UTAH
TC-20S Forms & Instructions
S CorporationS Corporation
Utah State Tax Commission • 210 North •1950 West Salt Lake•City,tax.utah.govUtah 84134
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UTAH
TC-20S Forms & Instructions
S CorporationS Corporation
Utah State Tax Commission • 210 North •1950 West Salt Lake•City,tax.utah.govUtah 84134
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Contents
General Instructions and Information .........................................................................................................................................................1
TC-20S – Utah S Corporation Tax Return Instructions ...............................................................................................................................5
Schedule A – Utah Taxable Income for Pass-through Taxpayers ...............................................................................................................7
Schedule E – Prepayments of Any Type.....................................................................................................................................................9
TC-20, Schedule J – Apportionment Schedule ........................................................................................................................................11
Schedule K-1 – Shareholder’s Share of Utah Income, Deductions and Credits .......................................................................................19
Schedule M – Qualifi ed Subchapter S Subsidiaries .................................................................................................................................21
Schedule N – Pass-through Entity Withholding Tax ..................................................................................................................................21
TC-250 – Credits Received from Upper-tier Pass-through Entities and Mineral Production Withholding Tax Credit on TC-675R ...........23
TC-559, Corporation/Partnership Payment Coupon .................................................................................................................................25
Common Return Errors ............................................................................................................................................................................26
Cover art by Randolph Prawitt
File the Right Corporate Forms Utah Taxpayer Advocate Service
• TC-20 if Corporation fi led federal form 1120, 1120-IC-DISC The Taxpayer Advocate Service helps taxpayers who have made
• TC-20S if S Corporation fi led federal form 1120S multiple, unsuccessful attempts to resolve concerns with the Tax
Commission. This service helps resolve problems when normal
• TC-20MC if Corporation fi led federal forms 1120-H, 1120-RIC, agency processes break down, identifi es why problems occurred, and
1120-REIT, 990-T or 8023 suggests solutions. See tax.utah.gov/contact, or contact us to fi nd
out if you qualify for this service at 801-297-7562 or 1-800-662-4335,
E-Filing is Easier! ext. 7562, or by email at taxpayeradvocate@utah.gov.
E-fi ling is the easiest and most accurate way to fi le. Ask your tax Do not use the Taxpayer Advocate Service to bypass normal methods
preparer about e-fi ling your individual, fi duciary, partnership, C cor- for resolving issues or disputes.
poration and S corporation returns, or use commercial tax software.
Utah is Online Need more information?
Utah offers many online services for individual and business fi lers,
including: Questions 801-297-2200 or
1-800-662-4335 (outside the Salt Lake area)
tap.utah.gov
Research Utah rules, bulletins and Commission decisions:
• Pay by e-check or credit card. tax.utah.gov
• Manage your Utah tax account. Utah Code (UC): le.utah.gov
• Request payment plans. Internal Revenue Code (IRC):
tax.utah.gov law.cornell.edu/uscode/26
• Download forms and instructions for all Utah tax types.
• Link to free business resources and other services.
E-Verify for Employers If you need an accommodation under the Americans with Disabili-
Employers can help prevent identity theft by verifying the Social ties Act, email taxada@utah.gov, or call 801-297-3811 or TDD
Security numbers of job applicants. E-Verify is a free service of 801-297-2020. Please allow three working days for a response.
the U.S. Department of Homeland Security that verifi es employ-
ment eligibility through the Internet. Employers can use E-Verify at
uscis.gov/e-verify.
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2021 Utah TC-20S Instructions 1
General Instructions and Information
Corporations incorporated outside of Utah (foreign corpora-
What’s New
tions) must obtain a Certifi cate of Tax Clearance from the
• Solar Energy Systems Phase-out: The maximum Re- Tax Commission before withdrawing from Utah. Foreign
newable Residential Energy Systems Credit (credit 21) for corporations must fi le an Application for Withdrawal with the
solar power systems installed in 2021 is $1,200. Department of Commerce.
• Special Needs Opportunity Scholarship Program: The To request a Certifi cate of Tax Clearance, email the Tax
2020 legislature passed HB 4003, creating a nonrefund- Commission at taxmaster@utah.gov, or call 801-297-2200
able tax credit for donations made to the Special Needs or 1-800-662-4335. We will send you an Application for Tax
Opportunity Scholarship Program. See page 18. Clearance to Withdraw a Foreign Corporation to complete
• Payroll Protection Program Loan Addback: In certain and return.
situations you must add to your income the amount of PPP Dissolving and withdrawing corporations must also close their
grants or loans forgiven in 2021. See page 7. other Utah tax accounts (sales, withholding, etc.). To close
related tax accounts, send a completed TC-69C, Notice of
Reminders Change for a Business and/or Tax Account, to Exceptions
Processing at the Tax Commission address above.
• TC-250: List all nonrefundable and refundable credits
received from an upper-tier pass-through entity on a Utah
Schedule K-1, and any mineral production withholding tax S Corporations Not
credit received on a form TC-675R.
Subject to Tax
• Market Sourcing of Revenues from Performance of Ser-
vices by Multi-state Taxpayers: Corporations performing a An S corporation is not subject to Utah income tax. However,
service both in and outside of Utah must calculate the sales shareholders are liable for Utah income tax in their separate
factor numerator on TC-20, Schedule J by considering the or individual capacities. An S corporation must withhold Utah
service income to be in Utah if the buyer receives a greater tax on all nonresident individual pass-through entity taxpayers
benefi t of the service in Utah than in any other state. See and all resident or nonresident business, estate, or trust pass-
TC-20, Schedule J – Apportionment Schedule on page 11. through entity taxpayers. See Pass-through Entity Withholding
Requirements below.
Identifi cation Numbers
Pass-through Entity
The corporation's federal Employer Identifi cation Number
(EIN) is the Utah identifi cation number. The Utah Department A pass-through entity is an entity whose income, gains, losses,
of Commerce also issues a registration number upon incor- deductions and/or credits fl ow through to its partners (partner-
poration or qualifi cation in Utah. Enter both the EIN and Utah ships), members (limited liability companies), shareholders (S
Incorporation/Qualifi cation number in the proper fi elds on page corporations) or benefi ciaries (estates and trusts) for federal
1 of form TC-20S. These numbers are used for identifi cation tax purposes.
of the corporate tax return.
Pass-through Entity Taxpayer
Corporation Changes A pass-through entity taxpayer is an entity which has income,
Report corporation changes (e.g., name change, physical gains, losses, deductions and/or credits passed to it from a
and/or mailing address changes, merger, or ceasing to do pass-through entity (e.g., an individual who is a shareholder
business in Utah) in writing to: in an S corporation, or a partnership which is a shareholder
UT Division of Corporations and Commercial Code in an S corporation).
Department of Commerce
160 E 300 S, 2nd Floor Liability for Filing and Paying
PO Box 146705
Salt Lake City, UT 84114-6705 Tax Forms
and submit form TC-69C to: The Tax Commission does not mail forms for fi ling corporate
Exceptions Processing taxes. Get forms at tax.utah.gov/forms or by calling the
Utah State Tax Commission Forms Hotline at 801-297-6700 or 1-800-662-4335, ext. 6700.
210 N 1950 W Note: See What to Attach and What to Keep later in these
Salt Lake City, UT 84134-3215 General Instructions for what federal information is required
with the Utah return.
Dissolution or Withdrawal Franchise Tax
Corporations that cease to do business in Utah must either Every C corporation incorporated in Utah (domestic), qualifi ed
dissolve or withdraw the corporation. in Utah (foreign), or doing business in Utah, whether qualifi ed
Corporations incorporated in Utah must fi le Articles of Dis- or not, must fi le a corporate franchise tax return. C corpora-
solution with the Department of Commerce. tion returns are fi led on form TC-20. There is a minimum tax
(privilege tax) of $100 on every corporation that fi les form
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2021 Utah TC-20S Instructions 2
TC-20, regardless of whether or not the corporation exercises behalf of the shareholder. This withholding tax is then claimed as
its right to do business. a credit by the shareholder on the shareholder’s personal return.
S Corporation If this S corporation has an interest in a partnership (also
considered a pass-through entity), that partnership is required
Every S corporation (as defi ned in IRC §1361(a)) that has fi led to withhold Utah income tax on Utah income allocated to this
a proper and timely election under IRC §1362(a) must fi le form S corporation. The partnership must provide a Schedule K-1
TC-20S, so long as the federal election remains in effect. The showing the amount of Utah withholding tax paid on behalf
minimum tax does not apply to S corporations. of this S corporation. This withholding tax must be reported
on TC-250 and then be allocated to the shareholders of this
Income Tax S corporation to be claimed on their personal returns. Enter
Corporations required to fi le under the income tax provisions this previous pass-through entity withholding tax for each
are those that derive income from Utah sources, but are not shareholder on Schedules K and K-1.
qualifi ed to do business in Utah and have no regular and es- The S corporation may request a waiver of withholding tax
tablished place of business in Utah, either owned or rented, and any associated penalty and interest for all or selected
and do not maintain an inventory or have employees located shareholders who fi led and paid tax on their personal returns
at a place of business in Utah. on the Utah income from this S corporation. The tax must be
paid on or before the S corporation’s return due date, includ-
Example 1: ing extensions (see UC §59-10-1403.2(5)). See Schedule N
instructions in this book for more details.
A trucking company, operated in or through Utah by
a foreign corporation not qualifi ed to do business in
Qualifi ed Subchapter S Subsidiary
Utah, is subject to income tax rather than franchise tax.
An S corporation that owns one or more qualifi ed subchapter S
subsidiaries, as defi ned in IRC §1361(b)(3)(B), must:
• Include each subsidiary’s assets, liabilities and items of
Example 2: income, loss and deductions as part of the parent S cor-
An institution making loans or issuing credit cards poration’s assets, liabilities and items of income, loss and
to Utah customers from outside Utah that are not deductions for Utah tax purposes. The qualifi ed subchapter
qualifi ed to do business in Utah and have no place of S subsidiary shall not be treated as a separate corporation.
business in Utah is also subject to income tax rather • Take into account the activities of the qualifi ed subchapter
than franchise tax. S subsidiaries in determining whether the S corporation
parent is doing business in Utah. For purpose of this
determination, all of the subsidiary’s activities will be at-
A $100 minimum tax applies to the corporate income tax. tributed to the parent.
• Attach TC-20S, Schedule M identifying the qualifi ed sub-
Pass-through Entity Withholding chapter S subsidiaries incorporated, qualifi ed, or doing
Requirements business in Utah.
S corporations and business entities treated as S corpora-
tions are considered pass-through entities (see UC §59-10- Taxable Year
1402(10)) and must withhold Utah income tax on all nonresi- The taxable year for Utah tax purposes must match the tax-
dent individual shareholders, on all resident and nonresident able year used for federal tax purposes. When the taxable
business shareholders, and on all resident and nonresident year changes for federal purposes, the taxable year must be
trust and estate shareholders. These shareholders are col- changed for Utah purposes. See Filing Return When Period
lectively referred to as pass-through entity taxpayers (see Changed below.
UC §59-10-1402(11)). An S corporation is not required to
withhold on a shareholder that is exempt from tax under UC Filing Return When Period Changed
§59-7-102(1)(a) or §59-10-104.1, or if the pass-through entity When changes are made to the taxable year, as indicated
is a plan under IRC §§401, 408 or 457 and is not required to under Taxable Year above, a short-period return is required.
fi le a return under UC Chapter 7, or is a publicly traded part- The short-period return must cover the period of less than
nership as defi ned under UC §59-10-1403.2(1)(b)(iv). 12 months between the prior taxable year-end and the new
Utah imposes a 4.95 percent withholding tax on all Utah busi- taxable year. The pass-through entity withholding provisions
ness and nonbusiness income derived from or connected with as provided in Utah Administrative Rule R865-9l-13, apply to
Utah sources and attributable to pass-through entity taxpayers. short period S corporation returns.
The S corporation may reduce this withholding by any mineral
production withholding tax and previous pass-through entity Where to File
withholding tax allocated to the shareholder. This withholding Mail your return to:
tax must be paid to the Tax Commission by the original due
Utah State Tax Commission
date of the return, without regard to extensions.
210 N 1950 W
Calculate Utah withholding tax on Schedule N. See the instruc- Salt Lake City, UT 84134-0300
tions for Schedule N on page 21.
You may also pay any tax due at tap.utah.gov.
The S corporation must provide a Utah Schedule K-1 to each
shareholder showing the amount of Utah withholding paid on
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2021 Utah TC-20S Instructions 3
Due Date What to Attach and
A return must be fi led on or before the 15th day of the fourth What to Keep
month following the close of the taxable year or the due date
of the federal return, whichever is later. If the due date falls on Include the following with your Utah TC-20S. Also, keep copies
a Saturday, Sunday or legal holiday, the due date becomes of these with your tax records.
the next business day. • Utah S Corporation Return Schedules: Attach applicable
Utah schedules A, E, H, J, K, M, N, and/or TC-250. Also
Filing Extension attach a Utah Schedule K-1 for each shareholder.
Corporations are automatically allowed an extension of up to • Federal Return: Attach only pages 1 through 5 of your
six months to fi le a return without fi ling an extension form. This federal S corporation return, plus Schedule M-3 and IRS
is NOT an extension of time to pay your taxes – it is only form 1125-A, if applicable.
an extension of time to fi le your return. To avoid penalty, Do not send a copy of your entire federal return, federal
the prepayment requirements must be met on or before the Schedules K-1, credit schedules, worksheets, or other
original return due date and the return must be fi led within documentation with your Utah return unless otherwise
the six-month extension period. stated in these instructions. Keep these in your fi les. We
Note: All pass-through withholding tax from Schedule N, column may ask you to provide them later to verify entries on your
I must be paid by the original due date of the return, without Utah return.
regard to extensions.
Federal Taxable Income (Loss)
Penalties Utah law defi nes federal taxable income as “taxable income
Utah law (UC §59-1-401) provides penalties for not fi ling as currently defi ned in Section 63, Internal Revenue Code
tax returns by the due date, not paying tax due on time, not of 1986.” Since Utah’s taxable income is based on federal
making suffi cient prepayment on extension returns, and taxable income, a shareholder’s ability to carry forward and
not fi ling information returns or supporting schedules. See carry back corporation losses is determined on the federal
tax.utah.gov/billing/penalties-interest and Pub 58, Utah level. The loss taken by a shareholder in a given year must
Interest and Penalties, at tax.utah.gov/forms. match the loss taken on the federal return. Losses cannot be
independently carried back or forward in any given year on
The Tax Commission will calculate the penalty for underpay-
the shareholder’s Utah return.
ment of required prepayments.
Interest (in addition to penalties due) Utah Income
Complete Schedule A to determine Utah income or loss. If the
Interest is assessed on underpayments from the due date
corporation does business both within and outside of Utah,
until the liability is paid in full. The interest rate for the 2022
the portion of the corporation income attributable to Utah is
calendar year is 2 percent.
determined by fi rst completing TC-20, Schedule J, and then
For more information, get Pub 58, Utah Interest and Penalties, Schedule A.
at tax.utah.gov/forms.
Business Income
Rounding Off to Whole Dollars Business income means income arising from transactions
Round off cents to the nearest whole dollar. Round down if and activity in the regular course of the taxpayer’s trade or
cents are under 50 cents; round up if cents are 50 cents and business and includes income from tangible and intangible
above. Do not enter cents on the return. property if the acquisition, management, and disposition of
the property constitutes integral parts of the taxpayer’s regular
trade or business operations. See UC §59-10-1402(2).
Suspension for Failure to
Business income apportioned to Utah is subject to the pass-
Pay Tax Due through entity withholding requirements.
Utah law provides for suspension of a corporation’s right to do The following are examples of business income:
business in Utah if it fails to pay taxes due before 5:00 p.m.
on the last day of the 11th month after the due date. • Interest income on loans and investments made in the
ordinary course of a trade or business of lending money.
If you cannot pay the full amount you owe, you can re-
quest a payment plan. Log into your corporate account at • Interest income on accounts receivable arising from the
tap.utah.gov, and click "Request waiver, payment plan or performance of services or sales of property.
payment plan email." • Income from investments made in the ordinary course
of a trade or business of furnishing insurance or annuity
You may also:
contracts or reinsuring risks underwritten by insurance
1. complete form TC-804B, Business Tax Payment Agree- companies.
ment Request (tax.utah.gov/forms), or
2. call the Tax Commission at 801-297-7703 or 1-800-662-
4335 ext. 7703.
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2021 Utah TC-20S Instructions 4
• Income or gain derived in the ordinary course of an ac-
Apportionable Income
tivity of trading or dealing in any property if such activity
constitutes a trade or business (unless the dealer held the The following types of income are apportionable business
property for investment at any time before such income or income:
gain is recognized). 1. Interest, dividends, royalties, gains, etc., derived in the
• Royalties derived by the taxpayer in the ordinary course of ordinary course of a pass-through entity’s trade or business.
a trade or business of licensing intangible property. 2. Interest, dividends, gains, etc., of an entity whose primary
• Amounts included in gross income of a patron of a coopera- business activity is investing funds (such as with a broker-
tive by reason of any payment or allocation to the patron age fi rm).
based on patronage occurring with respect to a trade or 3. Income received from holdings in or the sale of partnership
business of the patron. interests.
• Other income identifi ed by the IRS as income derived by
the taxpayer in the ordinary course of a trade or business.
Nonbusiness Income
Nonbusiness income means all income other than business in-
come. See UC §59-10-1402(7). Nonbusiness income includes
portfolio income that is not derived in the ordinary course of a
pass-through entity’s trade or business. The burden of proof
is on the taxpayer to justify the manner in which income is
claimed on the return.
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2021 Utah TC-20S Instructions 5
TC-20S – Utah S Corporation Tax Return
Instructions
Filing Period Reason-for-Amending Codes
File the 2021 return for calendar year 2021 and fi scal years 1 You fi led an amended federal return with the IRS. Attach
beginning in 2021 and ending in 2022. If the return is for a a copy of your amended federal return.
fi scal year or a short tax year (less than 12 months), fi ll in the 2 You made an error on your Utah return. Attach an explana-
tax year beginning and end dates at the top of the form using tion of the adjustments made.
the format mm/dd/yyyy. 3 Your federal return was changed by an IRS audit or adjust-
ment and it affects your Utah return. Attach a copy of the
Corporation Name and Address IRS adjustment.
Enter the corporate name, address and telephone number, 4 Other. Attach an explanation to your return.
including area code. If the address has changed, see Corpo- Enter the corrected fi gures on the return and/or schedules.
ration Changes in the General Instructions. Enter all other amounts as shown on your original return. If
you received a refund on your original return, subtract the
previous refund (exclude refund interest) from the amount of
ZIP Code any tax paid with the original return and/or subsequent pay-
Enter your ZIP Code, including the “plus four” at the end, without ment of the tax prior to fi ling the amended return. Enter the
a hyphen. net amount on Schedule A, line 19. Enter a net refund as a
negative amount (preceded by a minus sign).
Foreign Country
If your address is in a foreign country, enter the mailing address Federal Form 8886
where indicated. Enter the foreign city, state/province and postal If you fi led federal Form 8886, Reportable Transaction Disclosure
code in the City fi eld. Abbreviate if necessary. Leave the State Statement, with the Internal Revenue Service, enter an “X” at
and ZIP Code fi elds blank. Enter only the foreign country name the top of TC-20S, where indicated.
in the Foreign country fi eld.
Line-by-Line Instructions
EIN and Utah Incorporation/
Line 1 – S Corporation First Return
Qualifi cation Number
If this is the fi rst return fi led as an S corporation, enter the
Enter your federal Employer Identifi cation Number (EIN) and Utah effective date of the S corporation election as shown on the
Incorporation/Qualifi cation Number issued by the Department IRS approval letter, Notice of Acceptance as an S Corporation.
of Commerce in the appropriate fi elds.
Line 2(a) – Number of Shares
Amended Returns Enter the number of shares issued by the S corporation to
Resident Individuals, IRC 501 and Other Exempt Entities,
Note: Do not submit a copy of your original return with your and Nonresident Individuals and Other Pass-through Entity
amended return. Taxpayers.
To amend a previously fi led return, use the tax forms and in-
structions for the year you are amending. Get prior year forms Line 2(b) – Percentage of Shares
and instructions at tax.utah.gov/forms-pubs/previousyears. Enter the percentage of shares issued by the S corporation
Amend your return if: to Resident Individuals, IRC 501 and Other Exempt Entities,
• you discover an error on your Utah or federal return after and Nonresident Individuals and Other Pass-through Entity
it has been fi led, or Taxpayers. The total percentages entered should equal 100
percent.
• your federal return is audited or adjusted by the IRS and
the audit or adjustment affects your Utah return. You must Note: The percentage of shares must be the same as the
amend your Utah return within 90 days of the IRS’s fi nal total of the stock ownership percentages entered on line F of
determination. all federal Schedules K-1.
To qualify for a refund or credit, an amended return must be Line 3 – Corporations Conducting
fi led by the later of three years after the original return was Business in Utah
due or two years from the date the tax was paid. A return
fi led before the due date is considered fi led on the due date. Enter an “X” if this S corporation conducted any business in
Utah during the taxable year.
To amend a previously fi led return, at the top of page 1, on
the “Amended Return” line, enter the code number from the
following list that best describes your Reason for Amending:
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2021 Utah TC-20S Instructions 6
Line 4 – Qualifi ed Subchapter S This authorization applies only to the individual whose signature
Subsidiary Election appears in the Paid Preparer's Section of the return. It does not
apply to the fi rm, if any, shown in that section. If you enter an
Enter an “X” if this S corporation has elected to treat any “X” in the box, the corporation is authorizing the Tax Commis-
subsidiary as a Qualifi ed Subchapter S Subsidiary. List each sion to call the paid preparer to answer any questions that may
of these subsidiaries that did business, incorporated or was arise during the processing of the return. The paid preparer is
qualifi ed in Utah on Schedule M. also authorized to:
Line 5 – Total Tax • give the Tax Commission any information that is missing
from the return,
Enter the total tax from Schedule A, line 17. If Schedule A
is not required because all shareholders are Utah resident • call the Tax Commission for information about the process-
individuals, enter zero. ing of the return or the status of any refund or payment(s),
and
Line 6 – Total Payments • respond to certain Tax Commission notices about math
Enter the total payments from Schedule A, line 20. If Schedule errors, offsets, and return preparation.
A is not required because all shareholders are Utah residents, The corporation is not authorizing the preparer to receive any
enter zero. refund, bind the entity to anything (including any additional
tax liability), or otherwise represent the entity before the Tax
Line 7 – Tax Due Commission. The authorization will automatically end no later
If line 5 is larger than line 6, subtract line 6 from line 5. than the due date (without regard to extensions) for fi ling next
year's tax return.
Line 8 – Penalties and Interest If you want to expand the preparer’s authorization, complete
Enter any penalties and interest that apply to this return. See Pub and submit form TC-737, Power of Attorney and Declaration
58, Utah Interest and Penalties. of Representative (tax.utah.gov/forms). If you want to revoke
the authorization before it ends, submit your request in writ-
Line 9 – Total Due - Pay This Amount ing to the Utah State Tax Commission, attention Taxpayer
Add lines 7 and 8. Pay at tap.utah.gov, or send a check Services, 210 N 1950 W, SLC, UT 84134.
or money order with your return (make payable to the Utah
State Tax Commission). Do not mail cash. The Tax Commis-
sion assumes no liability for loss of cash placed in the mail. Paid Preparer
Complete the TC-559 coupon (see the back of this book) and The paid preparer must enter his or her name, address, and
send it with your payment. See Payment Options below for PTIN in the section below the corporate offi cer’s signature
information about making payments. on the return.
Line 10 – Overpayment
Preparer Penalties
If line 6 is larger than the sum of line 5 and line 8, subtract the (UC §59-1-401(11)-(12))
sum of line 5 and line 8 from line 6.
The person who prepares, presents, procures, advises, aids,
Line 11 – Amount of Overpayment to be assists or counsels another on a return, affi davit, claim or
Applied to Next Taxable Year similar document administered by the Tax Commission, and
who knows or has reason to believe it may understate a tax,
All or part of any overpayment shown on line 10 may be applied fee or charge is subject to both a civil penalty ($500 per docu-
as an advance payment for the next tax year. Enter the amount ment) and criminal penalty (second degree felony with a fi ne
to be applied (may not exceed the overpayment on line 10). from $1,500 to $25,000).
Line 12 – Refund
Subtract line 11 from line 10. This is the amount to be re- Payment Options
funded to you. You may pay your tax online with a credit card or an elec-
tronic check (ACH debit). You may pay in full or make partial
payments throughout the year. Online credit card payments
Signature and Date Line include a service fee. Follow the instructions at tap.utah.gov.
Sign and date the return. We will not issue a refund without You may also mail your check or money order payable to the
a signature. Utah State Tax Commission with your return. Write the cor-
poration employer identifi cation number, daytime telephone
Paid Preparer Authorization number and “2021 TC-20S” on your check. DO NOT STAPLE
check to return. Remove any check stub before sending. DO
If the corporation wants to allow the Tax Commission to dis- NOT MAIL CASH with your return. The Tax Commission is
cuss this return with the paid preparer who signed it, enter an not liable for cash lost in the mail. Include the TC-559 coupon
“X” in the box to the right of the signature area of the return (see the back of this book) with your payment.
where indicated.
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2021 Utah TC-20S Instructions 7
Mail your return, payment and coupon (if applicable) to the Utah
Supplemental Information to be
State Tax Commission, 210 N 1950 W, SLC, UT 84134-0300. If
mailing your payment separate from your return, include form Supplied by All S Corporations
TC-559, Corporation/Partnership Payment Coupon, but do All S corporations must complete the information on page 2
NOT send another copy of your tax return with your payment. of the TC-20S.
Doing so may delay posting of your payment.
Schedule A – Utah Taxable Income for Pass-
through Taxpayers
Line 1 – Federal Income (Loss) Reconciliation Line 9 – Non-Utah Net Nonbusiness Income
Enter the amount of federal income or loss reconcilia- Enter the nonbusiness income net of expenses allocated
tion as shown on federal form 1120S, Schedule K, line 18 outside Utah from TC-20, Schedule H, line 28.
(R865-9I-13).
Line 10
Line 2 – Charitable Contributions Add line 8 and line 9.
Enter the amount of charitable contributions deducted on
federal form 1120S, Schedule K, line 12a. Line 11 – Apportionable Income (Loss)
Subtract line 10 from line 7.
Line 3 – Foreign Taxes
Enter the amount of foreign taxes deducted on federal form Line 12 – Apportionment Fraction (Decimal)
1120S, Schedule K, line 14p. Enter 1.000000, or the apportionment fraction (decimal) from
TC-20, Schedule J, line 9 or 10, if applicable.
Line 4 – Recapture of Section 179 Deduction
Enter the amounts reported on federal Schedules K-1, box Line 13 – Utah Apportioned Business Income
17, code L. (Loss)
Multiply the apportionable income (loss) on line 11 by the
Line 5 – Payroll Protection Program Grant or
apportionment fraction on line 12.
Loan Addback
If you received a COVID-19 Payroll Protection Program (PPP) Line 14 – Total Utah Income (Loss) Allocated to
grant or loan, enter any amount that: Pass-through Entity Taxpayers
1. was forgiven during the 2021 tax year, Add line 8 and line 13.
2. is exempt from federal income tax, and
Line 15 – Total Pass-through Withholding Tax
3. you used for expenses that you deducted on your federal
tax return. Enter the total pass-through withholding tax from Schedule
N, column I.
Line 6 – RESERVED This pass-through withholding tax must be paid to the Tax
Commission by the original due date of the return, without
Line 7 – Total Income (Loss) regard to extensions. Pay at tap.utah.gov or use form TC-559,
Add lines 1 through 6. Corporation/Partnership Payment Coupon.
Do not include any pass-through withholding tax credit re-
Line 8 – Utah Net Nonbusiness Income
ceived from another pass-through entity as reported on a
Enter the nonbusiness income net of expenses allocated to Utah Schedule K-1 you received. Pass-through withholding
Utah from TC-20, Schedule H, line 14. tax credits received from other pass-through entities are en-
Sales of Utah property and rents received on Utah property, if tered on TC-250 and allocated to the shareholders on Utah
not part of the trade or business income of the S corporation, Schedule K-1.
are considered Utah nonbusiness income.
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2021 Utah TC-20S Instructions 8
Line 16 – Utah Use Tax Use Tax Rate Chart (Effective Dec. 31, 2021)
Use tax is a tax on goods and taxable services purchased for .0635 Beaver County .0635 Rich County
use, storage or other consumption in Utah during the taxable .0735 Beaver City .0795 Garden City
year. Use tax applies only if sales tax was not paid at the time of .0610 Box Elder County .0725 Salt Lake County
.0665 Brigham City, Perry, .0875 Alta
purchase. If you purchased an item from an out-of-state seller Willard .0835 Brighton
(including Internet, catalog, radio and TV purchases) and the .0640 Mantua .0745 Murray, South Salt
seller did not collect sales tax on that purchase, you must pay .0710 Snowville Lake
the use tax directly to the Tax Commission. .0670 Cache County .0775 Salt Lake City
.0695 Cache Valley Transit, .0635 San Juan County
If you have a Utah sales tax license/account, report the use tax on Hyde Park, Lewiston, .0675 Blanding, Monticello
your sales tax return. If you do not have a Utah sales tax license/ Millville .0745 Bluff
account, report the use tax on line 16 of TC-20S, Schedule A. .0700 Hyrum, Logan, .0635 Sanpete County
Nibley, N. Logan, .0645 Centerfi eld, Mayfi eld
You may take a credit for sales or use tax paid to another Providence, Rich- .0675 Ephraim, Fairview,
mond, River Heights, Gunnison
state (but not a foreign country). If the other state’s tax rate Smithfi eld
.0635 Carbon County .0665 Mt. Pleasant
is lower than Utah’s, you must pay the difference. If the other .0645 Helper .0635 Sevier County
state’s tax rate is more than Utah’s, no credit or refund is .0675 Price .0645 Aurora, Redmond
given. If sales tax was paid to more than one state, complete .0665 Wellington .0675 Richfi eld, Salina
the Use Tax Worksheet below for each state. Add lines 8 on .0735 Daggett County .0715 Summit County
.0845 Dutch John .0905 Mil. Rec. Park City, Park
all worksheets and enter the total on line 16 of Schedule A. .0715 Davis County City
Sales and use tax rates vary throughout Utah. Use the Use .0725 Bountiful, Centerville, .0745 Snyderville Basin
Clearfi eld, Farming- Transit
Tax Rate Chart below to get the rate for the location where the ton, Layton, N. Salt .0660 Tooele County
merchandise was delivered, stored, used or consumed. Use Lake, Syracuse, W. .0690 Erda, Grantsville,
the county tax rate if the city is not listed. Bountiful, Woods Lakepoint, Lincoln,
Cross Stansbury Park
Grocery food bought through the Internet or catalog is taxed .0635 Duchesne County .0700 Tooele City
at 3 percent. The grocery food must be sold for ingestion or .0645 Duchesne City .0645 Uintah County
.0675 Roosevelt .0695 Naples, Vernal
chewing by humans and consumed for the substance’s taste .0635 Emery County .0715 Utah County
or nutritional value. The reduced rate does not apply to alco- .0825 Green River .0725 American Fork, Cedar
holic beverages or tobacco. See Pub 25, Sales and Use Tax, .0710 Garfi eld County Hills, Lindon, Orem,
at tax.utah.gov/forms. .0810 Boulder, Panguitch, Payson, Pleasant
Tropic Grove, Provo, Santa-
quin, Spanish Fork,
.0830 Bryce Canyon Vineyard
Use Tax Worksheet .0820 Escalante .0610 Wasatch County
1. Amount of purchases (except grocery food) .0685 Grand County .0640 Heber
.0885 Moab .0720 Independence
subject to use tax 1 _________ .0610 Iron County .0750 Midway
2. Use tax rate .0810 Brian Head .0800 Park City East
(decimal from Use Tax Rate Chart) 2 .__ __ __ __ .0620 Cedar City .0645 Washington County
.0610 Juab County .0675 Hurricane, Ivins, La
3. Multiply line 1 by line 2 3 _________ .0650 Nephi Verkin, St. George,
4. Amount of grocery food purchases .0635 Santaquin South Santa Clara, Washing-
.0710 Kane County ton City
subject to use tax 4 _________ .0820 Kanab .0805 Springdale
5. Multiply line 4 by 3% (.03) 5 _________ .0810 Orderville .0745 Virgin
.0635 Millard County .0610 Wayne County
6. Add line 3 and line 5 6 _________ .0645 Fillmore .0725 Weber County
7. Credit for sales tax paid to another state .0620 Morgan County .0745 Falcon Hill Riverdale,
.0645 Morgan City Riverdale
on use tax purchases 7 _________ .0610 Piute County
8. Use tax due (subtract line 7 from line 6) 8 _________
(If less than zero, enter "0.") Line 19 – Amended Return Only
This line is only for amended returns. Enter the amount of tax
Line 17 – Total Tax paid with the original return and subsequent payments made
prior to fi ling this amended return less any previous refunds
Add lines 15 and 16. Carry this total to TC-20S, page 1, line 5. (exclude refund interest). Enter a net refund as a negative
amount (preceded by a minus sign).
Line 18 – Prepayments from Schedule E
Credit is allowed for advance payments made as quarterly Line 20 – Total Payments
estimated tax payments, prepayments and extension pay- Add lines 18 and 19. Carry this total to TC-20S, page 1, line 6.
ments (form TC-559). Include any overpayment from a prior
year that was applied to this year. Use Schedule E to compute
the total prepayment.
Do not include any pass-through withholding tax on this line.
Pass-through withholding tax credit from a previous pass-
through entity is entered on TC-250 and allocated to the
shareholders on Utah Schedule K-1.
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2021 Utah TC-20S Instructions 9
Schedule E – Prepayments of Any Type
Do not include any pass-through withholding tax credit re- Line 3 – Other Prepayments
ceived from another pass-through entity as reported on a
Utah Schedule K-1 you received. Pass-through withholding List the date and amount of all prepayments made for the
tax credits received from other pass-through entities are en- fi ling period. Enter the check number if payment is not made
tered on TC-250 and allocated to the shareholders on Utah electronically. Enter the total amount on line 3. Attach ad-
Schedule K-1. ditional pages, if necessary.
Prepayments are not required for pass-through withholding tax.
Line 1 – Overpayment Applied from Prior Year
Enter the amount of any refund applied from the prior year to Line 4 – Total Prepayments
the current year’s liability. Add lines 1, 2 and 3. Enter the total on this line and on Sched-
ule A, line 18.
Line 2 – Extension Prepayment
List the date and amount of any extension prepayment. Enter
the check number if payment is not made electronically.
TC-20, Schedule H – Nonbusiness Income Net of
Expenses
Complete TC-20, Schedule H to determine nonbusiness materially contributes to the production of business income of
income allocated to Utah and outside Utah. the trade or business operations. See Tax Commission Rule
Nonbusiness income is all income that does not arise from R865-6F-8(2)(e)(iv).
the conduct of a taxpayer's trade or business operations. In- Gain or loss from the sale, exchange, or other disposition
tangible income must be properly classifi ed and based upon of real property or of tangible or intangible personal property
factual evidence. The burden of proof is on the taxpayer to constitutes business income if the property while owned by
justify the manner in which the income is claimed on the return. the taxpayer was used in, or was otherwise included in the
Interest income is business income where the intangible property factor of the taxpayer’s trade or business. See Tax
with respect to which the interest was received arises out of Commission Rule R865-6F-8(2)(e)(ii).
or was created in the regular course of the taxpayer’s trade or Rental income from real and tangible property is business
business operations, or where the purpose for acquiring and income if the property with respect to which the rental income
holding the intangible is an integral, functional, or operative was received is or was used in the taxpayer’s trade or busi-
component of the taxpayer’s trade or business operations, or ness and therefore is includable in the property factor. See
otherwise materially contributes to the production of business Tax Commission Rule R865-6F-8(2)(e)(i).
income of the trade or business operations. See Tax Commis- Complete Schedule H as follows:
sion Rule R865-6F-8(2)(e)(iii).
• Complete lines 1a through 14 if you are claiming only Utah
Dividends are business income where the stock with re- nonbusiness income.
spect to which the dividends were received arose out of or
was acquired in the regular course of the taxpayer’s trade or • Complete lines 15a through 28 if you are claiming only
business operations or where the acquiring and holding of non-Utah nonbusiness income.
the stock is an integral, functional, or operative component • Complete lines 1a through 28 if you are claiming both Utah
of the taxpayer’s trade or business operations, or otherwise and non-Utah nonbusiness income.
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2021 Utah TC-20S Instructions 10
Use additional pages or supporting schedules in the same Line 12 – Interest Expense
format, if necessary, to provide complete information, including
a description of the business purpose for making the invest- Enter the total amount of interest deducted on federal form
ment, the transactions creating the nonbusiness income, and 1120S, line 13 and elsewhere on the federal return.
the use of revenues generated by the nonbusiness investment.
Line 13 – Indirect Related Expenses for Utah
Nonbusiness Income
Utah Nonbusiness Income Multiply line 12 by the ratio on line 11.
Lines 1a-1e – Utah Nonbusiness Income Line 14 – Total Utah Nonbusiness Income Net
Complete the information in each column and enter the gross of Expenses
Utah nonbusiness income from each class of income being
Subtract line 13 from line 6. Enter the amount here and on
allocated. Use additional pages or supporting schedules in
Schedule A, line 8.
the same format, if necessary, to provide complete information
about additional sources of nonbusiness income.
Non-Utah Nonbusiness Income
Line 2 – Total of Columns C and D
Enter the total of the amounts on lines 1a through 1e in column Lines 15a-15e – Non-Utah Nonbusiness Income
C and column D. Complete the information in each column and enter the gross
non-Utah nonbusiness income from each class of income
Line 3 – Total Utah Nonbusiness Income being specifi cally allocated. Use additional pages or support-
Enter the total of column E, lines 1a through 1e. ing schedules in the same format, if necessary, to provide
complete information about additional sources of non-Utah
Lines 4a-4e – Direct Related Expenses nonbusiness income.
Describe and enter amounts of direct expenses on the same
letter line as the corresponding Utah nonbusiness income is Line 16 – Total of Columns C and D
listed on lines 1a through 1e. Direct related expenses include Enter the total of the amounts on lines 15a through 15e in
wages, interest, depreciation, etc. (UC §59-7-101). column C and column D.
Line 5 – Total Direct Related Expenses Line 17 – Total Non-Utah Nonbusiness Income
Enter the sum of direct related expenses by adding lines 4a Enter the total of the amounts on lines 15a through 15e in
through 4e. column E.
Line 6 – Utah Nonbusiness Income Net of Lines 18a-18e – Direct Related Expenses
Direct Related Expenses Describe and enter amounts of direct expenses on the same
Subtract line 5 from line 3. letter line as the corresponding non-Utah nonbusiness income
on lines 15a through 15e. Direct related expenses include
Line 7 – Beginning-of-Year Assets wages, interest, depreciation, etc. (UC §59-7-101).
Enter in column A the total beginning-of-year value of assets Line 19 – Total Direct Related Expenses
used to produce Utah nonbusiness income from line 2, column
C. Enter in column B the beginning-of-year value of your total Enter the sum of direct related expenses by adding lines 18a
assets. Include all assets in column B, including Utah assets. through 18e.
Line 8 – End-of-Year Assets Line 20 – Non-Utah Nonbusiness Income Net of
Enter in column A the total end-of-year value of assets used Direct Related Expenses
to produce Utah nonbusiness income from line 2, column D. Subtract line 19 from line 17.
Enter in column B the end-of-year value of your total assets.
Include all assets in column B, including Utah assets. Line 21 – Beginning-of-Year Assets
Enter in column A the total beginning-of-year value of assets
Line 9 – Sum of Beginning and used to produce non-Utah nonbusiness income from line 16,
Ending Asset Values column C. Enter in column B the beginning-of-year value of
Add lines 7 and 8 for each respective column. your total assets. Include all assets in column B, including
Utah assets.
Line 10 – Average Asset Value
Line 22 – End-of-Year Assets
Divide line 9 by 2 for each column.
Enter in column A the total end-of-year value of assets used
Line 11 – Utah Nonbusiness Asset Ratio to produce non-Utah nonbusiness income from line 16, col-
Divide line 10, column A by line 10, column B. Round the umn D. Enter in column B the end-of-year value of your total
result to four decimal places. Do not enter a decimal greater assets. Include all assets in column B, including Utah assets.
than 1.0000, and do not enter a negative number.
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2021 Utah TC-20S Instructions 11
Line 23 – Sum of Beginning and Ending Asset Line 26 – Interest Expense
Values Enter the total amount of interest deducted on federal form
Add lines 21 and 22 for each respective column. 1120S, line 13 and elsewhere on the federal return.
Line 24 – Average Asset Values Line 27 – Indirect Related Expenses for Non-
Divide line 23 by 2 for each column. Utah Nonbusiness Income
Multiply line 26 by the ratio on line 25.
Line 25 – Non-Utah Nonbusiness Asset Ratio
Divide line 24, column A by line 24, column B. Round the Line 28 – Total Non-Utah Nonbusiness Income
result to four decimal places. Do not enter a decimal greater Net of Expenses
than 1.0000, and do not enter a negative number. Subtract line 27 from line 20. Enter amount here and on
Schedule A, line 9.
TC-20, Schedule J – Apportionment Schedule
Use TC-20, Schedule J to calculate the portion of the taxpayer’s If a corporation holds direct and indirect ownership interests in
income attributable to Utah, if the taxpayer does business both tiered pass-through entities, it must include its pro rata share
within and outside of Utah. of the apportionment factors (property, payroll and sales) of
Complete TC-20, Schedule J to determine the apportionment the pass-through entities, applying the respective ownership
fraction (decimal). The factors express a ratio for property in percentages. For example, a corporation that holds 50 percent
Utah to total property everywhere, for wages and salaries in interest in Partnership A that in turn holds 20 percent interest
Utah to total wages and salaries everywhere, and for sales in Partnership B would include 50 percent of the factors of
in Utah to total sales everywhere. Use these factors or ratios Partnership A, and 10 percent (50 percent of 20 percent) of
to arrive at the Utah apportionment fraction calculated to six the factors of Partnership B.
decimals. Then apply this fraction (decimal) to the apportion-
able income (or loss) on Schedule A to arrive at the amount Apportionment Method
of income (or loss) apportioned to Utah. In cases where one
or more of the factors is omitted due to peculiar aspects of To determine if you must apportion income using the single
the business operations, use the number of factors present sales factor formula or if you qualify as an optional apportion-
to determine the Utah apportionment fraction. ment taxpayer, take into account the economic activities of
each of the entities included in the return. Include the eco-
Your economic activities, and your method of apportioning nomic activities of any pass-through entities whose income
income in the previous year, dictate the apportionment method and factors are included in the return.
you may use.
Use the fl owchart (below) to determine the method you must
use to apportion business income.
Pass-through Entity Taxpayers
Partners, shareholders and benefi ciaries of pass-through Sales Factor Weighted Taxpayers
entities (an entity taxed as a partnership, s-corporation or
trust) must include their pro rata share of the pass-through A sales factor weighted taxpayer may only use the sales factor
entity's property, payroll and sales in their calculation of the weighted apportionment formula.
apportionment factor on TC-20, Schedule J, page 1. You must use the single sales factor formula if you either:
1. apportioned income using the sales factor weighted frac-
tion during the prior taxable year,
2. apportioned income using the phased-in sales factor for-
mula during the prior taxable year, or
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2021 Utah TC-20S Instructions 12
3. generate more than 50 percent of total sales everywhere
Optional Apportionment or Sales Factor Weighted? from economic activities in any NAICS codes OTHER
THAN these identifi ed NAICS codes:
Did the taxpayer apportion income using the phased-in • Sector 21, Mining;
sales factor weighted fraction during the prior taxable year?
• Industry Group 2212, Natural Gas Distribution;
YES NO • Sector 31-33, Manufacturing EXCEPT:
• Industry Group 3254, Pharmaceutical and Medicine
Did the taxpayer apportion income using single Manufacturing
sales factor during the prior taxable year? • Industry Group 3333, Commercial and Service
Industry Machinery Manufacturing
YES NO • Subsector 334, Computer and Electronic Product
Manufacturing
Does the taxpayer generate greater than • Code 336111, Automobile Manufacturing
50 percent of total sales everywhere from • Sector 48-49, Transportation and Warehousing
economic activities in NAICS codes
OTHER THAN the identified NAICS codes? • Sector 51, Information EXCEPT:
• Subsector 519, Other Information Services
YES NO
• Sector 52, Finance and Insurance
Report property and payroll factors on Schedule J, page 1,
Does average value of the taxpayer’s
but do not use them to calculate the apportionment of sales
property and payroll in Utah attributable
factor weighted taxpayers.
to the excluded NAICS codes exceed
50 percent of the average value of all the Sales factor weighted taxpayers must calculate the appor-
taxpayer’s property and payroll in Utah? tionment fraction on Schedule J, Page 2 using Part 2 - Sales
Factor Formula.
NO YES
Optional Apportionment Taxpayers
Single Sales Factor Optional Apportionment To determine if you are an optional apportionment taxpayer,
Can choose: fi rst calculate the following property and payroll factor fractions:
1. equally-weighted; or • Property factor fraction: Add together the value of prop-
2. single sales factor erty in Utah attributable to economic activities that are
classifi ed in an excluded NAICS code. Divide this number
Excluded NAICS Codes: by the value of all property in Utah. Remove property from
Code 211120 Crude Petroleum Extraction this calculation if the property is attributable to economic
Industry Group 2121 Coal Mining activities in both excluded NAICS codes and non-excluded
Industry Group 2212 Natural Gas Distribution NAICS codes.
Subsector 311 Food Manufacturing • Payroll factor fraction: Add together the amount of payroll
Industry Group 3121 Beverage Manufacturing in Utah attributable to economic activities that are classi-
Code 327310 Cement Manufacturing fi ed in an excluded NAICS code. Divide this number by
Subsector 482 Rail Transportation the total amount of payroll in Utah. A taxpayer engaged
Code 512110 Motion Picture and Video Production in activities in an excluded NAICS code must remove an
Subsector 515 Broadcasting (except internet) individual’s payroll from this calculation of the payroll fac-
Code 522110 Commercial Banking
tor fraction if the individual’s payroll may be attributed to
Identified NAICS Codes: economic activities in both excluded NAICS codes and
NAICS codes that are not excluded, or to providing man-
Sector 21 Mining; agement, information technology, fi nance, accounting,
Industry Group 2212 Natural Gas Distribution legal or human resource services.
Sector 31-33 Manufacturing EXCEPT:
• Industry Group 3254 Pharmaceutical & Medicine Add the property and payroll factor fractions and divide that
Manufacturing sum by two. If either the property factor fraction or payroll factor
• Industry Group 3333 Commercial & Service Industry fraction has a denominator of zero, or is otherwise excluded,
Machinery Manufacturing divide by one. If the average is greater than 50 percent, you
• Subsector 334 Computer & Electronic Manufacturing are an optional apportionment taxpayer.
• Code 336111 Automobile Manufacturing
Optional apportionment taxpayers may calculate the ap-
Sector 48-49 Transportation & Warehousing
Sector 51 Information EXCEPT: portionment fraction using either the equally-weighted three
• Subsector 519 Other Information Services factor formula (Schedule J, Part 1) or the sales factor formula
Sector 52 Finance & Insurance (Schedule J, Part 2).
Excluded NAICS codes are NAICS codes of the 2017 North
American Industry Classifi cation System within:
• Code 211120, Crude Petroleum Extraction
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2021 Utah TC-20S Instructions 13
• Industry Group 2121, Coal Mining b. the base of operations or the place where the service
• Industry Group 2212, Natural Gas Distribution is directed or controlled is not in any state where some
part of the service is performed, but the individual’s
• Subsector 311, Food Manufacturing residence is in Utah.
• Industry Group 3121, Beverage Manufacturing Amounts reportable for employment security purposes may
• Code 327310, Cement Manufacturing ordinarily be used to determine the wage factor.
• Subsector 482, Rail Transportation Overall wages, including Utah, are listed in column B.
• Code 512110, Motion Picture and Video Production If you are a pass-through entity taxpayer, add to line 3a any
• Subsector 515, Broadcasting (except Internet) amounts listed on line K of any TC-65 Schedule K-1 you have
• Code 522110, Commercial Banking received.
Line 4 – Payroll Factor Calculation
Line Instructions Determine the payroll factor (decimal) by dividing line 3a,
column A by line 3a, column B.
Business Activity
Briefl y describe the nature and location(s) of your Utah busi- Lines 5a - 5h – Sales Factor
ness activities in the space provided at the top of this schedule. The sales factor is the fraction the sales or charges for ser-
vices within Utah for the taxable year bear to the overall sales
Lines 1a - 1f – Property Factor for the taxable year. Gross receipts from the performance of
Show the average cost value during the taxable year of real services in Utah are assigned to the Utah sales numerator if
and tangible personal property used in the business within the purchaser of the service receives a greater benefi t of the
Utah (including leased property) in column A and overall service in Utah than in any other state.
(including Utah) in column B. Taxpayers that perform a service both in and outside Utah
Property you own is valued at its original cost. Property you must include service income on line 5g in column A (Inside
rent is valued at eight times the net annual rental rate. Net Utah) if the purchaser of the service receives a greater
annual rental rate is the annual rental rate you pay less the benefi t of the service in Utah than in any other state. The
annual rate you receive from sub-rentals. former “cost of performance” method no longer applies. (See
UC §59-7-319(3)(a).)
The average value of property must be determined by averag-
ing the cost values at the beginning and end of the tax period. Sales of tangible personal property are in Utah if the property
However, monthly values may be used or required if monthly is delivered or shipped to a purchaser within Utah regardless
averaging more clearly refl ects your property’s average value. of the F.O.B. point or other conditions of the sale, or if the
property is shipped from an offi ce, store, warehouse, factory
Attach a supporting schedule whenever you use monthly
or other place of storage in Utah and:
averaging.
1. the purchaser is the United States Government, or
If you are a pass-through entity taxpayer, add to line 1e any
amounts listed on line J of any TC-65 Schedule K-1 you have 2. the taxpayer is not taxable in the state of the purchaser.
received. Overall sales, including Utah, are listed in column B.
Enter totals of lines 1a through 1e in the respective columns Note: Securities brokerage businesses must follow the provi-
on line 1f. sions in UC §59-7-319(6).
Line 2 – Property Factor Calculation If you are a pass-through entity taxpayer, add to line 5g any
amounts listed on line L of any TC-65 Schedule K-1 you have
Determine the property factor (decimal) by dividing line 1f, received.
column A by line 1f, column B.
Enter totals of lines 5a through 5g in their respective columns
Line 3 – Payroll Factor on line 5h.
Wages, salaries, commissions and other includable com- Line 6 – Sales Factor Calculation
pensation paid to employees for personal services must be
included in the Utah factor to the extent the services, for which Determine the sales factor (decimal) by dividing line 5h, column
the compensation was paid, were rendered in Utah. A by line 5h, column B.
Compensation is paid in Utah if:
1. the individual’s service is performed entirely within Utah; NAICS Code for Taxpayer
2. the individual’s service is performed both within and outside Line 7 – NAICS Code
Utah, but the service performed outside Utah is incidental
to the individual’s service within Utah; or This is a mandatory fi eld. Your NAICS code may dictate your
apportionment method.
3. some of the service is performed in Utah and:
Enter on line 7 the NAICS code for the primary business activ-
a. the base of operations or, if there is no base of operations,
ity. Do not use the holding company NAICS code.
the place where the service is directed or controlled, is
within Utah; or If multiple NAICS codes apply to this fi ling, attach an explana-
tion showing the percentage of business activity associated
with each NAICS code.
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2021 Utah TC-20S Instructions 14
Apportionment Fraction Line 10 – Apportionment Fraction
Enter the sales factor from line 6 of Schedule J, page 1. This
is the apportionment fraction for this apportionment method.
Part 1 – Equally-Weighted Three Factor (Property and payroll factors are not used in the calculation of
Formula the apportionment fraction for taxpayers who must apportion
If you are an optional apportionment taxpayer using the income using the single sales factor formula.)
equally-weighted three factor formula, complete lines 8 and Enter the apportionment fraction (decimal) here and on
9. Otherwise, leave lines 8 and 9 blank. Schedule A, line 12.
Line 8 – Total Factors
Enter the sum of the factors from lines 2, 4 and 6. Specialized Apportionment Laws
and Rules
Line 9 – Apportionment Fraction
Specialized apportionment procedures apply for:
Calculate the apportionment fraction to six decimals by dividing
line 8 by the number of factors used (typically 3 – property, • Trucking Companies (R865-6F-19)
payroll and sales). • Railroads (R865-6F-29)
• If one or more of the factors are not present (i.e., there is a • Publishing Companies (R865-6F-31)
zero in the denominator on lines 1f, 3a or 5h in column B), • Financial Institutions (R865-6F-32)
divide by the number of factors present.
• Telecommunications (R865-6F-33)
• If the numerator is zero, but a denominator is present,
include that factor in the number of factors present. • Registered Securities or Commodities Broker or Dealer
(R865-6F-36)
Enter the apportionment fraction (decimal) here and on
• Airlines (UC §§59-7-312 thru 319)
Schedule A, line 12.
• Sale of Management, Distribution or Administration Ser-
vices to or on Behalf of a Regulated Investment Company
Part 2 – Sales Factor Formula (UC §59-7-319(5))
See instructions above for the defi nition and qualifi cations
of a taxpayer who must apportion income using the sales
factor formula.
Leave line 10 blank if you are using the equally-weighted
three-factor formula.
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2021 Utah TC-20S Instructions 15
Schedule K – ShareholdersÊ Pro Rata Share Items
Attach TC-20S, Schedule K to show the S corporation’s Line 8 – Net Long-term Capital Gain (Loss)
income, gains, losses, deductions, and Utah credits that are
distributed to the shareholders. Enter in the fi rst column the federal net long-term capital
gain (loss) from lines 8a through 8c of the federal Schedule
Number of Schedules K-1 attached to this K. Enter in the Utah column the total reported on all Utah
Schedules K-1.
return
Enter the number of Utah Schedules K-1 that are attached to Line 9 – Net Section 1231 Gain (Loss)
this S corporation return and issued to shareholders. Enter in the fi rst column the federal net §1231 gain (loss) from
line 9 of the federal Schedule K. Enter in the Utah column the
Line 1 – Ordinary Business Income (Loss) total reported on all Utah Schedules K-1.
Enter in the fi rst column the federal ordinary business income
(loss) from line 1 of the federal Schedule K. Enter in the Utah Line 10 – Recapture of Section 179 Deduction
column the total reported on all Utah Schedules K-1. Enter in the fi rst column the federal recapture of a benefi t
from a deduction under §179 from box 17, code L of federal
Line 2 – Net Rental Real Estate Income (Loss) Schedules K-1. Enter in the Utah column the total reported
Enter in the fi rst column the federal net rental real estate on all Utah Schedules K-1.
income (loss) from line 2 of the federal Schedule K. Enter in
the Utah column the total reported on all Utah Schedules K-1. Line 11 – Other Income (Loss)
Enter in the fi rst column the federal other income (loss) from
Line 3 – Other Net Rental Income (Loss) line 10 of the federal Schedule K. Enter in the Utah column
Enter in the fi rst column the federal other net rental income the total reported on all Utah Schedules K-1.
(loss) from line 3c of the federal Schedule K. Enter in the Utah Also use the federal column of line 11 for PPP grant or loan
column the total reported on all Utah Schedules K-1. amounts reported on Utah Schedule A, line 5. Enter in the
Utah column the total reported on all Utah Schedules K-1.
Line 4a – U.S. Government Interest Income
Enter in the federal column the total U.S. government interest Describe the type of income in the space provided.
income reported on all federal Schedules K-1. Enter in the Utah
Line 12 – Section 179 Deduction
column the total Utah portion reported on Utah Schedules K-1.
Enter in the fi rst column the federal §179 deduction from line
Line 4b – Municipal Bond Interest Income 11 of the federal Schedule K. Enter in the Utah column the total
Enter in the federal column the total municipal bond interest reported on all Utah Schedules K-1.
income reported on all federal Schedules K-1. Enter in the
Line 13 – Contributions
Utah column the total Utah taxable portion reported on Utah
Schedules K-1. Enter in the fi rst column the federal contributions from line
12a of the federal Schedule K. Enter in the Utah column the
For additional information on the Utah treatment of mu- total reported on all Utah Schedules K-1.
nicipal bond interest, go to incometax.utah.gov/additions/
municipal-bond-interest. Line 14 – Investment Interest Expense
Line 4c – Other Interest Income Enter in the fi rst column the federal investment interest ex-
pense from line 12b of the federal Schedule K. Enter in the
Enter in the federal column the total other interest income Utah column the total reported on all Utah Schedules K-1.
(other than interest income shown on lines 4a and 4b above)
reported on all federal Schedules K-1. Enter in the Utah col- Line 15 – Section 59(e)(2) Expenditures
umn the total Utah portion reported on Utah Schedules K-1.
Enter in the fi rst column the federal §59(e)(2) expenditures
Line 5 – Ordinary Dividends from line 12c(2) of the federal Schedule K. Enter in the Utah
column the total reported on all Utah Schedules K-1.
Enter in the fi rst column the federal ordinary dividends from
line 5a of the federal Schedule K. Enter in the Utah column Line 16 – Foreign Taxes Paid or Accrued
the total reported on all Utah Schedules K-1.
Enter in the fi rst column the federal foreign taxes paid or ac-
Line 6 – Royalties crued from line 14p of the federal Schedule K. Enter in the
Utah column the total reported on all Utah Schedules K-1.
Enter in the fi rst column the federal royalties from line 6 of
the federal Schedule K. Enter in the Utah column the total Line 17 – Other Deductions
reported on all Utah Schedules K-1.
Enter in the fi rst column the federal other deductions from line
Line 7 – Net Short-term Capital Gain (Loss) 12d of the federal Schedule K. Enter in the Utah column the
total reported on all Utah Schedules K-1.
Enter in the fi rst column the federal net short-term capital gain
(loss) from line 7 of the federal Schedule K. Enter in the Utah Describe the type of deduction in the space provided.
column the total reported on all Utah Schedules K-1.
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2021 Utah TC-20S Instructions 16
Line 18 – Utah Nonrefundable Credits For more information, contact:
Division of Services for People with Disabilities
In the Utah column, enter the Utah nonrefundable credits distrib-
195 N 1950 W
uted to the shareholders. Describe the nonrefundable credit in
Salt Lake City, UT 84116
the space provided, and enter the Utah code for the credit (see
Nonrefundable Credits, below). If a credit was received from an 1-844-275-3773
upper-tier pass-through entity, also complete and attach TC-250. dspd.utah.gov
(04) Capital Gain Transactions Credit
Line 19 – Utah Refundable Credits (UC §59-10-1022)
In the Utah column, enter the Utah refundable credits dis- You may claim a credit for the short-term and long-term capital
tributed to the shareholders. Describe the refundable credit gain on a transaction if:
in the space provided, and enter the Utah code for the credit
(see Refundable Credits, below). If a credit was received a. the transaction occurs on or after Jan. 1, 2008;
from an upper-tier pass-through entity, also complete and b. at least 70 percent of the gross proceeds of the transaction
attach TC-250. are used to buy stock in a qualifi ed Utah small business
corporation within 12 months from when the capital gain
Line 20 – Total Utah Tax Withheld on Behalf of transaction occurred; and
All Shareholders c. you did not have an ownership interest in the qualifi ed Utah
In the Utah column, enter the total amount of Utah withholding tax small business corporation at the time of investment.
withheld on behalf of all the shareholders who are pass-through See incometax.utah.gov/credits/capital-gains for more
entity taxpayers by the S corporation, and for whom the waiver information.
from withholding was not requested. This amount must match
the total pass-through withholding tax on Schedule N, column I There is no form for this credit. Keep all related documents
for all pass-through entity taxpayers who have Utah withholding with your records.
tax withheld.
Calculation of Capital Gain Transactions Credit
Nonrefundable Credits Passed- 1. Eligible short-term or long-term capital gain $________
through on Schedule K 2. Multiply line 1 by 4.95% (.0495).
This is the credit. $________
Nonrefundable credits on an S corporation return are entered
on Schedule K and then allocated and passed-through to the
shareholders on Schedule K-1. Nonrefundable credits may not (05) Carryforward of Clean Fuel Vehicle Credit
be used against any tax owed by the S corporation. (UC §59-10-1009)
The clean fuel vehicle credit is no longer available. The fi ve-
Nonrefundable Credit Codes year carryforward remains for credit earned before 2017. If you
02 Qualifi ed Sheltered Workshop Cash Contribution have unused credit from a year prior to 2017, you may carry
Credit it forward through tax year 2021 or until the credit is used up
04 Capital Gain Transactions Credit
05 Carryforward of Clean Fuel Vehicle Credit (TC-40V) (whichever comes fi rst). The carryforward must not be more
06 Historic Preservation Credit than your tax liability in the year you claim it.
08 Low-Income Housing Credit
12 Credit for Increasing Research Activities in Utah (06) Historic Preservation Credit
21 Renewable Residential Energy Systems Credit (UC §59-10-1006)
(TC-40E) The credit is for costs to restore any residential certifi ed
27 Veteran Employment Credit historic building.
63 Achieving a Better Life Experience (ABLE)
Program Credit Complete form TC-40H, Historic Preservation Tax Credit, with
AG Special Needs Opportunity Scholarship the State Historic Preservation Offi ce certifi cation, verifying the
Program Credit credit is approved. Do not send form TC-40H with your return.
Keep the form and all related documents with your records to
provide the Tax Commission upon request.
(02) Qualifi ed Sheltered Workshop Cash Contribution
For more information, contact:
Credit
(UC §59-10-1004) Utah Division of State History
3760 S Highland Drive
Cash contributions made in the taxable year to a qualifi ed Salt Lake City, UT 84106
Utah nonprofi t rehabilitation sheltered workshop facility for 801-245-7277
persons with disabilities are eligible for the credit. Check with history.utah.gov/shpo/fi nancial-incentives/
the workshop to make sure they have a current Day Training
Provider License or Day Support Provider Certifi cate issued (08) Low-Income Housing Credit
by the Department of Human Services. The credit is the lesser (UC §59-10-1010)
of $200 or 50 percent of the total cash contributions. This credit is determined by the Utah Housing Corporation for
There is no form for this credit. Keep all related documents owners of a low-income housing project who also received part
with your records. The shareholder must list the qualifi ed of the federal low-income housing credit. When this credit ap-
workshop name on their return to claim the credit. Enter this plies, the project owner will provide you with form TC-40TCAC
name on Schedules K and K-1. (issued by the Utah Housing Corporation).
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2021 Utah TC-20S Instructions 17
If you share in this credit, get form TC-40TCAC, Utah Low- A qualifi ed, recently deployed veteran is an individual who
Income Housing Tax Credit Allocation Certifi cation, and com- was mobilized to active federal military service in an active
plete form TC-40LI, Summary of Utah Low-Income Housing or reserve component of the United States Armed Forces,
Tax Credit. Do not send these forms with your return. Keep and received an honorable or general discharge within the
the forms and all related documents with your records. two-year period before the employment begins.
The building project owner must also complete and attach to To qualify for the credit, the qualifi ed veteran must meet all of
his/her return form TC-40LIS, Utah Credit Share Summary the following conditions:
of Low-Income Housing Project. 1. received an honorable or general discharge within the
For more information, contact: two-year period before the employment begins;
Utah Housing Corporation 2. was collecting or was eligible to collect unemployment
2479 S Lake Park Blvd. benefi ts, or has exhausted their unemployment benefi ts
West Valley City, UT 84120 within the last two years, under Title 35A, Chapter 4, Part
801-902-8200 4, Benefi ts and Eligibility; and
utahhousingcorp.org 3. worked for the taxpayer for at least 35 hours per week for
(12) Credit for Increasing Research Activities in Utah not less than 45 of the next 52 weeks following the veteran’s
(UC §59-10-1012) employment start date.
The credit is: The credit is claimed beginning in the year the 45 consecutive
weeks in paragraph 3 above are met.
1. 5 percent of your qualifi ed expenses for increasing research
activities in Utah above a base amount, Calculate the credit as follows:
2. 5 percent of certain payments made to a qualifi ed orga-
nization increasing basic research in Utah above a base First Year Credit
amount, and (count all months in the year the 45-week requirement is met):
3. 7.5 percent of your qualifi ed research expenses in Utah 1. Number of months or partial months the
for the current taxable year. veteran was employed in the fi rst year 1 _________
There is no form for this credit. Keep all related documents 2. Monthly credit allowable in fi rst year 2 200
with your records. 3. First year credit –
(21) Renewable Residential Energy Systems Credit multiply line 1 by line 2 (maximum $2,400) 3 _________
(UC §59-10-1014)
This credit is for reasonable costs, including installation, of a Second Year Credit:
residential energy system that supplies energy to a residential 4. Number of months or partial months the
unit in Utah. If the residence is sold to a non-business entity veteran was employed in the 2nd year 4 _________
before claiming the credit, you may irrevocably transfer the 5. Monthly credit allowable in second year 5 400
right to the credit to the new owner. Additional residential
energy systems or parts may be claimed in following years 6. Second year credit –
as long as the total amount claimed does not exceed certain multiply line 4 by line 5 (maximum ($4,800) 6 _________
limits. Contact the Governor’s Offi ce of Energy Development
for more information. The principal portion of the lease pay- We will not refund any credit greater than your tax due, but
ments may qualify for the credit if the lessor irrevocably elects you may carry it forward to offset tax for up to fi ve years.
not to claim the credit.
If taking this credit, you must keep the following documentation
Note: Any credit that is more than the tax liability may be and make it available to the Tax Commission upon request:
carried forward for the next four years.
1. the veteran’s name, last known address, and taxpayer
Get form TC-40E, Renewable Residential and Commercial identifi cation or Social Security number;
Energy Systems Tax Credits, from the Governor's Offi ce of
2. the start date of employment;
Energy Development with their certifi cation stamp showing
the amount of the credit. Do not send form TC-40E with your 3. documentation establishing that the veteran was employed
return. Keep the form and all related documents with your 45 out of the 52 weeks after the date of employment;
records to provide the Tax Commission upon request. 4. documentation from the veteran’s military service unit
For more information, contact: showing that the veteran was recently deployed; and
Governor's Offi ce of Energy Development (OED) 5. a signed statement from the Department of Workforce
PO Box 144845 Services that the veteran was collecting, was eligible to
Salt Lake City, UT 84114 collect, or exhausted their unemployment benefi ts within
801-538-8732 or 801-538-8702 the last two years.
energy.utah.gov/renewable-energy-systems-tax-credit
(63) Achieving a Better Life Experience (ABLE)
(27) Veteran Employment Credit Program Credit
(UC §59-10-1031) (UC §59-10-1035)
A nonrefundable credit is available to taxpayers who hire a You may claim a credit for 4.95 percent of the total qualifi ed
qualifi ed, recently deployed veteran. contributions you made to a Utah resident's Achieving a
Better Life Experience Program account. You must make the
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2021 Utah TC-20S Instructions 18
contributions during the taxable year and have an itemized Complete TC-250, Part 2, and then enter and allocate the
statement from the qualifi ed ABLE program. total upper-tier (previous) pass-through entity withholding
You may not claim a credit for an amount greater than the tax using code 36.
federal gift tax exclusion (IRC §2503) or an amount already Do not include Utah Schedule K-1 the corporation received
deducted on your federal income tax return. showing this credit when fi ling this corporation’s return.
(39) Renewable Commercial Energy Systems Credit
Credit calculation (UC §59-10-1106)
Contributions _______ x .0495 = Credit _________ Get form TC-40E, Renewable Residential and Commercial
Energy Systems Tax Credits, from the Governor's Offi ce of
Note: Any credit that is more than the tax liability may not be Energy Development with their certifi cation stamp. Do not
carried back or forward. send this form with your return. Keep the form and all related
documents with your records to provide the Tax Commission
For more information, contact: upon request.
Department of Workforce Services
For more information, contact:
140 E 300 S
Governor's Offi ce of Energy Development (OED)
PO Box 45249
PO Box 144845
Salt Lake City, UT 84145-0249
Salt Lake City, UT 84114
801-526-9675
801-538-8732 or 801-538-8702
jobs.utah.gov
energy.utah.gov/renewable-energy-systems-tax-credit
(AG) Special Needs Opportunity Scholarship Program
(46) Mineral Production Withholding Tax Credit
Credit
(UC §59-6-102)
(UC §59-10-1041)
Enter the total of the mineral production tax withheld as shown
You may claim a credit for a donation made to the Special
on forms TC-675R or Utah Schedule K-1(s) for the tax year.
Needs Opportunity Scholarship Program. You will receive a tax
For a fi scal year corporation, the credit is reported on the
credit certifi cate from the program, listing the amount of the
corporate return that is required to be fi led during the year
credit. You may not claim this credit if you claimed the donation
following the December closing period of the form TC-675R.
as an itemized deduction on your federal income tax return.
Enter the mineral production withholding tax on TC-250. Enter
Do not send the certifi cate with your return. Keep the certifi cate
the credit in Part 2 if received from an upper-tier pass-through
and all related documents with your records.
entity, or in Part 3 if received on a TC-675R from the mineral
Note: You may carry forward for the next three years any credit producer.
that is more than your tax liability.
Do not attach the TC-675R or Utah Schedule K-1 to the
corporation return.
Refundable Credits Passed- (47) Agricultural Off-Highway Gas/Undyed
through on Schedule K Diesel Fuel Credit
Refundable credits on an S corporation return are entered (UC §59-13-202)
on Schedule K and then allocated and passed-through to the You may claim a credit of 31.4 cents per gallon for motor fuel
shareholders on Schedule K-1. Refundable credits may not and undyed diesel fuel bought in Utah during 2021 and used
be claimed on an S corporation return. to operate stationary farm engines and self-propelled farm
machinery used solely for commercial non-highway agricultural
Refundable Credit Codes use if the fuel was taxed at the time it was bought.
36 Upper-tier Pass-through Entity Withholding Tax This does not include golf courses, horse racing, boat opera-
39 Renewable Commercial Energy Systems Credit tions, highway seeding, vehicles registered for highway use,
(TC-40E) hobbies, personal farming and other non-agricultural use.
46 Mineral Production Withholding Tax Credit
(TC-675R)
47 Agricultural Off-highway Gas/Undyed Diesel Fuel Credit calculation:
Credit
48 Farm Operation Hand Tools Credit Gallons _______ x .314 = Credit _______
There is no form for this credit. Keep all related documents
(36) Upper-tier Pass-through Entity Withholding Tax with your records to provide the Tax Commission upon request.
(UC §59-10-1103)
If this S corporation owns an interest in another pass-through (48) Farm Operation Hand Tools Credit
entity, that pass-through entity is required to withhold Utah (UC §59-10-1105)
income tax on any income attributable to this S corporation. This credit is for sales and use tax paid on hand tools pur-
The pass-through entity must provide a Utah Schedule K-1 chased and used or consumed primarily and directly in a farm-
showing the amount of Utah withholding paid on behalf of ing operation in Utah. The credit only applies if the purchase
this S corporation. price of a tool is more than $250.
This S corporation then distributes the credit for the pass- There is no form for this credit. Keep all related documents
through entity withholding tax to its shareholders. with your records to provide the Tax Commission upon request.
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2021 Utah TC-20S Instructions 19
Schedule K-1 – ShareholderÊs Share of Utah
Income, Deductions and Credits
Complete a Utah TC-20S, Schedule K-1 for each shareholder, For a nonresident shareholder, enter the pro rata share of
showing the share of income, gains, losses, deductions, and apportioned Utah ordinary business income (loss) reported
Utah credits that are distributed to the shareholder. on Utah Schedule A, line 14.
S Corporation Information Line 2 – Utah Net Rental Real Estate Income
Line A. Enter the S corporation’s federal employer identifi ca- (Loss)
tion number. For a Utah resident shareholder, enter the amount from their
Line B. Enter the complete name and address of the S corporation. federal Schedule K-1, box 2.
For a nonresident shareholder, enter the pro rata share of ap-
Shareholder Information portioned Utah net rental real estate income (loss) included
Line C. Enter the shareholder’s Social Security or federal in the amount reported on Utah Schedule A, line 14.
employer identifi cation number.
Line 3 – Utah Other Net Rental Income (Loss)
Line D. Enter the shareholder’s complete name and address.
For a Utah resident shareholder, enter the amount from their
Line E. Enter the percent of ownership the shareholder has in federal Schedule K-1, box 3.
the S corporation. Enter the same percentage of stock
ownership as entered on line F of the shareholder’s For a nonresident shareholder, enter the pro rata share of
federal Schedule K-1. apportioned Utah other net rental income (loss) included in
the amount reported on Utah Schedule A, line 14.
Shareholder's Share of Apportionment
Line 4a – Utah U.S. Government Interest
Factors
Income
Line F. Enter the shareholder’s share of the S corporation’s
property apportionment factor. Multiply both Column For a Utah resident shareholder, enter the amount of U.S. gov-
A and Column B of Schedule J, line 1f, by the share- ernment income included in box 4 of their federal Schedule K-1.
holder’s percent of ownership (line E, above). For a nonresident shareholder, enter the pro rata share of
Line G. Enter the shareholder’s share of the S corporation’s apportioned Utah U.S. government interest income included
payroll apportionment factor. Multiply both Column A in the amount reported on Utah Schedule A, line 14.
and Column B of Schedule J, line 3a, by the share-
holder’s percent of ownership (line E, above). Line 4b – Utah Municipal Bond Interest Income
Line H. Enter the shareholder’s share of the S corporation’s For a Utah resident shareholder, enter the amount of Utah
sales apportionment factor. Multiply both Column A taxable municipal bond interest income included on their
and Column B of Schedule J, line 5h, by the share- federal Schedule K-1, line 16.
holder’s percent of ownership (line E, above). For a nonresident shareholder, enter the pro rata share of
apportioned Utah taxable municipal bond interest income.
Other Information
Enter any additional information or explanation of entries Line 4c – Utah Other Interest Income
needed by the shareholder in order to complete the share- For a Utah resident shareholder, enter the amount of other
holder’s individual Utah return. interest income (other than interest income shown on lines 4a
and 4b, above) included in box 4 of their federal Schedule K-1.
Reminder: For a nonresident shareholder, enter the pro rata share of ap-
For a Utah resident shareholder, report the same information portioned Utah other interest income included in the amount
on their Utah Schedule K-1 for income, losses and deductions reported on Utah Schedule A, line 14.
that was reported on their federal Schedule K-1.
Line 5 – Utah Ordinary Dividends
For a Utah nonresident shareholder, report the apportioned
Utah income, losses and deductions multiplied by their own- For a Utah resident shareholder, enter the amount from their
ership interest in the S corporation. Use the apportionment federal Schedule K-1, box 5a.
fraction from Schedule A, line 12. Expenses directly attributable For a nonresident shareholder, enter the pro rata share of
to Utah sources should be deducted against Utah income in apportioned Utah ordinary dividends included in the amount
total and not apportioned. reported on Utah Schedule A, line 14.
Utah nonrefundable and refundable credits passed through
from the S corporation to both Utah resident and nonresident Line 6 – Utah Royalties
shareholders are reported on Utah Schedule K-1. For a Utah resident shareholder, enter the amount from their
federal Schedule K-1, box 6.
Line 1 – Utah Ordinary Business Income
For a nonresident shareholder, enter the pro rata share of
(Loss) apportioned Utah royalties included in the amount reported
For a Utah resident shareholder, enter the amount from their on Utah Schedule A, line 14.
federal Schedule K-1, box 1.
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2021 Utah TC-20S Instructions 20
Line 7 – Utah Net Short-term Capital Gain Line 14 – Utah Investment Interest Expense
(Loss) For a Utah resident shareholder, enter the amount from their
For a Utah resident shareholder, enter the amount from their federal Schedule K-1, box 12, code H.
federal Schedule K-1, box 7. For a nonresident shareholder, enter the pro rata share of
For a nonresident shareholder, enter the pro rata share of apportioned Utah investment interest expense included in the
apportioned Utah net short-term capital gain (loss) included amount reported on Utah Schedule A, line 14.
in the amount reported on Utah Schedule A, line 14.
Line 15 – Utah Section 59(e)(2) Expenditures
Line 8 – Utah Net Long-term Capital Gain For a Utah resident shareholder, enter the amount from their
(Loss) federal Schedule K-1, box 12, code J.
For a Utah resident shareholder, enter the amount from their For a nonresident shareholder, enter the pro rata share of ap-
federal Schedule K-1, boxes 8a through 8c. portioned Utah §59(e)(2) expenditures included in the amount
For a nonresident shareholder, enter the pro rata share of reported on Utah Schedule A, line 14.
apportioned Utah net long-term capital gain (loss) included
Line 16 – Foreign Taxes Paid or Accrued
in the amount reported on Utah Schedule A, line 14.
For a Utah resident shareholder, enter the amount from their
Line 9 – Utah Net Section 1231 Gain (Loss) federal Schedule K-1, box 14, codes L and M.
For a Utah resident shareholder, enter the amount from their For a nonresident shareholder, enter the pro rata share of
federal Schedule K-1, box 9. apportioned Utah foreign taxes paid or accrued included in
For a nonresident shareholder, enter the pro rata share of ap- the amount reported on Utah Schedule A, line 14.
portioned Utah net §1231 gain (loss) included in the amount
Line 17 – Utah Other Deductions
reported on Utah Schedule A, line 14.
For a Utah resident shareholder, enter the amount from their
Line 10 – Recapture of Section 179 Deduction federal Schedule K-1, box 12, except codes A through H and J.
For a Utah resident shareholder, enter the amount from their For a nonresident shareholder, enter the pro rata share of
federal Schedule K-1, box 17, code L. apportioned Utah other deductions included in the amount
For a nonresident shareholder, enter the pro rata share of any reported on Utah Schedule A, line 14.
apportioned Utah recapture of a §179 deduction included in Enter the description as shown on Schedule K in the space
the amount reported on Utah Schedule A, line 14. provided.
Line 11 – Utah Other Income (Loss) Line 18 – Utah Nonrefundable Credits
For a Utah resident shareholder, enter: Enter each shareholder’s pro rata share of Utah nonrefund-
1. the amount from their federal Schedule K-1, box 10, able credits reported on Utah Schedule K, line 18. Also enter
and the description and the Utah nonrefundable credit code as
2. the partner’s distributive share of PPP grant or loan shown on Schedule K.
income reported on Utah Schedule A, line 5.
Line 19 – Utah Refundable Credits
For a nonresident shareholder, enter:
Enter each shareholder’s pro rata share of Utah refundable
1. the pro rata share of apportioned Utah other income credits reported on Utah Schedule K, line 19. Also enter the
(loss) included in the amount reported on Utah Schedule description and the Utah refundable credit code as shown
A, line 14, and on Schedule K.
2. the amount of PPP grant or loan income reported on
Utah Schedule A, line 5. Line 20 – Utah Tax Withheld on Behalf of
For all entries on line 11, enter the description shown on Utah Shareholder
Schedule K, line 11, in the space provided. Enter the amount of Utah withholding tax withheld by this
corporation on behalf of this shareholder. This amount will be
Line 12 – Utah Section 179 Deduction claimed on the shareholder’s individual Utah return.
For a Utah resident shareholder, enter the amount from their Enter an “X” if the S corporation entered a “1” in the Withholding
federal Schedule K-1, box 11. Waiver Request box at the top of Schedule N to not withhold
For a nonresident shareholder, enter the pro rata share of Utah tax on all pass-through entity taxpayers, or if the S corpora-
apportioned Utah §179 deduction included in the amount tion entered a “2” in the Withholding Waiver Request box at the
reported on Utah Schedule A, line 14. top of Schedule N and entered an “X” on line B of Schedule N for
this specifi c shareholder.
Line 13 – Utah Contributions Provide each shareholder a copy of their Utah Schedule
For a Utah resident shareholder, enter the amount from their K-1.
federal Schedule K-1, box 12, codes A through G.
For a nonresident shareholder, enter the pro rata share of ap-
portioned Utah contributions included in the amount reported
on Utah Schedule A, line 14.
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2021 Utah TC-20S Instructions 21
Schedule M – Qualified Subchapter S Subsidiaries
An S corporation that has made a Qualifi ed Subchapter S List only corporations incorporated, qualifi ed or doing busi-
Subsidiary (QSSS) election under IRC §1361(b) must com- ness in Utah. Corporations not listed on Schedule M will not
plete Schedule M if any subsidiaries for which such election be considered to have met the Utah fi ling requirements.
was made are incorporated, qualifi ed or doing business in
Utah. Federal schedules are not acceptable as substitutes.
You may not use any other form as a substitute for
Schedule M without prior approval from the Tax Commis-
sion. See Guidelines for Substitute Utah Tax Forms, at
tax.utah.gov/developers/substitute-forms.
Schedule N – Pass-through Entity Withholding Tax
The S corporation, as a pass-through entity, must pay or with- If the shareholder is a pass-through entity, it must fi le a Utah
hold tax on behalf of each nonresident individual shareholder, return to report its income/loss and withholding allocations to
each resident or nonresident business shareholder, and each its partners/members/shareholders/benefi ciaries.
resident or nonresident trust or estate shareholder (collectively S corporations having shareholders for whom withholding is
referred to as pass-through entity taxpayers) unless a with- required must complete Schedule N showing the amount of
holding waiver request is made (see below). An S corporation Utah income attributable to the shareholders, the amount of
is not required to withhold Utah tax on a shareholder if: Utah tax on such income (4.95%), any Utah mineral produc-
• the shareholder is exempt from taxation under UC tion withholding tax and upper-tier Utah pass-through entity
§59-7-102(1)(a) or §59-10-104.1; withholding tax credited to the shareholders, and the net
• this corporation is a plan under IRC §§401, 408 or 457 amount of withholding tax this S corporation must pay on
and is not required to fi le a return under UC Chapter 7; or behalf of such shareholders. Use additional forms TC-20S,
Schedule N, if needed.
• this corporation is a publicly traded partnership as defi ned
under UC §59-10-1403.2(1)(b)(iv).
Ownership Percent: A shareholder’s share of taxable income Withholding Waiver Claim
is based on the ratio of stock held by the shareholder to the
(UC §59-10-1403.2(5))
total outstanding stock on the last day of the corporate fi ling
period, unless there was a change in ownership during the fi ling You may claim a waiver from the requirement to withhold Utah
period. If there was a change in shareholders or in the relativeincome tax on pass-through entity taxpayers by entering a1“ ”
interest in stock the shareholders owned, each shareholder’s in the box if the waiver is for all shareholders, or a “2” if the
percentage of ownership is prorated by the number of days waiver is for only certain shareholders. Also enter an “X” on
the stock was owned during the fi ling period. line B and a “0” in column F for each shareholder for whom
the waiver is claimed.
Shareholders may take a credit for the amount of tax paid by
the S corporation on their behalf. To claim the credit, the share- Claiming the waiver for all or specifi c shareholders does not
holder must fi le a Utah income tax return for the taxable year. A relieve the S corporation from the responsibility for the pay-
shareholder subject to withholding by the S corporation and who ment of Utah tax on the income allocated to shareholders if
has no other Utah source income may elect to forego the credit the shareholders do not pay. If the shareholder or shareholders
and not fi le a Utah income tax return. However, shareholders for whom you claimed a waiver fail to fi le a return and make
with income or loss from other Utah sources must fi le a Utah the required payment in a timely manner, you will be liable for
income tax return. A shareholder who is eligible for Utah tax the withholding, plus any penalties and interest.
credits, in addition to the pass-through tax withheld, must fi le
a Utah income tax return to claim those credits.
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2021 Utah TC-20S Instructions 22
Line A – Name of Shareholder (Pass-through Line I – Withholding Tax to be Paid
Entity Taxpayer) by This Corporation
Enter the name of each nonresident individual shareholder, Subtract the total of the credits on lines G and H from the tax
resident/nonresident business shareholder, or resident/ calculated on line F for each pass-through entity taxpayer. Do
nonresident trust shareholder (referred to as a pass-through not enter an amount less than zero.
entity taxpayer). The withholding tax shown in column I is the withholding tax
this corporation must withhold or pay on behalf of the pass-
Line B – Withholding Waiver for this
through entity taxpayer. This withholding tax is reported on
Shareholder line 20 of Utah Schedule K-1 given to the shareholder.
If you entered either a “1” or a “2” in the Withholding Waiver This withholding tax is to be paid to the Tax Commission by
Claim box at the top of Schedule N, enter an “X” on line B if the original due date of the return. If the return is being fi led
this shareholder is included in the waiver claim. on extension, this withholding tax must be prepaid by the
If you check this box, enter a “0” on line F for the shareholder. original due date.
Line C – SSN/EIN of Shareholder Total Pass-through Entity Withholding
Enter the Social Security number (SSN) of each nonresident Add the pass-through withholding in column I for all sharehold-
individual shareholder, the federal employer identifi cation ers. Enter this total at the bottom of Schedule N and carry it
number (EIN) of each resident/nonresident business share- over to Schedule A, line 15 and to Schedule K, line 20.
holder, or the EIN of each resident/nonresident trust or estate
shareholder.
Pass-through Withholding Tax
Line D – Percent of Ownership in S Calculation Summary
Corporation by Shareholder The Utah withholding tax for shareholders who are pass-
Enter the percent of the S corporation the pass-through entity through entity taxpayers for whom the waiver is not requested
taxpayer owns, to four decimal places. is calculated as follows:
1. Line E – Enter the income allocated to Utah for the
Line E – Income (Loss) Attributable to Utah
shareholder.
Enter the income (loss) attributable to Utah and taxable to the
2. Line F – Multiply the income on line E by the Utah tax rate
pass-through entity taxpayer.
of 4.95 percent (.0495).
Calculate this income for a pass-through entity taxpayer by 3. Line G – Enter any Utah mineral production withholding
multiplying the amount on Schedule A, line 14 by each pass- tax allocated to this shareholder that is used to reduce the
through entity taxpayer’s percentage shown on line D. amount of Utah withholding tax calculated.
Line F – 4.95% of Income 4. Line H – Enter any previous Utah withholding tax passed-
through to this corporation by an upper-tier pass-through
Multiply the amount of income attributable to Utah for each
entity and allocated to this shareholder that is used to
pass-through entity taxpayer (line E) by 4.95 percent (.0495).
reduce the amount of Utah withholding tax calculated.
If the amount on line E is a loss, enter “0.” Also enter “0” if
the waiver request has been requested for this shareholder 5. Line I – Enter the tax in column F less the sum of the allo-
(box B checked). cated Utah mineral production withholding tax in column G
and the upper-tier pass-through withholding tax in column
Line G – Mineral Production Withholding Credit H. This is the pass-through withholding tax that must be
Enter the amount of any mineral production withholding tax paid by the corporation on behalf of the shareholder. Do
allocated by the S corporation to the pass-through entity not enter an amount less than zero.
taxpayer. The credit for mineral production withholding tax
reduces the amount of Utah withholding tax that is calculated
for this shareholder on Schedule N. Also report the credit on
line 19 of Schedule K-1 for this shareholder.
Line H – Upper-tier Pass-through
Withholding Tax
Enter the amount of any pass-through entity withholding tax
paid by an upper-tier (previous) pass-through entity, attribut-
able to this S corporation, and allocated to the pass-through
entity taxpayer of this S corporation. The credit for upper-tier
pass-through entity withholding tax reduces the amount of
Utah withholding tax calculated for this shareholder on Sched-
ule N. Also report the credit on line 20 of Schedule K-1 for
this shareholder.
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2021 Utah TC-20S Instructions 23
TC-250 – Credits Received from Upper-tier Pass-
through Entities and Mineral Production
Withholding Tax Credit on TC-675R
Use TC-250 to report Utah nonrefundable and refundable tax Part 2 – Utah Refundable Credits Received
credits allocated on a Utah Schedule K-1 to this corporation from Other Pass-through Entities
by an upper-tier pass-through entity in which this corporation
owns an interest, as well as mineral production withholding Utah refundable tax credits allocated to this corporation by an
tax credits received on a form TC-675R. upper-tier pass-through entity and shown on Utah Schedule
K-1 received from the upper-tier pass-through entity must be
Attach form TC-250 to your S corporation return if the reported in Part 2. These credits are found on Utah Schedule
corporation received an allocation of nonrefundable and/ K-1 under refundable credits with a credit code. Do not include
or refundable credits from an upper-tier pass-through Utah Schedule K-1 the corporation received showing these
entity on a Utah Schedule K-1. credits when fi ling this corporation’s return.
Upper-tier Pass-through Entity. An upper-tier pass-through
entity is a pass-through entity in which this corporation has an First Column
ownership interest and from whom this corporation receives Enter in the fi rst column the federal EIN shown in box “A”
an allocation of income, gain, loss, deduction, or credit on a of Utah Schedule K-1 received by this corporation from the
Utah Schedule K-1. upper-tier pass-through entity.
Use additional copies of form TC-250 if you need more lines
to report any category. Second Column
Enter in the second column the name shown in box “B” of Utah
Schedule K-1 received by this corporation from the upper-tier
Part 1 – Utah Nonrefundable Credits pass-through entity.
Received from Other Pass-through
Entities Third Column
Utah nonrefundable tax credits allocated to this corporation by Enter in the third column the refundable credit code shown
an upper-tier pass-through entity and shown on Utah Schedule on Utah Schedule K-1 received by this corporation from the
K-1 received from the upper-tier pass-through entity must be upper-tier pass-through entity.
reported in Part 1. These credits are found on Utah Schedule
K-1 under nonrefundable credits with a credit code. Do not Fourth Column
include Utah Schedule K-1 the corporation received showing Enter in the fourth column the amount of the allocated Utah
these credits when fi ling this corporation’s return. refundable credit shown on Utah Schedule K-1 received by
this corporation from the upper-tier pass-through entity.
First Column
Carry the refundable credits to Utah Schedule K, line 19 for
Enter in the fi rst column the federal EIN shown in box “A” this return. If you have multiple credits for the same credit
of Utah Schedule K-1 received by this corporation from the code, combine the credit amounts before entering on Schedule
upper-tier pass-through entity. K. Allocate the credit to the shareholders on their individual
Schedule K-1 based on their ownership percentage.
Second Column
Enter in the second column the name shown in box “B” of Utah
Schedule K-1 received by this corporation from the upper-tier Part 3 – Utah Mineral Production
pass-through entity. Withholding Tax Credit Received on
TC-675R
Third Column
Utah mineral production tax withheld on production income
Enter in the third column the nonrefundable credit code shown received by this corporation from the producer shown on form
on Utah Schedule K-1 received by this corporation from the TC-675R must be reported in Part 3. Do not include the TC-
upper-tier pass-through entity. 675R with your corporation return.
Fourth Column First Column
Enter in the fourth column the amount of the distributed Utah Enter in the fi rst column the federal EIN shown in box “2” of
nonrefundable credit shown on Utah Schedule K-1 received the form TC-675R received by this corporation.
by this corporation from the upper-tier pass-through entity.
Carry the nonrefundable credits to Utah Schedule K, line 18 Second Column
for this return. If you have multiple credits for the same credit Enter in the second column the producer’s name shown in box
code, combine the credit amounts before entering on Schedule “1” of the form TC-675R received by this corporation.
K. Allocate the credit to the shareholders on their individual
Schedule K-1 based on their ownership percentage.
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| 2021 Utah TC-20S Instructions 24 Third Column Enter in the third column the amount of the mineral production withholding tax shown in box “6” of the form TC-675R received by this corporation. Total the mineral production withholding amounts shown in the third column. Carry this total to Utah Schedule K for this return and enter it on line 19 using code “46.” Distribute this amount to the shareholders on their individual Schedule K-1 based on their ownership percentage. |
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2021 Utah TC-20S Instructions 25
Utah State Tax Commission
TC-559
Corporate/Partnership Payment Coupon Rev. 11/16
Payment Coupon Penalties and Interest
Use payment coupon TC-559 to make the following corporate/partnership If your tax payments do not equal the lesser of 90 percent of the
tax payments: current-year tax liability ($100 minimum tax for corporations) or 100
1) Estimated tax payments percent of the previous-year tax liability, we will assess a penalty of 2
percent of the unpaid tax for each month of the extension period. We will
2) Extension payments assess a late filing penalty if you file the return after the extension due
3) Return payments date.
Mark the circle on the coupon that shows the type of payment you are making. We will assess interest at the legal rate from the original due date until paid
in full.
Corporation Estimated Tax Requirements See Pub 58, Utah Interest and Penalties, at tax.utah.gov/forms.
Every corporation with a tax liability of $3,000 or more in the current or
previous tax year must make quarterly estimated tax payments. A parent Where to File
company filing a combined report must make the payment when the total Send your payment coupon and payment to :
tax is $3,000 or more for all affiliated companies, including those that pay
only the minimum tax. Corporate/Partnership Tax Payment
Utah State Tax Commission
A corporation does not have to make estimated tax payments the first year 210 N 1950 W
it is required to file a Utah return if it makes a payment on or before the due Salt Lake City, UT 84134-0180
date, without extension, equal to or greater than the minimum tax.
Estimated tax payments are due in four equal payments on the 15th day of
the 4th, 6th, 9th and 12th months of the entity’s taxable year. You may Electronic Payment
make quarterly payments equal to 90 percent of the current year tax or 100 You may make estimated tax, extension and return payments at
percent of the previous year tax. A corporation that had a tax liability of tap.utah.gov.
$100 (the minimum tax) for the previous year may prepay the minimum tax
amount of $100 on the 15th day of the 12th month instead of making four
$25 payments.
The Tax Commission will charge an underpayment penalty to entities that
fail to make or underpay the required estimated tax.
Extension Payment Requirements
A corporation/partnership has an automatic filing extension if it makes the
necessary extension payment by the return due date. The estimated tax
payments must equal at least the lesser of:
1) 90 percent of the current year tax liability
(or the $100 corporation minimum tax, if greater), or
2) 100 percent of the previous-year tax liability.
The remaining tax, plus any penalty and interest, is due when the return is filed.
Note: A pass-through entity (partnership or S corporation) must pay 100
percent of any pass-through withholding by the original due date to avoid
penalties and interest.
SEPARATE AND RETURN ONLY THE BOTTOM COUPON WITH PAYMENT. KEEP TOP PORTION FOR YOUR RECORDS.
TC-559
Corporation/Partnership Mail to: Utah State Tax Commission, 210 N 1950 W, SLC UT 84134-0180 Rev. 11/16
Estimated payment:
Payment Coupon
1st qtr. 3rd qtr. Extension payment
Tax year ending (mm/dd/yyyy) 2nd qtr. 4th qtr. Return payment
Name of corporation/partnership EIN
C
P
Address
T
City State Zip code
Payment amount enclosed $ 00
Make check or money order payable to the Utah State Tax Commission.Make check or money order payable to the Utah State Tax Commission.
Do not send cash. Do not staple check to coupon. Detach check stub.Do not send cash. Do not staple check to coupon. Detach check stub.
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2021 Utah TC-20S Instructions 26
Common Return Errors
1. Utah sales factor on TC-20, Schedule J – Out-of-state
corporations qualifi ed in Utah, but not doing business in
Utah, are required to fi le a Utah corporate return. How-
ever, sales into Utah are not required to be included in the
gross receipts numerator, except as provided under Rule
R865-6F-24. Conversely, corporations making sales from
Utah into a state where they are qualifi ed but not doing Please arrange your return in the
business are required to include such sales in the Utah following order:
gross receipts numerator as throwback sales, except as 1. Utah form TC-20S
provided under Utah Rule R865-6F-24.
2. Utah Schedules A through N (if required) in alphabetical
2. Dissolution or withdrawal – Corporations no longer in order, except Schedules K-1
business or no longer doing business in Utah are required 3. Utah Schedules K-1 for each shareholder
to legally dissolve or withdraw the corporation. See instruc-
4. Federal extension form, if applicable
tions on page 1.
5. A copy of the Federal form 1120S, pages 1 through 5 only
3. Pass-through entity income and factors – Income or (plus Schedule M-3 and IRS form 1125-A, if applicable)
loss from partnership or joint venture interests must be
included in income and apportioned to Utah. 6. Do not attach federal Schedules K-1
7. Other supporting documentation only as requested in
these instructions
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