Billing Notices

General Information

If you do not file your return, file it late, or if you underpay the taxes due, the Tax Commission will send you a billing notice. The amount due includes applicable penalty and interest computed through the billing due date. Thus, if you pay the full amount by the billing due date, no additional penalty and interest will be charged.

The Tax Commission issues the following notices for delinquent taxes:

1. If no return is filed, a Notice of Failure to File is sent.
2. If a taxpayer fails to respond to a Failure to File Notice or files a return and does not pay the full amount due, the Tax Commission will send a Notice of Warrant and Demand for Payment.
   This notice advises the taxpayer that if the delinquency is not paid in full by the due date, the Tax Commission will issue a warrant, placing a lien against the taxpayer's real and personal property. If a taxpayer is receiving the Notice of Warrant and Demand for Payment because he or she failed to respond to a Notice of Failure to File, the amount of tax due is estimated based on tax returns previously filed. If no returns have been filed, the estimate is based on the information in the taxpayer's application for a tax account. Taxpayers are required to correct estimated billings by filing returns and declaring the actual tax due.
3. If a taxpayer fails to respond to the above notices, one of the following is sent:
   1. Notice of Lien, which states that a warrant has been issued and filed in the district court where the taxpayer and/or business resides.
   2. Notice of Lien and Intent to Offset, which states that in addition to issuing a warrant, the Tax Commission will submit a request to the U.S. Department of Treasury to reduce the taxpayer's federal refund by the amount of state income tax owed.
4. A Statement of Delinquent Taxes is sent periodically as a reminder of unpaid taxes. While these statements may list multiple periods, taxpayers should be aware that the statements do not always contain all tax periods for which they are delinquent.
5. For returned checks, the Tax Commission sends the following notices for withholding tax. Other tax types simply adjust the balance, apply penalty and interest as appropriate and bill as indicated above:
   1. Notice of Warrant for Return Check, which states a warrant will be issued, placing a lien against the taxpayer's real and personal property.
   2. Notice of Return Check and Demand for Payment of Taxes

   Taxpayers may be assessed penalty and interest for any delays in payment because of returned checks.

6. A Notice of Deficiency is sent when a taxpayer files an income tax return after an extension, or an amended return with a balance owing, which includes applicable penalty and interest charges.

Audit-related Notices

A Preliminary Notice is used by the Audit Division to notify an individual or company of the findings of an audit. This notice does not represent a final assessment. The taxpayer has 25 days in which to review and discuss the findings informally with the Auditing Division. If the taxpayer agrees with the result of the audit as proposed in the Preliminary Notice, the taxpayer has the option of paying the audit assessment if tax is due.

Following the 25 days after a Preliminary Notice is sent, if the division has not granted the taxpayer an extension of time in writing, a Statutory Notice is sent which notifies the taxpayer of any tax due as the result of the audit. The Statutory Notice is also sent if a taxpayer makes full payment before the expiration of the 25 days to reflect receipt of the taxpayer's payment.

A Statutory Notice is a legal and binding assessment of a taxpayer's liability. If a taxpayer disagrees with a Statutory Notice, the taxpayer has 30 days from the date of the Statutory Notice to protect his or her appeal rights, as described below.

Appeal rights

If a taxpayer disagrees with an action taken by our agency, the taxpayer has the right to file an appeal within 30 days of notification of the action taken by the Tax Commission. If the appeal is not filed within the required 30 days, a taxpayer no longer has the right to file an appeal with our agency or in the courts.

Though an appeal need not be in any particular form, it should contain the following information:

1. Taxpayer's name, address, and daytime telephone number;
2. The tax type involved, the time period and the amount of tax, penalty, and interest due, or other issue in dispute;
3. The agency's file or other reference number, if known, and a copy of the letter or document which you are appealing;
4. The relief or action sought;
5. A statement of facts, summary of arguments and authorities relied upon, including any statutes or rules, forming the basis for relief or action sought from the commission; and
6. The names and addresses of all persons to whom a copy of the appeal is being sent.

For convenience, taxpayers may obtain a form for their appeal from the commission. For more information, refer to Tax Commission Publication 2, Utah Taxpayer Bill of Rights.