The Utah State Tax Commission Instruction (Page 2 of 4) in pdf

The Utah State Tax Commission Instruction Page 2

Suspension for Failure to

The penalty for underpayment of the extension

prepayment is 2 percent per month of the unpaid

Pay Tax Due

tax during the extension period. If the return is not

filed by the extension due date, failure to file and

Utah law provides for suspension of the corporation’s

failure to pay penalties will apply, as if the extension

right to do business in Utah if the corporation fails

had not been granted.

to pay taxes due before 5 p.m. on the last day of the

Penalty for failure to file an information return or

eleventh month after the due date.

complete supporting schedule is $50 for each

return or schedule to a maximum of $1,000.

The penalty for each underpayment of required

estimated tax or required quarterly installments

is determined by applying the state interest rate(s)

in effect for the period of the underpayment, plus

four percentage points to the amount of the under-

payment for the period of the underpayment.

For a list of additional penalties, that may be

imposed please refer to UCA §59-1-401.

Interest

The calendar year interest rate applicable for all

taxes and fees administered by the Tax Commis-

sion is two percentage points above the federal

short-term rate in effect for the preceding fourth

calendar quarter. The Internal Revenue Service

publishes this rate in September of each year.

The interest rate for most taxes and fees adminis-

tered by the Tax Commission for the 2001 calendar

year is 8 percent.

Supporting Federal Information

Form 1120-S, as filed with the IRS, should be

attached when filing the Utah S Corporation Fran-

chise or Income Tax return (Form TC-20S). In

addition, federal Schedule K-1 forms must be filed

for each shareholder.

First Time Filers

A copy of the IRS letter of authorization, “Notice of

Acceptance as an S Corporation,” must be at-

tached to the S Corporation Franchise or Income

Tax Return, TC-20S, when filing for the first time.

Corporation Changes

Corporation changes (e.g., name change, merger,

or ceasing to do business in Utah) must be reported

to both:

Division of Corporations

Department of Commerce

160 E 300 S

Salt Lake City, UT 84145

and

Tax Commission

Master File Maintenance

210 N 1950 W

Salt Lake City, UT 84134.

Page 2

The Utah State Tax Commission Instruction Page 2

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