96-0118
Corporation Franchise
Signed 4/1/96
BEFORE
THE UTAH STATE TAX COMMISSION
____________________________________
XXXXX,
Petitioner, ) ORDER
:
v. ) Appeal No. 96-0118
:
COLLECTION DIVISION OF THE ) Account
No. XXXXX
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. 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.
Petitioner is appealing the assessment of
penalties relating to its corporate
franchise tax for the tax years XXXXX and XXXXX. The penalty assessed for XXXXX was $$$$$. The penalty assessed for XXXXX was $$$$$ and
the interest approximately $$$$$.
At the hearing Petitioner's representative
explained that when Petitioner had filed and paid its corporate franchise tax
for XXXXX a carry forward credit was indicated for XXXXX. Petitioner relied on the carry forward
credit when determining corporate franchise tax liability for XXXXX. It was not until XXXXX that Petitioner
received information from the Tax Commission that the Commission had reduced
the amount of the carry forward. When
Petitioner reviewed the information which detailed the reduction, Petitioner
agreed with the Tax Commission and promptly paid the full amount. Petitioner's representative explained that
Petitioner had acted in good faith
based upon its records.
At the hearing Respondent's representative
stated that after she reviewed Petitioner's account history she discovered a
couple of errors were made in the application of the carry forward and
prepayments. She stated that had the
prepayments and carry forward been applied correctly at the Tax Commission the
penalty for XXXXX would be $$$$$ instead of the $$$$$ penalty assessed. For XXXXX she stated that the penalty should
have been only $$$$$ not the $$$$$ assessed and that the interest arose
directly from errors on the part of Tax Commission employees. Respondent recommended reducing the
penalties for both XXXXX and XXXXX to the correct amounts and waiving the
interest for XXXXX.
APPLICABLE
LAW
The Tax Commission is granted the authority
to waive, reduce, or compromise penalties and interest upon a showing of reasonable
cause. (Utah Code Ann. '59-1-401(10).)
DECISION
AND ORDER
Based upon the information presented at the
hearing, and the records of the Tax Commission, the Commission finds sufficient
cause has been shown to reduce the penalties to $$$$$ for XXXXX and to $$$$$
for XXXXX relating to Petitioner's corporate franchise tax. Sufficient cause was not shown to waive the
remaining penalties. In addition
sufficient cause has been shown to waive the interest of approximately $$$$$
assessed for 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 1 day of April, 1996.
BY ORDER OF THE UTAH STATE TAX COMMISSION.
W. Val Oveson Roger
O. Tew
Chairman Commissioner
Joe B. Pacheco Alice Shearer
Commissioner Commissioner
^^