H.B. 319 Enrolled

INCOME TAX - FILING EXTENSIONS
1997 GENERAL SESSION
STATE OF UTAH
Sponsor: Jeff Alexander
AN ACT RELATING TO REVENUE AND TAXATION; MODIFYING THE PROVISIONS
FOR AN EXTENSION OF TIME FOR FILING A RETURN; MAKING TECHNICAL
CHANGES; AND PROVIDING FOR RETROSPECTIVE OPERATION.
This act affects sections of Utah Code Annotated 1953 as follows:
AMENDS:
59-7-505, as last amended by Chapter 83, Laws of Utah 1994
59-10-516, as last amended by Chapter 37, Laws of Utah 1991
Be it enacted by the Legislature of the state of Utah:
Section 1. Section 59-7-505 is amended to read:
59-7-505. Returns required -- When due -- Extension of time -- Exemption from
filing.
(1) Each corporation subject to taxation under this chapter shall make a return, except that
a group of corporations filing a combined report under Part 4 of this chapter shall file one
combined report.
(a) The return shall be signed by a responsible officer of the corporation, the signature of
whom need not be notarized but when signed shall be considered as made under oath.
(b) (i) In cases where receivers, trustees in bankruptcy, or assignees are operating the
property or business of corporations, those receivers, trustees, or assignees shall make returns for
such corporations in the same manner and form as corporations are required to make returns.
(ii) Any tax due on the basis of such returns made by receivers, trustees, or assignees shall
be collected in the same manner as if collected from the corporations of whose business or
property they have custody and control.
(2) Returns shall be made on or before the 15th day of the fourth month following the
close of the taxable year.
(3) (a) The commission shall allow a taxpayer an extension of time[, not exceeding six

months,] for filing returns [if on or before the due date of the return an extension prepayment
required by Section 59-7-507 is made to the commission].
(b) The extension under Subsection (3)(a) may not exceed six months.
(4) Each return shall be made to the commission.
(5) A corporation incorporated or qualified to do business in this state prior to January 1,
1973, is not liable for filing a return or paying tax measured by income for the taxable year in which
it legally terminates its existence.
(6) A corporation incorporated or qualified to do business or which had its authority to do
business reinstated on or after January 1, 1973, shall file a return and pay the tax measured by
income for each period during which it had the right to do business in this state, and the return shall
be filed and the tax paid within three months and 15 days after the close of this period.
(7) If a corporation terminates its existence under Section 16-10a-1401, no returns are
required to be filed if a statement is furnished to the commission that no business has been conducted
during that period.
(8) (a) A corporation commencing to do business in Utah after qualification or incorporation
with the Division of Corporations and Commercial Code is not required to file a return for the period
commencing with the date of incorporation or qualification and ending on the last day of the same
month, if that corporation was not doing business in and received no income from sources in the
state during such period.
(b) In determining whether a corporation comes within the provisions of this chapter,
affidavits on behalf of the corporation that it did no business in and received no income from sources
in Utah during such period shall be filed with the commission.
Section 2. Section 59-10-516 is amended to read:
59-10-516. Filing extension -- Payment of tax -- Penalty -- Foreign residency.
(1) (a) The commission shall allow a taxpayer an extension of time[, not exceeding six
months,] for filing returns. [Payment of the amount of the tax estimated to be due, less credit for
W-2 withholding or other prepayments, shall be made]
(b) The extension under Subsection (1)(a) may not exceed six months.

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(2) (a) Except as provided in Subsection (2)(b), the commission may not impose on a
taxpayer during the extension period prescribed under Subsection (1) a penalty under Section
59-1-401 if the taxpayer pays, on or before the 15th day of the fourth month following the close of
the taxpayer's taxable year[.]:
[(b) The payment accompanying the extension request shall be] (i) at least 90% of the total
tax reported on the income tax return when it is filed; or [the same as]
(ii) an amount equal to the total amount of tax [paid] reported on the income tax return for
the previous year.
[(c)] (b) If [the amount of payment is less than 90% of the total tax reported on the income
tax return when it is filed or is less than the amount of total tax paid on the income tax return for the
previous year,] a taxpayer fails to meet the requirements of Subsection (2)(a), the commission may
apply to the total balance due a penalty [to the total of the balance due] as provided in Section
59-1-401.
[(2)] (3) If any federal income tax return filing is lawfully delayed pending a determination
of qualification for federal tax exemption due to residency outside of the United States, a [Utah state
income tax return need not be filed until] taxpayer shall file a return within 30 days after that
determination is made.
Section 3. Retrospective operation.
This act has retrospective operation for taxable years beginning on or after January 1, 1997.

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