92-1575 - Corporate Franchise

BEFORE THE UTAH STATE TAX COMMISSION

_____________________________

In Re: ) FINDINGS OF FACT,

: CONCLUSIONS OF LAW,

XXXXX, ) AND FINAL DECISION

:

) Appeal No. 92-1575

: 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. Petitioner was represented by telephone by its former financial officer, XXXXX.

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 filed and paid its XXXXX corporate franchise tax on XXXXX. The return and payment were due XXXXX.

4. Petitioner's financial officer claims that Petitioner filed a federal extension request for XXXXX.

5. No state extension request was ever received for the same year.

6. Petitioner had been paying the minimum tax of $$$$$ for the years prior to XXXXX.

7. In XXXXX, however, Petitioner sold its XXXXX plant, creating greater tax liability. Petitioners paid $$$$$ in corporate franchise tax in XXXXX.

8. Because Petitioner did not file a state extension, the Tax Commission assessed two, ten percent penalties, one for late filing and the other for late payment.

9. Petitioner was late one other time in XXXXX.

10. The Commission previously waived one, ten percent penalty.

11. Petitioner is requesting a waiver of the remaining ten percent penalty and 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 waiver of the remaining penalty associated with the corporate franchise tax due on the year XXXXX. Interest is not waived. It is so ordered.

DATED this 21st day of December, 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