Utah Taxing Information
Failure to pay or otherwise address a tax bill may result in the issuance of a tax lien. A lien acts as a public notice of debt, and is effectively a judgement against property or the rights thereto. Liens enable the future seizure and sale of property as a means of a resolving tax liability, and can harm credit and property-related transactions due to their public nature.
The state Tax Commission will notify you of tax-related issues, as well as any actions that they intend to take to resolve them.
Offer in Compromise
If the Tax Commission finds that it is unrealistic to expect payment of your tax liability in full, you may be able to arrange an Offer in Compromise for less than that full amount. You will need to comply with any terms and conditions given by the state, lest you nullify the Offer or incur an enforced collection process. You will also need to provide comprehensive financial information.
If you have tax debt, any federal refunds due to you may be intercepted by the Tax Commission and applied directly to your debt. You will be notified prior to an offset.
Priority One: Stopping Aggressive Enforced Collections
If you are unable to pay your tax bill in full, you may request an installment plan by which you can pay it off over time with scheduled payments. The state is inclined to protect its interests, so should a request be accepted, additional security measures may be taken, such as requiring a down payment or filing a lien. You will need to comply with any terms and conditions given to you, lest you incur penalties or enforced collection actions. Penalties and interest will still accrue on the unpaid portion of your debt.
Failure to pay or file taxes on time may result in additions to your total liability in the form of penalties. Penalties vary in amount by the circumstances and type of tax left unaddressed. If you can prove reasonable cause for a delinquent tax bill, the associated penalty may be waived.
Power of Attorney
You may authorize a qualified third party to represent you in tax matters before the Tax Commission. To do so, you must complete and submit the appropriate documentation.
If you are an individual in a corporation, LLC, or other such entity and are responsible for handling taxes on that entity’s behalf, you may be held personally liable for any failure in such matters (i.e. failure to collect, remit, etc.).
If you are purchasing a business, you may be held liable for previous liabilities if you do not apply for new licenses, get a receipt from the seller stating that there are none as far as the Tax Commission is concerned, or withhold the amount of any present liability to pay the Tax Commission.