BUSINESS

I.O.Utah: Taxpayers get explanation after receiving erroneous tax notices

Dec 2, 2020, 12:12 PM
tax notices problem...
The Utah Tax Commission says a computer glitch is responsible for thousands of erroneous notices sent to taxpayers, many demanding payment of past due interest, fees. Photo: Deseret News

Thousands of Utah taxpayers received notices by mail that they owed up to thousands of dollars in tax penalties and interest.

Turns out, that was not the case and now state tax officials say they know what happened.  The Utah State Tax Commission blames a computer error triggered by this year’s extended filing deadline.

Erroneous tax notices sent to thousands

The bogus notices went out to about 13,000 of the roughly 1.5 million Utahns who submitted income tax returns for the year 2019.

Officials say the tax commission’s computer system had trouble adjusting to this year’s changing deadline.  The erroneous tax notices went out to some taxpayers who filed and paid their taxes between the usual deadline of April 15 and July 15, the adjusted deadline.

Mike Lee, the commission’s taxpayer services division director, says the system had a difficult time adjusting to this year’s deadline.  This year, the legislature voted to push the normal tax deadline back to July 15; people who paid the amount due by that date had until mid-October to file their returns.

Last minute filers more likely to receive mistaken notice

Lee says some taxpayers who submitted their returns last minute wound up flagged incorrectly in the system as late, and received erroneous notices. He says they got the faulty notices even though the system was tested ahead of time.

The tax commission had already received some 2019 returns by the time the Utah legislature changed the due date, leaving state officials with fewer options to accommodate the change, according to a commission news release.

As soon as they detected the problem, the tax commission and state officials agreed to correct the problem and return money to taxpayers who paid penalties in error.

The system is currently up to date and reflects the correct amounts due by Utah taxpayers, says Lee, and the commission hasn’t mailed any bogus notices since Nov. 13.

State tax officials say corrected tax notices should land in mailboxes by Dec. 15.

Today’s Top Stories

Business

In this undated photo released by Toyota Motor Corp., its bZ4X vehicle is shown during an online pr...
YURI KAGEYAMA AP Business Writer

Toyota recalls electric car for faulty wheel that may detach

The "bz" in the recalled model's name, as well as others in the works, stands for a "beyond zero" series, including sport-utility vehicles of all sizes, pickup trucks and sportscars, according to Toyota.
3 days ago
A model wears a creation as part of the Giorgio Armani men's Spring Summer 2023 collection presente...
COLLEEN BARRY

Gucci unveils ‘HaHaHa’ collaboration with Harry Styles

Gucci has teamed up with Harry Styles for a between-season collection that infuses tailoring with adolescent joy. The collection is titled “HaHaHa.”
7 days ago
A now hiring sign in an Arby's window.; the Utah employment summary for May showed a slight slowing...
Amie Schaeffer

May’s Utah employment report showing signs of inflation impact

The employment rate in Utah remains steady but may be showing signs of inflation's impact, according to the state's May employment summary.
10 days ago
Attic fire in Cowabunga Bay building....
Mark Jones

Cowabunga Bay Water Park set to reopen Thursday after fire last weekend

Following a building fire last weekend, Draper's Cowabunga Bay Water Park is scheduled to reopen to the public on Thursday.
12 days ago
Utah airbnb rentals rising interest rates affecting millennial home buyers...
Dan Bammes

One realtor sees “signs of hope” in Utah housing market

With home listings up and home sales down, one Utah realtor is encouraged about the future of the Utah housing market, leading to what she calls "signs of hope."
13 days ago
Some executives are keeping their employees home in a way to save money and possibly help lower the...
Heather Kelly

Working from home could help bring down gas prices

Some businesses are having employees return to working remotely as a way to have money on gas, and possibly help lower gas prices.
17 days ago

Sponsored Articles

Tax Harassment...
Jordan Wilcox

The best strategies for dealing with IRS tax harassment | You have options!

Learn how to deal with IRS tax harassment. This guide will teach you how to stop IRS phone calls and letters, and how to handle an IRS audit.
spend a day at Bear Lake...
Bear Lake Convention and Visitors Bureau

You’ll love spending the day at Bear Lake | How to spend a day at Bear Lake

Bear Lake is a place that needs to be experienced. Spend a day at Bear Lake.
Curb Appeal...
Price's Guaranteed Doors

How to have the best of both worlds for your house | Home security and curb appeal

Protect your home and improve its curb appeal with the latest security solutions like beautiful garage doors and increased security systems.
Prescription opioids can be disposed of during National Prescription Take Back Day...
Know Your Script

Prescription opioid misuse | How to protect your family from the opioid epidemic

Studies have shown that prescription opioid misuse has increased since COVID-19. So what do you need to know about these opioids?
Follow @ikeyospe...

Tax Tuesday: The Most Common Mistakes People Make When Filing Their Taxes

Fortunately, for most average earners, they will not end up owing overpayments received for the Child Tax Credit in 2021.
Follow @ikeyospe...

Tax Tuesday: How will last year’s child tax credits affect you?

Fortunately, for most average earners, they will not end up owing overpayments received for the Child Tax Credit in 2021.
I.O.Utah: Taxpayers get explanation after receiving erroneous tax notices