DAR File No. 27930

Tax Commission, Auditing

R865-9I-51

Withholding Tax License Pursuant to Utah Code Ann. Section 59-10-405.5

NOTICE OF PROPOSED RULE

DAR File No.: 27930
Filed: 05/18/2005, 04:02
Received by: NL

RULE ANALYSIS

Purpose of the rule or reason for the change:

S.B. 170 (2005) requires a person collecting withholding tax to be licensed with the agency. The license is valid until the holder changes address or ceases to do business. The proposed rule indicates when a licensee shall be determined to have changed address or ceased to do business. (DAR NOTE: S.B. 170 is found at UT L 2005 Ch 198, and was effective 05/02/2005.)

Summary of the rule or change:

The proposed rule indicates when the agency will invalidate a withholding tax license. These procedures follow the procedures the agency has promulgated for invalidating a sales tax license under Section R865-19S-7.

State statutory or constitutional authorization for this rule:

Section 59-10-405.5

Anticipated cost or savings to:

the state budget:

Any impacts would have been taken into account in S.B. 170 (2005).

local governments:

Any impacts would have been taken into account in S.B. 170 (2005).

other persons:

Any impacts would have been taken into account in S.B. 170 (2005).

Compliance costs for affected persons:

None--Persons that are not in business will no longer receive forms and returns that a person in business must fill out and return.

Comments by the department head on the fiscal impact the rule may have on businesses:

There will be no fiscal impact on businesses. The Tax Commission will invalidate a withholding tax license when certain events occur and will no longer send forms to businesses that are not active. Pam Hendrickson, Commission Chair

The full text of this rule may be inspected, during regular business hours, at the Division of Administrative Rules, or at:

Direct questions regarding this rule to:

Cheryl Lee at the above address, by phone at 801-297-3900, by FAX at 801-297-3919, or by Internet E-mail at clee@utah.gov

Interested persons may present their views on this rule by submitting written comments to the address above no later than 5:00 p.m. on:

07/15/2005

This rule may become effective on:

07/16/2005

Authorized by:

Pam Hendrickson, Commissioner

RULE TEXT

R865. Tax Commission, Auditing.

R865-9I. Income Tax.

R865-9I-51. Withholding Tax License Pursuant to Utah Code Ann. Section 59-10-405.5.

(1) The holder of a license issued under Section 59-10-405.5 shall notify the commission:

(a) of any change of address of the business;

(b) of a change of character of the business, or

(c) if the license holder ceases to do business.

(2) The commission may determine that a person has ceased to do business or has changed that person's business address if:

(a) mail is returned as undeliverable as addressed and unable to forward;

(b) the person fails to file four consecutive monthly or quarterly withholding tax returns, or two consecutive annual withholding tax returns;

(c) the person fails to renew its annual business license with the Department of Commerce; or

(d) the person fails to renew its local business license.

(3) If the requirements of Subsection (2) are met, the commission shall notify the license holder that the license will be considered invalid unless the license holder provides evidence within 15 days that the license should remain valid.

(4) A person may request the commission to reopen a withholding tax license that has been determined invalid under Subsection (3).

(5) The holder of a license issued under Section 59-10-405.5 shall be responsible for any withholding tax, interest, and penalties incurred under that license whether those taxes and fees are incurred during the time the license is valid or invalid.

KEY: historic preservation, income tax, tax returns, enterprise zones

[June 29, 2004]2005

Notice of Continuation April 22, 2002

59-10-405.5

ADDITIONAL INFORMATION

PLEASE NOTE:

• Text to be deleted is struck through and surrounded by brackets (e.g., [example]). Text to be added is underlined (e.g., example). Some browsers may not depict some or any of these attributes on the screen or when the document is printed.
• Please see the DISCLAIMER regarding information available from state web pages.

For questions regarding the content or application of this rule, please contact Cheryl Lee at the above address, by phone at 801-297-3900, by FAX at 801-297-3919, or by Internet E-mail at clee@utah.gov

For questions about the rulemaking process, please contact the Division of Administrative Rules (801-538-3764). Please Note: The Division of Administrative Rules is NOT able to answer questions about the content or application of these administrative rules.