2006 Utah Code - 59-15-103 — Overpayment and deficiency.
(1) (a) The commission shall examine the return as soon as practical after the return is filed.
(b) If it appears that the amount of taxes remitted is greater or less than the amount shown in the return to be due, the tax shall be recomputed.
(c) Subject to the provisions of Subsection (1)(f), if the amount paid exceeds the amount due, the excess shall be credited or refunded to the person paying the tax.
(d) If the commission determines that any amount, penalty, or interest has been paid more than once or has been erroneously collected or computed, the commission shall identify the amount collected in excess of what was legally due, and from whom it was collected or by whom it was paid.
(e) Subject to the provisions of Subsection (1)(f), the amount under Subsection (1)(d) shall be credited on any amounts then due from the person to the state.
(f) The balance shall be refunded with interest at the rate and in the manner prescribed by Section 59-1-402, to the person, successor, administrator, executor, or assigns, but except as provided in Subsection (1)(g), a credit or refund is not allowed unless a claim for the credit or refund is filed with the commission within three years from the date of overpayment.
(g) Notwithstanding Subsection (1)(f), beginning on July 1, 1998, the commission shall extend the period for a taxpayer to file a claim under Subsection (1)(f) if:
(i) the three-year period under Subsection (1)(f) 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.
(2) If any amount has been erroneously determined due from any person, the commission shall authorize the cancellation of the amounts upon its records.
(3) (a) Except as provided in Subsections (3)(c) through (f), the commission shall assess the amount of taxes imposed under this chapter, and any penalties and interest, within three years after a taxpayer files a return.
(b) Except as provided in Subsections (3)(c) through (f), if the commission does not make an assessment under Subsection (3)(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 (3)(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 (3)(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 (3) 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 (3)(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 (3) expires before the commission
completes the audit.
(f) An assessment under Subsection (3)(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 (3)(f)(i); and
(B) the amount of taxes the taxpayer actually paid for the time period described in
Subsection (3)(f)(i).
(4) In the case of a false or fraudulent return, payment with intent to evade tax, or failure
to file a return, the taxes may be assessed or a proceeding for the collection of the taxes may be
commenced at any time.
Amended by Chapter 299, 1998 General Session
