93-0742
CORPORATE FRANCHISE
Signed 4/17/96
BEFORE THE UTAH STATE TAX
COMMISSION
____________________________________
XXXXX,
Petitioner, : ORDER
:
v. : Appeal No. 93-0742
:
AUDITING
DIVISION OF THE : Account No. XXXXX
UTAH STATE TAX COMMISSION, :
:
Respondent. : Tax Type: CORPORATE FRANCHISE
_____________________________________
STATEMENT OF CASE
This
matter came before the Utah State Tax Commission for an Initial Hearing
pursuant to the provisions of Utah Code Ann. §59-1-502.5, by way of submission
from the parties based upon the briefs and information provided. G. Blaine Davis, Administrative Law Judge,
heard the matter for and on behalf of the Commission. Present in a telephone conference held on XXXXX and representing
Petitioners were XXXXX and XXXXX.
Present and representing Respondent were XXXXX, Assistant Attorney
General, together with XXXXX, XXXXX, and XXXXX from the Auditing Division.
Respondent
performed an audit on the books and records of Petitioner for the audit period
XXXXX through XXXXX. As a result of the
audit, an assessment of $$$$$ was made for additional Corporation Franchise
tax, together with interest thereon at the statutory rate. The audit assessment was made on XXXXX.
Prior
to the date of the audit assessment, the Petitioner had filed in the Bankruptcy
Court for the XXXXX a bankruptcy petition for reorganization under Chapter 11
of the Bankruptcy Code. The Petition
for Reorganization was filed on XXXXX and a Plan of Reorganization was confirmed
on XXXXX. Respondent was aware of the
filing of the bankruptcy petition, but Respondent never filed a Proof of Claim
pursuant to Section 501(a) of the Bankruptcy Code. Therefore, the Plan of Reorganization did not provide for any
payments to the state of Utah. The
Bankruptcy Court in Texas entered an Order confirming the Plan of
Reorganization, which did not provide for any payments to the Utah State Tax
Commission for the tax which is at issue in this proceeding.
The
parties were given an opportunity to file briefs relating to the issue. Petitioner filed substantial documentation
including copies of the bankruptcy court documents, but Respondent did not file
a brief relating to the issue. However,
in a subsequent telephone call with XXXXX, Assistant Attorney General,
representing Respondent, it was indicated that he believes the debt was
probably discharged by the bankruptcy court, and did not feel it was worth his
time to file a brief to try to argue otherwise.
Petitioner
does dispute the correctness of the assessment of additional Corporate
Franchise taxes, but argues that in view of the discharge of the bankruptcy
court that regardless of any determination by the Commission, any amount of
such taxes has been discharged so that it is a useless effort to determine the
issues related to the correctness of the audit assessment.
DECISION AND ORDER
Based
upon the foregoing, including the documents and information presented by the
Petitioner and the Respondent’s concurrence that it has likely been discharged,
the Commission finds that the taxes imposed by said audit assessment have been
discharged and that the case is therefore moot and should not go forward. The appeal is therefore dismissed, with
instructions to abate any tax, penalty
and interest assessed by the audit.
This
decision does not limit a party's right to a Formal Hearing. However, this Decision and Order will become
the Final Decision and Order of the Commission unless any party to this case files
a written request within thirty (30) days of the date of this decision to
proceed to a Formal Hearing. Such a
request shall be mailed to the address listed below and must include the
Petitioner's name, address, and appeal number:
Utah State Tax Commission
Appeals Division
210 North 1950 West
Salt Lake City,
Utah 84134
Failure
to request a Formal Hearing will preclude any further administrative action or
appeal rights in this matter.
DATED
this 17 day of April, 1996.
BY ORDER OF THE UTAH STATE TAX COMMISSION.
W. Val
Oveson Roger
O. Tew
Chairman Commissioner
Joe B.
Pacheco Alice
Shearer
Commissioner Commissioner
^^