State law authorizes the imposition of interest and penalty when taxpayers fail to comply with the filing or payment requirements of the franchise taxes.

While the law authorizes the Department to waive interest and penalty for reasonable cause, it is our intention to impose interest and penalty according to the attached schedule in the absence of extenuating circumstances beyond the control of the taxpayer.  Attachment 1 provide guidelines for imposing interest and penalty for the Public Service Company Franchise Tax.

Attachment: 1