59-10-1403.1 - Income tax treatment of a pass-through entity taxpayer -- Return filing requirements. - Utah Statutes

59-10-1403.1. Income tax treatment of a pass-through entity taxpayer -- Return filingrequirements.
(1) Subject to the other provisions of this part, a pass-through entity taxpayer is subject totaxation:
(a) for a pass-through entity taxpayer that is classified as a C corporation for federal incometax purposes:
(i) if that pass-through entity taxpayer is a resident pass-through entity taxpayer, as a domesticcorporation is taxed under Chapter 7, Corporate Franchise and Income Taxes; or
(ii) if that pass-through entity taxpayer is a nonresident pass-through entity taxpayer, as aforeign corporation is taxed under Chapter 7, Corporate Franchise and Income Taxes; or
(b) for a pass-through entity taxpayer that is classified as an estate, individual, partnership, Scorporation, or a trust for federal income tax purposes:
(i) if that pass-through entity taxpayer is a resident pass-through entity taxpayer, as a residentestate, resident individual, resident partnership, resident S corporation, or resident trust is taxed underthis chapter; or
(ii) if that pass-through entity taxpayer is a nonresident pass-through entity taxpayer, as anonresident estate, nonresident individual, nonresident partnership, nonresident S corporation, ornonresident trust is taxed under this chapter.
(2) A pass-through entity taxpayer is subject to taxation on the pass-through entity taxpayer'sshare of income, gain, loss, deduction, or credit of the pass-through entity.
(3) (a) Subject to Subsection (3)(b)(iii), a resident pass-through entity taxpayer shall file areturn:
(i) if the resident pass-through entity taxpayer is classified as a C corporation for federalincome tax purposes, as a domestic corporation under Chapter 7, Corporate Franchise and IncomeTaxes; or
(ii) if the resident pass-through entity taxpayer is classified as an estate, individual, partnership,S corporation, or a trust for federal income tax purposes, as a resident estate, resident individual,resident partnership, resident S corporation, or resident trust under this chapter.
(b) (i) Except as provided in Subsection (3)(b)(ii) and subject to Subsection (3)(b)(iii) or (iv),a nonresident pass-through entity taxpayer shall file a return:
(A) if the nonresident pass-through entity taxpayer is classified as a C corporation for federalincome tax purposes, as a foreign corporation under Chapter 7, Corporate Franchise and IncomeTaxes; or
(B) if the nonresident pass-through entity taxpayer is classified as an estate, individual,partnership, S corporation, or a trust for federal income tax purposes, as a nonresident estate,nonresident individual, nonresident partnership, nonresident S corporation, or nonresident trust underthis chapter.
(ii) A nonresident pass-through entity taxpayer is not required to file a return if:
(A) the nonresident pass-through entity taxpayer does not have:
(I) for a nonresident pass-through entity taxpayer that is classified as a C corporation forfederal income tax purposes, unadjusted income as defined in Section 59-7-101 derived from orconnected with Utah sources, except for the nonresident pass-through entity taxpayer's share ofincome, gain, loss, deduction, or credit of the pass-through entity;

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(II) for a nonresident pass-through entity taxpayer that is classified as an individual,partnership, or S corporation for federal income tax purposes, adjusted gross income derived from orconnected with Utah sources, except for the nonresident pass-through entity taxpayer's share ofincome, gain, loss, deduction, or credit of the pass-through entity; or
(III) for a nonresident pass-through entity taxpayer that is classified as an estate or a trust forfederal income tax purposes, unadjusted income as defined in Section 59-10-103 derived from orconnected with Utah sources, except for the nonresident pass-through entity taxpayer's share ofincome, gain, loss, deduction, or credit of the pass-through entity;
(B) the nonresident pass-through entity taxpayer does not seek to claim a tax credit allowedagainst a tax imposed under:
(I) Chapter 7, Corporate Franchise and Income Taxes; or
(II) this chapter;
(C) the pass-through entity pays or withholds a tax on behalf of the nonresident pass-throughentity taxpayer and remits that tax to the commission:
(I) in accordance with Section 59-10-1403.2; and
(II) if a nonresident pass-through entity taxpayer is classified as a C corporation for federalincome tax purposes, in an amount that is equal to or greater than the minimum tax under Section59-7-104; and
(D) the nonresident pass-through entity taxpayer is not a member of a unitary group as definedin Section 59-7-101 that is required to file a return in this state.
(iii) A nonresident pass-through entity taxpayer that is not otherwise required to file a returnunder this Subsection (3) may file a return under:
(A) Chapter 7, Corporate Franchise and Income Taxes; or
(B) this chapter.
(iv) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, thecommission may make rules for a pass-through entity taxpayer, except for a pass-through entitytaxpayer who is a resident individual, to file a return under this section if two or more pass-throughentities pay or withhold a tax in accordance with Section 59-10-1403.2 on behalf of the pass-throughentity taxpayer.

Enacted by Chapter 312, 2009 General Session