BEFORE THE UTAH STATE TAX COMMISSION
Petitioner, : INFORMAL DECISION
: Appeal No. 93-2317
COLLECTIONS DIVISION OF THE ) Account No. XXXXX
UTAH STATE TAX COMMISSION, : Tax Type: Corp. Fran.
STATEMENT OF CASE
The Tax Commission held an informal hearing in this matter before Administrative Law Judge Lisa L. Olpin on XXXXX. XXXXX and XXXXX were present and represented XXXXX.
According to Tax Commission records, Petitioner filed its XXXXX corporate franchise tax return on XXXXX, although it was due XXXXX. As such, the Commission penalized Petitioner $$$$$ for failing to file on time and $$$$$ for failing to pay on time. Interest was also added.
Mr. XXXXX, an owner of this business, explained that he started the business in XXXXX. Since that time, he has never transacted any business, sold anything or hired anyone.
In XXXXX he received a letter from the Tax Commission telling him that Petitioner was required to file a return and pay corporate franchise taxes for XXXXX. Mr. XXXXX went to the Commission, filled out the return on the spot with the assistance of Commission personnel and paid $$$$$ in taxes and accumulated interest.
Prior to this time, Petitioner claims that he had no idea that he needed to file a return and pay a minimum tax regardless of the fact that the business never functioned during the prior year.
Curiously, Petitioner's account shows a $$$$$ corporate franchise tax credit for the year XXXXX. No return was ever filed for XXXXX, however. Mr. XXXXX can only speculate that he paid the $$$$$ when he first incorporated the business in XXXXX because he was told to do so at the time. Beyond that, he cannot explain how it is that Petitioner has a $$$$$ credit from XXXXX.
Later, in XXXXX, Petitioner received another letter from the Commission, informing him that he owed the two $$$$$ late filing and payment fees on the year XXXXX.
Petitioner is seeking a waiver of these two penalties.
DECISION AND ORDER
The Tax Commission finds sufficient cause does exist to waive the penalties associated with the corporate franchise tax due on the year XXXXX.
At the time Mr. XXXXX paid and filed the return in question, it is only fair that he should have been informed of the fact that these two penalties had attached or would attach shortly once the computer system updated.
It is so ordered.
DATED this 13th day of April, 1994.
BY ORDER OF THE UTAH STATE TAX COMMISSION.
W. Val Oveson Roger O. Tew
Joe B. Pacheco Alice Shearer
NOTICE: You have twenty (20) days after the date of the final order to file a request for reconsideration or thirty (30) days after the date of the final order to file in District Court a petition for judicial review. Utah State Tax Commission Administrative Rule R861-5A-1(p) and Utah Code Ann. '63-46b-14(3)(a).