Penalties & Interest
- Details
- Last Updated on August 27, 2012
- Publication 58 has full and current information on how the Utah State Tax Commission assesses penalties and interest on Utah tax returns.
- Publication 15 has information on penalties and interest for International Fuel Tax Agreement (IFTA) tax.
- Utah Code §§59-1-401 and 402 have additional information about penalties and interest.
Interest Rates and Calculation
Interest is calculated using the number of calendar days from the original due date of the return until the tax is paid. Interest can be calculated using this formula:
(unpaid tax) x (interest rate) x (number of days) ÷ 365 = Amount of Interest Due
Note: By law, the International Fuel Tax Agreement (IFTA) has a different interest rate. See the instructions for completing Form TC-922, "IFTA/Special Fuel User Tax Return", for the correct interest rate.
Interest Rates
| Calendar Year | Interest Rate |
|---|---|
| 2013 | 2% (.02) |
| 2012 | 2% (.02) |
| 2011 | 3% (.03) |
| 2010 | 3% (.03) |
| 2009 | 5% (.05) |
| 2008 | 7% (.07) |
| 2007 | 7% (.07) |
| 2006 | 6% (.06) |
| 2005 | 4% (.04) |
| 2004 | 3% (.03) |
| 2003 | 5% (.05) |
| 2002 | 6% (.06) |
| 2001 | 8% (.08) |
| 1999-2000 | 7% (.07) |
| 1995-1998 | 8% (.08) |
| Oct 12, 1993 – Dec 31, 1994 | 6% (.06) |
| Before Oct 12, 1993 | 12% (.12) |
Note: payments are applied first to penalties, secondly to interest and lastly to tax. See Rule R861-1A-18.