Action for collection of tax, fee, or charge -- Action for refund or credit of liability -- Denial of refund claim under appeal -- Appeal of denied refund claim

# (1)

# (a)

Except as provided in Subsections (3) through (7) and Sections 59-5-114, 59-7-519, and 59-10-536, the commission shall assess a tax, fee, or charge within three years after the day on which a person files a return.

# (b)

Except as provided in Subsections (3) through (7), if the commission does not assess a tax, fee, or charge within the three-year period provided in Subsection (1)(a), the commission may not commence a proceeding to collect the tax, fee, or charge.

# (2)

# (a)

Except as provided in Subsection (2)(b), for purposes of this part, a return filed before the last day prescribed by statute or rule for filing the return is considered to be filed on the last day for filing the return.

# (b)

A return of withholding tax under Chapter 10, Part 4, Withholding of Tax, is considered to be filed on April 15 of the succeeding calendar year if the return:

(i) is for a period ending with or within a calendar year; and

(ii) is filed before April 15 of the succeeding calendar year.

# (3)

The commission may assess a tax, fee, or charge or commence a proceeding for the collection of a tax, fee, or charge at any time if:

# (a)

a person:

(i) files a:

(A) false return with intent to evade; or

(B) fraudulent return with intent to evade; or

(ii) fails to file a return; or

# (b)

the commission estimates the amount of tax, fee, or charge due in accordance with Subsection 59-1-1406(2).

# (4)

The commission may extend the period to assess a tax, fee, or charge or to commence a proceeding to collect a tax, fee, or charge if:

# (a)

the three-year period under Subsection (1) has not expired; and

# (b)

the commission and the person sign a written agreement:

(i) authorizing the extension; and

(ii) providing for the length of the extension.

# (5)

The commission may make an assessment as provided in Subsection (6) if:

# (a)

the commission delays an audit at the request of a person;

# (b)

the person subsequently refuses to agree to an extension request by the commission; and

# (c)

the three-year period under Subsection (1) expires before the commission completes the audit.

# (6)

An assessment under Subsection (5) shall be:

# (a)

for the time period for which the commission could not make the assessment because of the expiration of the three-year period; and

# (b)

in an amount equal to the difference between:

(i) the commission's estimate of the amount of tax, fee, or charge the person would have been assessed for the time period described in Subsection (6)(a); and

(ii) the amount of tax, fee, or charge the person actually paid for the time period described in Subsection (6)(a).

# (7)

If a person erroneously pays a liability, overpays a liability, pays a liability more than once, or the commission erroneously receives, collects, or computes a liability, the commission shall:

# (a)

credit the liability against any amount of liability the person owes; and

# (b)

refund any balance to:

(i) the person; or

(ii)

(A) the person's assign;

(B) the person's personal representative;

(C) the person's successor; or

(D) a person similar to Subsections (7)(b)(ii)(A) through (C) as determined by the commission by rule made in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act.

# (8)

# (a)

Except as provided in Subsection (8)(b) or Section 19-12-203, 59-7-522, 59-10-529, or 59-12-110, the commission may not make a credit or refund unless a person files a claim with the commission within the later of:

(i) three years from the due date of the return, including the period of any extension of time provided in statute for filing the return; or

(ii) two years from the date the tax was paid.

# (b)

The commission shall extend the time period for a person to file a claim under Subsection (8)(a) if:

(i) the time period described in Subsection (8)(a) has not expired; and

(ii) the commission and the person sign a written agreement:

(A) authorizing the extension; and

(B) providing for the length of the extension.

# (9)

If the commission denies a claim for a credit or refund, a person may request a redetermination of the denial by filing a petition or request for agency action with the commission:

# (a)

(i) within a 30-day period after the day on which the commission mails a notice of denial for the claim for credit or refund; or

(ii) within a 90-day period after the day on which the commission mails a notice of denial for the claim for credit or refund, if the notice is addressed to a person outside the United States or the District of Columbia; and

# (b)

in accordance with:

(i) Section 59-1-501; and

(ii) Title 63G, Chapter 4, Administrative Procedures Act.

# (10)

The action of the commission on a person's petition for redetermination of a denial of a claim for credit or refund is final 30 days after the day on which the commission sends the commission's decision or order, unless the person seeks judicial review.