(1) Subject to Subsection (3) and except as provided in Subsection 59-10-1403.2(2), a pass-through entity is not subject to a tax imposed by this chapter.

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Terms Used In Utah Code 59-10-1403

  • Individual: means a natural person and includes aliens and minors. See Utah Code 59-10-103
  • Pass-through entity: means a business entity that is:
         (11)(a) the following if classified as a partnership for federal income tax purposes:
              (11)(a)(i) a general partnership;
              (11)(a)(ii) a limited liability company;
              (11)(a)(iii) a limited liability partnership; or
              (11)(a)(iv) a limited partnership;
         (11)(b) an S corporation;
         (11)(c) an estate or trust with respect to which the estate's or trust's income, gain, loss, deduction, or credit is divided among and passed through to one or more pass-through entity taxpayers; or
         (11)(d) a business entity similar to Subsections (11)(a) through (c):
              (11)(d)(i) with respect to which the business entity's income, gain, loss, deduction, or credit is divided among and passed through to one or more pass-through entity taxpayers; and
              (11)(d)(ii) as defined by the commission by rule made in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act. See Utah Code 59-10-1402
  • Return: means a return that a pass-through entity taxpayer files:
         (15)(a) for a pass-through entity taxpayer that is classified as a C corporation for federal income tax purposes, under Chapter 7, Corporate Franchise and Income Taxes; or
         (15)(b) for a pass-through entity taxpayer that is classified as an estate, individual, partnership, S corporation, or a trust for federal income tax purposes, under this chapter. See Utah Code 59-10-1402
  • State: when applied to the different parts of the United States, includes a state, district, or territory of the United States. See Utah Code 68-3-12.5
  • Taxpayer: means any of the following that has income subject in whole or part to the tax imposed by this chapter:
              (1)(aa)(i) an individual;
              (1)(aa)(ii) an estate, a trust, or a beneficiary of an estate or a trust that is not a pass-through entity or a pass-through entity taxpayer;
              (1)(aa)(iii) a pass-through entity; or
              (1)(aa)(iv) a pass-through entity taxpayer. See Utah Code 59-10-103
(2) Except as provided in Section 59-10-1403.3, the income, gain, loss, deduction, or credit of a pass-through entity shall be passed through to one or more pass-through entity taxpayers as provided in this part.
(3) A pass-through entity is subject to the return filing requirements of Sections 59-10-507, 59-10-514, and 59-10-516.
(4) For purposes of taxation under this title, a pass-through entity that transacts business in the state shall be classified in the same manner as the pass-through entity is classified for federal income tax purposes.
(5)

     (5)(a) If a change is made in a pass-through entity’s net income or loss on the pass-through entity’s federal income tax return because of an action of the federal government, the pass-through entity shall file with the commission within 90 days after the date of a final determination of the action:

          (5)(a)(i) a copy of the pass-through entity’s amended federal income tax return or federal adjustment; and
          (5)(a)(ii) an amended state income tax return that conforms with the changes made in the pass-through entity’s amended federal income tax return.
     (5)(b) If a change is made in a pass-through entity’s net income on the pass-through entity’s federal income tax return because the pass-through entity files an amended federal income tax return, the pass-through entity shall file with the commission, within 90 days after the date the taxpayer files the amended federal income tax return:

          (5)(b)(i) a copy of the pass-through entity’s amended federal income tax return; and
          (5)(b)(ii) an amended state income tax return that conforms with the changes made in the pass-through entity’s amended federal income tax return.
(6)

     (6)(a) A pass-through entity subject to the return filing requirements under Subsection (3), shall report on the pass-through entity’s return:

          (6)(a)(i) whether the entity has filed a current annual report with the Division of Corporations; and
          (6)(a)(ii) the entity’s commerce entity number.
     (6)(b) Subsection (6)(a) does not apply to an individual, estate, or trust.