97-1289
CORPORATE
Signed 2/24/98
BEFORE THE UTAH STATE TAX COMMISSION
____________________________________
COMPANY C., )
:
Petitioner, ) DECISION
:
v. )
:
COLLECTION DIVISION OF
THE ) Appeal
No. 97-1289
UTAH STATE TAX
COMMISSION, :
STATE OF UTAH, ) Account
No. #####
:
Respondent. ) Tax
Type: Corporate Franchise
_____________________________________
STATEMENT OF CASE
This matter came before
the Utah State Tax Commission pursuant to the provisions of Utah Code Ann. '59-1-502.5 An Initial Hearing was held on December 5,
1997. Gail S. Reich, Administrative Law
Judge, heard the matter for and on behalf of the Commission. Present on the telephone and representing
Petitioner were PETITIONERS REP.1 and PETITIONERS REP.2. Present and representing Respondent were Ms.
Laurie Allred and Mr. Loren Squire, from the Collection Division.
Based upon the evidence
in the file and presented at the hearing, the Commission makes its:
FINDINGS
This appeal involves late
payment and late filing penalties imposed for 1992, 1993, 1994 and 1995. The Petitioner is a non-profit organization
subject to tax under Utah Code Ann. '59-7-105 and Utah Tax Commission Rule
865-6F-18. However, Petitioner was
under the impression that the non-profit organization was not subject to tax
and therefore had not been timely filing for the years at issue. Upon discovery that filing requirements
applied to the Petitioner, COMPANY C began filing taxes. The Petitioner filed and paid taxes on April
15, 1997 for the four years in issue.
This constitutes first
time error on the part of the Petitioner.
Also, Petitioner caught the error prior to any notification from the Tax
Commission. It is to be noted further,
that waiver of the penalties in this instance is consistent with the fresh
start program instituted by the Tax Commission. Waiver of the interest, on the other hand, would be inappropriate
under the circumstances since no Tax Commission error is involved in this
case. The interest simply reflects the
fact that the Petitioner rather than the Tax Commission had the benefit of the
funds during the interim period between the original due date and the actual
payment.
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
After a thorough review
of the entire matter and the positions of both parties, it has been determined
that sufficient grounds do exist to justify waiver of the penalties but not the
interest for the periods in issue. It
is so ordered.
This Decision does not
limit a party=s right to a Formal
Hearing. Any party to this case may
file 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, UT 84134
Failure to request a
Formal Hearing will preclude any further appeal rights in this matter.
DATED this _____ day of
February, 1998.
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 24 day of
February, 1998.
BY ORDER OF THE UTAH
STATE TAX COMMISSION.
W. Val Oveson Richard B. McKeown
Chairman Commissioner
Joe B. Pacheco Pam Hendrickson
Commissioner Commissioner
^^