96-0928

Corporate Franchise

SIGNED 9/25/96

BEFORE THE UTAH STATE TAX COMMISSION

____________________________________

XXXXX, )

:

Petitioner, ) ORDER

:

v. ) Appeal No. 96-0928

:

COLLECTIONS 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 MMDDYY. G. Blaine Davis, Administrative Law Judge, heard the matter for and on behalf of the Commission. Present on the telephone and representing Petitioner was XXXXX from XXXXX. Present and representing Respondent were XXXXX and XXXXX of the Collections Division.

Petitioner was charged a penalty for underpayment on the tax extension on a TC-20S for an S-Corporation. In prior years, Petitioner had opted for Option B for payment of the tax for the S-Corporation, which permitted the payment of $$$$$. However, that matter was changed for the 19YY returns which were to be filed in 19YY. Petitioner operates in XXXXX and did not receive notice of the change in the payment options, so did not make additional payments.

On MMDDYY, Petitioner filed an extension request as it had done in other years. Petitioner then received the tax forms and discovered that Option B had been eliminated, so it immediately paid the tax on MMDDYY. The check was received at the Tax Commission on MMDDYY.

Respondent maintains that three prior notices had been sent to Petitioner, but Petitioner denies having received them and maintains that they always respond to the mail and are sure that the notices were not received. The notices sent included copies of Tax Bulletin 25-94 from the State Tax Commission giving taxpayers notice of the change in payment options.

Respondent represented that the computer had miscalculated the penalty, and recommended that the penalty be reduced from $$$$$ to $$$$$ for the underpayment penalty and the late payment penalty should be reduced from $$$$$ to $$$$$. The representative of Petitioner indicated that such a recommendation would be acceptable to her.

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 penalty for underpayment of tax to an amount of $$$$$, and to reduce the late payment penalty to $$$$$. Interest should also be adjusted.

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 25th day of September, 1996.

BY ORDER OF THE UTAH STATE TAX COMMISSION.

W. Val Oveson Richard B. McKeown

Chairman Commissioner

Joe B. Pacheco Alice Shearer

Commissioner Commissioner

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