92-1889 - Corporate Franchise

BEFORE THE UTAH STATE TAX COMMISSION

____________________________________

In Re: )

:

XXXXX, ) FINDINGS OF FACT,

: CONCLUSIONS OF LAW,

) AND FINAL DECISION

:

) Appeal No. 92-1889

: Account No. XXXXX

_____________________________________

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 Petitioner was XXXXX, office manager.

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 beginning XXXXX through XXXXX.

3. Petitioner had been assessed a late payment penalty that was later abated.

4. Petitioner is requesting a waiver of the remaining interest amount.

5. Petitioner's office manager, XXXXX, testified that Petitioner's return for the year in question was sent on XXXXX following an extension request with a full payment check.

6. In XXXXX, Petitioner received notice from the Tax Commission that Petitioner had not paid the tax amount due for the year in question.

7. Petitioner learned that check number 5401 sent in with the return had not yet cleared its bank account.

8. Petitioner then sent a second check to the Tax Commission which cleared in XXXXX.

9. Petitioner has no idea what happened to the first check.

10. Petitioner is seeking a waiver of the interest amount charged on its account for the period in question because 1) it is the Tax Commission's fault that the check was lost and 2) the checking account upon which the payment check was drawn was not an interest-bearing account.

11. Petitioner submitted a copy of lost check #5401 and copies of other checks, showing that check #5401 was written in XXXXX in sequential order.

12. XXXXX has verified that the checking account from which the first check was drawn is, in fact, a non-interest-bearing account.

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 not been shown which would justify a waiver of the interest associated with the corporate franchise tax due on the year in question. Regardless of the fact that Petitioner maintained a non-interest bearing account, Petitioner still had use of the money during this time. It is so ordered.

DATED this 22nd day of June, 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