State discontinues mailing income tax forms

The Utah State Tax Commission will no longer print and mail individual booklets and forms for individual income tax returns.
Because so many taxpayers choose electronic filing, taxpayers will not be receiving print booklets and forms in the mail. Last year, 77 percent filed state income taxes online.
All forms and publications are available online at incometax.utah.gov.
The Tax Commission encourages people to file and pay taxes through our free online service at taxexpress.utah.gov.
Electronic filing is the fastest way to receive refunds and ensure accurate tax returns. Payments up to 130 days may also be scheduled.
In order to file state individual income tax returns, you will need the following:
- Copy of your federal tax return
- All applicable W-2, 1099, K-1 and TC-675R forms with Utah withholding information
- Tax deduction and credit documents
For those using Taxpayer Access Point (TAP) for the first time, you will need your Social Security number or individual taxpayer identification number (ITIN) and federal adjusted gross income from the previous year's return.
Users will create a user name and password to use each time you log in. Tutorials are available online.
In addition to taxexpress.utah.gov, taxpayers may also file state income taxes through a tax preparer or using commercial filing software.

Volunteers needed to assist families with tax preparation

Volunteers are being sought to assist low and moderate income families in Utah to receive free tax help and possibly cash in the form of an earned income tax credit.

Under the “Earn It. Keep it. Save it.” moniker, a coalition of community organizations reaches out to eligible families and provides information about the federal earned income tax credit.

“It is estimated that between $60 million and $80 million is unclaimed each year in Utah,” said Charlie Roberts, spokesman for the state tax commission and member of the statewide coalition.

The coalition is under the leadership of United Way of Salt Lake and Community Action partnership of Utah.

Volunteers are needed as tax preparers, financial resource specialists, interpreters, schedulers and greeters at the Volunteer Income Tax Assistance sites.

Those interested may register online at http://www.utahtaxhelp.org/ or by calling 2-1-1.

IRS closes counter at Tax Commission

As of Thursday, December 8, the IRS counter co-located at the Utah State Tax Commission will be closed and is no longer in service. The office is located at 210 N. 1950 West, Salt Lake City. IRS customers may visit the office at 50 South 200 East, Social Hall Ave. Salt Lake City."We have appreciated the partnership of the IRS people in our building, and we will miss them," said Barry Conover, executive director of the Tax Commission.

Utah’s Free Online Tax Account Management System Gets a Face Lift

Taxpayer Access Point (TAP), Utah’s online tax account management system, helps taxpayers save time and money. Although the system has been successful, taxpayers have asked for changes and improvements through the years. In response, TAP is getting a new look and enhanced functionality on Dec. 12.
What’s Different?
The improved system will still have the same security, but you can now access it on more browsers (you no longer need Microsoft Silverlight installed). You will also receive reminders, correspondence and other account information through TAP’s notification system.

In addition, you can now access the following tax types:

· Miscellaneous Sales Taxes, Fees and Charges including Lube Oil, Multi‐Channel Audio/Visual, and Sexually Explicit Business (TC‐62W and TC‐62WW)
· Municipal Telecommunication Tax (TC‐62Z)
· E‐911 Emergency Services Tax (TC‐62Y)
· Insurance Premium (TC‐49)
· Self Insurer’s (TC‐420)
· Brine Shrimp (payments only)

If you have already registered with TAP, you can still use your current login information to:

· File and amend returns
· Make and schedule future payments
· Check refund status
· See account balances
· Request payment plans and waivers of penalty and interest

Tax preparers and payroll companies can continue to manage their client accounts through TAP (with proper registration).

How do I Get an Account?
If you haven’t signed up for TAP yet, go to taxexpress.utah.gov to start. The service is free and is still the fastest way to get your income tax refund!

Salt Lake dentist sentenced for state tax evasion

A Salt Lake County dentist will have to pay about $165,000 or face prison time for failing to file tax returns and taking efforts to evade paying state income taxes.
Benjamin Lee Gilstrap, 59, was found guilty of one second-degree count of racketeering and two third-degree felony counts of tax evasion and attempted tax evasion.
Gilstrap resides in South Jordan and operates a dental office in Sandy. He attempted to avoid paying taxes by co-mingling his business and personal expenses.
Gistrap also failed to file tax returns during a five-year period in which he had earned nearly $1.5 million.

"Failing to pay taxes brings consequences because it is a failure to basic obligations of citizenship," says Attorney General Mark Shurtleff. "It is particularly disheartening because this defendant rebuffed all efforts for resolution which resulted in even greater costs to taxpayers."
On Sept. 19, Third District Court Judge William Barrett suspended Gilstrap's sentence of up to five years in priosn, but ordered him to provide full documentation for restitution, spend 50 days of home confinement with electronic monitoring, serve 350 hours of community service and serve six years of probation.
"Tax evasion is a serious crime that the Tax Commission continues to vigorously investigate," says Charlie Roberts, Utah State Tax Commission spokesman. "When those who receive public benefits attempt to skirt the law by not paying their fair share of taxes, it places an undue burden on the rest of Utah's taxpayers."
Gilstrap was investigated by the Tax Commission and prosecuted by the Attorney General's Office.

Back to 5 x 8 work week

On Tuesday, Sept. 6, the Tax Commission - along with all other state government agencies - will return to the traditional 5-day work week.
As always, customer service will be king at the Tax Commission and our divisions, including the Division of Motor Vehicles.
Our office hours will be a straight-forward 8 a.m. to 5 p.m. Monday through Friday.
The four 10-hour work days were implemented in August of 2008 by then-Gov. Jon Huntsman.

Utah CPAs honor former Tax Commission head

The Utah Association of CPAs recently honored 14 certified public accountants, including Rodney Marrelli, the former executive director of the Utah State Tax Commission.


Rod, who passed away in 2010, was awarded the Jeannie Patton Lifetime Service Award.


The article was published today in the Salt Lake Tribune online edition.


At the time of his death, Rod had been a member of the UACPA for 35 years.


See earlier Tax Commission posts for details of Rod's lifetime of service in the public and private sectors.

Utah County businessman on the hook

A Utah County busnessman must pay nearly a quarter of a million dollars to the State Tax Commission if he is to avoid time behind prison bars.

Stephen Zimmerman, 58, was sentenced in 3rd District Court after pleading guilty to two third-degree felonies.

Judge Randall Skancy sentenced Zimmerman to serve up to five years in prison. That sentence will be suspended if he pays $241,000 to the State and completes other terms of his probation.

As owner of Professional Global Marketing Data Services, Zimmerman kept payroll taxes owed by his familiy and employees between 2005 and 2009. He then submitted false W-2 forms to the Tax Commission claiming the taxes had been paid to the State.

This is straight-forward theft of payroll taxes. As an employer he collected the taxes owed to the State, pocketed them, and then falsified tax records.Attorney General Mark Shurtleff said, "Plain and simple this is theft against every taxpayer in Utah. My hat goes off to the prosecutors and investigators who work so vigilantly to stop tax fraud."

The Tax Commission's Criminal Investigation Unit vigorously investigates these type of cases and the A.G.'s office prosecutes the criminals.

Senate Committee recommends Commissioner Dixon

The Utah Senate Revenue and Taxation Confirmation Committee unanimously recommended Commissioner D'Arcy Dixon Pignanelli to a second 4-year term to the Utah State Tax Commission.
Senators Curtis Bramble, Howard Stephenson, Benjamin McAdams and Wayne Niederhauser voted to send Commissioner Dixon Pignanelli's name to the full State Senate for confirmation.
Commissioner Dixon Pignanelli was originally appointed to fill the unexpired term of Palmer DePaulis in March 2006. She was appointed to her first 4-year term in 2007.
She was praised by the Senate committee for her independence in applying the rule of law on her tax decisions.
Commission Chair Bruce Johnson complimented his fellow commissioner for her independence and also for her determination to implement the redaction program on the Tax Commission website.
To provide general guidance for taxpayers, under Commissioner Dixon Pignanelli's direction, the Tax Commission redacts confidential information from orders involving statutory interpretation, substantive case law and new or complex issues and posts them on the website.
Senator Bramble noted that the committee had received several letters of recommendation from business and taxpayer groups advocating Commissioner Dixon Pignanelli's reappointment to the Commission. Commissioner Dixon Pignanelli previously served as the director of Administrative Services and has a career in serving in both the public and private sectors.

Renew vehicle registraion w/mobile phone

It was just launched in March, but people already are taking advantage of a smart phone app to renew vehicle registrations.

Residents are now able to renew vehicle registration at any time using their iPad, Blackberry, or Andorid.

The Utah DMV is continually looking for ways to make the vehicle renewal process more convenient for our citizens.

With registrations renewals, there is really no need to come to our office. You can do it by snail-mail, online with your computer or mobile phone or at one of our On-The-Spot business locations.

In addition to your name and zip code, you simply enter the license plate number and last eight digits of the Vehicle Identification Number (VIN) to begin the step-by-step process.

"Online vehicle registration has been extremely successful in Utah," says Barry Conover, executive director of the State Tax Commission.

"We recognize that citizens are busy and are increasingly utilizing mobile technology to conduct business transactions at their convenience," he adds.

Being part of the mobile innovation and expansion will also help the DMV realize more efficiences.

These actions save our citizens time and money while reducing DMV operation costs.

It has taken seven months, an intense round of interviews, consent from the Governor and confirmation by the State Senate, but today Barry Conover is officially the executive director of the Utah State Tax Commission.

"We all know Barry and we all like Barry," Commission Chair R. Bruce Johnson told a comittee of State Senators. "But we did not hire Barry because we know him and like him."

"We hired him because after an extensive search, he was found to be the best person to lead the Tax Commission," the Commission Chair explained to the Senators who unanimously recommended him for Senate confirmation.

Mr. Conover, a 38-year veteran of the Tax Commission, replaces Rodney Marrelli who passed away Oct. 30, 2010.

He expressed his support to the division directors, managers and supervisors leading the 652 full-time Tax Commission employees. The new executive director also expressed appreciation to his wife, Kathleen, the Commissioners, Governor, and State Senate for his support.

In expressing his support to the employees, he noted that Tax Commission employees impact the lives of Utah citizens more than any other state agency.

National group honors Rod Marrelli posthumously

A national tax policy group honored former Tax Commission executive director Rod Marrelli posthumosly with a special leadership aware.
The FTA Executive Committee honored Mr. Marrelli, last week. He served as the chief administrator of the agency, managing its day-to-day operations, from 1994 until his death last October.
"We are pleased to hear of this honor give to Rod," said Barry Conover, interim USTC executive director. "It is another recognition of this great man's commitment and accomplishment.
Mr. Marrelli was a member of the FTA Board of Trustees and was an active participant with the Multistate Tax Commission.
He also served as president of the Western States Association of Tax Administrators and was involved in the Northwest Regional Sales Tax Project, the forerunner for the Streamlined Sales Tax project.

Take advantage of TAP

The Utah State Tax Commission has several different systems for filing and paying taxes online. To make the process easier, we are consolidating many of those various services into one system, called Taxpayer Access Point, or TAP.

As part of this consolidation, beginning June 27, 2011, TAP will replace the current WebExpress system to file, pay, and manage the following taxes:

· Cigarette and Tobacco – mandatory electronic filing
· Corporate – view and pay only
· Fuels – view and pay only
· Municipal Energy - mandatory electronic filing
· Other Miscellaneous Taxes – pay only
· Withholding – file, pay, and upload

If you currently use WebExpress, please register in TAP by visiting https://tap.tax.utah.gov/TaxExpress/TAP.htm on or after June 27. Registering early will help prevent filing and payment delays. You will need your FEIN and 14-character account number (12345678-003-ABC).

As always, you can get to any of our online systems at taxexpress.utah.gov. This would be a good site to bookmark.

Interim executive director appointed

Utah State Tax Commissioners appointed Barry C. Conover interim executive director of the agency Tuesday.

Mr. Conover, 63, has served as deputy executive director for 23 years. He fills the position left vacant at the death of Rodney G. Marrelli. The appointment is for up to three months.

“I appreciate the confidence of the Commissioners and look forward to this opportunity,” Mr. Conover said.

Mr. Conover holds a bachelor’s of science degree in Sociology from Brigham Young University and has served in a variety of leadership positions with Tax Commission since 1973. He has been lauded for his success the past five years as the project leader of the modernization of the Commission’s major tax systems.

"We appreciate Barry's service, devotion and assistance to Rod Marrelli and to the Tax Commission during the last few years,” said Commission Chair R. Bruce Johnson. “We are confident that Barry will uphold the high ideals Rod personified."

Our friend and leader passes away

Tax Commission employees lost a great friend and colleague Saturday with the passing of Rodney G. Marrelli, our executive director.

The citizens of Utah lost a dedicated public servant whose integrity was beyond reproach and a leader who kept the best interest of the taxpayer at the forefront of every decision he made.

Rod served diligently for nearly 17 nears in a position that requires a sharp intellect, broad vision, skillfull communication and strong management.

The strides Utah made under his leadership in the areas of modernizing the State's computer tax systems and online options are recognized nationally.

Within a few days of Rod's death, our Commission Chair Bruce Johnson received condolenses from state tax leaders throughout the United States.

Rod will be remembered by the 750 employees at the Tax Commission for his strong leadership, broad vision, clear communication and witty sense of humor.

Rod was appointed by Gov. Michael O. Leavitt in 1994 when the Internet was in its infancy, personal computers a luxury and "brick" cell phones were coveted.

In the Salt Lake Tribune, Gov. Leavitt said, "Rod's policy legacy will be his emphasis of compliance over enfrocement, his protection of "Main Street" retailers and fairness through sales tax simplification and his more than decade-long effort to modernize the state's outdated computer systems."

I admired Rod's diligence in keeping his nose to grind while battling cancer and all its ugly components without ever mumbling a negative word. Even during the final months of his life, Rod placed his public trust above his personal comfort.

"Do it right the first time" was more than a goal on an employee poster, it was a creed emblazoned in Rod's daily work ethic.

We will miss you, Rod.

Peace, love and all that Jazz,
Charlie

Beer bucks and such

The Tax Commission makes its annual distribution in December from the alcoholic beverage enforcement and treatment account.
This is a 'restricted' account that generated $5.6 million last year from the sale of beer within the friendly confines of the Beehive State.
The Legislature specifies the monies must be used for promoting the harmful effects of over consumption, reduction in underage drinking, and related areas.
The law allows funds to be use for confinement and treatment where alcohol is a contributing factor in the crime.
The dollars are distributed to cities, towns and counties is determined by these four factors:
1) Local population
2) Convictions for alcohol-related offenses
3) Liquor and beer licenses and outlets, and
4) County population
The data comes from a variety of federal and state sources and the Tax Commission computes the math for distribution to the local governments.

In other taxing matters . . .

• South Salt City's combined sales tax rate will change to 7.05 percent on Jan. 1. The City imposed the city option sales tx at a rate of .20 percent.
• Sevier County will increase its transient room tax rate for 3.0 to 4.25 percent.
• Filmore has imposed the 1 percent municipalilty transient room tax option. On New Years Day the transient room tax rate for our first territorial capital city will be 4 percent.

Peace, love and all that Jazz,

Charlie

Other states have quirky tax laws too

Last week a Utah tax grabbed local headlines - not because of its impact, but because of its quirkiness.

The topic of interest was sexually explicit businesses, also known as S.E.B.'s, which sounds better in a public setting than S.O.B.'s (sexually oriented businesses).

Here's the Reader's Digest version: In 2004, the Legislature passed a 10 percent tax on admission and sales of merchandise, food, drink and services for sexually explicit businesses. The Tax Commission determined that escort services did not qualify as S.E.B.s because of the broad language in the law. The Utah Supreme Court upheld the Tax Commission decision and then the U.S. Supreme Court decided against hearing the Utah case.

Currently, the law impacts only one Utah business.

Here's a sampling that financial expert Casey Bond posted in a gobankingrates.com column of strange taxes and deductions scatttered throughout the U.S. of A.

- Electrolysis treatments, tattoos and body piercings are taxed an additional 10 percent sales tax in Arkansas.

- Pet owners in Durham County, North Carolina must list pets as personal property and pay taxes on them. If Fluffy is fixed it's 10 bucks; otherwise $75 to tax collector.

- Clothing retailers in Minnesota pay a 6.5 percent tax for goods comprised of three times more fur than the next most valuable materal used to make it.

- Alabama charges 10 cent tax on any pack of cards that contains 54 or fewer in the deck. The seller must pay another buck and an annual license tax of $3.

- In addition to all the other costs for civil and criminal litigation, Tennessee charges a tax of $25 per court case.

- Alaska whaling boat captains can write off 10 Grand for anything they spend on boat repar and other whaling expenses.

I'm just a little disappointed that Utah's brine shrimp tax missed the list.

Peace, love and all that Jazz. Charlie

Tax workers 'Clear the Air'

Your friendly public servants here at the Tax Commission will be basking in Clear the Air glory come Saturday morning.
We, like 351 other agencies and companies, participated in the statewide Clear the Air campaign. Clear the Air is the only issue - other than Mother’s Day and apple pie - that Gov. Herbert, Mayor Corroon and Mayor Becker agree.
But when Mayor Becker issued the Clear the Air Challenge earlier this summer, all three were in the same ship. They encouraged their employees and people across the Beehive State to join the fun.
Throughout July a competition was held to reduce vehicle emissions by choosing walking, biking, taking public transportation, riding in a car pool and stringing errand trips together.
Nearly 90 Tax Commission employees participated in the event and recorded trips saved. Here’s our final tally:
Miles saved - 48,762 (That’s twice around the earth)
Trips saved - 3,393 (A weekly trip to the grocery store for 65 years)
Pounds of emissions eliminated - 81,720 (The weight of 9 average African elephants)
Dollars saved - $27,354 (Should cover this year’s Christmas bonus)
Gallons of gas saved - 2,212 (At 3 bucks a gallon, who’s complaining?)
At the Farmer’s Market on Saturday we will receive the team award for “Best Integration of TravelWise Strategies.” I’m unsure what the exactly means, but it sounds impressive. Hopefully we have done our small part to improve air quality, reduce traffic congestion and conserve energy in Utah.
Peace, love and all that Jazz, Charlie

You may quote these guys

Here are some of my favorite tax quotes to cheer you up as you approach the April 15 deadline.

The fine art of taxation consists in so plucking the goose as to get the most feathers with the least hissing. ~Jean Baptist Colbert, Louis XIV finance minister

Taxation with representation ain't so hot either. ~Gerald Barzan

I'm proud to pay taxes in the United States; the only thing is, I could be just as proud for half the money. ~Arthur Godfrey

The United States has a system of taxation by confession. ~Hugo Black

Why does a slight tax increase cost you two hundred dollars and a substantial tax cut save you thirty cents? ~Peg Bracken

Be wary of strong drink. It can make you shoot at tax collectors... and miss. ~Robert Heinlein

If the Lord loveth a cheerful giver, how he must hate the taxpayer! ~John Andrew Holmes

People who complain about taxes can be divided into two classes: men and women. ~Author Unknown

It's income tax time again, Americans: time to gather up those receipts, get out those tax forms, sharpen up that pencil, and stab yourself in the aorta. ~Dave Barry

Philosophy teaches a man that he can't take it with him; taxes teach him he can't leave it behind either. ~Mignon McLaughlin, The Second Neurotic's Notebook, 1966

The government’s view of the economy could be summed up in a few short phrases: If it moves, tax it. If it keeps moving, regulate it. And if it stops moving, subsidize it. ~Ronald Reagan

I shall never use profanity except in discussing house rent and taxes. ~Mark Twain

Our tax code is so long it makes War and Peace seem breezy. ~Steven LaTourette

Next to being shot at and missed, nothing is really quite as satisfying as an income tax refund. ~F.J. Raymond

The income tax created more criminals than any other single act of government. ~Barry Goldwater

What is the difference between a taxidermist and a tax collector? The taxidermist takes only your skin. ~Mark Twain, Notebook, 1902

Peace, love and all that Jazz. Charlie

Just the car facts, Ma'am. Just the facts.

Few realize that two separate police agencies are nestled under the roof of the Utah State Tax Commission: the Motor Vehicle Enforcement Division and the Criminal Investigation Unit.

These police officers are P.O.S.T. certified, carry badges and pack weapons.

Today, we'll take a quick look at the Motor Vehicle Enforcement Division. MVED officers protect citizens from motor vehicle commerce fraud by regulating the car sales industry.

As far as I know the used and new car sales business is the only Utah industry that has its very own police force. And who says you can't trust a car salesman?

In the news media MVED officers have been misidentified as DMV police, state investigators and my personal favorite . . . "state motor fleet officers."

These officers chase down stolen vehicles and the myriad of associated crimes. They are settled in for Easter weekend at the Little Sahara Sand Dunes in Juab County. They focus on citing those with unregistered ATVs and trailers--and there is a good chance they cross a handful of stolen vehicles.

MVED issues licenses to sales people and dealerships. In Utah, there are 4,805 licensed car sales people and 2,675 registered dealerships.

Police throughout the state recognize MVED officers as experts in auto theft and other vehicle-related crimes, i.e., odometer fraud, chop shops, title fraud and vehicle theft rings.

Last year, they recovered nearly 600 stolen vehicles valued at $5.2 million. They also filed 595 criminal counts, impounded 375 vehicles, issued 2,926 registrations and other citations and received 3,268 formal complaints.

Like Dragnet's Joe Friday, for the most part our MVED officers are looking for "Just the facts, ma'am. Just the facts."

Peace, love and all that Jazz, Charlie