Utah: Sales Tax Handbook

How to appeal a sales tax audit or penalty in Utah

In Utah, the State Tax Commission will frequently audit business sales tax returns and may issue penalties or punishments for tardy filing, incorrect reporting, willful omissions, or other violations. Penalties can range from fines to revocation of your sales tax permit depending on the infraction.

If you disagree with a penalty or ruling made by the Utah State Tax Commission, you have several options you can pursue in appealing their decision. This page contains basic guidelines for appealing to the State Tax Commission, to an administrative appeal body, and through the courts.

Sales Tax Statute of Limitations in Utah

In sales tax law, the "statute of limitations" is the maximum amount of time state authorities have to investigate and begin potential audit or prosecution related to a a filed Utah sales tax return in the event of underpayment, incorrect reportings, etc. The State Tax Commission cannot begin an audit or issue a penalty after this timeframe.

The statute of limitations in Utah is three years from the return filing date.

Appealing to the State Tax Commission in Utah

If you do not agree with a penalty or decision made by the Utah State Tax Commission, you have the right to file an appeal and ask for reconsideration. In the case of a department appeal, an official petition must be filed with the Tax Commission within thirty days after mailing notice of deficiency

Administrative Sales Tax Appeals in Utah

This district has no administrative appeal body

Judicial Sales Tax Appeals in Utah

If all other appeal avenues fail, businesses can make a final appeal in the state court system. When working with judicial appeals, the suit must be filed with the District Court within thirty days after mailing notice of agency action