Utah Tax Penalties and Interest

Penalties & Interest

• 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 had 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

• For calendar year 2008, the interest rate is 7 percent (.07)
• For calendar year 2007, the interest rate is 7 percent (.07)
• For calendar year 2006, the interest rate is 6 percent (.06)
• For calendar year 2005, the interest rate is 4 percent (.04)
• For calendar year 2004, the interest rate is 3 percent (.03)
• For calendar year 2003, the interest rate is 5 percent (.05)
• For calendar year 2002, the interest rate is 6 percent (.06)
• For calendar year 2001, the interest rate is 8 percent (.08)
• For calendar year 1999 to 2000 the interest rate is 7 percent (.07)
• For calendar year 1995 to 1998 the interest rate is 8 percent (.08)
• From October 12, 1993 to December 31, 1994 the interest rate is 6 percent (.06)
• Before October 12, 1993 the interest rate is 12 percent (.12)

Note: payments are applied first to penalties, secondly to interest and lastly to tax. See Rule R861-1A-18.