59-9-104 - Installment payments -- Penalty.
59-9-104. Installment payments -- Penalty.
(1) A person whose total tax obligation under this chapter for the preceding taxable yearwas $10,000 or more shall pay the taxes levied under this chapter in quarterly installments. Eachinstallment shall be based on the estimated insurance premiums received, or for the taxes imposedunder Section 59-9-103, upon the estimated total administrative and claims expense incurredduring the calendar quarter preceding the date on which that quarterly installment is due. Theinstallments are due on or before April 30, July 31, October 31, and March 31. To the extentinstallment payments result in an overpayment of the tax obligation under this chapter, theoverpayment shall be promptly refunded.
(2) If an installment is not paid or is underpaid, except as provided in Subsection (3),there shall be added a penalty at the rate and in the manner prescribed in Section 59-1-401. Theamount of the underpayment is the excess of 80% of the installment shown to be due by an auditof the taxpayer's records over the amount, if any, of the installment paid on or before the last dateprescribed for the payment. The taxpayer shall pay the cost of the audit, if any.
(3) No penalty, interest, or audit charge may be assessed under Subsection (2) if thetaxpayer pays, for any installment required by this section, at least 27% of the annual tax reportedon its annual statement for the preceding taxable year.
(4) There shall be no interest added to any estimated tax payments subject to a penaltyunder this section.
Amended by Chapter 205, 1995 General Session