TAX DEBT RELIEF OPTIONS – Utah State Tax Commission

M&M Financial has been successfully resolving back tax liabilities for small businesses and individuals in Utah since 2008 and nationwide since 2005.  We deal with the IRS and State taxing authorities, so you do not have to!

If you or your business owe the Utah State Tax Commission back-taxes we recommend first reading your Utah Taxpayer Bill of Rights.

Below is some information that will help you start resolving your state tax liabilities.  If you have questions and would like to talk to a licensed Tax Resolution Specialist please do not hesitate to call us at 866-487-5624.

PAYMENT PLANS TO RESOLVE UTAH BACK TAXES

The Utah State Tax Commission (USTC) uses a basic threshold of $5,000 to dictate your Payment Agreement options. 

• If you owe less than $5,000 to the state of Utah, then you should be able to get up to a 24-month payment plan without much fuss or financial documentation.  
• If your tax liability is more than $5,000to the state of Utah, then you will be required to complete and submit – 
  • Form TC-805 Collection Information Statement for Individuals, and/or 
  • Form TC-803 Collection Information Statement for Businesses
  • And, you may be required to make a good faith down payment

24-month payment plans are standard, but longer Payment Agreements may be granted if you provide supporting financial documentation backing up your need for more affordable terms.  

It’s also important to know that a tax lien will likely be filed if your USTC Payment Agreement extends beyond 24 months.  Paying your tax debt in under 24 months gives you a chance of avoiding a tax lien.  

More information on USTC payment plans can be found HERE.

REDUCE YOUR UT-DOR TAX DEBT

Offer in Compromise

Utah does have an Offer in Compromise, but it is geared toward settling older tax liabilities.

Use TC-410 Offer Request form when submitting your Utah Offer in Compromise.

Contact us to find out why we don’t recommend the Offer in Compromise for operating businesses.

Penalty Relief

You may request a Waiver of Penalties online or in writing.  However, all the tax owed for each period you are requesting relief must be paid to qualify for consideration by the state.  

When reviewing your request, Utah will look at – 

• your compliance history, 
• whether you’ve requested penalty relief in the past, and 
• the circumstances that led to the accrual.  

Utah considers “Reasonable Cause” when determining whether a Penalty Waiver is warranted.   Publication 17 Waivers, Reasonable Cause outlines the allowed reasons for penalty relief.  They are very similar to the IRS’ Reasonable Cause criteria.

tAX RESOLUTION CASE EXAMPLES

The Utah State Tax Commission has some flexibility when it comes to back tax liabilities.  Each case varies based on factors such as your compliance history, type of tax owed and total amount past due.  Here are some case examples in your state negotiated by M&M.

M&M Tax Relief Case Examples in Utah 

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