$1000 bill from the Utah State Tax Commission? Don’t Panic!

*Update: at the beginning of 2016, Utah changed the due dates, filing requirements, and penalties related to the filing of w-2’s, so the following is no longer applicable.

“Annual Withholding Reconciliation Not Filed or Incomplete”

Every fall, the USTC sends out hundreds, possibly thousands of notices to employers around the state that they owe $1000 for neglecting to file their TC-941R for the previous year. It may sound like a government scheme to trick extra money out small businesses, but it’s not. It is simply a way to spur employers into action.

The TC-941R, or Annual Withholding Reconciliation, is how you file W-2’s with the state of Utah each year (follow the link to a blank copy of the form). It also helps you make sure you’ve been paying in and reporting the correct amount of state income tax withholding for your employees. If something doesn’t add up, you may need to file amended returns for previous quarters.

As soon as you submit this return with the W-2’s, the $1000 fee will simply disappear. I’ve done lots of these for my clients in the past several years, and the Tax Commission has NEVER actually tried to collect on this bill. If you don’t do anything about it, though, you will continue to get past due notices for the fee.

If you have any questions about this form or how to file it, contact us! We are happy to help. If you can’t find your records from last year, or can’t figure out how to make your numbers add up, you are best off contacting the Tax Commission directly. Their agents are extremely helpful and can walk you through everything over the phone. Their number is (801) 297-2200. Select 0 for the operator, then option 2 for general tax questions. Have your withholding account information ready.

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