BEFORE THE UTAH STATE TAX
COMMISSION
______________________________
In Re: )
:
XXXXX ) FINDINGS OF FACT,
: CONCLUSIONS
OF LAW,
: AND FINAL
DECISION
:
: Appeal No.
92-2316
: 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. Representing the Petitioner was 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 years in question are XXXXX, XXXXX,
XXXXX and XXXXX.
3. The Tax Commission assessed Petitioner a
penalty for failing to file and a penalty for failing to pay the minimum
corporate franchise tax on the tax years in question. Interest was also added.
4. Petitioner's owner, XXXXX, testified that he
was unaware of the need to file and pay corporate franchise tax in situations
such as his where the business exists in name only and without any assets,
business transactions, etc.
5. Further, XXXXX stated that he has not been
receiving mail from the Tax Commission over the years. In XXXXX, he said that the Postal Service
delivered him a packet of envelopes addressed to Petitioner from the Tax
Commission that were years old. XXXXX
then went to the Commission to resolve Petitioner's account.
6. Petitioner is requesting a waiver of the
penalty and interest amounts.
7. Tax Commission records show that Petitioner
filed late corporate franchise tax returns for the years XXXXX, XXXXX and
XXXXX. The XXXXX return was filed in
XXXXX, the XXXXX return was filed in XXXXX and the XXXXX return was filed in
XXXXX.
8. Further, a line on each of the returns
Petitioner filed apprised Petitioner of the corporation's responsibility to pay
the $$$$$ minimum or 5% of the taxable income, whichever is greater.
9. In fact, Petitioner acknowledged the $$$$$
tax amount due on its XXXXX return.
CONCLUSIONS OF LAW
The
Tax Commission is granted the authority to waive, reduce, or compromise
penalties and interest upon a showing of reasonable cause. (Utah Code Ann.
§59-1-401(8).)
DECISION AND ORDER
Based
upon the foregoing, the Tax Commission finds that sufficient cause has not been
shown which would justify a waiver of the late penalties assessed on each of
the years in question. The penalties
are not waived because Petitioner knew it had an obligation to file, but did so
after deadlines had passed. Petitioner
also knew (or at least, should have known) of the $$$$$ minimum corporate
franchise tax as the returns themselves clearly stated this requirement. It is so ordered.
DATED
this 14th day of December, 1993.
BY ORDER OF THE UTAH STATE TAX COMMISSION.
W. Val
Oveson Roger
O. Tew
Chairman Commissioner
Joe B.
Pacheco Alice
Shearer
Commissioner Commissioner