DAR File No. 28731

Tax Commission, Administration

R861-1A-39

Penalty for Failure to File a Return Pursuant to Utah Code Ann. Sections 10-1-405, 59-1-401, 59-12-118, and 69-2-5

NOTICE OF PROPOSED RULE

DAR File No.: 28731
Filed: 05/15/2006, 12:21
Received by: NL

RULE ANALYSIS

Purpose of the rule or reason for the change:

The purpose of the proposed rule section is to define when a return is filed and tax is paid for purposes of the penalty for failure to file a return.

Summary of the rule or change:

The proposed rule states that a sales tax, municipal license telecomm tax, or E-911 tax return that does not have distribution necessary for the commission to make a correct distribution to counties, cities, and towns is not considered a filed return; similarly, a tax is not paid (even if remitted) if not accompanied by one of the above-mentioned returns or by one of the above-mentioned returns that is subject to the penalty for failure to a file return.

State statutory or constitutional authorization for this rule:

Sections 10-1-405, 59-1-401, 59-12-118, and 69-2-5

Anticipated cost or savings to:

the state budget:

There may be a minimal increase. The commission may waive this penalty if the necessary information is provided.

local governments:

None--However, with penalty as incentive, businesses may file necessary information sooner, leading to a more prompt distribution to local government.

other persons:

There may be a minimal decrease. The Commission may waive this penalty if the necessary information is provided.

Compliance costs for affected persons:

Statutes require affected businesses to identify the localities to which they deliver their services. The proposed rule would subject a business to penalty only if the business refused to provide statutorily required information.

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

This rule does not require any more from a taxpayer than what is already required in statute. 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:

Sheri McFall at the above address, by phone at 801-297-3901, by FAX at 801-297-3919, or by Internet E-mail at sherimcfall@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:

07/03/2006

This rule may become effective on:

07/11/2006

Authorized by:

Pam Hendrickson, Commission Chair

RULE TEXT

R861. Tax Commission, Administration.

R861-1A. Administrative Procedures.

R861-1A-39. Penalty for Failure to File a Return Pursuant to Utah Code Ann. Sections 10-1-405, 59-1-401, 59-12-118, and 69-2-5.

(1)(a) Subject to Subsection (1)(b), "failure to file a tax return," for purposes of the penalty for failure to file a tax return under Subsection 59-1-401(1) includes a tax return that does not contain information necessary for the commission to make a correct distribution of tax revenues to counties, cities, and towns.

(b) Subsection (1)(a) applies to a tax return filed under:

(i) Chapter 12, Sales and Use Tax Act;

(ii) Title 10, Chapter 1, Part 4, Municipal Telecommunications License Tax Act; or

(iii) Title 69, Chapter 2, Emergency Telephone Service Law.

(2)(a) "Unpaid tax," for purposes of the penalty for failure to file a tax return under Subsection 59-1-401(1) includes tax remitted to the commission under Subsection (2)(b) that is:

(i) not accompanied by a tax return; or

(ii) accompanied by a tax return that is subject to the penalty for failure to file a tax return.

(b) Subsection (2)(a) applies to a tax remitted under:

(i) Chapter 12, Sales and Use Tax Act;

(ii) Title 10, Chapter 1, Part 4, Municipal Telecommunications License Tax Act; or

(iii) Title 69, Chapter 2, Emergency Telephone Service Law.

KEY: developmentally disabled, grievance procedures, taxation, disclosure requirements

Date of Enactment or Last Substantive Amendment: [March 6, ]2006

Notice of Continuation: April 22, 2002

Authorizing, and Implemented or Interpreted Law: 10-1-405; 59-1-401; 59-12-118; 69-2-5

ADDITIONAL INFORMATION

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For questions regarding the content or application of this rule, please contact Sheri McFall at the above address, by phone at 801-297-3901, by FAX at 801-297-3919, or by Internet E-mail at sherimcfall@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.