97-0239

CORPORATION

Signed 5/1/97

BEFORE THE UTAH STATE TAX COMMISSION

____________________________________

COMPANY A, )

:

Petitioners, ) DECISION

:

v. )

:

COLLECTION DIVISION OF THE ) Appeal No. 97-0239

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 adjudicative proceedings. As provided for by Utah Code Ann. '63-46b-5, this decision is being based solely upon the documentary evidence or record contained in the Tax Commission's file.

FINDINGS

This appeal involves corporate franchise tax for 1995. Late filing and underpayment penalties were imposed for that year. However, the Division has waived the late filing penalty in recognition of the current policy of the Tax Commission to allow an automatic extension regardless of whether prepayment was made. However, the underpayment and late payment penalties remain in the amount of $$$$$. An underpayment penalty was imposed of two percent per month between April 15, 1996 and October 15, 1996, when the extension ended. After that a late payment penalty was imposed until final payment on January 24, 1997. Approximately $$$$$ of interest has accrued on this matter.

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 record shows that the underpayment and late payment penalties were imposed properly in accordance with statute as a result of the delayed payment of the 1995 income taxes. No grounds exist to justify waiver of the penalty or the interest. Based on the foregoing, it is hereby determined that sufficient cause does not exist to waive either the remaining penalties or the interest associated with the period in issue. It is so ordered.

DATED this 1 day of MAY, 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 1 day of MAY, 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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