Utah – Penalty Waiver for Reasonable Cause

SALT Report 1464 – The Utah State Tax Commission has updated its publication regarding the waiver or reduction of penalties and interest for reasonable cause.  Under Utah Code §59-1-401(13) and Tax Commission Rule R861-1A-42 a taxpayer may request a waiver if they provide documentation supporting their claim.
Waiver Procedures
The Tax Commission will consider a request under the following circumstances:
  • You request a waiver online or by email, or mail a signed waiver request along with any supporting documentation,
  • The total tax owed for the period has been paid,
  • The tax liability is based on a return you filed with the Tax Commission, and
  • You have not already received a waiver review for the same period(s)
Once a taxpayer’s request has been received the Commission will:
  • Review the request,
  • Notify the taxpayer if they need to provide further documentation, and
  • Review the taxpayer’s prior deficiencies

It is harder to get interest waived than penalties because you must prove the Tax Commission gave you incorrect information or made an error that caused you to file or pay late.  All taxpayers have the right to appeal if their request is denied.

For Further Information:

Utah State Tax Commission – Publication 17