE THE UTAH STATE TAX
COMMISSION
__________________________________
In Re: )
:
XXXXX, ) FINDINGS OF FACT,
: CONCLUSIONS
OF LAW,
) AND FINAL
DECISION
:
)
: Appeal No.
92-1112
) 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. Representing Petitioner by telephone was
XXXXX, tax manager for Petitioner.
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.
3. Petitioner filed and paid its corporate
franchise tax for all of the years in question on XXXXX. Penalties and interest were also assessed on
each year.
4. Petitioner is a defense contractor with many
divisions countrywide.
5. The significant divisions of the corporation
are located outside of Utah.
6. Petitioner maintains a field marketing
office near an unnamed military base in Utah. This office employs two persons who basically solicit contracts
and receive products shipped by Petitioner to the facility.
7. In XXXXX, Petitioner handled its taxes
through its internal auditing division.
8. In XXXXX, Petitioner implemented a new separate
tax department with experienced tax personnel.
Tax manager XXXXX maintains this department.
9. Upon XXXXX arrival, the tax section began
overhauling the tax records and learned that Petitioner had many field
marketing offices in various states.
10. After months of research through records,
XXXXX determined how to apportion tax obligations through the different field
offices.
11. Petitioner then filed and paid its corporate
franchise taxes in numerous states.
According to XXXXX, many states have waived penalties since Petitioner
came forward voluntarily.
12. Per Tax Commission records, Petitioner was
never notified of delinquent taxes for the years in question prior to
Petitioner's XXXXX filings and payments.
13. Petitioner is seeking a waiver of penalties,
acknowledging its liability for 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
Based
upon the foregoing, the Tax Commission finds that sufficient cause has been
shown which would justify a reduction of the penalties for the years in
question to $200.00. 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