96-2309

Corporate Franchise

Signed 3/11/97

BEFORE THE UTAH STATE TAX COMMISSION

____________________________________

COMPANY A, :

:

Petitioner, : ORDER

:

v. : Appeal No. 96-2309

:

COLLECTION DIVISION OF THE : Account No.#####

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 February 25, 1997. Gail S. Reich, Administrative Law Judge, heard the matter for and on behalf of the Commission. Present and representing Petitioner was PETITIONERS REP.. Present and representing Respondent were RESPONDENT REP. and XXXXX of the Collection Division.

This appeal involves corporate franchise tax for 1994. A prepayment penalty and a late payment penalty were imposed, with the return having been filed timely but with money owing. The penalties were $$$$$, with approximately $$$$$ having accrued in interest. Petitioner indicated that there had been a change of accountants during this period and there was confusion that resulted from this transition.

Respondent argued that it is Petitioner’s responsibility to pay the taxes in a timely fashion and that circumstances do not rise to the level of reasonable cause to justify a recommendation of waiver.

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 Commission has reviewed the entire matter and the positions of both the Petitioner and the Respondent. Based upon the information presented at the hearing, and the records of the Tax Commission, the Commission finds the circumstances do not rise to the level of reasonable cause to justify waiver of either the penalty or the interest for the period in issue.

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 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

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