S.B. 143
         INCOME TAX - PASS-THROUGH ENTITIES

Senate Floor Amendments

Amendment 1 February 2, 2012 4:07 PM



Senator Curtis S. Bramble proposes the following amendments:

1.    Page 1, Lines 18 through 21 :    

             18          .    provides that certain penalties and interest may not be imposed if a pass-through
             19      entity that is a trust fails to pay or withhold an amount with respect to a dependent
             20      beneficiary;
{   and   }

  . establishes a rebuttable presumption for purposes of an audit; and      

             21          .    makes technical and conforming changes.

2.    Page 9, Lines 249 through 261 :    

             249          (6) Notwithstanding Section 59-1-401 or 59-1-402 , the commission may not collect an
             250      amount under this section for a taxable year from a pass-through entity that is a trust and shall
             251      waive any penalty and interest on that amount if:
             252          (a) the pass-through entity fails to pay or withhold the tax on the amount as required by
             253      this section on behalf of a dependent beneficiary;
             254          (b) the pass-through entity applies to the commission; and
             255          (c) (i) the dependent beneficiary complies with the requirements of Subsection (5)(b);
             256      or
             257          (ii) (A) the dependent beneficiary's adjusted gross income for the taxable year does not
             258      exceed the basic standard deduction for the dependent beneficiary, as calculated under Section
             259      63, Internal Revenue Code, for that taxable year; and
             260          (B) the trustee of the trust retains a statement of dependent beneficiary income on
             261      behalf of the dependent beneficiary.
  (7) If a pass-through entity would have otherwise qualified for a waiver of a penalty and interest under Subsection (6), except that the trustee of a trust has not applied to the commission as required by Subsection (6)(b) or retained the statement of dependent beneficiary income required by Subsecction (6)(c)(ii)(B), it is a rebuttable presumption in an audit that the pass-through entity would have otherwise qualified for the waiver of the penalty and interest under Subsection (6).      


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