|June 23, 2010
Dear Representative Mathis:
Founded in 1960, MainStreet Tax & Accounting Services has been a trailblazer in the Uintah basin for the tax and accounting industry. As the first CPA firm in the region, we have helped small businesses through multiple recessions and countless changes to tax law. At this time however, we ask for your support as we contend an injustice being specifically targeted against small business owners in our area.
The Enterprise Zone Credit was created to improve and revitalize areas prone to high levels of poverty, unemployment and general distress. Uintah County benefited by this credit from 2005 until 2008. In December 2009, the county received an extension, making the credits available to qualified business owners for the 2009 tax year. These claimed credits are now being wrongly disallowed.
Among other areas, the state tax commission is aggressively auditing and disallowing millions of dollars of Enterprise Zone Credits from the hard working business owners in Uintah, Emery, Duchesne and other rural counties around the state that the credit was designed to benefit. These business owners are now being forced to pay back as much as $100,000 plus interest to the state on account of failure to qualify for the credits. The qualification requirements for the credits are filled with ambiguous language, including muddled references to both state and federal law; however, the conflict lies in the standards by which these terms are defined. The state auditing department is stripping millions of dollars from our Enterprise Zones using definition standards contrary to federal IRS precedent! We have represented one such case before the Utah state tax commission regarding the definition of an “employee” and are now awaiting a ruling. Given the vast scope of the audits and the depth of inadequacy in the standards listed in the Enterprise Zone Credit requirements, we ask for your support in clearly redefining the requirements of the credit to protect Utah’s rural small business owners and allow the credit to build the economies of these Enterprise Zones and our state as a whole as it was designed to do.
Please contact me at 801-565-7900 or firstname.lastname@example.org with questions. Thank you for your support!
David B. Larsen