94-1600

Corp. Fran.

Signed 2/27/95

BEFORE THE UTAH STATE TAX COMMISSION

____________________________________

XXXXX, )

:

Petitioner, : ORDER

:

v. : Appeal No. 94-1600

:

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 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 was XXXXX. Present and representing Respondent was XXXXX.

Petitioner is appealing penalties in the amount of $$$$$ and interest in the amount of $$$$$ assessed for Corporate Franchise Tax for the tax year XXXXX. The penalties consisted of a $$$$$ late filing fee, a $$$$$ late payment fee and a $$$$$ underpayment fee. Respondent had denied Petitioner's original waiver request for these penalties and interest.

At the conference Petitioner stated that it was never billed for the penally and interest but instead had received notice of transfer of credits.

Petitioner stated that it had used the federal annualization method for determining the amount of the tax as provided in Utah Tax Bulletin 2-89.

After reviewing the information provided by Petitioner, Respondent stated that in denying Petitioner's original waiver request it did not know that Petitioner had used the federal annualization tables and stated that the penalties should not have been imposed. Respondent recommended waiving the penalties in full.

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 waive the penalties associated with the XXXXX corporate franchise tax. Sufficient cause has not been shown to waive the interest associated with the XXXXX corporate franchise tax.

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 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

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