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E. Disaster Relief: A federal or state-declared disaster M. Recent Tax Law Change: You didn’t fi le or pay because
or natural disaster, such as fi re or accident, destroyed you were not aware of a recent tax law change. You must
records or disrupted business. Federal relief guidelines prove you could not be expected to know of the change.
must be followed for a federally-declared disaster. For The Tax Commission considers your recent account history
other disasters, you must show the matter was corrected when we decide whether or not to waive a penalty. We also
in a reasonable time, given the circumstances. consider whether other tax returns or reports are overdue
F. Reliance on Erroneous Tax Commission Information: when you request the waiver.
You received incorrect advice from the Tax Commission Other factors may affect whether we fi nd reasonable cause.
that led to the underpayment, late payment or late fi ling. These include:
This does not apply if you gave the Commission inac-
curate or incomplete information. Proof may be based • whether the Tax Commission had to take legal means to
on written communication from the Tax Commission or collect the taxes
verbal communication (include dates, times and names • whether you caught and corrected your own error(s)
of Commission employees who provided the information). • the length of time between the event and the fi ling date
We may excuse a failure to comply if you can prove you
requested the necessary tax forms timely but the Tax • typographical or other written errors, and
Commission did not provide them timely. • other clearly supported extraordinary reasons for fi ling or
G. Tax Commission Offi ce Visit: You visited a Tax Com- paying late which show reasonable cause and an inability
mission offi ce for information or help in preparing the re- to comply.
turn before the due date, but Tax Commission employees In most cases, ignorance of the law, carelessness or for-
were not there during Tax Commission business hours to getfulness does not create reasonable cause. Intentional
help you. disregard, evasion or fraud does not constitute reasonable
H. Unobtainable Records: You were not able to get re- cause under any circumstance.
cords to determine the tax due, for reasons beyond your Each case is judged on its individual merits.
control.
I. Reliance on Competent Tax Advisor: You gave all your
Pass-Through Entity
tax information to a competent tax advisor who gave
you incorrect advice, failed to fi le a timely return on your Waiver Request
behalf, or failed to make a timely payment on your behalf. A pass-through entity that must withhold tax on partners/
members or shareholders (pass-through entity taxpayers)
You must fi le returns. Relying on a tax advisor to prepare
may request a waiver for the withholding tax and any associ-
a return does not automatically create reasonable cause
ated penalty and interest if:
for failure to fi le or pay. You must give a tax advisor your
tax information before a return’s due date. You must show • the pass-through entity did not withhold and pay the tax,
you used normal care and diligence when you decided and
whether to seek further advice. • the pass-through entity can show that pass-through entity
J. First Time Filer: You were late in fi ling the fi rst return you taxpayer(s) fi led and paid tax on the Utah income by the
were required to fi le, but paid the tax within a reasonable pass-through entity’s return due date, including extensions
time. The Tax Commission may also waive penalties on The waiver request must include all pass-through entity
the fi rst return after a fi ling period change if you fi led and taxpayers’ names and identifi cation numbers. Also include
paid in a reasonable time. a statement that all pass-through entity taxpayers have fi led
K. Bank Error: Your bank made an error in returning a and paid the tax by the required date.
check, making a deposit or transferring money. Provide a See Utah Code §59-10-1403.2(5).
letter from your bank explaining the error.
L. Employee Embezzlement: An employee(s) embezzled
tax funds and you couldn’t get funds from any other
source.
This publication is to be used as a guideline
only, and does not refl ect the complete
standards for waiver of penalty and/or interest.
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