95-0492

Corporate Franchise

Signed 6/21/95

BEFORE THE UTAH STATE TAX COMMISSION

____________________________________

XXXXX, )

:

Petitioner, ) INFORMAL DECISION

:

v. )

:

COLLECTION DIVISION OF THE ) Appeal No. 95-0492

UTAH STATE TAX COMMISSION, :

) Account No. XXXXX

:

Respondent. ) Tax Type: Corporate Franchise

_____________________________________

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 was XXXXX. Present and representing Respondent was XXXXX.

Based upon the evidence in the file and presented at the Informal Hearing, the Commission makes its:

FINDINGS

Penalties of $$$$$ and interest of approximately $$$$$ were assessed against Petitioner relating to corporate franchise tax for the XXXXX tax year. Petitioner had requested a waiver of the penalties and interest from the Collection Division Waiver Unit which was denied. Petitioner now appeal this denial. Petitioner's underlying tax liability for the period in question was $$$$$.

At the hearing Petitioner's representative explained that Petitioner had made an inadvertent, unintended error in filling out the form TC-20. When Petitioner realized the error had been made Petitioner corrected the mistake and mailed the payment prior to receiving any notice from the Tax Commission.

Respondent stated that this was not a first time error, that Petitioner had three prior errors over the last seven years. However, Respondent felt there was sufficient reasonable cause for waiver of the penalty because Petitioner had immediately discovered and corrected the error prior to receiving notice from the Tax Commission.

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 exist to waive the penalties of $$$$$

relating to corporate franchise tax for XXXXX.

DATED this 21 day of June, 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.) a Petition for Judicial Review in the Supreme Court, or b.) a Petition for Judicial Review by trial de novo in district court. (Utah Administrative Rule R861-1A-5(P) and Utah Code Ann. 63-46b-15.)

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