H.B. 190, passed in the 2005 General Session of the Legislature mandates all Utah individual income tax returns prepared by a paid professional be filed electronically or with a 2-D bar code. The new law is effective January 1, 2005.
Provisions of the new law require electronic filing of returns or the filing of paper returns that include a 2-D bar code of the return data by return preparers who prepare a substantial portion of the return for compensation, but does not include someone who:
Amended returns and prior year returns are not subject to this provision.
There is a volume requirement as to whether a preparer must file electronically or with a 2-D bar code. Those subject to the mandatory requirements are preparers who prepare in any calendar year 101 or more Utah individual income tax returns. The prepared returns of two or more preparers affiliated with the same establishment are added together for this determination. Once the volume requirement is met, all returns filed in the subsequent calendar years must be filed electronically or with 2-D bar codes.
There are three exceptions to this mandate:
Federal/State electronic filing and Utah TaxExpress allow flexibility for returns to be completed and transmitted early in the season while making providing for payment at a later date. The payment must be made by April 15 th to avoid penalty and interest charges.
When a return is filed electronically, the payment may be made by paper check and should be accompanied by a Utah form TC-547, Income Tax Payment Coupon to assure payment is credited to the proper account.
You may also pay your Utah tax liability electronically by using PaymentExpress. For more information, click on http://incometax.utah.gov/filingpayment.html.
By making electronic filing or 2-D bar codes mandatory, the state can significantly reduce the cost of processing tax returns.
The legislation requiring electronic filing, or the use of the 2-D barcodes on paper returns, accomplishes the following important goals:
Filing electronically provides the greatest benefits and is encouraged over other methods. However, filing with 2-D bar codes also provides benefits not realized on regular paper returns.
The legislation, therefore, enables the Tax Commission to improve the delivery of services to the citizens of Utah, while reducing the cost of those services through added efficiency.
Most refunds are mailed or deposited into the taxpayer's account within two weeks of filing, compared to four to six weeks when a paper return is filed.
In some instances, additional information may be required to insure the accuracy of entries made on the return. In these cases, you will be notified immediately and the refund will be processed as quickly as possible upon receipt of the supporting information.
Since you are responsible for the accuracy of your tax return, you should carefully review your return prior to sending it to the Tax Commission. This applies to a return you prepare yourself as well as to a return prepared and completed by a paid preparer. Electronic filing does not prevent the review of a completed return prior to submission.
You can email your questions on the mandate to taxmaster@utah.gov, visit our website at tax.utah.gov/taxpros/mandate, or call our Taxpayer Services at (801) 297-2200 or if outside the Salt Lake area toll-free at 1-800-662-3445.
The law enacting filing mandates was passed by the 2005 legislature as H.B. 190. You can view this new law at http://le.utah.gov/.
