95-0929

Corporate Franchise

Signed 10/6/95

BEFORE THE UTAH STATE TAX COMMISSION

____________________________________

XXXXX, )

:

Petitioner, : ORDER

:

v. : Appeal No. 95-0929

:

COLLECTION DIVISION : Account No. XXXXX

OF THE UTAH STATE :

TAX COMMISSION, :

Respondent. : Tax Type: Corporate Franchise

_____________________________________

STATEMENT OF CASE

This matter came before the Utah State Tax Commission for an Initial Hearing pursuant to the provisions of Utah Code Ann. §59-1-502.5, on XXXXX. Gail S. Reich, 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.

This Appeal involves corporate franchise tax for the period of XXXXX through XXXXX. A penalty was imposed for failure to pre-pay at the rate of 100% of the prior year’s tax. Interest has accrued in the amount of approximately $$$$$ on unpaid taxes. The penalties imposed total $$$$$.

At the hearing Petitioner explained that 100% of the prior year’s tax had been paid. He explained that $$$$$ had been paid the prior year as minimum tax, $$$$$ being attributable to each of the five corporations forming the business entity in issue. For the XXXXX fiscal year the business entity had been scaled to four corporations. Therefore, $$$$$ was paid, $$$$$ being attributable to the minimum tax for each of the remaining four corporations.

The Commission finds that the pre-payment by Petitioner satisfies the pre-payment requirement.

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

Based upon the information presented at the hearing, and the records of the Tax Commission, the Commission finds sufficient cause has been shown to waive the penalties but not the interest assessed for XXXXX through XXXXX.

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 6 day of October, 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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