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URA lost post-match penalties after both sides played out an entertaining 2-2 draw in normal time.
Thre time Stanbic Uganda Cup winners URA FC will have to try again next season to challenge for the domestic cup.
The tax collectors were on Monday dumped out of the Stanbic Uganda cup round of 64 by Kitara Regional League side Uganda Pentecostal University.
URA lost post-match penalties after both sides played out an entertaining 2-2 draw in normal time.
Goodman Muhulizi and Tuju Julius found the back of the net for the hosts while Abdallah Salim and Hudu Mulikyi scored for Sam Timbe's charges.
Midfielder Saidi Kyeyune and Alou John Kokas missed URA FC's spot kicks enabling the hosts to win the tie 4-3 on penalties.
Sam Timbe's charges who sit 11th on the log will now shift focus to the league's second round, the tax collectors only managed two wins in the first round in as many games.
URA make the long trip to Arua to play Ondupraka FC when the Startimes Uganda premier league second round resumes.
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