59-10-536 - Assessment and collection of tax -- Change on federal income tax return -- Taxpayer requirement to make certain filings with the commission.
59-10-536. Assessment and collection of tax -- Change on federal income tax return-- Taxpayer requirement to make certain filings with the commission.
(1) (a) If, before the expiration of the time prescribed in this section for the assessment ofa tax, the commission and the taxpayer agree in writing to the assessment of the tax in a timeperiod after the time period prescribed in this section for the assessment of a tax, the tax may beassessed at any time before the expiration of the period to which the commission and thetaxpayer agree.
(b) A time period that the commission and a taxpayer agree upon under Subsection (1)(a)may be extended by written agreement:
(i) between the commission and the taxpayer; and
(ii) made before the expiration of the time period that the commission and the taxpayerpreviously agreed upon.
(2) (a) (i) Except as provided in Subsection (2)(a)(iii), if a change is made in a taxpayer'snet income on the taxpayer's federal income tax return because of an action by the federalgovernment, the taxpayer shall file with the commission within 90 days after the date there is afinal determination of the action:
(A) a copy of the taxpayer's amended federal income tax return; and
(B) an amended state income tax return that conforms with the changes made in thetaxpayer's amended federal income tax return.
(ii) Except as provided in Subsection (2)(a)(iii), if a change is made in a taxpayer's netincome on the taxpayer's federal income tax return because the taxpayer files an amended federalincome tax return, the taxpayer shall file with the commission within 90 days after the date thetaxpayer files the amended federal income tax return:
(A) a copy of the taxpayer's amended federal income tax return; and
(B) an amended state income tax return that conforms with the changes made in thetaxpayer's amended federal income tax return.
(iii) A taxpayer is not required to file a return described in Subsection (2)(a)(i) or (ii) if achange in the taxpayer's federal income tax return does not increase state tax liability.
(b) (i) Subject to Subsection (2)(b)(iii), the commission may assess a deficiency in stateincome taxes within three years after a notification or amended federal income tax returndescribed in Subsection (2)(a) is filed.
(ii) The amount of an assessment of tax under this Subsection (2)(b) may not exceed theamount of the increase in Utah tax attributable to the change described in Subsection (2)(a).
(iii) If a taxpayer fails to report to the commission a change specified in this Subsection(2)(b), the assessment may be made at any time within six years after the date of the change.
(3) If a deficiency in federal income tax required to be reported is attributable to a netoperating loss carry back or carry forward, a deficiency in the tax imposed by this chapter may beassessed within three years from the due date of the return for the taxable year of the netoperating loss.
(4) Except as provided in Subsections (1) through (3), this section does not affect thetime within which or the amount for which an assessment may otherwise be made.
(5) (a) An erroneous refund shall be considered an underpayment of tax on the date thecommission makes the erroneous refund.
(b) An assessment of a deficiency arising out of an erroneous refund may be made at anytime within three years from the date the refund is made, except that an assessment may be made
within five years from the time the refund is made if any part of the refund is induced by fraud ormisrepresentation of a material fact.
(6) (a) Subject to Subsection (6)(b), if a return is required for a decedent or for thedecedent's estate during the period of administration, the tax shall be assessed within 18 monthsafter written request for the assessment:
(i) made after the return is filed; and
(ii) by:
(A) the personal representative; or
(B) another person representing the estate of the decedent.
(b) Except as otherwise provided in this section, the assessment described in Subsection(6)(a) may not be made more than three years after the time the return is filed.
(7) (a) The amount of a tax imposed by this chapter may be assessed at any time withinsix years after the time the return is filed if:
(i) a resident individual, resident estate, or resident trust omits from gross income asreported for federal income tax purposes an amount properly includable in adjusted grossincome, which is in excess of 25% of the amount of gross income stated in the return; or
(ii) a nonresident individual, nonresident estate, or nonresident trust omits from grossincome as reported for federal income tax purposes an amount of adjusted gross income derivedfrom Utah sources as defined by Section 59-10-117, properly includable in adjusted grossincome, which is in excess of 25% of the amount of adjusted gross income derived from Utahsources which is reflected in the return.
(b) For purposes of Subsection (7)(a)(ii), there may not be taken into account any amountthat is omitted in the return if the amount is disclosed:
(i) (A) in the return; or
(B) in a statement attached to the return; and
(ii) in a manner adequate to apprise the commission of the nature and amount of the item.
Amended by Chapter 212, 2009 General Session