97-1327
CORPORATE
FRANCHISE
Signed 2/23/99
BEFORE THE
UTAH STATE TAX COMMISSION
____________________________________
PETITIONER, )
) ORDER
Petitioner, )
) Appeal No. 97-1327
v. ) Account No. #####
)
AUDITING
DIVISION OF ) Tax Type:
Corporate Franchise
THE UTAH STATE
TAX )
COMMISSION, ) Judge: Phan
)
Respondent. )
_____________________________________
Presiding:
Jane Phan,
Administrative Law Judge
Appearances:
For Petitioner: PETITIONER
For Respondent: Kim Ferrell, Manager Corporate Franchise
Tax
Loren Squire,
Senior Auditor, Corporate Franchise Tax
STATEMENT
OF THE CASE
This matter
came before the Utah State Tax Commission for a Status Conference on February
16, 1999. However, after discussion
among the parties, the Status Conference was converted to the Initial Hearing.
Respondent had
received notice from the Internal Revenue Service ("IRS") of an
audit for COMPANY ., for the audit
period of February 1, 1988 through January 31, 1990. The IRS audit results carried over so that additional state
income tax was due from the corporation.
However, at that time the IRS provided no further identifying
information for the corporation, other than the name. Apparently Respondent searched the state corporate records and
found the COMPANY , with which PETITIONER had been involved. However, PETITIONER COMPANY ., had ceased
doing business early in the 1980's and was not in existence during the audit
period at issue.
After receiving
further identifying information from the IRS prior to this hearing including an
address and list of involved parties,
Respondent acknowledged that the audit assessment had been made against
the wrong COMPANY. In fact, they did
not dispute that PETITIONER COMPANY , had not even been in business during the
audit period. Respondent did not want
the assessment abated as Respondent preferred to pursue the assessment against
the correct parties. However,
Respondent agreed that the assessment as it pertained to PETITIONER and his
COMPANY , should be abated in its entirety.
DECISION
AND ORDER
Based on the forgoing
the Commission determines that PETITIONER and the PETITIONER., of which
PETITIONER was a principal, were incorrectly assessed additional corporate
franchise tax by the August 14, 1997, Statutory Notice. For this reason the Commission abates in its
entirety the audit assessment against PETITIONER and the COMPANY ., for which
he was a principal. Respondent may
pursue the correct parties if it is not barred by statute of limitations. It is so ordered.
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 appeal rights in this
matter.
DATED this 23RD
day of February, 1999.
___________________________________
Jane Phan
Administrative Law Judge
BY ORDER OF THE UTAH STATE TAX
COMMISSION.
The Commission
has reviewed this case and the undersigned concur in this decision.
DATED this
23rd day of February, 1999.
Richard B. McKeown Joe B. Pacheco
Chairman Commissioner
Pam Hendrickson R.
Bruce Johnson
Commissioner Commissioner
^^