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Sales tax problems in Utah often begin as cash flow issues. A business collects sales tax from customers, then faces unexpected expenses, and ends up using available funds to keep operations moving. Over time, missed filings, unpaid sales tax balances, and growing penalties can turn a temporary problem into a serious tax matter.

In Utah, sales tax is not treated like ordinary business debt. Businesses collect sales tax on behalf of the state and are expected to remit those funds to the Utah State Tax Commission. When that does not happen, business owners may face audits, collection activity, penalties, interest, and other consequences.

Jordan F. Wilcox helps Utah business owners understand their options, respond to tax authority concerns, and work toward a path forward when sales tax issues become difficult to manage.

Why Sales Tax Problems Are Serious for Utah Businesses

Utah sales and use taxes are transaction taxes collected from customers and remitted to the Utah State Tax Commission. Unlike a typical business expense, sales tax money does not belong to the business. The business is responsible for collecting those funds and holding them in trust until they are paid to the state.

When collected sales tax is used for payroll, rent, equipment purchases, vendor payments, or other operating expenses, the situation can quickly become more serious than many business owners realize.

For many, the issue develops gradually. What starts as a short-term cash-flow decision can eventually become a significant financial and legal concern.

Sales tax problems may lead to:

  • Accruing penalties and interest
  • Tax audits
  • Collection activity by the Utah State Tax Commission
  • Business cash-flow disruptions
  • Questions about personal responsibility for unpaid sales taxes

When Sales Tax Problems Require an Attorney

Not every tax issue requires legal representation, but certain situations often warrant speaking with a sales tax debt lawyer.

You should consider contacting a tax attorney if:

  • Your business collected sales tax but did not remit it.
  • You have missed sales tax filings.
  • The Utah State Tax Commission has contacted you.
  • You received a sales tax audit notice.
  • Your business owes more than it can realistically pay.
  • Penalties and interest continue to increase.
  • You are concerned about personal liability.
  • You are behind on both sales tax and payroll or income tax.
  • Business accounts, cash flow, or assets may be at risk.
  • You are unsure whether the issue is state, federal, or both.

Sales tax matters generally involve the Utah State Tax Commission, not the IRS. The IRS may become involved separately if the business also has payroll tax or federal income tax issues.

If you are facing one or more of these issues, reviewing our Results & Reviews can provide additional insight into the types of tax matters Jordan F. Wilcox has helped clients resolve.

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Can Owners Be Personally Liable for Sales Tax?

Yes. Sales tax problems can extend beyond the business entity itself.

Because sales tax is collected and held in trust for the state, Utah may pursue responsible individuals when collected taxes are not properly remitted. Depending on the facts, owners, officers, managers, or others with authority over tax decisions may face personal exposure.

Utah Tax Commission guidance provides that a 100% penalty may be assessed against responsible individuals in certain trust-fund tax situations. This is one reason business owners should not ignore sales tax notices, audits, or collection activity.

How Jordan F. Wilcox Helps With Utah Sales Tax Problems

1

Contact the Law Office of Jordan F. Wilcox

Reach out by phone or online. We gather basic information about your business, notices received, and sales tax concerns to determine how we can help.

2

Confidential Consultation

We review your sales tax situation, discuss the issues involved, and help you understand the risks, priorities, and potential next steps.

3

Sales Tax Compliance Review

We analyze filings, balances, notices, audits, and enforcement actions to determine the scope of the problem and identify related tax concerns.

4

Personal-Liability and Risk Evaluation

We evaluate whether owners or other responsible individuals may face personal exposure and identify risks that should be addressed early.

5

Representation Before the Tax Authority

Once representation begins, we communicate with the Utah State Tax Commission on your behalf and help manage the process moving forward.

6

Resolution Strategy and Next Steps

We develop a strategy based on your circumstances and work toward an appropriate resolution while helping you move toward compliance.

Talk With a Utah Sales Tax Attorney

Sales tax issues rarely improve on their own. The longer a business waits to address missed filings, unpaid balances, audit concerns, or collection activity, the more difficult the situation can become.

If your business collected sales tax and fell behind on reporting or payment obligations, now is the time to understand your risks and options. An experienced Utah sales tax attorney can help you evaluate the situation and determine the appropriate next steps.

FAQ

The Utah State Tax Commission may assess penalties and interest, initiate collection activity, conduct audits, and evaluate whether responsible individuals may have personal exposure depending on the circumstances.

Not by itself. Utah sales tax is administered by the Utah State Tax Commission. However, if a business also has unpaid payroll taxes, federal income tax debt, or other federal tax issues, the IRS may become involved separately.

Yes. A tax attorney can review the audit issues, communicate with tax authorities, evaluate legal exposure, and help develop a strategy for responding to the audit.

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