DAR File No. 32788
This filing was published in the 08/01/2009, issue, Vol. 2009, No. 15, of the Utah State Bulletin.
Tax Commission, Auditing
R865-6F-35
S Corporation Determination of Tax Pursuant to Utah Code Ann. Section 59-7-703
NOTICE OF PROPOSED RULE
DAR File No.: 32788
Filed: 07/06/2009, 01:06
Received by: NL
RULE ANALYSIS
Purpose of the rule or reason for the change:
S.B. 23 (2009 General Session) moves S Corporations from the corporate tax chapter to the individual income tax chapter of Title 59. (DAR NOTE: S.B. 23 (2009) is found at Chapter 312, Laws of Utah 2009, and was effective 03/25/2009.)
Summary of the rule or change:
This section is removed from the corporate tax rule, Rule R865-6F, and moved to the individual income tax rule, Rule R865-9I. (DAR NOTE: The proposed amendments to sections of Rule R865-9I are under DAR No. 32789, DAR No. 32793, and DAR No. 32795 in this issue, August 1, 2009, of the Bulletin.)
State statutory or constitutional authorization for this rule:
Section 59-7-703
Anticipated cost or savings to:
the state budget:
None--Any impact was considered in S.B. 23 (2009).
local governments:
None--Any impact was considered in S.B. 23 (2009).
small businesses and persons other than businesses:
None--Any impact was considered in S.B. 23 (2009).
Compliance costs for affected persons:
None--This corporate tax rule is removed and moved to an individual income tax rule.
Comments by the department head on the fiscal impact the rule may have on businesses:
There are no anticipated costs. D'Arcy Dixon, Commissioner
The full text of this rule may be inspected, during regular business hours, at the Division of Administrative Rules, or at:
Tax CommissionAuditing
210 N 1950 W
SALT LAKE CITY UT 84134
Direct questions regarding this rule to:
Cheryl Lee at the above address, by phone at 801-297-3900, by FAX at 801-297-3919, or by Internet E-mail at [email protected]
Interested persons may present their views on this rule by submitting written comments to the address above no later than 5:00 p.m. on:
08/31/2009
This rule may become effective on:
09/07/2009
Authorized by:
D'Arcy Dixon, Commissioner
RULE TEXT
R865. Tax Commission, Auditing.
R865-6F. Franchise Tax.
[R865-6F-35. S Corporation Determination of Tax Pursuant
to Utah Code Ann. Section 59-7-703.
(1) For purposes of Section 59-7-703(2)(b)(i), "items of income
or loss from Schedule K of the 1120S federal form" 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.
(b) If the 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.
(2) An S corporation shall withhold tax on behalf of a nonresident
shareholder at the rate in effect in Section 59-10-104.
(3) An S corporation with nonresident shareholders shall complete
Schedule N of form TC-20S, and shall provide the following information for each
nonresident shareholder:
(a) name;
(b) social security number;
(c) percentage of S corporation held; and
(d) amount of Utah tax paid or withheld on behalf of that
shareholder.
]
KEY: taxation, franchises, historic preservation, trucking industries
Date of Enactment or Last Substantive
Amendment: [December 4, 2008]2009
Notice of Continuation: March 8, 2007
Authorizing, and Implemented or Interpreted Law: 59-7-703
ADDITIONAL INFORMATION
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For questions regarding the content or application of this rule, please contact Cheryl Lee at the above address, by phone at 801-297-3900, by FAX at 801-297-3919, or by Internet E-mail at [email protected]
For questions about the rulemaking process, please contact the Division of Administrative Rules (801-538-3764). Please Note: The Division of Administrative Rules is NOT able to answer questions about the content or application of these administrative rules.
Last modified: 07/30/2009 6:29 PM