State & Local Tax Impacts of COVID-19 for Utah – 2020

Thoughtware Alert Published: Dec 11, 2020 | Updated: May 05, 2021

Information current as of December 31, 2020.

COVID-19 has changed life across the globe. Many taxing jurisdictions are taking mitigating actions to create social distance and aid taxpayers. The following is a running list of actions by jurisdiction, which generally result in additional time to file and/or pay. Further, many jurisdictions have closed their offices to in-person use by taxpayers and suspended their audit and administrative functions. This alert doesn’t cover similar waivers from local-level taxing authorities. These developments continue to quickly evolve; check with your BKD Trusted Advisor or visit our COVID-19 Resource Center for current information as needed.

Information Specific to Utah

  • Utah’s individual income tax return due date is the same day as the federal individual income tax return due date; if the IRS changes the due date with reasons related to the outbreak, Utah also will extend its due date.
    • Utah DOR Notice, March 18, 2020.
  • Utah extended the individual income, corporate income, and trust income tax filing and payment date to July 15 without penalties and interest.
    • Utah DOR Notice, March 20, 2020.
    • Utah Admin. R. § R861-1A-42, Waiver of Penalty and Interest for Reasonable Cause, amended March 26, 2020.
  • Utah released legislative clarification and validation of the state’s COVID-19 responses. The bill aligns corporate and individual return filing dates, extension dates, and periods with federal dates and changes due dates for estimated corporate income tax payments. The bill also modifies the due date for an installment payment of the tax on deferred foreign income. Last, it creates a subtraction from adjusted gross income for certain distributions from a qualified retirement plan, codifying a longstanding practice of the Utah State Tax Commission that was favorable to taxpayers.
    • Utah H.B. 3003, generally effective retroactively to taxable years beginning on or after January 1, 2019.
  • For the 2020 tax year, Utah won’t tax funds received from grant programs created in response to COVID-19. Taxpayers may subtract these funds from their state income for corporate and personal income tax purposes. The subtraction applies to funds received under the COVID-19 Cultural Assistance Grant Program; the program authorizing grants to institutions of higher education for training and education to fill employment gaps or meet industry needs; and the COVID-19 Economic Recovery Programs.
    • Utah H.B. 5010, Laws 2020, Fifth Special Session, effective January 1, 2020.
  • Utah legislation excludes amounts received from a forgiven loan under the Paycheck Protection Program or similar programs from state corporate franchise income tax. 
    • Utah S.B. 6005, Laws 2020, Sixth Special Session, effective January 1, 2020.
  • Utah legislation removes the 80 percent limitation on a Utah net operating loss carryforward for the 2018 through 2020 income tax years to match the CARES Act provisions.
    • Utah H.B. 6013, Laws 2020, Sixth Special Session, effective January 1, 2018.
  • Utah announced that due to the transmission risks of COVID-19, it will hold all appeal events via teleconference until further notice. Taxpayers can contact the commission with questions concerning how to proceed with telephone hearings of corporate income, individual income, sales and use, property, excise, and trust income tax matters. 
    • Utah Tax Commission Release, September 1, 2020.

For more information, reach out to your BKD Trusted Advisor or use the Contact Us form below.

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