Vol. 2010, No. 11 (06/01/2010) PDF - Administrative Rules - Utah.gov

NOTICES OF PROPOSED RULES DAR File No. 33646
33640
Tax Commission, Auditing
R865-9I-56
Determination of Amounts Withheld by
a Pass-Though Entity that is an S
Corporation Pursuant to Utah Code
Ann. Section 59-10-116, 59-10-117,
59-10-118, 59-10-1403.2, and
59-10-1405
NOTICE OF PROPOSED RULE
(Amendment)
DAR FILE NO.: 33640
FILED: 05/13/2010
RULE ANALYSIS
PURPOSE OF THE RULE OR REASON FOR THE
CHANGE: This section is removed since the language has
been consolidated into another section.
SUMMARY OF THE RULE OR CHANGE: This section is
removed because the language in the section is being
amended into Section R865-9I-13, and the same
amendments made in that section will apply to an S
Corporation. (DAR NOTE: The amendment to Section
R865-9I-13 is under DAR No. 33645 in this issue, June 1,
2010, of the Bulletin.)
STATUTORY OR CONSTITUTIONAL AUTHORIZATION FOR
THIS RULE: Section 59-10-116 and Section 59-10-117 and
Section 59-10-118 and Section 59-10-1403.2 and Section
59-10-1405
ANTICIPATED COST OR SAVINGS TO:
♦ THE STATE BUDGET: None--Any fiscal impacts were
taken into account in S.B. 23 (2009). (DAR NOTE: S.B. 23
(2009) is found at Chapter 312, Laws of Utah 2009, and was
effective 03/25/2009.)
♦ LOCAL GOVERNMENTS: None--Any fiscal impacts were
taken into account in S.B. 23 (2009).
♦ SMALL BUSINESSES: None--Any fiscal impacts were
taken into account in S.B. 23 (2009).
♦ PERSONS OTHER THAN SMALL BUSINESSES,
BUSINESSES, OR LOCAL GOVERNMENTAL ENTITIES:
None--Any fiscal impacts were taken into account in S.B. 23
(2009).
COMPLIANCE COSTS FOR AFFECTED PERSONS: None--
The proposed amendment reflects moving the language into
another section.
COMMENTS BY THE DEPARTMENT HEAD ON THE
FISCAL IMPACT THE RULE MAY HAVE ON BUSINESSES:
None.
THE FULL TEXT OF THIS RULE MAY BE INSPECTED,
DURING REGULAR BUSINESS HOURS, AT:
TAX COMMISSION
AUDITING
210 N 1950 W
SALT LAKE CITY, UT 84134
or at the Division of Administrative Rules.
DIRECT QUESTIONS REGARDING THIS RULE TO:
♦ Michael Cragun by phone at 801-297-3907, by FAX at
801-297-3919, or by Internet E-mail at mcragun@utah.gov
INTERESTED PERSONS MAY PRESENT THEIR VIEWS ON
THIS RULE BY SUBMITTING WRITTEN COMMENTS NO
LATER THAN AT 5:00 PM ON 07/01/2010
THIS RULE MAY BECOME EFFECTIVE ON: 07/08/2010
AUTHORIZED BY: R. Bruce Johnson, Tax Commission Chair
R865. Tax Commission, Auditing.
R865-9I. Income Tax.
[R865-9I-56. Determination of Amounts Withheld by a Pass-
Through Entity that is an S Corporation Pursuant to Utah Code
Ann. Section 59-10-116, 59-10-117, 59-10-118, 59-10-1403.2, and
59-10-1405.
(1) The provisions of this rule apply to a pass-through
entity that is an S corporation. For provisions that apply to a passthrough
entity that is not an S corporation, see rule R865-9I-13.
(2) A pass-through entity that is an S corporation with
nonresident shareholders shall complete Schedule N of form
TC-20S, and shall provide the following information for each
nonresident pass-through entity taxpayer:
(a) name;
(b) address;
(c) social security number;
(d) percentage of S corporation held; and
(e) amount of Utah tax paid or withheld on behalf of that
pass-through entity taxpayer.
(3) The income of a pass-through entity that is an S
corporation shall be calculated by:
(a) adding back to the line on the Schedule K labeled
Income/loss reconciliation" the amount included on that schedule
for:
(i) charitable contributions;
(ii) total foreign taxes paid or accrued; and
(iii) recapture of a benefit derived from a deduction under
Section 179, Internal Revenue Code; or
(b) if the pass-through entity that is an S corporation was
not required to complete the line labeled Income/loss reconciliation"
on the Schedule K, a pro forma calculation of the amounts for
charitable contributions and foreign taxes paid or accrued, and of
the amount that would have been entered on the Income/loss
reconciliation" line shall be used for purposes of this rule.
124 UTAH STATE BULLETIN, June 01, 2010, Vol. 2010, No. 11