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

Effective:  9/17/2009