92-1773 - Corporate Franchise

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