Utah State Income Tax Protest — Petition for Redetermination

PETITION FOR REDETERMINATION OF DEFICIENCY — UTAH INCOME TAX

TABLE OF CONTENTS

1. Caption
2. Identification of Petitioner and Notice
3. Jurisdiction and Timeliness
4. Statement of Facts
5. Issues Presented
6. Grounds for Redetermination
7. Request for Penalty and Interest Waiver
8. Request for Hearing and Mediation
9. Reservation of Rights and Preservation of Issues
10. Prayer for Relief
11. Verification
12. Power of Attorney and Signature
13. Certificate of Service
14. Notice of Appeal to District Court or Supreme Court (Optional)
15. Utah Practice Notes
16. Sources and References

1. CAPTION

BEFORE THE UTAH STATE TAX COMMISSION

APPEALS UNIT — 210 N 1950 W, SALT LAKE CITY, UT 84134

Appeal No.: [________________________________] (assigned by the Commission)

Notice of Deficiency Date: [__/__/____]

Tax Period(s) at Issue: [__/__/____] through [__/__/____]

Tax Type: Utah Individual Income Tax (Title 59, Chapter 10) / Corporate Franchise & Income Tax (Title 59, Chapter 7)

PETITION FOR REDETERMINATION OF DEFICIENCY AND REQUEST FOR AGENCY ACTION

Petitioner, pursuant to Utah Code § 59-1-501 and Utah Admin. Code R861-1A-22, respectfully petitions the Utah State Tax Commission for redetermination of the deficiency described herein, and states as follows:

2. IDENTIFICATION OF PETITIONER AND NOTICE

2.1. Petitioner [PETITIONER NAME] is a [individual / Utah corporation / foreign corporation authorized to do business in Utah / partnership / LLC / trust], with principal residence or place of business at [ADDRESS].

2.2. Petitioner's Utah Taxpayer Identification / Account Number is [________________________________] and federal EIN / SSN (last four) is [XXX-XX-####].

2.3. All notices, correspondence, and decisions in this matter shall be served on Petitioner's representative at the address shown in Section 12 below.

2.4. The Auditing Division of the Utah State Tax Commission issued a Statutory Notice of Deficiency dated [__/__/____] (the "Notice"), assessing additional tax, penalties, and interest in the total amount of $[AMOUNT], allocated as follows:

2.5. A true and correct copy of the Notice is attached as Exhibit A.

3. JURISDICTION AND TIMELINESS

3.1. The Commission has jurisdiction over this matter under Utah Code § 59-1-210 and § 59-1-501.

3.2. This Petition is timely filed within thirty (30) days of the mailing date of the Notice as required by Utah Code § 59-1-501(3)(a). The Notice was mailed on [__/__/____]; the thirtieth day is [__/__/____]; this Petition is filed on [__/__/____].

3.3. Pursuant to Utah Code § 59-1-501(2), the timely filing of this Petition operates as a stay on collection of the deficiency pending the Commission's final decision.

4. STATEMENT OF FACTS

4.1. Petitioner timely filed a Utah Individual Income Tax Return (Form TC-40) [/ Utah Corporate Franchise Tax Return (Form TC-20)] for the tax year(s) at issue on [__/__/____].

4.2. The return reported Utah taxable income of $[AMOUNT], calculated tax of $[AMOUNT], and [refund / balance due] of $[AMOUNT].

4.3. [Describe the audit history: opening conference date; scope; documents produced; any prior IDR responses; any prior position letters or proposed adjustments.]

4.4. The Auditing Division proposed adjustments based on [summarize each adjustment — e.g., disallowance of deduction, recharacterization of residency, sourcing of nonresident income, addback of state income tax, federal RAR conformity adjustment].

4.5. [Describe any informal conference held with the Auditing Division and any concessions or remaining disputes.]

4.6. The Notice incorporates the Auditing Division's final adjustments. Petitioner disputes each adjustment as set forth in Section 6 below.

5. ISSUES PRESENTED

5.1. Whether the Auditing Division correctly determined that [ISSUE 1 — e.g., Petitioner was a Utah resident / domiciliary under Utah Code § 59-10-103 for the tax years at issue].

5.2. Whether the Auditing Division correctly [ISSUE 2 — e.g., disallowed Petitioner's claimed credit under § 59-10-1003 for taxes paid to another state].

5.3. Whether the penalties asserted under Utah Code § 59-1-401 should be waived for reasonable cause.

5.4. Whether the interest asserted under Utah Code § 59-1-402 was correctly computed.

6. GROUNDS FOR REDETERMINATION

6.1. Domicile / Residency. Petitioner was not domiciled in Utah within the meaning of Utah Code § 59-10-136 during [YEARS] because [FACTS — e.g., physical presence in Utah was less than 183 days; permanent home was located in [STATE]; voter registration, vehicle registration, professional licenses, and family ties were maintained outside Utah; Petitioner did not satisfy any of the rebuttable presumptions of domicile under § 59-10-136(1)].

6.2. Sourcing / Apportionment. The income at issue was not Utah-source income under Utah Code § 59-10-117 because [FACTS].

6.3. Federal Conformity / RAR. The federal Revenue Agent's Report relied upon by the Auditing Division [was untimely incorporated under § 59-10-536 / has been amended / is itself the subject of a pending federal protest].

6.4. Substantiated Deductions. Petitioner properly substantiated the [DESCRIBE — e.g., Section 199A passthrough deduction; charitable contribution; subtraction for U.S. obligations under § 59-10-114(2)(a)] and the documentation produced during the audit fully supports the position.

6.5. Statute of Limitations. The Notice is barred in whole or in part by the three-year statute of limitations under Utah Code § 59-1-1404, because the return at issue was filed on [__/__/____] and the Notice was not issued until [__/__/____], more than three years later, and no statutory extension applies.

6.6. Burden of Proof. Although a deficiency notice is presumptively correct, the presumption is rebutted by competent evidence; once rebutted, the burden returns to the Auditing Division. See Bombardier Capital, Inc. v. Auditing Div., 2003 UT 16.

7. REQUEST FOR PENALTY AND INTEREST WAIVER

7.1. Pursuant to Utah Code § 59-1-401(14) and Utah Admin. Code R861-1A-42, the Commission has authority to waive, reduce, or compromise penalties and interest upon a showing of reasonable cause.

7.2. Reasonable cause exists here because:

☐ Petitioner reasonably relied on written advice provided by the Tax Commission;

☐ The position taken on the return had substantial authority and was disclosed;

☐ Records were destroyed by [fire / flood / theft / other casualty] beyond Petitioner's control;

☐ Petitioner timely mailed the return and payment but it was not delivered through no fault of the taxpayer;

☐ Death or serious illness of the taxpayer or a member of the taxpayer's immediate family;

☐ Other: [________________________________].

7.3. Petitioner has paid in full, or is current on payment plan for, any uncontested tax balance for the period.

7.4. Petitioner has not previously received a waiver review for the same period.

8. REQUEST FOR HEARING AND MEDIATION

8.1. Petitioner requests an Initial Hearing before the Appeals Unit pursuant to Utah Admin. Code R861-1A-23, to be conducted [in person at the Salt Lake City offices / by telephone / by video conference].

8.2. In the alternative, or in addition, Petitioner requests mediation under Utah Code § 59-1-502.5 with a Tax Commissioner or designated mediator.

8.3. If the matter is not resolved at the Initial Hearing or by mediation, Petitioner requests a Formal Hearing before an Administrative Law Judge or the Commission en banc under Utah Admin. Code R861-1A-26.

8.4. Petitioner reserves the right to call witnesses, present documentary evidence, cross-examine the Auditing Division's witnesses, and submit pre- and post-hearing briefs.

9. RESERVATION OF RIGHTS AND PRESERVATION OF ISSUES

9.1. Petitioner reserves the right to amend or supplement this Petition to assert additional issues, defenses, or arguments as the record develops.

9.2. Petitioner expressly preserves all constitutional challenges, including challenges under the Due Process and Commerce Clauses of the United States Constitution and Article I, §§ 7 and 24 of the Utah Constitution.

9.3. Petitioner does not waive any right to seek judicial review under Utah Code §§ 59-1-601 and 59-1-610.

10. PRAYER FOR RELIEF

WHEREFORE, Petitioner respectfully requests that the Commission:

• A. Set aside, in whole, the Notice of Deficiency dated [__/__/____];
• B. In the alternative, redetermine the deficiency in an amount not greater than $[AMOUNT];
• C. Waive all penalties asserted under § 59-1-401;
• D. Recompute interest under § 59-1-402 consistent with the redetermined deficiency;
• E. Award refund of any overpayment with statutory interest;
• F. Grant Petitioner an Initial Hearing, mediation, and (if necessary) a Formal Hearing; and
• G. Grant such other and further relief as the Commission deems just and proper.

11. VERIFICATION

STATE OF UTAH

COUNTY OF [COUNTY]

I, [PETITIONER / OFFICER NAME], being first duly sworn, depose and say that I am the Petitioner [/ a duly authorized officer of Petitioner] in the foregoing matter; that I have read the foregoing Petition for Redetermination; and that the statements therein are true to my own knowledge except as to those matters stated upon information and belief, and as to those I believe them to be true.

[________________________________]

[NAME, TITLE]

Sworn to and subscribed before me this [____] day of [_______________], 20[____].

[________________________________]

Notary Public — State of Utah

(My Commission Expires: [_______________])

12. POWER OF ATTORNEY AND SIGNATURE

Date: [__/__/____]

Respectfully submitted,

[LAW FIRM NAME]

By: [________________________________]

[ATTORNEY NAME], Utah State Bar No. [####]

Counsel for Petitioner

[STREET ADDRESS]

[CITY, STATE ZIP]

Telephone: [NUMBER]

Email: [EMAIL]

13. CERTIFICATE OF SERVICE

I hereby certify that on this the [____] day of [_______________], 20[____], I served the foregoing PETITION FOR REDETERMINATION with all exhibits on the parties listed below by [U.S. Mail, postage prepaid / hand delivery / email pursuant to R861-1A-25]:

Utah State Tax Commission — Appeals Unit
210 North 1950 West
Salt Lake City, UT 84134
[email protected]

Auditing Division — Utah State Tax Commission
210 North 1950 West
Salt Lake City, UT 84134

[________________________________]

[ATTORNEY NAME]

14. NOTICE OF APPEAL TO DISTRICT COURT OR SUPREME COURT (OPTIONAL)

ELECTION OF FORUM — Pursuant to Utah Code §§ 59-1-601 and 59-1-610, Petitioner elects to seek judicial review of the Commission's Final Decision dated [__/__/____] by filing:

☐ Petition for Judicial Review in the Utah Supreme Court (or Court of Appeals on transfer) under Utah R. App. P. 14(a) and Utah Code § 63G-4-403. The reviewing court grants the Commission no deference on conclusions of law (correction-of-error standard) absent an explicit grant of discretion in the underlying statute (§ 59-1-610(1)(b)).

☐ Petition for Judicial Review by Trial De Novo in the [____] Judicial District Court under Utah Code § 59-1-601(1) and § 63G-4-402. In a de novo proceeding, the case is tried as if no agency proceeding had occurred; the taxpayer must pay any uncontested portion of the tax before filing.

Filing Deadline. The petition for judicial review must be filed within 30 days after the Commission's Final Decision becomes effective (§ 63G-4-401(3)(a); Utah R. App. P. 14(a)).

15. UTAH PRACTICE NOTES

• Statutory deadline. Utah Code § 59-1-501(3) sets a hard 30-day window (90 days for taxpayers outside the U.S.) measured from the mailing date of the Notice of Deficiency, not the receipt date. Treat this as jurisdictional.
• Stay of collection. A timely petition stays collection of the disputed deficiency under § 59-1-501(2). Uncontested portions remain due and continue to accrue interest.
• Two-step administrative review. The Appeals Unit first conducts an Initial Hearing (R861-1A-23) — typically informal, often resolves cases — before any Formal Hearing before an ALJ or the four-Commissioner panel (R861-1A-26).
• Mediation. Utah Code § 59-1-502.5 authorizes a Tax Commissioner to mediate without serving as the decisionmaker on the same case.
• Formal hearing evidence. Documents must be exchanged at least 10 business days before the formal hearing under R861-1A-28(2); late documents may be excluded. Hearsay is admissible if reliable.
• Burden of proof. The Notice carries a presumption of correctness; the taxpayer bears the initial burden to overcome it. Once rebutted, the Auditing Division must come forward with evidence supporting the assessment.
• Choice of judicial forum (§ 59-1-610 vs. § 59-1-601). A direct appeal to the Utah Supreme Court is faster and limits review to the agency record but applies appellate standards. A district court trial de novo allows new evidence and a fresh record but extends the timeline. Election is binding once filed.
• Standard of review on appeal. § 59-1-610 grants no deference on legal conclusions absent an explicit statutory grant of discretion. Factual findings are reviewed under the substantial-evidence standard.
• Penalty/interest waiver. R861-1A-42 lists circumstances constituting "reasonable cause." Ignorance of the law, carelessness, and forgetfulness are insufficient; reliance on written commission advice or proven casualty loss qualify.
• Power of Attorney requirement. For income, corporate franchise, and corporate income tax matters, counsel must file Form TC-737 before appearing (R861-1A-26).
• Confidentiality. Tax return information is confidential under Utah Code § 59-1-403; disclosure is restricted, and pleadings should redact non-essential personal identifiers.

16. SOURCES AND REFERENCES

• Utah Code Title 59 (Revenue and Taxation) — https://le.utah.gov/xcode/Title59/Title59.html
• Utah Code § 59-1-501 (Petition for Redetermination) — https://le.utah.gov/xcode/Title59/Chapter1/59-1-S501.html
• Utah Code § 59-1-502.5 (Mediation Conferences) — https://le.utah.gov/xcode/Title59/Chapter1/59-1-S502.5.html
• Utah Code § 59-1-601 (Judicial Review) — https://le.utah.gov/xcode/Title59/Chapter1/59-1-S601.html
• Utah Code § 59-1-610 (Standard of Review) — https://le.utah.gov/xcode/Title59/Chapter1/59-1-S610.html
• Utah Code § 59-1-401 (Penalties / Waiver) — https://le.utah.gov/xcode/Title59/Chapter1/59-1-S401.html
• Utah Admin. Code R861-1A — https://adminrules.utah.gov/public/rule/R861-1A/Current%20Rules
• Utah State Tax Commission — Appeals — https://tax.utah.gov/commission-office/appeals
• Form TC-737 (Power of Attorney) — https://tax.utah.gov/forms/current/tc-737.pdf
• Utah Taxpayer Bill of Rights (Pub. 2) — https://tax.utah.gov/forms/pubs/pub-02.pdf
• Bombardier Capital, Inc. v. Auditing Div., 2003 UT 16 (burden of proof)
• Harper Investments v. Auditing Div., 868 P.2d 813 (Utah 1994)
• Action TV v. Bd. of Equalization, 1999 UT App 281

Disclaimer: This template is provided for informational purposes only and does not constitute legal advice. An attorney licensed in Utah must review and customize this document before filing. Statutes, rules, and commission practice change frequently; verify all citations before use.