1     
CORPORATE FRANCHISE AND INCOME TAX AMENDMENTS

2     
2015 GENERAL SESSION

3     
STATE OF UTAH

4     
Chief Sponsor: Howard A. Stephenson

5     
House Sponsor: Daniel McCay

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7     LONG TITLE
8     General Description:
9          This bill amends provisions related to a credit against or refund of an overpayment of
10     corporate franchise or income taxes.
11     Highlighted Provisions:
12          This bill:
13          ▸     defines a term;
14          ▸     amends provisions related to a credit against or refund of an overpayment of
15     corporate franchise and income taxes; and
16          ▸     makes technical and conforming changes.
17     Money Appropriated in this Bill:
18          None
19     Other Special Clauses:
20          This bill provides a special effective date.
21          This bill provides for retrospective operation.
22     Utah Code Sections Affected:
23     AMENDS:
24          59-7-522, as last amended by Laws of Utah 2010, Chapter 216
25     

26     Be it enacted by the Legislature of the state of Utah:
27          Section 1. Section 59-7-522 is amended to read:
28          59-7-522. Definition -- Overpayments.
29          (1) As used in this section, "overpayment" means the same as that term is defined in
30     Section 59-1-1409.
31          [(1)] (2) (a) Subject to Subsection [(1)] (2)(b), a claim for credit or refund of an
32     overpayment that is attributable to a Utah net loss carry back or carry forward shall be filed
33     within three years from the due date of the return for the taxable year of the Utah net loss.
34          (b) The three-year period described in Subsection [(1)] (2)(a) shall be extended by any
35     extension of time provided in statute for filing the return described in Subsection [(1)] (2)(a).
36          [(2) If an overpayment relates to a change in or correction of federal taxable income
37     described in Section 59-7-519, a credit may be allowed or a refund paid any time before the
38     expiration of the period within which a deficiency may be assessed.]
39          (3) The commission shall make a credit against or refund of any overpayment of a tax
40     under this chapter for a taxable year if, in accordance with Section 59-7-519:
41          (a) (i) a corporation agrees with the commissioner of internal revenue for an extension,
42     or a renewal of an extension, of the period for proposing and assessing a deficiency in federal
43     income tax for that taxable year; or
44          (ii) there is a change in or correction of federal taxable income for that taxable year;
45     and
46          (b) the corporation files a claim for the credit or refund before the expiration of the
47     time period within which the commission may assess a deficiency.
48          [(3)] (4) The commission shall make a credit or refund within a 30-day period after the
49     day on which a court's decision to require the commission to credit or refund the amount of an
50     overpayment to a taxpayer is final.
51          Section 2. Effective date -- Retrospective operation.
52          (1) Subject to Subsection (2), this bill takes effect on July 1, 2017.
53          (2) This bill:
54          (a) has retrospective operation for a refund claim filed or pending on or after January 1,
55     2015; and
56          (b) applies to an amount for which the commission may assess a deficiency under
57     Section 59-7-519.
58