94-1590
Corporate Franchise
Signed 2/27/95
BEFORE
THE UTAH STATE TAX COMMISSION
____________________________________
XXXXX
Petitioner, : INFORMAL DECISION
)
v. : Appeal No. 94-1590
)
COLLECTION DIVISION OF THE : Account
No. XXXXX
UTAH STATE TAX COMMISSION, )
:
Respondent. ) Tax Type: Corp. Fran.
_____________________________________
STATEMENT
OF CASE
This matter came before the Utah State Tax
Commission pursuant to the Administrative Procedures Act and the rules of the
Utah State Tax Commission for informal proceedings. An informal hearing was held on XXXXX. Jane Phan, Administrative Law Judge, heard the matter for and on
behalf of the Commission. Present and
representing Petitioner by telephone conference call was XXXXX. Present and representing Respondent was
XXXXX.
Based upon the evidence and testimony
presented at the informal hearing, the Commission makes its:
FINDINGS
A penalty of $$$$$ and interest of
approximately $$$$$ was assessed against Petitioner relating to corporate
franchise tax for the XXXXX tax year. Petitioner had requested a waiver of
penalty and interest which was denied by the Collection Division Waiver Unit.
The underlying amount of the tax was $$$$$.
Petitioner is a corporation whose principal
officer died in a car accident in XXXXX.
Petitioner's representative at the hearing stated that although he and
others were officers or directors of the Petitioner at the time the tax was due
they were not actively involved in the operations or management of
Petitioner. In XXXXX the decedent's
wife received a Notice and Demand For Payment of Taxes which at that time
indicated the assessment of the penalty and interest against Petitioner. The representative for Petitioner at the
hearing stated that this was the first notice that he or any other officer or
director of the Petitioner had of the tax liability. Petitioner's representative stated that because of the death of
the principal of the corporation, who was the only person who would have known
that taxes were due, the penalty should be waived.
At the hearing Respondent stated that the
return for which the taxes were owed was filed by Petitioner on XXXXX and it
was at that time that the payment of the tax should have been made. It was the Respondent's position that since
the payment should have been made on XXXXX, which was several months prior to
the death of the principal, the penalty and interest were validly assessed.
APPLICABLE 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(10).)
DECISION
AND ORDER
The Tax Commission finds sufficient cause
does not exist to waive the penalty or interest associated with the Corporate
Franchise Tax for the year ending XXXXX.
It is so ordered.
DATED this 27 day of February, 1995.
BY ORDER OF THE UTAH STATE TAX COMMISSION.
W. Val Oveson Roger
O. Tew
Chairman Commissioner
Joe B. Pacheco Alice Shearer
Commissioner Commissioner
NOTICE:
You have twenty (20) days after the date of a final order to file a
Request for Reconsideration with the Commission. If you do not file a Request for Reconsideration with the
Commission, you have thirty (30) days after the date of a final order to file a
Petition for Judicial Review by trial de novo in district court. (Utah Administrative Rule R861-1-5A(P) and
Utah Code Ann. '63-46b-15.)
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