92-1513 - Corporation Franchise & Income Tax

 

BEFORE THE UTAH STATE TAX COMMISSION

_____________________________________

XXXXX

Petitioner, : ORDER

v. : Appeal No. 92-1513

:

AUDITING DIVISION OF THE : Account No.XXXXX

UTAH STATE TAX COMMISSION, :

Respondent. : Tax Type: Corp. Franchise and

: Income Tax

_____________________________________

STATEMENT OF CASE

This matter came before the Utah State Tax Commission upon a Petition for Reconsideration and Request for Agency Action, filed XXXXX as a result of the Commission's final decision dated XXXXX.

APPLICABLE LAW

Utah Administrative Rule R861-1A-5(P) provides that a Petition for Reconsideration "will allege as grounds for reconsideration either a mistake in law or fact, or the discovery of new evidence." Under this rule, the Tax Commission may exercise its discretion in granting or denying a Petition for Reconsideration.

ANALYSIS

Prior to the Final Order, the Order of XXXXX issued by the Commission set forth the arrangement which resulted from a Status Conference held on XXXXX. At the Status Conference Petitioner was granted an extension of time to provide responses to interrogatories issued over a year ago. At the Status Conference, Petitioner agreed the failure to comply with this last in a series of extensions would constitute grounds for dismissal of this case.

The issue of subsequent operating losses which may be resolved by an audit being conducted for XXXXX and XXXXX and the desire to carry back any such losses were raised at the Status Conference. That matter, however, and the outcome of the audit being conducted for XXXXX and XXXXX, does not dictate whether Petitioner is entitled to keep its Appeal for audit years XXXXX, XXXXX, and XXXXX open despite its failure to comply with Commission orders. Whether, indeed, Petitioner will have net operating losses for years XXXXX, XXXXX, and XXXXX and whether Petitioner will be able to carry back those losses to prior years are not issues before the Commission in relation to the instant Appeal.


DECISION AND ORDER

Based upon the foregoing, it is the decision and order of the Utah State Tax Commission that the Petitioners' Requests for Reconsideration and Agency Action are denied. It is so ordered.

DATED this 5 day of October, 1995.

BY ORDER OF THE UTAH STATE TAX COMMISSION.

W. Val Oveson Roger O. Tew

Chairman Commissioner

Joe B. Pacheco Alice Shearer

Commissioner Commissioner