| (1) |
As used in this section:
Terms Used In Utah Code 59-10-1403.3- 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; |
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| (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:
| (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- Statute: A law passed by a legislature.
- Taxpayer: means any of the following that has income subject in whole or part to the tax imposed by this chapter:
| (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 |
| (a) |
“Committee” means the Revenue and Taxation Interim Committee. |
| (b) |
“Qualifying excess withholding” means an amount that:
| (i) |
is paid or withheld:
| (A) |
by a pass-through entity that has a different taxable year than the pass-through entity that requests a refund under this section; and |
| (B) |
on behalf of the pass-through entity that requests the refund, if the pass-through entity that requests the refund also is a pass-through entity taxpayer; and |
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| (ii) |
is equal to the difference between:
| (A) |
the amount paid or withheld for the taxable year on behalf of the pass-through entity that requests the refund; and |
| (B) |
the product of the percentage listed in Subsection 59-10-104(2) and the income, described in Subsection 59-10-1403.2(1)(a)(i), of the pass-through entity that requests the refund. |
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| (2) |
For a taxable year ending on or after July 1, 2017, a pass-through entity may claim a refund of qualifying excess withholding, if the amount of the qualifying excess withholding is equal to or greater than $250,000. |
| (3) |
A pass-through entity that requests a refund of qualifying excess withholding under this section shall:
| (a) |
apply to the commission for a refund on or, subject to Subsection (4), after the day on which the pass-through entity files the pass-through entity’s income tax return; and |
| (b) |
provide any information that the commission may require to determine that the pass-through entity is eligible to receive the refund. |
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| (4) |
A pass-through entity shall claim a refund of qualifying excess withholding under this section within 30 days after the earlier of the day on which:
| (a) |
the pass-through entity files an income tax return; or |
| (b) |
the pass-through entity’s income tax return is due, including any extension of due date authorized in statute. |
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| (6) |
| (a) |
On or before November 30, 2018, the committee shall review the $250,000 threshold described in Subsection (2) for the purpose of assessing whether the threshold amount should be maintained, increased, or decreased. |
| (b) |
To assist the committee in conducting the review described in Subsection (6)(a), the commission shall provide the committee with:
| (i) |
the total number of refund requests made under this section; |
| (ii) |
the total costs of any refunds issued under this section; |
| (iii) |
the costs of any audits conducted on refund requests made under this section; and |
| (iv) |
an estimation of:
| (A) |
the number of refund requests the commission expects to receive if the Legislature increases the threshold; |
| (B) |
the number of refund requests the commission expects to receive if the Legislature decreases the threshold; and |
| (C) |
the costs of any audits the commission would conduct if the Legislature increases or decreases the threshold. |
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Amended by Chapter 367, 2021 General Session
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