95-1079

Corporate Franchise

Signed 10/16/95

BEFORE THE UTAH STATE TAX COMMISSION

____________________________________

XXXXX, )

:

Petitioner, : ORDER

:

v. : Appeal No. 95-1079

:

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 of the Collection Division.

This Appeal involves penalty and interest imposed for corporate franchise tax for the year XXXXX. A late filing and late payment penalty totaling $$$$$ was imposed, with interest accruing in the amount of approximately $$$$$.

Filing and payment were due XXXXX. Filing occurred on XXXXX and payment on XXXXX. Petitioner indicated that there had been reliance on an accountant who had subsequently been XXXXX which had prevented the accountant from conducting business as usual. After reviewing the record, Respondent recommended waiver of penalty based on first time error.

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 penalty but not the interest assessed for 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 16 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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