Filing Extensions and
Prepayment Requirements

Individuals who need extra time to file their Utah income tax returns are automatically granted a six-month extension of time to file without penalties IF they have met certain prepayment requirements by April 15. There is no form needed to qualify for a state extension. Those who take advantage of the six-month filing extension must file their 2007 tax return by October 15, 2008.

• Prepayment requirements
• Extension penalty
• Making prepayments

Prepayment Requirements

An extension only gives a taxpayer extra time to file a return, not to pay any taxes due. To avoid penalties a taxpayer must meet ONE of the following requirements by April 15:

• The taxpayer must have prepaid (through withholding, applying a refund from the previous year, or direct payments) 90 percent of the total tax due for the 2007 tax year; OR
• The taxpayer must have prepaid an amount equal to 100 percent of the tax due for the 2006 tax year.
• If the taxpayer did not file a return for had zero tax in 2006, they must prepay 90 percent of the 2007 tax due.

Notes

1. Interest is due during the automatic six-month extension period on any unpaid tax (tax due that was not prepaid by April 15).
2. A Utah resident in military service, stationed outside the United States, will be granted a waiver of penalty for late filing if the return is filed on or before the 15th day of the fourth month after the taxpayer’s return to the United States or the discharge date, whichever is earlier. Interest is still due on any unpaid tax from the original due date of the return until the tax is paid. For more information on combat zone relief, click here.

Extension Penalty

If the prepayment requirements (above) are not met by the original due date of the return, an extension penalty will be added. The penalty on the unpaid tax will be assessed at a rate of 2 percent per month, calculated on a daily basis, until the date the return is filed.

(unpaid tax) x .24 x (number of days) ÷ 365

For more information, see Pub 58, Interest and Penalties

Making Prepayments

Utah does not require quarterly estimated tax payments from self-employed workers or people who receive other taxable income from which taxes are not withheld. To avoid a penalty during the automatic six-month filing extension, prepayments must be made by April 15.

Choose the payment method that works best for you:

• Pay your taxes on the Internet with your credit card or an electronic check by using PaymentExpress, our electronic payment portal (Online payments are subject to a convenience fee; see Frequently Asked Questions); or
• Mail your payment with Form TC-546, Individual Income Tax Prepayment Coupon to the address below. Write your social security number and the tax year on your check or money order. Mail must be postmarked by midnight, April 15.

Utah State Tax Commission
210 North 1950 West
Salt Lake City, UT 84134-0266