No. 29941 (Amendment): R861-1A-41. Date of Assessment Pursuant to Ann. Sections 59-1-302.1 and 59-1-706

DAR File No.: 29941
Filed: 05/14/2007, 03:29
Received by: NL

RULE ANALYSIS

Purpose of the rule or reason for the change:

The current statutes provide assessment date only for corporate and individual income tax, but not for all other tax types. The assessment date is necessary for tax lien purposes.

Summary of the rule or change:

The proposed section indicates that a liability is assessed on the day the liability is posted to the records of the Commission; it also provides exceptions to the general rule for audits and interest.

State statutory or constitutional authorization for this rule:

Sections 59-1-302.1 and 59-1-706

Anticipated cost or savings to:

the state budget:

Minimal increase--The proposed section clarifies assessment date for all tax types so that all others are on notice of Tax Commission liens on assets, and aware of the Tax Commission's superiority on liens from the date forward.

local governments:

Minimal increase--The proposed section clarifies assessment date for all tax types so that all others are on notice of Tax Commission liens on assets, and aware of the Tax Commission's superiority on liens from the date forward.

other persons:

Minimal increase--The proposed section clarifies assessment date for all tax types so that all others are on notice of Tax Commission liens on assets, and aware of the Tax Commission's superiority on liens from the date forward.

Compliance costs for affected persons:

None--The assessment date is relevant in determining which creditor is entitled to a person's assets.

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

There are no anticipated impacts. An assessment date is necessary for tax lien purposes in determining which creditor is entitled to a persons assets. D'Arcy Dixon, Commissioner

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

Tax Commission
Administration
210 N 1950 W
SALT LAKE CITY UT 84134-0002

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 [e-mail]

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:

07/02/2007

This rule may become effective on:

07/09/2007

Authorized by:

D'Arcy Dixon, Commissioner

RULE TEXT

R861. Tax Commission, Administration.

R861-1A. Administrative Procedures.

R861-1A-41. Date of Assessment Pursuant to Utah Code Ann. Sections 59-1-302.1 and 59-1-706.

(1) Except as provided in Subsections (2) and (3), "assessment date" means the date the tax liability is posted to the records of the commission.

(2) For purposes of a tax liability determined through an audit and for which a notice of deficiency has been mailed to the taxpayer, "assessment date" means:

(a) if a petition for redetermination has not been filed, the date:

(i) 30 days after a notice of deficiency has been mailed to the taxpayer;

(ii) 90 days after a notice of deficiency has been mailed to the taxpayer if the notice is addressed to a person outside the United States or District of Columbia; or

(iii) the taxpayer agrees with the commission, in writing, on the existence and amount of a tax liability, and consents to the assessment of the tax liability; or

(b) if a petition for redetermination has been filed, the date a tax liability resulting from a final commission decision is posted to the records of the commission.

(3) In the case of interest charged to a taxpayer, "assessment date" means the assessment date of the underlying tax liability.

(4) For purposes of Subsection (2), "deficiency" is defined as:

(a) provided in Section 59-7-516 in the case of a tax imposed under Title 59, Chapter 7, Corporate Franchise and Income Taxes;

(b) provided in Section 59-10-523 in the case of a tax imposed under Title 59, Chapter 10, Individual Income Tax Act; or

(c) unless otherwise provided in statute, the amount by which the tax imposed exceeds the excess of:

(I) the sum of:

(A)(i) the amount shown as the tax by the taxpayer upon his return, if the return was made by the taxpayer and if an amount was shown on the return as the tax by the taxpayer; or

(ii) zero, if no return is filed, or the return does not show any tax; and

(B) amounts previously assessed (or collected without assessment) as a deficiency; less

(II) amounts previously abated, refunded, or otherwise repaid in respect of that tax.

(5) For purposes of Subsection (2), a notice of deficiency shall:

(a) be mailed by the commission as provided in Subsection 59-7-517(1)(a) in the case of a tax imposed under Title 59, Chapter 7, Corporate Franchise and Income Taxes;

(b) be mailed by the commission as provided in Subsections 59-10-524(1) and (2) in the case of a tax imposed under Title 59, Chapter 10, Individual Income Tax Act; or

(c)(i)(A) unless otherwise required by statute, be mailed to the taxpayer at the taxpayer's last-known address if the commission determines that there is a deficiency in a tax; and

(ii) set forth the details of the deficiency and the manner of its computation.

(6) The commission may, at any time within the period prescribed for assessment, make a supplemental assessment if it is ascertained that an assessment is imperfect or incomplete in any material respect.

(7) The provisions of this rule apply to all taxes and fees collected by the commission unless otherwise provided by statute.

 

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

Date of Enactment or Last Substantive Amendment: [February 12, ]2007

Notice of Continuation: March 20, 2007

Authorizing, and Implemented or Interpreted Law: 59-1-302.1; 59-1-706