BEFORE THE UTAH STATE TAX
COMMISSION
______________________________
In Re: )
:
) INFORMAL
DECISION
XXXXX :
XXXXX )
: Appeal No.
92-1773
) Account
No. XXXXX
_____________________________________
STATEMENT OF CASE
This
matter came before the Utah State Tax Commission pursuant to the Administrative
Procedures Act and the rules of the Utah State Tax Commission for informal
proceedings. No hearing was requested,
therefore, this decision is based upon information contained in the Tax
Commission's file.
FINDINGS
Petitioner
pre-paid its XXXXX corporate franchise tax ($$$$$) in March XXXXX. At the time, Petitioner did not file a
return with the pre-payment as the paperwork was not assembled for proper
filing.
Petitioner
sent in the pre-payment, realizing that the minimum tax would be due
regardless. Petitioner has a history of
paying the corporate franchise tax on time.
In
November XXXXX, Petitioner's accountant completed the necessary paperwork and
filed the return. This return included
an extension request for XXXXX.
Petitioner did not owe any more tax than the $$$$$ already remitted
months earlier.
Petitioner
was late in filing the return due to substantial contractual litigation in
XXXXX, involving much of the corporate staff's time out of state. One lawsuit Petitioner filed against the
city of XXXXX settled in XXXXX.
Currently,
the corporation exists in name only while other lawsuits remain
outstanding. These lawsuits have put
Petitioner out of business.
Initially,
Petitioner was assessed two $$$$$ penalties for lateness. The Commission reduced the $$$$$ amount to a
single $$$$$ penalty.
According
to Tax Commission records, Petitioner should have only been penalized $$$$$ in
the first place as the pre-payment amount was sent in before the due date.
DECISION AND ORDER
The
Tax Commission finds sufficient cause does exist to waive the remaining penalty
associated with the corporate franchise tax due on the year XXXXX. Interest is also waived. It is so ordered.
DATED
this 13th day of January, 1993.
BY ORDER OF THE UTAH STATE TAX COMMISSION.
R. H. Hansen Roger
O. Tew
Chairman Commissioner
Joe B.
Pacheco S.
Blaine Willes
Commissioner Commissioner