98-0086
Corporate Franchise
Signed 4/15/98
BEFORE THE UTAH STATE TAX
COMMISSION
____________________________________
COMPANY B, :
:
Petitioner, : DECISION
:
v. :
:
COLLECTION
DIVISION OF THE : Appeal No. 98-0086
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 March 26, 1998. G.
Blaine Davis, Administrative Law Judge, heard the matter for and on behalf of
the Commission. Present and
representing Petitioner was PETITIONERS REP., CPA. Present and representing Respondent were Ms. Laurie Allred and
Ms. Vickie Christoffersen, from the Collection Division.
Based
upon the evidence in the file and presented at the hearing, the Commission
makes its:
FINDINGS
Petitioner
engaged a CPA firm to prepare its 1996 corporate franchise tax return. The CPA firm prepared an extension request
for the federal return, but did not request such an extension for the State of
Utah return, because it knew the return would be completed prior to the
expiration of the extension. The return
was completed and delivered to Petitioner on March 17, 1997. The documents delivered to Petitioner by the
CPA firm included a form letter printed off of the computer which included a
statement that it should be mailed to the State of Utah on or before October
15, 1997. Petitioner followed the
instructions set forth on the letter from the CPA firm, and the CPA firm
believed that because the return was delivered prior to April 15, 1997, that
the return would be filed on or before that due date.
Respondent
imposed a late filing and late payment penalty, but has since reduced that
penalty to a two percent (2%) underpayment penalty.
Respondent
argues that Petitioner does not qualify for first time error because they have
previous delinquencies in 1986 and 1987.
Petitioner’s representative did not know if such delinquencies were
accurate, but suggested that it was such a long time ago that they should be
given a fresh start and the penalty should be waived.
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 finds sufficient cause does exist to waive the penalty
associated with the corporate franchise tax return for 1996. 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 15 day of April, 1998.
BY ORDER OF THE UTAH STATE TAX COMMISSION.
G. BLAINE DAVIS
Administrative Law
Judge
The
agency has reviewed this case and the undersigned concur in this decision.
DATED
this 15 day of April, 1998.
BY ORDER OF THE UTAH STATE TAX COMMISSION.
W. Val
Oveson Richard
B. McKeown
Chairman Commissioner
Joe B.
Pacheco Pam
Hendrickson
Commissioner Commissioner
^^