Utah Code 59-10-1403. Income tax treatment of a pass-through entity — Returns — Classification same as under Internal Revenue Code

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.

Terms Used In Utah Code 59-10-1403

Pass-through entity: means a business entity that is:

(a)

the following if classified as a partnership for federal income tax purposes:

(i)	a general partnership;

(ii)	a limited liability company;

(iii)

a limited liability partnership; or

(iv)	a limited partnership;

(b)	an S corporation;

(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

(d)

a business entity similar to Subsections (11)(a) through (c):

(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

(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:

(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

(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:

(i)	an individual;

(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;

(iii)

a pass-through entity; or

(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)

(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.

Amended by Chapter 470, 2023 General Session

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