59-10-1403. Income tax treatment of a pass-through entity -- Returns -- Classification same as under Internal Revenue Code.
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/ut/title-59/chapter-10/59-10-1403A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
Effective 1/1/2024
59-10-1403. Income tax treatment of a pass-through entity -- Returns -- Classification same as under Internal Revenue Code.
(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.
(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.
(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:
(i)a copy of the pass-through entity's amended federal income tax return or federal adjustment; and
(ii)an amended state income tax return that conforms with the changes made in the pass-through entity's amended federal income tax return.
(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:
(i)a copy of the pass-through entity's amended federal income tax return; and
(ii)an amended state income tax return that conforms with the changes made in the pass-through entity's amended federal income tax return.
(a)A pass-through entity subject to the return filing requirements under Subsection (3), shall report on the pass-through entity's return:
(i)whether the entity has filed a current annual report with the Division of Corporations; and
(ii)the entity's commerce entity number.
(b)Subsection (6)(a) does not apply to an individual, estate, or trust.
Amended by Chapter 232 , 2024 General Session