92-1216 - Corporate Franchise

BEFORE THE UTAH STATE TAX COMMISSION

__________________________________

In Re: ) FINDINGS OF FACT,

: CONCLUSIONS OF LAW,

XXXXX, ) AND FINAL DECISION

:

) Appeal No. 92-1216

: Account No. XXXXX

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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, 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 period in question is the year XXXXX.

3. Petitioner was created in XXXXX to handle one project.

4. XXXXX, the company president, hired certified public accountant, XXXXX, to handle its taxes.

5. XXXXX told XXXXX that he filed an extension for Petitioner's XXXXX corporate franchise taxes.

6. On XXXXX, XXXXX gave XXXXX the prepared tax return to sign. XXXXX mailed in the return along with the $$$$$ tax. Attached to the return was a copy of the federal return.

7. Later, XXXXX received a tax notice informing him of the $$$$$ late filing and $$$$$ late payment penalty assessments for the year in question. Additionally, Petitioner was assessed $$$$$ in legal fees.

8. Petitioner believes the penalties are excessive.

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).)

Further, the commission shall allow an extension of time, not exceeding six months, for filing returns if on or before the due date of the return an extension prepayment required by Section 59-7-126 is made to the commission. (Utah Code Ann. §59-7-123(3).)

DECISION AND ORDER

Based upon the foregoing, the Tax Commission finds that sufficient cause has not been shown which would justify a waiver of the penalties associated with the year in question. Petitioner failed to prepay the minimum tax of $$$$$ as required in this situation by $$$$$. Interest is not waived. It is so ordered.

DATED this 13th day of October, 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