2006 Utah Code - 59-10-536 — Limitations on assessment and collection.

     59-10-536.   Limitations on assessment and collection.
     (1) Except as otherwise provided in this section, the amount of any tax imposed by this chapter shall be assessed within three years after the return was filed (whether or not such return was filed on or after the date prescribed), and no proceeding in court without assessment for the collection of such tax shall be begun after the expiration of such period.
     (2) For purposes of this section:
     (a) A return of tax imposed by this chapter, except withholding tax, filed before the last day prescribed by statute or by rules promulgated pursuant to statute for the filing thereof, shall be deemed to be filed on such last day.
     (b) If a return of withholding tax for any period ending with or within a calendar year is filed before April 15 of the succeeding calendar year, such return shall be deemed to be filed on April 15 of such succeeding calendar year.
     (3) The tax may be assessed at any time if:
     (a) no return is filed;
     (b) a false or fraudulent return is filed with intent to evade tax; or
     (c) a return for the taxpayer is prepared by the commission in accordance with Section 59-10-506.
     (4) If, before the expiration of the time prescribed in this section for the assessment of tax, both the commission and the taxpayer have consented in writing to its assessment after such time, the tax may be assessed at any time prior to the expiration of the period agreed upon. The period so agreed upon may be extended by subsequent agreements in writing made before the expiration of the period previously agreed upon.
     (5) (a) If a change is made in a taxpayer's net income on his or her federal income tax return, either because the taxpayer has filed an amended return or because of an action by the federal government, the taxpayer must notify the commission within 90 days after the final determination of such change. The taxpayer shall file a copy of the amended federal return and an amended state return which conforms to the changes on the federal return. No notification is required of changes in the taxpayer's federal income tax return which do not affect state tax liability.
     (b) The commission may assess any deficiency in state income taxes within three years after such report or amended return was filed. The amount of such assessment of tax shall not exceed the amount of the increase in Utah tax attributable to such federal change or correction. The provisions of this Subsection (b) do not affect the time within which or the amount for which an assessment may otherwise be made. However, if the taxpayer fails to report to the commission the correction specified in this Subsection (b) the assessment may be made at any time within six years after the date of said correction.
     (6) If a deficiency in federal income tax required to be reported is attributable to the application to the taxpayer of a net operating loss carryback within the meaning of Section 6501(h) of the Internal Revenue Code, the corresponding deficiency in the tax imposed by this chapter may be assessed at any time before the expiration of the period within which a deficiency for the taxable year of the net operating loss giving rise to the carryback may be assessed.
     (7) An erroneous refund shall be considered an underpayment of tax on the date made, and an assessment of a deficiency arising out of an erroneous refund may be made at any time within three years from the time the refund was made, except that the assessment may be made within five years from the time the refund was made if it appears that any part of the refund was

induced by fraud or misrepresentation of a material fact.
     (8) If a return is required for a decedent or for his estate during the period of administration, the tax shall be assessed within 18 months after written request therefor (made after the return is filed) by the executor, administrator, or other person representing the estate of such decedent, but not more than three years after the time the return was filed, except as otherwise provided in Subsections (3) through (9).
     (9) The amount of any tax imposed by this chapter may be assessed at any time within six years after the time the return was filed if:
     (a) a resident individual, estate, or trust omits from gross income as reported for federal income tax purposes an amount properly includable therein which is in excess of 25% of the amount of gross income stated in the return; or
     (b) a nonresident individual, estate, or trust omits from gross income as reported for federal income tax purposes an amount of adjusted gross income derived from Utah sources as defined by Section 59-10-117, properly includable therein, which is in excess of 25% of the amount of adjusted gross income derived from Utah sources which is reflected in such return. For the purposes of this Subsection (b) there may not be taken into account any amount which is omitted in the return if such amount is disclosed in the return, or in a statement attached to the return, in a manner adequate to apprise the commission of the nature and amount of such item.
     (10) The running of the period of limitations on assessments or collection of tax or other amount (or of a transferee's liability) shall, after the mailing of a notice of deficiency, be suspended for the period during which the commission is prohibited from making the assessment or from collecting by levy.

Renumbered and Amended by Chapter 2, 1987 General Session