2006 Utah Code - 59-12-110 — Overpayments, deficiencies, and refunds procedures.

     59-12-110.   Overpayments, deficiencies, and refunds procedures.
     (1) (a) As soon as practicable after a return is filed, the commission shall examine the return.
     (b) If the commission determines that the correct amount of tax to be remitted is greater or less than the amount shown to be due on the return, the commission shall recompute the tax.
     (c) If the amount paid exceeds the amount due, the excess, plus interest as provided in Section 59-1-402, shall be credited or refunded to the taxpayer as provided in Subsection (2).
     (d) The commission may not credit or refund to the taxpayer interest on an overpayment under Subsection (1)(c) if the commission determines that the overpayment was made for the purpose of investment.
     (2) (a) If a taxpayer pays a tax, penalty, or interest more than once or the commission erroneously receives, collects, or computes any tax, penalty, or interest, including an overpayment described in Subsection (1)(c), the commission shall:
     (i) credit the amount of tax, penalty, or interest paid by the taxpayer against any amounts of tax, penalties, or interest the taxpayer owes; and
     (ii) refund any balance to the taxpayer or the taxpayer's successors, administrators, executors, or assigns.
     (b) Except as provided in Subsections (2)(c) and (d) or Section 19-2-124, a taxpayer shall file a claim with the commission to obtain a refund or credit under this Subsection (2) within three years from the day on which the taxpayer overpaid the tax, penalty, or interest.
     (c) Notwithstanding Subsection (2)(b), beginning on July 1, 1998, the commission shall extend the period for a taxpayer to file a claim under Subsection (2)(b) if:
     (i) the three-year period under Subsection (2)(b) has not expired; and
     (ii) the commission and the taxpayer sign a written agreement:
     (A) authorizing the extension; and
     (B) providing for the length of the extension.
     (d) Notwithstanding Subsection (2)(b), a seller that files a claim for a refund under Subsection 59-12-107 (7)(c) for bad debt shall file the claim with the commission within three years from the date on which the seller could first claim the refund for the bad debt.
     (e) A taxpayer may file a claim to obtain a refund or credit under this Subsection (2) regardless of whether the taxpayer received or objected to a notice of deficiency or a notice of assessment as provided in Subsection 59-12-114(1).
     (f) A taxpayer may obtain a refund under this Subsection (2) of a tax paid under this chapter on a transaction that is taxable under Section 59-12-103 if:
     (i) the sale or use was exempt from sales and use taxes under Section 59-12-104 on the date of purchase; and
     (ii) except as provided in Subsection (2)(c), the taxpayer files a claim for a refund with the commission as provided in Subsections (2)(b) through (e).
     (g) If the commission denies a claim for a refund or credit under this Subsection (2), the taxpayer may request a redetermination of the denial by filing a petition or request for agency action with the commission as provided in Title 63, Chapter 46b, Administrative Procedures Act.
     (3) If the commission erroneously determines an amount to be due from a taxpayer, the commission shall authorize the amounts to be cancelled upon its records.
     (4) (a) Subject to the provisions of Subsection (4)(b), the commission may impose on a deficiency under this section:

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     (i) a penalty as provided in Section 59-1-401; and
     (ii) interest as provided in Section 59-1-402.
     (b) The commission may impose a penalty and interest on the entire deficiency if any part of the deficiency is due to:
     (i) negligence;
     (ii) intentional disregard of law or rule; or
     (iii) fraud with intent to evade the tax.
     (5) (a) Except as provided in Subsection (5)(b), a taxpayer shall pay a tax deficiency, including penalties or interest under this section, within ten days after the commission provides the taxpayer notice and demand of the deficiency, penalty, or interest.
     (b) Notwithstanding Subsection (5)(a), a taxpayer may pay a tax deficiency, penalty, or interest within 30 days after the commission provides the taxpayer notice and demand of the deficiency, penalty, or interest if the commission determines:
     (i) that a greater amount was due than was shown on the return; and
     (ii) the tax is not in jeopardy.
     (6) (a) Except as provided in Subsections (6)(c) through (f), the commission shall assess the amount of taxes imposed by this chapter, and any penalties and interest, within three years after a taxpayer files a return.
     (b) Except as provided in Subsections (6)(c) through (f), if the commission does not make an assessment under Subsection (6)(a) within three years, the commission may not commence a proceeding for the collection of the taxes after the expiration of the three-year period.
     (c) Notwithstanding Subsections (6)(a) and (b), the commission may make an assessment or commence a proceeding to collect a tax at any time if a deficiency is due to:
     (i) fraud; or
     (ii) failure to file a return.
     (d) Notwithstanding Subsections (6)(a) and (b), beginning on July 1, 1998, the commission may extend the period to make an assessment or to commence a proceeding to collect the tax under this chapter if:
     (i) the three-year period under this Subsection (6) has not expired; and
     (ii) the commission and the taxpayer sign a written agreement:
     (A) authorizing the extension; and
     (B) providing for the length of the extension.
     (e) If the commission delays an audit at the request of a taxpayer, the commission may make an assessment as provided in Subsection (6)(f) if:
     (i) the taxpayer subsequently refuses to agree to an extension request by the commission; and
     (ii) the three-year period under this Subsection (6) expires before the commission completes the audit.
     (f) An assessment under Subsection (6)(e) shall be:
     (i) for the time period for which the commission could not make an assessment because of the expiration of the three-year period; and
     (ii) in an amount equal to the difference between:
     (A) the commission's estimate of the amount of taxes the taxpayer would have been assessed for the time period described in Subsection (6)(f)(i); and

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     (B) the amount of taxes the taxpayer actually paid for the time period described in Subsection (6)(f)(i).

Amended by Chapter 253, 2006 General Session