98-0143
Corporate Franchise
Signed 7/13/98
BEFORE THE UTAH STATE TAX
COMMISSION
____________________________________
PETITIONER, :
:
Petitioner, : DECISION
:
v. :
:
COLLECTION
DIVISION OF THE : Appeal No. 98-0143
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 for an Initial Hearing
pursuant to the provisions of Utah Code Ann. §59-1-502.5 on April 28,
1998. G. Blaine Davis, Administrative
Law Judge, heard the matter for and on behalf of the Commission. Present on the telephone and representing
Petitioner was NAME. 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
An
extension penalty was imposed on Petitioner's 1996 corporation franchise tax
return for failing to prepay a sufficient amount of the taxes at the time they
extended their return. Petitioner's
representative stated that at the time the extension was requested, they
believed there would be no tax due.
However, that was based on all of the data having not been supplied to
the CPA at the time the estimate was made for the preparation of the extension
of the return. When the return was
actually filed, after all of the data and information was provided, it was
determined there was a taxable income and they should have prepaid the
corporation franchise tax. Petitioner
has argued that the records were unobtainable, but further examination
indicates the records were simply not provided even though they were certainly
available to the client.
Petitioner
had a similar penalty imposed for 1993 and 1995, and now again for 1996, so
three out of the last four filing periods have had a similar penalty imposed.
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 not exist to waive the penalty
associated with the 1996 corporation franchise tax return. 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 13 day of July, 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 13 day of July, 1998.
BY ORDER OF THE UTAH STATE TAX COMMISSION.
W. Val
Oveson Richard
B. McKeown
Chairman Commissioner
Joe B.
Pacheco Pam
Hendrickson
Commissioner Commissioner
^^