S.B. 206 Enrolled

             1     

TAX, FEE, OR CHARGE OFFENSE AND PENALTY

             2     
AMENDMENTS

             3     
2014 GENERAL SESSION

             4     
STATE OF UTAH

             5     
Chief Sponsor: Curtis S. Bramble

             6     
House Sponsor: Ryan D. Wilcox

             7     
             8      LONG TITLE
             9      General Description:
             10          This bill amends provisions related to offenses and penalties.
             11      Highlighted Provisions:
             12          This bill:
             13          .    amends provisions related to offenses and penalties for purposes of a tax, fee, or
             14      charge administered by the State Tax Commission; and
             15          .    makes technical and conforming changes.
             16      Money Appropriated in this Bill:
             17          None
             18      Other Special Clauses:
             19          None
             20      Utah Code Sections Affected:
             21      AMENDS:
             22           59-1-401 , as last amended by Laws of Utah 2012, Chapters 312 and 357
             23           76-8-1101 , as last amended by Laws of Utah 2009, Chapter 336
             24     
             25      Be it enacted by the Legislature of the state of Utah:
             26          Section 1. Section 59-1-401 is amended to read:
             27           59-1-401. Definitions -- Offenses and penalties -- Rulemaking authority -- Statute
             28      of limitations -- Commission authority to waive, reduce, or compromise penalty or
             29      interest.


             30          (1) As used in this section:
             31          (a) "Activated tax, fee, or charge" means a tax, fee, or charge with respect to which the
             32      commission:
             33          (i) has implemented the commission's GenTax system; and
             34          (ii) at least 30 days before implementing the commission's GenTax system as described
             35      in Subsection (1)(a)(i), has provided notice in a conspicuous place on the commission's website
             36      stating:
             37          (A) the date the commission will implement the GenTax system with respect to the tax,
             38      fee, or charge; and
             39          (B) that, at the time the commission implements the GenTax system with respect to the
             40      tax, fee, or charge:
             41          (I) a person that files a return after the due date as described in Subsection (2)(a) is
             42      subject to the penalty described in Subsection (2)(c)(ii); and
             43          (II) a person that fails to pay the tax, fee, or charge as described in Subsection (3)(a) is
             44      subject to the penalty described in Subsection (3)(b)(ii).
             45          (b) "Activation date for a tax, fee, or charge" means with respect to a tax, fee, or
             46      charge, the later of:
             47          (i) the date on which the commission implements the commission's GenTax system
             48      with respect to the tax, fee, or charge; or
             49          (ii) 30 days after the date the commission provides the notice described in Subsection
             50      (1)(a)(ii) with respect to the tax, fee, or charge.
             51          (c) (i) Except as provided in Subsection (1)(c)(ii), "tax, fee, or charge" means:
             52          (A) a tax, fee, or charge the commission administers under:
             53          (I) this title;
             54          (II) Title 10, Chapter 1, Part 3, Municipal Energy Sales and Use Tax Act;
             55          (III) Title 10, Chapter 1, Part 4, Municipal Telecommunications License Tax Act;
             56          (IV) Section 19-6-410.5 ;
             57          (V) Section 19-6-714 ;


             58          (VI) Section 19-6-805 ;
             59          (VII) Section 32B-2-304 ;
             60          (VIII) Section 34A-2-202 ;
             61          (IX) Section 40-6-14 ;
             62          (X) Section 69-2-5 ;
             63          (XI) Section 69-2-5.5 ; or
             64          (XII) Section 69-2-5.6 ; or
             65          (B) another amount that by statute is subject to a penalty imposed under this section.
             66          (ii) "Tax, fee, or charge" does not include a tax, fee, or charge imposed under:
             67          (A) Title 41, Chapter 1a, Motor Vehicle Act, except for Section 41-1a-301 ;
             68          (B) Title 41, Chapter 3, Motor Vehicle Business Regulation Act;
             69          (C) Chapter 2, Property Tax Act, except for Section 59-2-1309 ;
             70          (D) Chapter 3, Tax Equivalent Property Act; or
             71          (E) Chapter 4, Privilege Tax.
             72          (d) "Unactivated tax, fee, or charge" means a tax, fee, or charge except for an activated
             73      tax, fee, or charge.
             74          (2) (a) The due date for filing a return is:
             75          (i) if the person filing the return is not allowed by law an extension of time for filing
             76      the return, the day on which the return is due as provided by law; or
             77          (ii) if the person filing the return is allowed by law an extension of time for filing the
             78      return, the earlier of:
             79          (A) the date the person files the return; or
             80          (B) the last day of that extension of time as allowed by law.
             81          (b) A penalty in the amount described in Subsection (2)(c) is imposed if a person files a
             82      return after the due date described in Subsection (2)(a).
             83          (c) For purposes of Subsection (2)(b), the penalty is an amount equal to the greater of:
             84          (i) if the return described in Subsection (2)(b) is filed with respect to an unactivated
             85      tax, fee, or charge:


             86          (A) $20; or
             87          (B) 10% of the unpaid unactivated tax, fee, or charge due on the return; or
             88          (ii) if the return described in Subsection (2)(b) is filed with respect to an activated tax,
             89      fee, or charge, beginning on the activation date for the tax, fee, or charge:
             90          (A) $20; or
             91          (B) (I) 2% of the unpaid activated tax, fee, or charge due on the return if the return is
             92      filed no later than five days after the due date described in Subsection (2)(a);
             93          (II) 5% of the unpaid activated tax, fee, or charge due on the return if the return is filed
             94      more than five days after the due date but no later than 15 days after the due date described in
             95      Subsection (2)(a); or
             96          (III) 10% of the unpaid activated tax, fee, or charge due on the return if the return is
             97      filed more than 15 days after the due date described in Subsection (2)(a).
             98          (d) This Subsection (2) does not apply to:
             99          (i) an amended return; or
             100          (ii) a return with no tax due.
             101          (3) (a) A person is subject to a penalty for failure to pay a tax, fee, or charge if:
             102          (i) the person files a return on or before the due date for filing a return described in
             103      Subsection (2)(a), but fails to pay the tax, fee, or charge due on the return on or before that due
             104      date;
             105          (ii) the person:
             106          (A) is subject to a penalty under Subsection (2)(b); and
             107          (B) fails to pay the tax, fee, or charge due on a return within a 90-day period after the
             108      due date for filing a return described in Subsection (2)(a);
             109          (iii) (A) the person is subject to a penalty under Subsection (2)(b); and
             110          (B) the commission estimates an amount of tax due for that person in accordance with
             111      Subsection 59-1-1406 (2);
             112          (iv) the person:
             113          (A) is mailed a notice of deficiency; and


             114          (B) within a 30-day period after the day on which the notice of deficiency described in
             115      Subsection (3)(a)(iv)(A) is mailed:
             116          (I) does not file a petition for redetermination or a request for agency action; and
             117          (II) fails to pay the tax, fee, or charge due on a return;
             118          (v) (A) the commission:
             119          (I) issues an order constituting final agency action resulting from a timely filed petition
             120      for redetermination or a timely filed request for agency action; or
             121          (II) is considered to have denied a request for reconsideration under Subsection
             122      63G-4-302 (3)(b) resulting from a timely filed petition for redetermination or a timely filed
             123      request for agency action; and
             124          (B) the person fails to pay the tax, fee, or charge due on a return within a 30-day period
             125      after the date the commission:
             126          (I) issues the order constituting final agency action described in Subsection
             127      (3)(a)(v)(A)(I); or
             128          (II) is considered to have denied the request for reconsideration described in
             129      Subsection (3)(a)(v)(A)(II); or
             130          (vi) the person fails to pay the tax, fee, or charge within a 30-day period after the date
             131      of a final judicial decision resulting from a timely filed petition for judicial review.
             132          (b) For purposes of Subsection (3)(a), the penalty is an amount equal to the greater of:
             133          (i) if the failure to pay a tax, fee, or charge as described in Subsection (3)(a) is with
             134      respect to an unactivated tax, fee, or charge:
             135          (A) $20; or
             136          (B) 10% of the unpaid unactivated tax, fee, or charge due on the return; or
             137          (ii) if the failure to pay a tax, fee, or charge as described in Subsection (3)(a) is with
             138      respect to an activated tax, fee, or charge, beginning on the activation date:
             139          (A) $20; or
             140          (B) (I) 2% of the unpaid activated tax, fee, or charge due on the return if the activated
             141      tax, fee, or charge due on the return is paid no later than five days after the due date for filing a


             142      return described in Subsection (2)(a);
             143          (II) 5% of the unpaid activated tax, fee, or charge due on the return if the activated tax,
             144      fee, or charge due on the return is paid more than five days after the due date for filing a return
             145      described in Subsection (2)(a) but no later than 15 days after that due date; or
             146          (III) 10% of the unpaid activated tax, fee, or charge due on the return if the activated
             147      tax, fee, or charge due on the return is paid more than 15 days after the due date for filing a
             148      return described in Subsection (2)(a).
             149          (4) (a) Beginning January 1, 1995, in the case of any underpayment of estimated tax or
             150      quarterly installments required by Sections 59-5-107 , 59-5-207 , 59-7-504 , and 59-9-104 , there
             151      shall be added a penalty in an amount determined by applying the interest rate provided under
             152      Section 59-1-402 plus four percentage points to the amount of the underpayment for the period
             153      of the underpayment.
             154          (b) (i) For purposes of Subsection (4)(a), the amount of the underpayment shall be the
             155      excess of the required installment over the amount, if any, of the installment paid on or before
             156      the due date for the installment.
             157          (ii) The period of the underpayment shall run from the due date for the installment to
             158      whichever of the following dates is the earlier:
             159          (A) the original due date of the tax return, without extensions, for the taxable year; or
             160          (B) with respect to any portion of the underpayment, the date on which that portion is
             161      paid.
             162          (iii) For purposes of this Subsection (4), a payment of estimated tax shall be credited
             163      against unpaid required installments in the order in which the installments are required to be
             164      paid.
             165          (5) (a) Notwithstanding Subsection (2) and except as provided in Subsection (6), a
             166      person allowed by law an extension of time for filing a corporate franchise or income tax return
             167      under Chapter 7, Corporate Franchise and Income Taxes, or an individual income tax return
             168      under Chapter 10, Individual Income Tax Act, is subject to a penalty in the amount described in
             169      Subsection (5)(b) if, on or before the day on which the return is due as provided by law, not


             170      including the extension of time, the person fails to pay:
             171          (i) for a person filing a corporate franchise or income tax return under Chapter 7,
             172      Corporate Franchise and Income Taxes, the payment required by Subsection 59-7-507 (1)(b); or
             173          (ii) for a person filing an individual income tax return under Chapter 10, Individual
             174      Income Tax Act, the payment required by Subsection 59-10-516 (2).
             175          (b) For purposes of Subsection (5)(a), the penalty per month during the period of the
             176      extension of time for filing the return is an amount equal to 2% of the tax due on the return,
             177      unpaid as of the day on which the return is due as provided by law.
             178          (6) If a person does not file a return within an extension of time allowed by Section
             179      59-7-505 or 59-10-516 , the person:
             180          (a) is not subject to a penalty in the amount described in Subsection (5)(b); and
             181          (b) is subject to a penalty in an amount equal to the sum of:
             182          (i) a late file penalty in an amount equal to the greater of:
             183          (A) $20; or
             184          (B) 10% of the tax due on the return, unpaid as of the day on which the return is due as
             185      provided by law, not including the extension of time; and
             186          (ii) a late pay penalty in an amount equal to the greater of:
             187          (A) $20; or
             188          (B) 10% of the unpaid tax due on the return, unpaid as of the day on which the return is
             189      due as provided by law, not including the extension of time.
             190          (7) (a) Additional penalties for an underpayment of a tax, fee, or charge are as provided
             191      in this Subsection (7)(a).
             192          (i) Except as provided in Subsection (7)(c), if any portion of an underpayment of a tax,
             193      fee, or charge is due to negligence, the penalty is 10% of the portion of the underpayment that
             194      is due to negligence.
             195          (ii) Except as provided in Subsection (7)(d), if any portion of an underpayment of a
             196      tax, fee, or charge is due to intentional disregard of law or rule, the penalty is 15% of the entire
             197      underpayment.


             198          (iii) If any portion of an underpayment is due to an intent to evade a tax, fee, or charge,
             199      the penalty is the greater of $500 per period or 50% of the entire underpayment.
             200          (iv) If any portion of an underpayment is due to fraud with intent to evade a tax, fee, or
             201      charge, the penalty is the greater of $500 per period or 100% of the entire underpayment.
             202          (b) If the commission determines that a person is liable for a penalty imposed under
             203      Subsection (7)(a)(ii), (iii), or (iv), the commission shall notify the person of the proposed
             204      penalty.
             205          (i) The notice of proposed penalty shall:
             206          (A) set forth the basis of the assessment; and
             207          (B) be mailed by certified mail, postage prepaid, to the person's last-known address.
             208          (ii) Upon receipt of the notice of proposed penalty, the person against whom the
             209      penalty is proposed may:
             210          (A) pay the amount of the proposed penalty at the place and time stated in the notice;
             211      or
             212          (B) proceed in accordance with the review procedures of Subsection (7)(b)(iii).
             213          (iii) A person against whom a penalty is proposed in accordance with this Subsection
             214      (7) may contest the proposed penalty by filing a petition for an adjudicative proceeding with
             215      the commission.
             216          (iv) (A) If the commission determines that a person is liable for a penalty under this
             217      Subsection (7), the commission shall assess the penalty and give notice and demand for
             218      payment.
             219          (B) The commission shall mail the notice and demand for payment described in
             220      Subsection (7)(b)(iv)(A):
             221          (I) to the person's last-known address; and
             222          (II) in accordance with Section 59-1-1404 .
             223          (c) A seller that voluntarily collects a tax under Subsection 59-12-107 (2)(d) is not
             224      subject to the penalty under Subsection (7)(a)(i) if on or after July 1, 2001:
             225          (i) a court of competent jurisdiction issues a final unappealable judgment or order


             226      determining that:
             227          (A) the seller meets one or more of the criteria described in Subsection 59-12-107 (2)(a)
             228      or is a seller required to pay or collect and remit sales and use taxes under Subsection
             229      59-12-107 (2)(b); and
             230          (B) the commission or a county, city, or town may require the seller to collect a tax
             231      under Subsections 59-12-103 (2)(a) through (d); or
             232          (ii) the commission issues a final unappealable administrative order determining that:
             233          (A) the seller meets one or more of the criteria described in Subsection 59-12-107 (2)(a)
             234      or is a seller required to pay or collect and remit sales and use taxes under Subsection
             235      59-12-107 (2)(b); and
             236          (B) the commission or a county, city, or town may require the seller to collect a tax
             237      under Subsections 59-12-103 (2)(a) through (d).
             238          (d) A seller that voluntarily collects a tax under Subsection 59-12-107 (2)(d) is not
             239      subject to the penalty under Subsection (7)(a)(ii) if:
             240          (i) (A) a court of competent jurisdiction issues a final unappealable judgment or order
             241      determining that:
             242          (I) the seller meets one or more of the criteria described in Subsection 59-12-107 (2)(a)
             243      or is a seller required to pay or collect and remit sales and use taxes under Subsection
             244      59-12-107 (2)(b); and
             245          (II) the commission or a county, city, or town may require the seller to collect a tax
             246      under Subsections 59-12-103 (2)(a) through (d); or
             247          (B) the commission issues a final unappealable administrative order determining that:
             248          (I) the seller meets one or more of the criteria described in Subsection 59-12-107 (2)(a)
             249      or is a seller required to pay or collect and remit sales and use taxes under Subsection
             250      59-12-107 (2)(b); and
             251          (II) the commission or a county, city, or town may require the seller to collect a tax
             252      under Subsections 59-12-103 (2)(a) through (d); and
             253          (ii) the seller's intentional disregard of law or rule is warranted by existing law or by a


             254      nonfrivolous argument for the extension, modification, or reversal of existing law or the
             255      establishment of new law.
             256          (8) The penalty for failure to file an information return, information report, or a
             257      complete supporting schedule is $50 for each information return, information report, or
             258      supporting schedule up to a maximum of $1,000.
             259          (9) If a person, in furtherance of a frivolous position, has a prima facie intent to delay
             260      or impede administration of a law relating to a tax, fee, or charge and files a purported return
             261      that fails to contain information from which the correctness of reported tax, fee, or charge
             262      liability can be determined or that clearly indicates that the tax, fee, or charge liability shown is
             263      substantially incorrect, the penalty is $500.
             264          (10) (a) A seller that fails to remit a tax, fee, or charge monthly as required by
             265      Subsection 59-12-108 (1)(a):
             266          (i) is subject to a penalty described in Subsection (2); and
             267          (ii) may not retain the percentage of sales and use taxes that would otherwise be
             268      allowable under Subsection 59-12-108 (2).
             269          (b) A seller that fails to remit a tax, fee, or charge by electronic funds transfer as
             270      required by Subsection 59-12-108 (1)(a)(ii)(B):
             271          (i) is subject to a penalty described in Subsection (2); and
             272          (ii) may not retain the percentage of sales and use taxes that would otherwise be
             273      allowable under Subsection 59-12-108 (2).
             274          (11) (a) A person is subject to the penalty provided in Subsection (11)(c) if that person:
             275          (i) commits an act described in Subsection (11)(b) with respect to one or more of the
             276      following documents:
             277          (A) a return;
             278          (B) an affidavit;
             279          (C) a claim; or
             280          (D) a document similar to Subsections (11)(a)(i)(A) through (C);
             281          (ii) knows or has reason to believe that the document described in Subsection (11)(a)(i)


             282      will be used in connection with any material matter administered by the commission; and
             283          (iii) knows that the document described in Subsection (11)(a)(i), if used in connection
             284      with any material matter administered by the commission, would result in an understatement of
             285      another person's liability for a tax, fee, or charge.
             286          (b) The following acts apply to Subsection (11)(a)(i):
             287          (i) preparing any portion of a document described in Subsection (11)(a)(i);
             288          (ii) presenting any portion of a document described in Subsection (11)(a)(i);
             289          (iii) procuring any portion of a document described in Subsection (11)(a)(i);
             290          (iv) advising in the preparation or presentation of any portion of a document described
             291      in Subsection (11)(a)(i);
             292          (v) aiding in the preparation or presentation of any portion of a document described in
             293      Subsection (11)(a)(i);
             294          (vi) assisting in the preparation or presentation of any portion of a document described
             295      in Subsection (11)(a)(i); or
             296          (vii) counseling in the preparation or presentation of any portion of a document
             297      described in Subsection (11)(a)(i).
             298          (c) For purposes of Subsection (11)(a), the penalty:
             299          (i) shall be imposed by the commission;
             300          (ii) is $500 for each document described in Subsection (11)(a)(i) with respect to which
             301      the person described in Subsection (11)(a) meets the requirements of Subsection (11)(a); and
             302          (iii) is in addition to any other penalty provided by law.
             303          (d) The commission may seek a court order to enjoin a person from engaging in
             304      conduct that is subject to a penalty under this Subsection (11).
             305          (e) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             306      commission may make rules prescribing the documents that are similar to Subsections
             307      (11)(a)(i)(A) through (C).
             308          (12) (a) As provided in Section 76-8-1101 , criminal offenses and penalties are as
             309      provided in Subsections (12)(b) through (e).


             310          (b) (i) A person who is required by this title or any laws the commission administers or
             311      regulates to register with or obtain a license or permit from the commission, who operates
             312      without having registered or secured a license or permit, or who operates when the registration,
             313      license, or permit is expired or not current, is guilty of a class B misdemeanor.
             314          (ii) Notwithstanding Section 76-3-301 , for purposes of Subsection (12)(b)(i), the
             315      penalty may not:
             316          (A) be less than $500; or
             317          (B) exceed $1,000.
             318          (c) (i) [A person who, with intent to evade a tax, fee, or charge or requirement of this
             319      title or any lawful requirement of the commission,] With respect to a tax, fee, or charge, a
             320      person who knowingly and intentionally, and without a reasonable good faith basis, fails to
             321      make, render, sign, or verify a return within the time required by law or to supply information
             322      within the time required by law, or who makes, renders, signs, or verifies a false or fraudulent
             323      return or statement, or who supplies false or fraudulent information, is guilty of a third degree
             324      felony.
             325          (ii) Notwithstanding Section 76-3-301 , for purposes of Subsection (12)(c)(i), the
             326      penalty may not:
             327          (A) be less than $1,000; or
             328          (B) exceed $5,000.
             329          (d) (i) A person who intentionally or willfully attempts to evade or defeat a tax, fee, or
             330      charge or the payment of a tax, fee, or charge is, in addition to other penalties provided by law,
             331      guilty of a second degree felony.
             332          (ii) Notwithstanding Section 76-3-301 , for purposes of Subsection (12)(d)(i), the
             333      penalty may not:
             334          (A) be less than $1,500; or
             335          (B) exceed $25,000.
             336          (e) (i) A person is guilty of a second degree felony if that person commits an act:
             337          (A) described in Subsection (12)(e)(ii) with respect to one or more of the following


             338      documents:
             339          (I) a return;
             340          (II) an affidavit;
             341          (III) a claim; or
             342          (IV) a document similar to Subsections (12)(e)(i)(A)(I) through (III); and
             343          (B) subject to Subsection (12)(e)(iii), with knowledge that the document described in
             344      Subsection (12)(e)(i)(A):
             345          (I) is false or fraudulent as to any material matter; and
             346          (II) could be used in connection with any material matter administered by the
             347      commission.
             348          (ii) The following acts apply to Subsection (12)(e)(i):
             349          (A) preparing any portion of a document described in Subsection (12)(e)(i)(A);
             350          (B) presenting any portion of a document described in Subsection (12)(e)(i)(A);
             351          (C) procuring any portion of a document described in Subsection (12)(e)(i)(A);
             352          (D) advising in the preparation or presentation of any portion of a document described
             353      in Subsection (12)(e)(i)(A);
             354          (E) aiding in the preparation or presentation of any portion of a document described in
             355      Subsection (12)(e)(i)(A);
             356          (F) assisting in the preparation or presentation of any portion of a document described
             357      in Subsection (12)(e)(i)(A); or
             358          (G) counseling in the preparation or presentation of any portion of a document
             359      described in Subsection (12)(e)(i)(A).
             360          (iii) This Subsection (12)(e) applies:
             361          (A) regardless of whether the person for which the document described in Subsection
             362      (12)(e)(i)(A) is prepared or presented:
             363          (I) knew of the falsity of the document described in Subsection (12)(e)(i)(A); or
             364          (II) consented to the falsity of the document described in Subsection (12)(e)(i)(A); and
             365          (B) in addition to any other penalty provided by law.


             366          (iv) Notwithstanding Section 76-3-301 , for purposes of this Subsection (12)(e), the
             367      penalty may not:
             368          (A) be less than $1,500; or
             369          (B) exceed $25,000.
             370          (v) The commission may seek a court order to enjoin a person from engaging in
             371      conduct that is subject to a penalty under this Subsection (12)(e).
             372          (vi) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
             373      the commission may make rules prescribing the documents that are similar to Subsections
             374      (12)(e)(i)(A)(I) through (III).
             375          (f) The statute of limitations for prosecution for a violation of this Subsection (12) is
             376      the later of six years:
             377          (i) from the date the tax should have been remitted; or
             378          (ii) after the day on which the person commits the criminal offense.
             379          (13) Upon making a record of its actions, and upon reasonable cause shown, the
             380      commission may waive, reduce, or compromise any of the penalties or interest imposed under
             381      this part.
             382          Section 2. Section 76-8-1101 is amended to read:
             383           76-8-1101. Criminal offenses and penalties relating to revenue and taxation --
             384      Rulemaking authority -- Statute of limitations.
             385          (1) (a) As provided in Section 59-1-401 , criminal offenses and penalties are as
             386      provided in Subsections (1)(b) through (e).
             387          (b) (i) Any person who is required by Title 59, Revenue and Taxation, or any laws the
             388      State Tax Commission administers or regulates to register with or obtain a license or permit
             389      from the State Tax Commission, who operates without having registered or secured a license or
             390      permit, or who operates when the registration, license, or permit is expired or not current, is
             391      guilty of a class B misdemeanor.
             392          (ii) Notwithstanding Section 76-3-301 , for purposes of Subsection (1)(b)(i), the
             393      penalty may not:


             394          (A) be less than $500; or
             395          (B) exceed $1,000.
             396          (c) (i) [Any person who, with intent to evade any tax, fee, or charge as defined in
             397      Section 59-1-401 or requirement of Title 59, Revenue and Taxation, or any lawful requirement
             398      of the State Tax Commission,] With respect to a tax, fee, or charge as defined in Section
             399      59-1-401 , any person who knowingly and intentionally, and without a reasonable good faith
             400      basis, fails to make, render, sign, or verify any return within the time required by law or to
             401      supply any information within the time required by law, or who makes, renders, signs, or
             402      verifies any false or fraudulent return or statement, or who supplies any false or fraudulent
             403      information, is guilty of a third degree felony.
             404          (ii) Notwithstanding Section 76-3-301 , for purposes of Subsection (1)(c)(i), the penalty
             405      may not:
             406          (A) be less than $1,000; or
             407          (B) exceed $5,000.
             408          (d) (i) Any person who intentionally or willfully attempts to evade or defeat any tax,
             409      fee, or charge as defined in Section 59-1-401 or the payment of a tax, fee, or charge as defined
             410      in Section 59-1-401 is, in addition to other penalties provided by law, guilty of a second degree
             411      felony.
             412          (ii) Notwithstanding Section 76-3-301 , for purposes of Subsection (1)(d)(i), the penalty
             413      may not:
             414          (A) be less than $1,500; or
             415          (B) exceed $25,000.
             416          (e) (i) A person is guilty of a second degree felony if that person commits an act:
             417          (A) described in Subsection (1)(e)(ii) with respect to one or more of the following
             418      documents:
             419          (I) a return;
             420          (II) an affidavit;
             421          (III) a claim; or


             422          (IV) a document similar to Subsections (1)(e)(i)(A)(I) through (III); and
             423          (B) subject to Subsection (1)(e)(iii), with knowledge that the document described in
             424      Subsection (1)(e)(i)(A):
             425          (I) is false or fraudulent as to any material matter; and
             426          (II) could be used in connection with any material matter administered by the State Tax
             427      Commission.
             428          (ii) The following acts apply to Subsection (1)(e)(i):
             429          (A) preparing any portion of a document described in Subsection (1)(e)(i)(A);
             430          (B) presenting any portion of a document described in Subsection (1)(e)(i)(A);
             431          (C) procuring any portion of a document described in Subsection (1)(e)(i)(A);
             432          (D) advising in the preparation or presentation of any portion of a document described
             433      in Subsection (1)(e)(i)(A);
             434          (E) aiding in the preparation or presentation of any portion of a document described in
             435      Subsection (1)(e)(i)(A);
             436          (F) assisting in the preparation or presentation of any portion of a document described
             437      in Subsection (1)(e)(i)(A); or
             438          (G) counseling in the preparation or presentation of any portion of a document
             439      described in Subsection (1)(e)(i)(A).
             440          (iii) This Subsection (1)(e) applies:
             441          (A) regardless of whether the person for which the document described in Subsection
             442      (1)(e)(i)(A) is prepared or presented:
             443          (I) knew of the falsity of the document described in Subsection (1)(e)(i)(A); or
             444          (II) consented to the falsity of the document described in Subsection (1)(e)(i)(A); and
             445          (B) in addition to any other penalty provided by law.
             446          (iv) Notwithstanding Section 76-3-301 , for purposes of this Subsection (1)(e), the
             447      penalty may not:
             448          (A) be less than $1,500; or
             449          (B) exceed $25,000.


             450          (v) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             451      State Tax Commission may make rules prescribing the documents that are similar to
             452      Subsections (1)(e)(i)(A)(I) through (III).
             453          (2) The statute of limitations for prosecution for a violation of this section is the later
             454      of six years:
             455          (a) from the date the tax should have been remitted; or
             456          (b) after the day on which the person commits the criminal offense.


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