1     
PASS-THROUGH ENTITY RETURN FILING DATE

2     
2016 GENERAL SESSION

3     
STATE OF UTAH

4     
Chief Sponsor: Steve Eliason

5     
Senate Sponsor: Curtis S. Bramble

6     

7     LONG TITLE
8     General Description:
9          This bill modifies the date for a pass-through entity to file a tax return.
10     Highlighted Provisions:
11          This bill:
12          ▸     modifies the date for a pass-through entity to file a tax return; and
13          ▸     makes technical corrections.
14     Money Appropriated in this Bill:
15          None
16     Other Special Clauses:
17          This bill provides retrospective operation.
18     Utah Code Sections Affected:
19     AMENDS:
20          59-7-701, as last amended by Laws of Utah 2009, Chapter 312
21          59-10-507, as last amended by Laws of Utah 2009, Chapter 312
22          59-10-514, as last amended by Laws of Utah 2008, Chapter 382
23          59-10-518, as last amended by Laws of Utah 2007, Chapter 28
24          59-10-1403, as last amended by Laws of Utah 2009, Chapter 312
25     

26     Be it enacted by the Legislature of the state of Utah:
27          Section 1. Section 59-7-701 is amended to read:
28          59-7-701. Taxation of S corporations.
29          (1) Except as provided in Section 59-7-102 and subject to the other provisions of this
30     part, beginning on July 1, 1994, and ending on the last day of the taxable year that begins on or
31     after January 1, 2012, but begins on or before December 31, 2012, an S corporation is subject
32     to taxation in the same manner as that S corporation is taxed under Subchapter S - Tax
33     Treatment of S Corporations and Their Shareholders, Sec. 1361 et seq., Internal Revenue Code.
34          (2) An S corporation is taxed at the tax rate provided in Section 59-7-104.
35          (3) The business income and nonbusiness income of an S corporation is subject to Part
36     3, Allocation and Apportionment of Income - Utah UDITPA Provisions.
37          (4) An S corporation having income derived from or connected with Utah sources shall
38     make a return in accordance with [Section] Sections 59-10-507 and 59-10-514.
39          (5) An S corporation shall make payments of estimated tax as required by Section
40     59-7-504.
41          (6) An S corporation is subject to Chapter 10, Part 14, Pass-Through Entities and
42     Pass-Through Entity Taxpayers Act.
43          (7) A pass-through entity taxpayer as defined in Section 59-10-1402 of an S
44     corporation is subject to Chapter 10, Part 14, Pass-Through Entities and Pass-Through Entity
45     Taxpayers Act.
46          (8) Provisions under this chapter governing the following apply to an S corporation:
47          (a) an assessment;
48          (b) a penalty;
49          (c) a refund; or
50          (d) a record required for an S corporation.
51          [(9) (a) During the 2011 interim, the Revenue and Taxation Interim Committee shall
52     study the fiscal impacts of:]
53          [(i) the enactment of Laws of Utah 2009, Chapter 312; and]
54          [(ii) the taxation of S corporations under this part.]
55          [(b) On or before November 30, 2011, the Revenue and Taxation Interim Committee
56     shall report its findings and recommendations on the study to the Executive Appropriations
57     Committee.]
58          Section 2. Section 59-10-507 is amended to read:
59          59-10-507. Return by a pass-through entity.
60          (1) As used in this section:
61          (a) "Pass-through entity" is as defined in Section 59-10-1402.
62          (b) "Taxable year" means a year or other time period that would be a taxable year of a
63     pass-through entity if the pass-through entity were subject to taxation under this chapter.
64          (2) A pass-through entity having any income derived from or connected with Utah
65     sources shall make a return for the taxable year [as prescribed by the commission] in
66     accordance with Section 59-10-514.
67          Section 3. Section 59-10-514 is amended to read:
68          59-10-514. Return filing requirements -- Rulemaking authority.
69          (1) Subject to Subsection (3) and Section 59-10-518:
70          (a) an individual income tax return filed for a tax imposed in accordance with Part 1,
71     Determination and Reporting of Tax Liability and Information, shall be filed with the
72     commission[:] on or before the day on which a federal individual income tax return is due
73     under the Internal Revenue Code;
74          [(i) except as provided in Subsection (1)(a)(ii), on or before the 15th day of the fourth
75     month following the last day of the taxpayer's taxable year; or]
76          [(ii) on or before the day on which a federal individual income tax return is due under
77     the Internal Revenue Code if the Internal Revenue Code provides a due date for filing that
78     federal individual income tax return that is different from the due date described in Subsection
79     (1)(a)(i);]
80          (b) a fiduciary income tax return filed for a tax imposed in accordance with Part 2,
81     Trusts and Estates, shall be filed with the commission[:] on or before the day on which a
82     federal return for estates and trusts is due under the Internal Revenue Code; or
83          [(i) except as provided in Subsection (1)(b)(ii), on or before the 15th day of the fourth
84     month following the last day of the taxpayer's taxable year; or]
85          [(ii) on or before the day on which a federal tax return for estates and trusts is due
86     under the Internal Revenue Code if the Internal Revenue Code provides a due date for filing
87     that federal tax return for estates and trusts that is different from the due date described in
88     Subsection (1)(b)(i); or]
89          (c) a return filed in accordance with Section 59-10-507[,] shall be filed with the
90     commission[:] on or before the 15th day of the fourth month following the last day of the
91     taxpayer's taxable year.
92          [(i) except as provided in Subsection (1)(c)(ii), in accordance with Section 59-10-507;
93     or]
94          [(ii) on or before the day on which a federal return of partnership income is due under
95     the Internal Revenue Code if the Internal Revenue Code provides a due date for filing that
96     federal return of partnership income that is different from the due date described in Subsection
97     (1)(c)(i).]
98          (2) A person required to make and file a return under this chapter shall, without
99     assessment, notice, or demand, pay any tax due:
100          (a) to the commission; and
101          (b) before the due date for filing the return [determined], without regard to any
102     extension of time for filing the return.
103          (3) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
104     commission may make rules prescribing what constitutes filing a return with the commission.
105          Section 4. Section 59-10-518 is amended to read:
106          59-10-518. Time for performance of acts when last day falls on Saturday,
107     Sunday, or legal holiday.
108          (1) As used in this section, "legal holiday" means a legal holiday in this state.
109          (2) [Subject to Section 59-10-514, if] If the last day prescribed under authority of this
110     chapter for performing any act falls on Saturday, Sunday, or a legal holiday, the performance of
111     the act shall be considered to be timely if it is performed on the next succeeding day which is
112     not a Saturday, Sunday, or a legal holiday.
113          (3) For purposes of this section, the last day for the performance of any act shall be
114     determined by including any authorized extension of time.
115          Section 5. Section 59-10-1403 is amended to read:
116          59-10-1403. Income tax treatment of a pass-through entity -- Returns --
117     Classification same as under Internal Revenue Code.
118          (1) Subject to Subsection (3), a pass-through entity is not subject to a tax imposed by
119     this chapter.
120          (2) The income, gain, loss, deduction, or credit of a pass-through entity shall be passed
121     through to one or more pass-through entity taxpayers as provided in this part.
122          (3) A pass-through entity is subject to the return filing requirements of [Section]
123     Sections 59-10-507 and 59-10-514.
124          (4) A pass-through entity that transacts business in the state shall be classified for
125     purposes of taxation under this title in the same manner as the pass-through entity is classified
126     for federal income tax purposes.
127          Section 6. Retrospective operation.
128          This bill has retrospective operation for a taxable year beginning on or after January 1,
129     2016.