96-2268

Corporate Franchise

Signed 3/11/97

BEFORE THE UTAH STATE TAX COMMISSION

____________________________________

COMPANY B, :

:

Petitioner, : INFORMAL DECISION

:

v. :

:

COLLECTION DIVISION OF THE : Appeal No. 96-2268

UTAH STATE TAX COMMISSION, :

: Account No.#####

:

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 February 3, 1997. Gail S. Reich, Administrative Law Judge, heard the matter for and on behalf of the Commission. Present and representing Petitioner was PETITIONERS REP., Vice President of the Corporation. Present and representing Respondent was RESPONDENT REP. of the Collection Division.

This appeal involves late filing and late payment penalties of $$$$$ each for 1994 and 1995. The penalties were waived by the Division for 1993 corporate franchise tax based on first time error, leaving the penalties for 1994 and 1995 in place. The Petitioner has indicated the death of the President in 1992 was responsible for the subsequent delinquencies. However, that situation does not justify failure to file and pay for the subsequent three years. The Division has asserted that there are no grounds existing in this matter that would rise to the level of reasonable cause to justify the waiver of the late filing and late payment penalties for 1994 and 1995.

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

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 has reviewed the matter and considered the position of both parties. The Tax Commission finds sufficient case does not exist to waive the penalties imposed for corporate franchise tax for 1994 and 1995. It is so ordered.

DATED this 11 day of March, 1997.

BY ORDER OF THE UTAH STATE TAX COMMISSION.

_____________________________

GAIL S. REICH

ADMINISTRATIVE LAW JUDGE

The agency has reviewed this case and the undersigned concur in this decision.

DATED this 11 day of March, 1997.

BY ORDER OF THE UTAH STATE TAX COMMISSION.

W. Val Oveson Richard B. McKeown

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 Petition for Judicial Review by trial de novo in district court. (Utah Administrative Rule R861-1A-5(P) and Utah Code Ann. §63-46b-13 et. seq.

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