94-1462

Corporation Franchise

Signed 3/9/95

BEFORE THE UTAH STATE TAX COMMISSION

____________________________________

XXXXX, )

:

Petitioner, : ORDER

:

v. : Appeal No. 94-1462

:

COLLECTION DIVISION OF THE : Account No.XXXXX

UTAH STATE TAX COMMISSION, :

:

Respondent. : Tax Type: Corporation Franchise

_____________________________________

STATEMENT OF CASE

This matter came before the Utah State Tax Commission for a Settlement Conference pursuant to the provisions of Utah Code Ann. §59-1-502.5, on XXXXX. Jane Phan, Administrative Law Judge, heard the matter for and on behalf of the Commission. Present and representing Petitioner were XXXXX. Present and representing Respondent was XXXXX.

Petitioner was assessed penalties of $$$$$ and interest of $$$$$ relating to the late payment and filing of corporate franchise tax for the period from XXXXX. Petitioner had requested a waiver of these penalties and interest from the Collection Division Waiver Unit who denied the request.

Petitioner's representatives stated that Petitioner is a XXXXX with a XXXXX. In the year in question Petitioner had an XXXXX. Because of this, the XXXXX and the fact that Petitioner's XXXXX could not review the information right away, it was XXXXX XXXXX before Petitioner could determine the amount of the tax liability. As soon as the tax liability was determined Petitioner did file and pay.

Realizing there would be a delay, Petitioner filed an extension but did not pay an estimated amount because Petitioner did not think that any amount of taxes would be due.

Respondent stated that Petitioner should have been filing on a XXXXX because the Petitioner had a liability of over $$$$$ in the prior year. Further, Respondent stated that for the prior year a penalty had been assessed against Petitioner for not filing XXXXX, then Petitioner was granted a waiver because it was a first time filing error. Respondent did recommend reducing the penalties to the XXXXX late penalty which would decrease the penalties from $$$$$ to $$$$$.

In considering Petitioner's request for waiver or reduction of the interest the Tax Commission applies more stringent reasonable cause standards because Petitioner continued to enjoy the benefit of the use of the funds and the State of Utah was denied the benefit of the use of the funds from the time the underlying taxes were due until they were actually paid by Petitioner.

DECISION AND ORDER

Based upon the information presented at the conference, and the records of the Tax Commission, the Commission finds sufficient cause has been shown to reduce the penalties from $$$$$ to $$$$$ for the corporate franchise tax for the XXXXX tax period. Sufficient cause had not been show to waive or reduce the interest assessed.

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 9th day of March, 1995.

BY ORDER OF THE UTAH STATE TAX COMMISSION.

W. Val Oveson Roger O. Tew

Chairman Commissioner

Joe B. Pacheco Alice Shearer

Commissioner Commissioner

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