UTAH
222Forms0and
Instructions
TC-20
Corporation Corporation
FFranchiseranchise
&& IncomeIncome TTaxax
Utah State Tax Commission • 210 North • 1950 West Salt Lake•tax.utah.govCity, Utah 84134
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UTAH
222Forms0and
Instructions
TC-20
Corporation Corporation
FFranchiseranchise
&& IncomeIncome TTaxax
Utah State Tax Commission • 210 North • 1950 West Salt Lake•tax.utah.govCity, Utah 84134
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Contents
General Instructions and Information .........................................................................................................................................................1
TC-20 – Utah Corporation Franchise and Income Tax Return ...................................................................................................................6
Schedule A – Utah Net Taxable Income and Tax Calculation .....................................................................................................................8
Schedule B – Additions to Unadjusted Income ........................................................................................................................................12
Schedule C – Subtractions from Unadjusted Income ......................................................................................................................................14
Schedule D – Utah Contributions Deduction ............................................................................................................................................16
Schedule E – Prepayments of Any Type...................................................................................................................................................17
Schedule H – Nonbusiness Income Net of Expenses ..............................................................................................................................17
Schedule J – Apportionment Schedule ....................................................................................................................................................19
Schedule M – Corporations Included in Combined Filings .......................................................................................................................22
TC-559, Corporation/Partnership Payment Coupon .................................................................................................................................23
Common Return Errors ............................................................................................................................................................................24
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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2022 Utah TC-20 Instructions 1
General Instructions and Information
What’s New Corporation Changes
• Utah Tax Rate: The 2022 Utah Legislature passed SB Report corporation changes (e.g., name change, physical and/
59, lowering the state corporate income tax rate from 4.95 or mailing address changes, merger, or ceasing to do business
percent to 4.85 percent. in Utah) in writing to:
• Payroll Protection Program Loan Addback: In certain UT Division of Corporations and Commercial Code
situations, you must add to your income the amount of PPP Department of Commerce
grants or loans forgiven in 2022. See page 14. 160 E 300 S, 2nd Floor
• Business Income: The 2022 Utah Legislature passed PO Box 146705
HB 268, modifying the defi nition of business income and Salt Lake City, UT 84114-6705
allowing a taxpayer to elect to treat all income from the and submit form TC-69C to:
sales of intangible property as business income. See pages Master Records
6 and 17. Utah State Tax Commission
210 N 1950 W
Salt Lake City, UT 84134-3215
Reminders
• Market Sourcing of Revenues from Performance of
Services by Multi-state Taxpayers: Corporations perform- Dissolution or Withdrawal
ing a service both in and outside of Utah must calculate Corporations that cease to do business in Utah must either
the sales factor numerator on Schedule J by considering dissolve or withdraw the corporation.
the service income to be in Utah if the buyer receives a Corporations incorporated in Utah must fi le Articles of Dissolution
greater benefi t of the service in Utah than in any other state. with the Department of Commerce.
See Schedule J – Apportionment Schedule on page 19.
Corporations incorporated outside of Utah (foreign corpora-
• Foreign Operating Company Changes: A foreign operat-
tions) must obtain a Certifi cate of Tax Clearance from the
ing company must have a minimum of at least $1,000,000
Tax Commission before withdrawing from Utah. Foreign
in payroll located outside the United States and at least
corporations must fi le an Application for Withdrawal with the
$2,000,000 in property located outside the United States.
Department of Commerce.
In addition, income generated from transactions between
members of the unitary group, or from intangible property To request a Certifi cate of Tax Clearance, email the Tax
or an asset held for investment does not qualify for the 50 Commission at taxmaster@utah.gov, or call 801-297-2200
percent foreign operating company income exclusion on or 1-800-662-4335. We will send you an Application for Tax
Schedule C. See pages 4 and 14. Clearance to Withdraw a Foreign Corporation to complete
and return.
• Method of Apportioning Income: To determine if you qualify
as an optional apportionment taxpayer or a sales factor Dissolving and withdrawing corporations must also close their
weighted taxpayer, see Schedule J – Apportionment other Utah tax accounts (sales, withholding, etc.). To close
Schedule on page 19. related tax accounts, send a completed TC-69C, Notice of
Change for a Business and/or Tax Account, to the attention
of Master Records at the Tax Commission address above.
Electronic Filing
Utah corporation returns may be fi led electronically under a
joint program between the Internal Revenue Service and the Rounding Off to Whole Dollars
Utah State Tax Commission. Round off cents to the nearest whole dollar. Round down if cents
are under 50 cents; round up if cents are 50 cents and above. Do
The federal and state information is submitted at the same time
not enter cents on the return.
and the IRS extracts its federal data and forwards the state
data to the Tax Commission. No papers need to be mailed to
the agencies when fi ling electronically. Negative Numbers
Check with your software provider to see if they offer electronic When reporting losses or other negative numbers, do not
corporation fi ling. use parentheses. Always indicate a negative number with a
Learn more about fi ling your corporation return electronically minus sign (-).
at tax.utah.gov/developers/mef.
Liability for Filing and Paying
Identifi cation Numbers
Tax Forms
The corporation's federal Employer Identifi cation Number
(EIN) is the Utah identifi cation number. The Utah Department The Tax Commission does not mail forms for fi ling corporate
of Commerce also issues a registration number upon incor- taxes. Get forms at tax.utah.gov/forms or by calling the
poration or qualifi cation in Utah. Enter both the EIN and Utah Forms Hotline at 801-297-6700 or 1-800-662-4335, ext. 6700.
Incorporation/Qualifi cation number in the proper fi elds. These Note: See What to Attach and What to Keep on page 3
numbers are used for identifi cation of the corporate tax return. for what federal information you must include with your Utah
return.
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2022 Utah TC-20 Instructions 2
Franchise Tax Filing Return When Period Changed
Every C corporation incorporated in Utah (domestic), qualifi ed When changes are made to the taxable year, as indicated
in Utah (foreign), or doing business in Utah, whether qualifi ed under Taxable Year above, a short-period return is required.
or not, must fi le a corporate franchise tax return. C corporation The short-period return must cover the period of less than
returns are fi led on form TC-20. Every corporation that fi les 12 months between the prior taxable year-end and the new
form TC-20 must pay a minimum tax (privilege tax) of $100, taxable year. The tax rates as provided in UC §§59-7-104
regardless of whether or not the corporation exercises its right and 59-7-201 apply to short-period returns, which includes a
to do business. minimum tax of $100.
S Corporation Where to File
Every S corporation (as defi ned in IRC §1361(a)) that has Mail your return to:
fi led a proper and timely election under IRC §1362(a) must Utah State Tax Commission
fi le form TC-20S, so long as the federal election remains in
210 N 1950 W
effect. The minimum tax does not apply to S corporations.
Salt Lake City, UT 84134-0300
Income Tax
Due Date
Corporate income tax fi lers use form TC-20.
A return must be fi led on or before the 15th day of the fourth
Corporations required to fi le under the income tax provisions month following the close of the taxable year or the due date
are those that derive income from Utah sources, but are not of the federal return, whichever is later. If the due date falls on
qualifi ed to do business in Utah and have no regular and es- a Saturday, Sunday or legal holiday, the due date becomes
tablished place of business in Utah, either owned or rented, the next business day.
and do not maintain an inventory or have employees located
at a place of business in Utah. Filing Extension
Corporations are automatically allowed an extension of up to
six months to fi le a return without fi ling an extension form. This
Example 1:
is NOT an extension of time to pay your taxes – it is only
A trucking company, operated in or through Utah by an extension of time to fi le your return. To avoid penalty,
a foreign corporation not qualifi ed to do business in the prepayment requirements must be met on or before the
Utah, is subject to income tax rather than franchise tax. original return due date, and the return must be fi led within the
six-month extension period.
Prepayment Requirements
Example 2:
A lender issuing credit cards to Utah customers from Extension Prepayments
outside Utah that is not qualifi ed to do business in Extension prepayments must equal 90 percent of the cur-
Utah and has no place of business in Utah is subject rent year’s tax liability (or the $100 minimum tax, whichever
to income tax rather than franchise tax. is greater) or 100 percent of the previous year’s tax liability.
The tax used to compute the 90 percent amount includes the
interest on installment sales and the recapture of low-income
A $100 minimum tax applies to the corporate income tax. housing credit on the return.
Federal Form 1120-IC-DISC Use form TC-559, Corporation/Partnership Payment Coupon
to make the estimated prepayments.
If the corporation is fi ling a federal form 1120-IC-DISC and
is not owned 50 percent or more by another corporation,
Quarterly Payments
none of its income is taxable to the corporation but must be
passed-through to the DISC corporation shareholders who Every corporation having a Utah tax liability of $3,000 or more
would report and pay tax on the distribution on their personal in the current taxable year, or a tax liability of $3,000 or more
or business tax returns. in the previous taxable year, must make quarterly estimated
tax payments. In addition, a parent company fi ling a combined
Taxable Year report with affi liated companies must make the quarterly pay-
ment when the aggregate tax amount is $3,000 or more for all
The taxable year for Utah tax purposes must match the tax- companies listed on Schedule M, including those paying only
able year used for federal tax purposes. When the taxable the minimum tax.
year changes for federal purposes, the taxable year must be
changed for Utah purposes. See Filing Return When Period A corporation does not need to make quarterly estimated tax
Changed below. payments the fi rst year it fi les in Utah if it pays the minimum
tax on or before the due date, without the extension.
Quarterly estimated payments are due on the 15th day of the
4th, 6th, 9th and 12th months of the corporation’s taxable year,
unless federal action changes the federal quarterly due dates.
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2022 Utah TC-20 Instructions 3
Corporations may elect to make the quarterly estimated tax tax amount of $100 on the 15th day of the 12th month instead
payments equal to 100 percent of the prior year’s tax in four of four payments of $25. In this case, the corporation must
equal payments, or 90 percent of the current year’s tax based pay $100, not 90 percent.
on the percentages below. As defi ned in UC §59-7-504(2), the
applicable percentage of the required payment for annualized
income installments, for adjusted seasonal installments, and for Interest (in addition to penalties due)
estimated tax payments based on the current year tax liability is: Interest is assessed on underpayments from the due date
until the liability is paid in full. The interest rate for the 2023
Installment Percentage calendar year is 5.0 percent.
1st 22.5 For more information, get Pub 58, Utah Interest and Penalties,
2nd 45.0 at tax.utah.gov/forms.
3rd 67.5
4th 90.0 Suspension for Failure to Pay
If you use a different annualization period than the period Tax Due
used for federal purposes, you must make an election with the Utah law provides for suspension of a corporation’s right to do
Tax Commission at the same time as provided in IRC §6655. business in Utah if it fails to pay taxes due before 5:00 p.m.
Make estimated tax payments with form TC-559, Corporation/ on the last day of the 11th month after the due date.
Partnership Payment Coupon.
If you cannot pay the full amount you owe, you can request a
Corporations that do not make the required tax prepayments payment plan. Log into your corporate account at tap.utah.gov
are subject to a penalty. See Penalties, below. and click "Request waiver, payment plan or payment plan
email."
Penalties You may also:
Utah law (UC §59-1-401) provides penalties for not fi ling tax 1. complete form TC-804B, Business Tax Payment Agreement
returns by the due date, not paying tax due on time, not mak- Request (tax.utah.gov/forms), or
ing suffi cient prepayment on extension returns, and not fi ling 2. call the Tax Commission at 801-297-7703 or 1-800-662-4335
information returns or supporting schedules. See tax.utah. ext. 7703.
gov/billing/penalties-interest and Pub 58, Utah Interest and
Penalties, at tax.utah.gov/forms.
What to Attach and What to Keep
The Tax Commission will calculate the penalty for underpay-
ment of required prepayments. Include the following with your Utah TC-20. Also, keep copies
of these with your tax records.
Exceptions to Penalty on • Utah Corporation Return Schedules: Attach applicable
Estimated Tax Utah schedules A, B, C, D, E, H, J, and/or M.
• Federal Return: Attach only pages 1 through 6 of your
Annualized Exception
federal corporation return, plus Schedule M-3 and IRS
A corporation may annualize its income before determining form 1125-A, if applicable.
the amount of each estimated tax installment. Follow federal
Do not send a copy of your entire federal return, credit
guidelines to determine annualized income. If the corporation
schedules, worksheets, or other documentation with your
meets the annualized exception at the federal level for any
Utah return unless otherwise stated in these instructions.
installment, check the appropriate box(es) on form TC-20,
Keep these in your fi les. We may ask you to provide them later
line 15.
to verify entries on your Utah return.
Recurring Seasonal Exception
A corporation with recurring seasonal income may annualize Combined Reports
its income before determining the amount of each estimated Any corporation owned by another corporation, or owning more
tax installment. Follow federal guidelines to determine seasonal than 50 percent of another corporation, or a group of corpora-
income. If the corporation meets the seasonal exception at the tions related through common ownership (i.e., certain brother/
federal level for any installment, check the appropriate box(es) sister corporations) and engaged in unitary business activity,
on form TC-20, line 15. must fi le a combined report showing the combined income of
all such corporations.
Prepayment of Minimum Tax
A captive real estate investment trust must be included as
Corporations that meet the prepayment requirement in the
a member of a unitary group. A real estate investment trust
current year and had a tax liability of $100 (the minimum
(REIT) is a captive real estate investment trust if the shares
tax) for the previous year may choose to prepay the $100
or benefi cial interests of the REIT are not regularly traded on
minimum tax on the 15th day of the 12th month instead of
an established securities market and more than 50 percent of
four payments of $25.
the voting power or value of the shares or benefi cial interests
Corporations that met the prepayment requirement in the of the REIT are directly, indirectly, or constructively owned or
previous year and have a tax liability of $100 (the minimum controlled by a controlling entity of the REIT.
tax) in the current year may choose to prepay the minimum
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2022 Utah TC-20 Instructions 4
Unitary Business Worldwide
A unitary business exists if the activities of the corporations A unitary group may elect to fi le a worldwide combined report.
(subsidiary or affi liated corporations related through common When the worldwide combined reporting method is elected,
ownership) are economically interdependent as demonstrated the income or loss of each corporation within the unitary
by the following factors: group must be included regardless of the country in which the
• Strong centralized management corporations are incorporated or conduct business.
• Functional integration Corporations electing to fi le a worldwide combined report may
not later elect to fi le a return on a basis other than a worldwide
• Attainment of operational economies of scale combined report without the consent of the Tax Commission.
Instructions for Combining Captive Real Threshold Level of Business Activity
Estate Investment Trusts
Foreign corporations that conduct 20 percent or more of their
The income and factors for a captive real estate investment business activity in the United States, as measured by the
trust are included in a manner similar to other unitary corpo- average of the property and payroll factors, must be included
rations in the combined group. Utah statutes include taxable 100 percent in a water’s edge combined report. Any business
income from federal form 1120-REIT before the net operating activity in Utah will subject a foreign corporation to Utah fran-
loss deduction and the deduction for dividends paid. A Utah chise tax. The combined reporting threshold test determines
deduction is allowed for the IRC §857(b)(2)(E) deduction. A whether the foreign corporation is a member of a unitary group.
subtraction is also allowed for dividends received from a cap-
tive real estate investment trust by a member of the unitary Foreign Dividends
group. This subtraction is essentially an intercompany elimina-
tion since the 1120-REIT taxable income is included before Fifty percent of unitary foreign dividends are included in
the federal dividends paid deduction. adjusted income. The remaining 50 percent, less certain
expenses, are excluded. (See UC §59-7-106(1)(k) and (3).)
The property, payroll and sales of a REIT are included in the A portion of the property, payroll and sales of each dividend
factors of the combined group to the extent otherwise provided paying subsidiary is allowed to be included in the combined
in Utah laws and rules. Intercompany transactions between a apportionment denominators at the ratio the amount of the
captive REIT and any member of the unitary group must be dividend included in Utah combined income bears to the total
removed from the sales factor. Similarly, intercompany rents earnings and profi ts for each dividend paying company.
must be removed from the combined property factor.
Preparation of Combined Report(s)
Water’s Edge Combined Report
A group fi ling a combined report will calculate adjusted income
A unitary group must fi le on a water’s edge basis unless the of the combined group by:
worldwide combination method has been elected. A water’s edge
combined report includes the income and activities of all members 1. determining which corporations are unitary;
of a unitary group that are: 2. computing unadjusted income on a separate return basis;
• corporations organized or incorporated in the United States, 3. combining income or loss of the members included in the
including those corporations qualifying for the Puerto Rico combined report;
and Possession Tax Credit as provided in IRC §936; and 4. making appropriate eliminations and adjustments between
• corporations organized or incorporated outside of the United members included in the combined report to arrive at
States meeting the threshold level of business activity. unadjusted income on a combined basis; and
5. making additions and subtractions to unadjusted income
Water’s Edge Election as outlined in Schedules B, C and D to arrive at adjusted
A group of corporations that are not otherwise a unitary income.
group may elect to fi le a water’s edge combined report under Corporations that fi le either a water’s edge or worldwide com-
UC §59-7-402(2) if each member of the group is: bined report must eliminate all intercompany sales or other
• doing business in Utah, intercompany transactions between corporations included in
• part of the same affi liated group, and the combined report in determining the sales factor on TC-20,
Schedule J. Similarly, corporations fi ling a Utah combined re-
• qualifi ed under IRC §1501 to fi le a federal consolidated port may not include intercompany rents or other intercompany
return. transactions between those corporations in determining the
Each corporation within the affi liated group doing business in property factor. See UC §59-7-404.5.
Utah must consent to fi ling the combined report. If an affi liated A unitary group of corporations is considered a single taxpayer
group elects to fi le a combined report, each corporation within for purposes of the assignment of sales in the sales factor of
the affi liated group doing business in Utah must be included the apportionment calculation. Therefore, sales of tangible
in the combined report. personal property by any member of the unitary group de-
Corporations that elect to fi le a water’s edge combined report livered or shipped into Utah are includable in the Utah sales
under this section may not thereafter elect to fi le a separate return numerator. Conversely, such sales originating in Utah, which
without the consent of the Tax Commission. are delivered or shipped to another state, will not be included
in the Utah sales numerator if any member of the unitary
group has a taxable presence (nexus) in that state. See Tax
Commission Rule R865-6F-24.
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2022 Utah TC-20 Instructions 5
4. The target corporation is treated as a new corporation as
IRC Sections 338, 338(h)(10)
of the day after the acquisition date.
and 336(e)
You must complete your Utah return in a manner consistent IRC Section 336(e)
with the election you make under IRC §§338, 338(h)(10) and If an election is made under IRC §336(e), the transaction must
336(e). be treated as follows:
1. If the corporation is treated for federal purposes as having
IRC Section 338 disposed of all of its assets and is a member of a unitary
If a federal election is made under IRC §338, the target group immediately preceding the date of sale, the corpora-
corporation must fi le a separate entity one-day tax return for tion must be included in a combined return to the extent
Utah purposes, as required for federal purposes. The target of its income through the date of sale. The gain or loss on
corporation must include the gain or loss on the deemed the deemed disposal of assets is included in the combined
sale of assets in its adjusted income. See UC §59-7-114 for income of the unitary group.
further details. 2. If the corporation is treated for federal purposes as hav-
Get form TC-20MC, Utah Tax Return for Miscellaneous Cor- ing disposed of all of its assets and is not a member of a
porations, at tax.utah.gov/forms. unitary group immediately preceding the date of sale, the
corporation must fi le a short-period return for the period
IRC Section 338(h)(10) ending on the date of sale and must include the gain or loss
If an election is made for federal purposes under on the deemed disposal of assets in its adjusted income.
IRC §338(h)(10), the following apply: 3. Any gain or loss not recognized for federal purposes on
1. If the target corporation is a member of a unitary group stock sold, exchanged or distributed by a corporation
immediately preceding the acquisition date, the target pursuant to IRC §336(e) may not be included in adjusted
corporation must be included in a combined report to the income.
extent of its income through the acquisition date. The gain 4. The new basis of assets of the corporation treated as
or loss on the deemed sale of assets is included in the having disposed of its assets is the same as determined
combined income of the unitary group. for federal purposes.
2. If the target corporation is not a member of a unitary group 5. The corporation treated as having disposed of its assets is
immediately preceding the acquisition date, the target treated as a new corporation as of the day after the date
corporation must fi le a short-period return for the period of sale.
ending on the acquisition date and must include the gain or
loss on the deemed sale of assets in its adjusted income.
Installment Sales
3. Any gain or loss on stock sold or exchanged by a member
of a selling consolidated group (as defi ned in IRC §338) If a corporation is no longer required to fi le a Utah corporate
which is not recognized for federal purposes may not be return, any taxes owed by that corporation on installment sales
included in the adjusted income of the selling corporation. entered into by that corporation shall accelerate and be due
on the corporation’s last return fi led in Utah.
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2022 Utah TC-20 Instructions 6
TC-20 – Utah Corporation Franchise and Income
Tax Return
Filing Period Reason-for-Amending Codes
File the 2022 return for calendar year 2022 and fi scal years 1 You fi led an amended federal return with the IRS. Attach
beginning in 2022 and ending in 2023. 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 error.
the format mm/dd/yyyy. 3 Your federal return was changed by an IRS audit or adjust-
ment that affects your Utah return. Attach a copy of the
IRS adjustment.
Corporation Name & Address
4 Other. Attach an explanation to your return.
Enter the corporation name, address and telephone number,
including area code. If the address has changed, see Corpora- Enter the corrected fi gures on the return and/or schedule.
tion Changes on page 1. Enter all other amounts as shown on your original return. If
you received a refund on your original return, subtract the
Zip Code previous refund (exclude refund interest) from the amount of
any tax paid with the original return and/or subsequent pay-
Enter your ZIP Code, including the “plus four” at the end,
ments of the tax prior to fi ling the amended return. Enter the
without a hyphen.
net amount on Schedule A, page 2, line 30. 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 ad-
dress where indicated. Enter the foreign city, state/province Federal Form 8886
and postal code in the City fi eld. Abbreviate if necessary. Leave If you fi led federal form 8886, Reportable Transactions Disclo-
the State and ZIP Code fi elds blank. Enter only the foreign sure Statement, with the Internal Revenue Service, enter an
country name in the “Foreign country” fi eld. “X” at the top of TC-20, where indicated.
EIN and Utah Incorporation/ Subsection 59-7-303(3) Election
Qualifi cation Number To make an irrevocable election to treat nonbusiness income
Enter your federal EIN and Utah Incorporation/Qualifi cation resulting from the sale of intangible property as business
Number issued by the Department of Commerce in the ap- income, enter an “X” at the top of TC-20, where indicated.
propriate fi elds. Attach a statement explaining the transaction and breaking
down the total income between the sales of intangible and
tangible property. See the instructions on page 17.
Amended Returns
Do not submit a copy of your original return with your
Line-by-Line Instructions
amended return.
To amend a previously fi led return, use the tax forms and in- Line 1
structions for the year you are amending. Get prior year forms Enter an “X” on line 1 if this corporation conducted business
and instructions at tax.utah.gov/forms-pubs/previousyears. in Utah during the taxable year.
Amend your return if:
Line 2
• you discover an error on your Utah or federal return after
it has been fi led, or Enter an “X” on line 2 if the federal form 1120 fi led for the
same tax period was a consolidated return.
• your federal return is audited or adjusted by the IRS and
the audit or adjustment affects your Utah return. You must Line 3
amend your Utah return within 90 days of the IRS’s fi nal
determination. Enter an “X” to indicate whether the return is:
a. A water’s edge combined report, or
To qualify for a refund or credit, an amended return must be
fi led by the later of three years after the original return was b. A water’s edge election made under UC §59-7-402(2), or
due or two years from the date the tax was paid. A return c. A worldwide combined report.
fi led before the due date is considered fi led on the due date.
See Combined Reports on page 3 for information on the
To amend a previously fi led return, at the top of page 1, on proper fi ling method.
the “Amended Return” line, enter the code number from the
following list that best describes your Reason for Amending:
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2022 Utah TC-20 Instructions 7
Line 4 Signature and Date Lines
Enter an “X” if an election has been made under IRC §§338, Sign and date the return. We will not issue a refund without
338(h)(10) or 336(e). See IRC §§338, 338(h)(10) and 336(e) a signature.
on page 5 for information about these elections.
Line 5 Paid Preparer Authorization
Enter an “X” on line 5 if this corporation is, or includes, a fi nan- If the corporation wants to allow the Tax Commission to discuss
cial institution as defi ned in Tax Commission Rule R865-6F-32. this return with the paid preparer who signed it, enter an “X”
in the box on the right-hand side of the signature area of the
Line 6 return where indicated.
Enter the ultimate U.S. parent corporation’s name and federal This authorization applies only to the individual whose signa-
EIN. ture 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
Line 7 – Total Tax enter an “X” in the box, the corporation is authorizing the Tax
Enter the total tax from Schedule A, page 2, line 27. Commission to call the paid preparer to answer any questions
that may arise during the processing of the return. The paid
Line 8 – Total Refundable Credits and preparer is also authorized to:
Prepayments • give the Tax Commission any information that is missing
Enter the total refundable credits and prepayments from from the return;
Schedule A, page 2, line 31. • call the Tax Commission for information about the process-
ing of the return or the status of any refund or payment(s);
Line 9 – Tax Due and
If line 7 is larger than line 8, subtract line 8 from line 7. • respond to certain Tax Commission notices about math
errors, offsets and return preparation.
Line 10 – Penalties and Interest
The corporation is not authorizing the preparer to receive any
Enter any penalties and interest that apply to this return. See refund, bind the entity to anything (including any additional
Pub 58, Utah Interest and Penalties. tax liability), or otherwise represent the entity before the Tax
Line 11 – Total Due - Pay This Amount Commission. The authorization will automatically end no later
than the due date (without regard to extensions) for fi ling next
Add lines 9 and 10. Pay at tap.utah.gov, or send a check year's tax return.
or money order with your return (make payable to the Utah
State Tax Commission). Do not mail cash. The Tax Commis- If you want to expand the preparer’s authorization, complete
sion assumes no liability for loss of cash placed in the mail. and submit form TC-737, Power of Attorney and Declaration
of Representative (tax.utah.gov/forms). If you want to revoke
Line 12 – Overpayment the authorization before it ends, submit your request in writ-
ing to the Utah State Tax Commission, attention Taxpayer
If line 8 is larger than the sum of line 7 and line 10, subtract the Services, 210 N 1950 W, SLC, UT 84134.
sum of line 7 and line 10 from line 8.
Paid Preparer
Line 13 – Amount of Overpayment to be Applied
to Next Taxable Year The paid preparer must enter his or her name, address and
PTIN in the section below the corporate offi cer’s signature
All or part of any overpayment shown on line 12 may be applied on the return.
as an advance payment for the next tax year. Enter the amount
to be applied (may not exceed the overpayment on line 12). Preparer Penalties
(UC §§59-1-401(11)-(12))
Line 14 – Refund
The person who prepares, presents, procures, advises, aids,
Subtract line 13 from line 12. This is the amount to be re-
assists or counsels another on a return, affi davit, claim or
funded to you.
similar document administered by the Tax Commission, and
Line 15 – Quarterly Estimated Prepayments who knows or has reason to believe it may understate a tax,
fee or charge is subject to both a civil penalty ($500 per docu-
Meeting Exception ment) and criminal penalties (second degree felony with a fi ne
Check any boxes corresponding to the four quarters to from $1,500 to $25,000).
which a federal penalty exception applies. See Prepayment
Requirements on page 2 for exceptions to the penalty on
underpayments. Attach supporting documentation. Supplemental Information to be
Supplied by All Corporations
All corporations must complete the information on page 2 of
the TC-20.
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2022 Utah TC-20 Instructions 8
Schedule A – Utah Net Taxable Income and Tax
Calculation
Line 1 – Unadjusted Income/Loss Line 13 – Apportioned Income/Loss
Enter the federal taxable income from line 28 of your federal Multiply the apportionable income on line 11 by the apportion-
form 1120. ment fraction on line 12.
If any member of the unitary group is a “controlling entity of a
Line 14 – Utah Net Nonbusiness Income
captive real estate investment trust,” include taxable income
from line 20 of each federal form 1120-REIT on this line. A Enter the amount from line 6, above.
“controlling entity of a captive real estate investment trust” is
an entity that: Line 15 – Utah Income/Loss Before Utah Net
1. is treated as an association taxable as a corporation under Loss Deduction
the Internal Revenue Code; Add line 13 and line 14.
2. is not exempt from federal income tax under IRC §501(a);
Line 16 – Utah Net Loss Carried Forward from
and
Prior Years
3. directly, indirectly or constructively holds more than 50
percent of the voting power or value of shares or benefi cial Enter Utah net losses carried forward from prior years.
interests of a captive real estate investment trust. Losses carried forward from tax years that began after Jan.
1, 2018 (2018 and later) may not exceed 80 percent of your
Line 2 – Additions to Unadjusted Income Utah taxable income on line 15. There is no income limitation
Enter the total additions from Schedule B, line 19. for losses carried forward from tax years that began BEFORE
Jan. 1, 2018 (2017 and earlier).
Line 3 – Add line 1 and line 2 If you are carrying forward losses from tax years that began
Line 4 – Subtractions from Unadjusted Income both before AND after Jan. 1, 2018, use the Line 16 Work-
sheet, below, to calculate the amount you may claim this year.
Enter the total subtractions from Schedule C, line 21.
Attach documentation to the return to support the losses.
Line 5 – Adjusted Income/Loss
Subtract line 4 from line 3.
Line 16 Worksheet
Line 6 – Utah Net Nonbusiness Income Use this worksheet if you have losses from tax years both before
and after Dec. 31, 2017.
Enter the nonbusiness income allocated to Utah from Sched-
ule H, line 14. 1. Current-year Utah income 1_______
(enter the amount from Schedule A, line 15)
Line 7 – Non-Utah Net Nonbusiness Income 2. 80% of taxable income 2_______
Enter the nonbusiness income allocated outside Utah from (multiply line 1 by 0.8)
Schedule H, line 28. 3. Losses from 2017 and earlier 3_______
4. Available losses from 2017 and earlier 4 _______
Line 8 – Total Nonbusiness Income (enter the lesser of line 1 and line 3)
Add line 6 and line 7. 5. Taxable income after 2017 and earlier losses 5 _______
(line 1 minus line 4)
Line 9 – Apportionable Income/Loss
6. Losses from 2018 and later 6_______
Before Contributions Deduction
7. Available losses from 2018 and later 7_______
Subtract line 8 from line 5. (enter the lesser of line 2, line 5 and line 6)
Line 10 – Utah Contributions Deduction 8. Total available losses 8 _______
(add line 4 and line 7)
Enter the amount of Utah contributions allowable for the tax-
Enter line 8 on Schedule A, line 16.
able year from Schedule D, line 6.
Attach a copy of this worksheet to your return.
Line 11 – Apportionable Income/Loss
Subtract line 10 from line 9.
Line 12 – Apportionment Fraction (Decimal) Line 17 – Net Utah Taxable Income/Loss
Enter 1.000000, or the fraction (decimal) from Schedule J, Subtract line 16 from line 15.
line 9 or 10, if applicable.
Line 18 – Tax Amount
Enter the greater of line 18a or line 18b.
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2022 Utah TC-20 Instructions 9
Line 18a Line 24 – Nonrefundable Credits
Multiply line 17 by 4.85% (.0485). Do not enter an amount Nonrefundable credits cannot be used to pay the minimum
less than zero. tax and cannot result in a refund.
If you claim any of the following nonrefundable credits, write
Line 18b
the code and amount of each credit you claim on lines 24a
Enter the total minimum tax from Schedule M, line b. If Sched- through 24f. Enter the sum of all nonrefundable credits on line
ule M does not apply, enter $100. 24. An explanation of each nonrefundable credit is listed below.
Line 19 – Interest on Installment Sales
Use these codes for lines 24a through 24f
Generally, interest must be paid on the deferred tax related to 06 Historic Preservation Credit
installment sales if the contract was entered into on or after 08 Low-income Housing Credit
Jan. 1, 1994. 12 Credit for Increasing Research Activities in Utah
The interest rate must be determined according to IRC §453A. 13 Carryforward Credit for Machinery and Equipment
Enter the interest as an additional tax on Schedule A, line 19. Used to Conduct Research
15 Utah Municipal, U.S. and Agency Bond Interest
The deferred tax liability for Utah purposes must be calculated Credit
in a manner similar to that outlined in IRC §453A(c), except: 21 Carryforward of Renewable Residential Energy
1. The tax rate applied must be 4.85 percent; and Systems Credit
AF Guaranty Association Assessment Credit
2. In the case of multi-state corporations, the amount of Utah AG Special Needs Opportunity Scholarship
gain that has not been recognized must be determined by Program Credit
multiplying the deferred gain that has not been recognized
for federal purposes by the current year apportionment
fraction. (06) Historic Preservation Credit (UC §59-7-609)
Complete form TC-40H, Historic Preservation Tax Credit with
Line 20 – Current Year IRC §965(a) Installment the State Historic Preservation Offi ce certifi cation verifying the
Amount credit is approved. Do not send form TC-40H with your return.
If you were liable for Utah tax on deferred foreign income de- Keep this form and all related documents with your records
scribed in IRC §965(a) and you chose to pay the tax in eight to provide the Tax Commission upon request.
yearly installments, enter the current-year installment amount The credit is for restoration costs of any residential certifi ed
on line 20. The installment is a percentage of the total Utah historic building. Unused credits may be carried forward fi ve
tax due, as reported on line 17 of form TC-20R. years as a credit against Utah tax due.
Installment Table For more information, contact:
First installment: 8% (paid with TC-20R) Utah State Historic Preservation Offi ce
Second Installment: 8% 3760 S Highland Drive
Salt Lake City, UT 84106
Third installment: 8% 801-245-7277
Fourth installment: 8% ushpo.utah.gov/shpo/fi nancial-incentives/
Fifth installment: 8%
Sixth installment: 15% (08) Low-Income Housing Credit
(UC §59-7-607)
Seventh installment: 20%
Eighth installment: 25% This credit is determined by the Utah Housing Corporation for
owners of a low-income housing project who also received part
Line 21 – Recapture of Low-Income of the federal low-income housing credit. When this credit ap-
plies, the project owner will provide you with form TC-40TCAC
Housing Credit
(issued by the Utah Housing Corporation).
Owners of a low-income housing project and other taxpayers
who have taken the low-income housing credit and disposed If you share in this credit, get form TC-40TCAC, Utah Low-
of the building or an ownership interest may be required to Income Housing Tax Credit Allocation Certifi cation, and com-
recapture any credits that reduced their tax liability in a pre- plete form TC-40LI, Summary of Utah Low-Income Housing
vious year. See Utah form TC-40LIC (tax.utah.gov/forms) Tax Credit. Do not send these forms with your return. Keep
for instructions on calculating the low-income housing credit the forms and all related documents with your records.
recapture tax. Attach a supporting schedule showing the The building project owner must also complete and attach to
calculation of the credit recaptured. his/her return form TC-40LIS, Utah Credit Share Summary
of Low-Income Housing Project.
Line 22 – Total Tax
Note: Any credit that is more than the tax liability may be car-
Add the amounts on lines 18, 19, 20 and 21. Carry this total ried back for the previous three years, or carried forward for
to Schedule A, page 2, line 23. fi ve years. If you are carrying this credit forward or backward,
you must also complete form TC-40LIC, Utah Low-Income
Line 23 Housing Tax Credit Carryback and/or Carryforward.
Enter the total tax from Schedule A, page 1, line 22.
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2022 Utah TC-20 Instructions 10
If the low-income housing credit was claimed and the building (AF) Guaranty Association Assessment Credit
or ownership interest was subsequently disposed of, recapture (UC §59-7-623)
of the credit may be required. See Recapture of Low-Income
An insurer that is not subject to the premium tax on health
Housing Credit on page 9.
care insurance may claim a nonrefundable tax credit equal to
For more information, contact: 20 percent of a guaranty association assessment payment for
Utah Housing Corporation each of the fi ve years following the assessment.
2479 S Lake Park Blvd. Note: Any credit that is more than the tax liability may be
West Valley City, UT 84120 carried forward.
801-902-8200
utahhousingcorp.org (AG) Special Needs Opportunity Scholarship
Program Credit
(12) Credit for Increasing Research Activities in Utah (UC §59-7-625)
(UC §59-7-612)
You may claim a credit for a donation made to the Special
The credit is: Needs Opportunity Scholarship Program. You will receive a
1. 5 percent of your qualifi ed expenses for increasing research tax credit certifi cate from the program, listing the amount of
activities in Utah above a base amount, the credit. You may not claim this credit if you claimed the
2. 5 percent of certain payments made to a qualifi ed orga- donation as an itemized deduction on your federal return.
nization increasing basic research in Utah above a base Do not send the certifi cate with your return. Keep the certifi cate
amount, and and all related documents with your records.
3. 7.5 percent of your qualifi ed research expenses in Utah Warning: If you take this credit, do not also subtract it as a
for the current taxable year. charitable contribution on TC-20 Schedule D.
Note: Any credit for 1 or 2 above that is more than the tax Note: You may carry back one year or forward for the next
liability may be carried forward for the next 14 taxable years. three years any credit that is more than your tax liability.
Any credit for 3 above may not be carried forward.
There is no form for this credit. Keep all related documents Line 25 – Net Tax
with your records. Subtract line 24 from line 23. Enter the result, but not less
than the minimum tax shown on line 18b or less than zero.
(13) Carryforward of Prior Year Credit for Machinery
and Equipment Used to Conduct Research Line 26 – Utah Use Tax
(UC §59-7-613)
Use tax is a tax on goods and taxable services purchased for use,
This credit expired for taxable years beginning after 2010. storage or other consumption in Utah. Use tax applies only if sales
If you claimed a credit on your return for machinery and/or tax was not paid at the time of purchase. If you purchased an item
equipment used to conduct research for a year after 1998 and from an out-of-state seller (including Internet, catalog, radio and
prior to 2011 and the credit was more than the tax liability for TV purchases) and the seller did not collect sales tax on that pur-
the year, you may carry forward the excess credit to the next chase, you must pay the use tax directly to the Tax Commission.
14 years and use it to offset tax until used up. If you are using If you have a Utah sales tax license/account, report the use tax on
any remaining credit this year, enter that carryforward amount your sales tax return. If you do not have a Utah sales tax license/
on Schedule A, page 2, line 24 (24a through 24f). Use code 13. account, report the use tax on line 26 of TC-20, Schedule A.
(15) Utah Municipal, U.S. and Agency Bond Interest You may take a credit for sales or use tax paid to another state
Credit (UC §59-7-601) (but not a foreign country). If the other state’s tax rate is lower than
Utah’s, you must pay the difference. If the other state’s tax rate
You may claim a credit of 1 percent of Utah municipal inter- is more than Utah’s, no credit or refund is given. If sales tax was
est and federal interest included in Utah taxable income. For paid to more than one state, complete the Use Tax Worksheet
multi-state corporations, the amount of Utah municipal and below for each state. Add lines 8 on all worksheets and enter the
federal interest included in Utah taxable income is calculated total on line 26.
by multiplying the total amount of that interest by the current
year apportionment fraction. Sales and use tax rates vary throughout Utah. Use the Use
Tax Rate Chart below to get the rate for the location where
Attach a schedule showing the calculation of the credit. Keep the merchandise was delivered, stored, used or consumed.
a copy of the schedule and all related documents with your Use the county tax rate if the city is not listed.
records.
Grocery food bought through the Internet or catalog is taxed
Note: Any credit that is more than the tax liability may be at 3 percent. The grocery food must be sold for ingestion or
carried back to the previous three years, or carried forward chewing by humans and consumed for the substance’s taste
for fi ve years. or nutritional value. The reduced rate does not apply to alco-
(21) Carryforward of Renewable Residential holic beverages or tobacco. See Pub 25, Sales and Use Tax,
Energy Systems Credit (UC §59-7-614) at tax.utah.gov/forms.
The renewable residential energy systems credit is no longer
available. The four-year carryforward remains for credit earned
before 2022. If you have unused credit from a year prior to
2022, you may carry it forward through tax year 2025 or until
the credit is used up (whichever comes fi rst). The carryforward
must not be more than your tax liability in the year you claim it.
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2022 Utah TC-20 Instructions 11
Use Tax Rate Chart (Effective Dec. 31, 2022) Line 27 – Total Tax
.0635 Beaver County .0795 Garden City Add line 25 and line 26. Carry this amount to TC-20, page
.0735 Beaver City .0725 Salt Lake County 1, line 7.
.0610 Box Elder County .0875 Alta
.0665 Brigham City, Perry, Willard .0835 Brighton Line 28 – Refundable Credits
.0640 Mantua .0745 Murray, South Salt Lake
.0710 Snowville .0775 Salt Lake City, Add lines 28a through 28d.
.0670 Cache County Inland Port SLC
.0695 Cache Valley Transit, Hyde .0635 San Juan County Claim any of the following refundable credits that apply. Write
Park, Lewiston, Millville .0675 Blanding, Monticello the code and amount of each credit you are claiming on lines
.0700 Hyrum, Logan, Nibley, N. Logan, .0745 Bluff 28a through 28d. Enter the sum of these credits on line 28.
Providence, Richmond, River .0635 Sanpete County Each refundable credit is explained below.
Heights, Smithfield .0645 Centerfield, Mayfield
.0635 Carbon County .0675 Ephraim, Fairview, Gunnison,
.0645 Helper Mt. Pleasant Codes for lines 28a through 28d
.0675 Price .0665 Manti
.0665 Wellington .0635 Sevier County 39 Renewable Commercial Energy Systems Credit
.0735 Daggett County .0645 Aurora, Redmond 43 Pass-through Entity Withholding Tax Credit
.0845 Dutch John .0665 Monroe 46 Mineral Production Withholding Tax Credit
.0715 Davis County .0675 Richfield, Salina 47 Agricultural Off-highway Gas/Undyed Diesel Fuel
.0725 Bountiful, Centerville, .0715 Summit County Credit
Clearfield, Farmington, .0855 Mil. Rec. Park City 48 Farm Operation Hand Tools Credit
Kaysville, Layton, N. Salt .0905 Park City
Lake, S. Weber, Syracuse, .0745 Snyderville Basin Transit
W. Bountiful, Woods Cross .0660 Tooele County
.0635 Duchesne County .0690 Erda, Grantsville, Lakepoint, (39) Renewable Commercial Energy Systems Credit
.0645 Duchesne City Lincoln, Stansbury Park (UC §59-7-614)
.0675 Roosevelt .0700 Tooele City
.0635 Emery County .0645 Uintah County Get form TC-40E, Renewable Residential and Commercial
.0825 Green River .0695 Naples, Vernal Energy Systems Tax Credits, from the Governor's Offi ce of
.0710 Garfield County .0715 Utah County Energy Development with their certifi cation stamp. Do not
.0810 Boulder, Panguitch, Tropic .0725 American Fork, Cedar Hills,
.0830 Bryce Canyon Highland, Lehi, Lindon, Orem, send this form with your return. Keep the form and all related
.0820 Escalante Payson, Pleasant Grove, documents with your records to provide the Tax Commission
.0685 Grand County Provo, Santaquin, Spanish upon request.
.0885 Moab Fork, Springville, Vineyard
.0610 Iron County .0635 Wasatch County For more information, contact:
.0810 Brian Head .0665 Heber Governor's Offi ce of Energy Development (OED)
.0620 Cedar City .0745 Independence, Mil. Rec. PO Box 144845
.0610 Juab County Wasatch, Mil. Rec. Hideout
.0620 Mona .0775 Midway Salt Lake City, UT 84114
.0650 Nephi .0825 Park City East 801-538-8732 or 801-538-8682
.0645 Santaquin South .0645 Washington County energy.utah.gov/renewable-energy-
.0710 Kane County .0675 Hurricane, Ivins, La Verkin, systems-tax-credit
.0820 Kanab St. George, Santa Clara,
.0810 Orderville Washington City (43) Pass-through Entity Withholding Tax Credit
.0635 Millard County .0805 Springdale
.0645 Fillmore .0745 Virgin (UC §59-7-614.4)
.0620 Morgan County .0610 Wayne County If a pass-through entity is required to withhold Utah income
.0645 Morgan City .0725 Weber County
.0610 Piute County .0745 Falcon Hill Riverdale, tax on any income attributable to this corporation under
.0635 Rich County Riverdale §59-10-1403.2, the pass-through entity must provide a Utah
Schedule K-1 showing the amount of Utah withholding paid
on behalf of this corporation. Enter this amount as a refund-
able credit using code 43.
Use Tax Worksheet Attach copies of Utah Schedule K-1(s) to the return to receive
proper credit.
1. Amount of purchases (except grocery food)
subject to use tax 1 _________ (46) Mineral Production Withholding Tax Credit
2. Use tax rate (UC §59-6-102)
(decimal from Use Tax Rate Chart) 2 .__ __ __ __ Enter the total of the mineral production tax withheld as shown
3. Multiply line 1 by line 2 3 _________ on forms TC-675R or Utah Schedule K-1(s) for the tax year.
4. Amount of grocery food purchases For a fi scal year corporation, the credit is claimed on the
subject to use tax 4 _________ corporate return that is required to be fi led during the year
5. Multiply line 4 by 3% (.03) 5 _________ following the December closing period of the form TC-675R.
6. Add line 3 and line 5 6 _________ Attach copies of form TC-675R or Utah Schedule K-1(s) to
the return to receive proper credit.
7. Credit for sales tax paid to another state
on use tax purchases 7 _________
8. Use tax due (subtract line 7 from line 6) 8 _________
(If less than zero, enter "0.")
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2022 Utah TC-20 Instructions 12
(47) Agricultural Off-Highway Gas/Undyed Diesel Fuel There is no form for this credit. Keep all related documents
Credit (UC §59-13-202) with your records to provide the Tax Commission upon request.
You may claim a credit of 31.9 cents per gallon for motor fuel Line 29 – Prepayments from Schedule E
and undyed diesel fuel bought in Utah during 2022 and used
to operate stationary farm engines and self-propelled farm Credit is allowed for advance payments made as quarterly es-
machinery used solely for commercial non-highway agricultural timated tax payments, prepayments and extension payments
use if the fuel was taxed at the time it was bought. (form TC-559). Include any overpayment from a prior year that
was applied to this year. Use Schedule E to compute the total
This does not include golf courses, horse racing, boat opera- prepayment.
tions, highway seeding, vehicles registered for highway use,
hobbies, personal farming and other non-agricultural use. Line 30 – Amended Return Only
This line is only for amended returns. Enter the amount of tax
paid with the original return and/or subsequent payments made
Credit calculation: prior to fi ling this amended return less any previous refunds
Gallons _______ x .319 = Credit _______ (exclude refund interest). Enter a net refund as a negative
amount (preceded by a minus sign).
There is no form for this credit. Keep all related documents Line 31 – Total Refundable Credits and
with your records to provide the Tax Commission upon request. Prepayments
(48) Farm Operation Hand Tools Credit Add lines 28 through 30. Carry this amount to TC-20, page
(UC §59-7-614.1) 1, line 8.
This credit is for sales and use tax paid on hand tools pur-
chased and used or consumed primarily and directly in a farm-
ing operation in Utah. The credit only applies if the purchase
price of a tool is more than $250.
Schedule B – Additions to Unadjusted Income
Line 1 – Interest from State Obligations Line 2b – Franchise or Privilege Taxes Paid to
Enter interest from bonds, notes and other evidences of in- Any State
debtedness issued by any state of the United States, including Enter franchise taxes paid by a corporation to any state for the
any agency and instrumentality of a state of the United States. privilege of doing business or exercising its corporate franchise.
Lines 2a - 2e – Add Taxes Deducted to Line 2c – Corporate Stock Taxes Paid to Any
Determine Income State
Amounts included in federal taxable income from refunds of Enter corporate stock taxes paid to any state.
the following taxes should be netted against similar taxes on
the appropriate lines. Line 2d – Taxes Paid to a Foreign Country
Enter any income, franchise, or capital stock taxes imposed
Line 2a – Income Taxes Paid to Any State
by a foreign country, a United States possession or the Com-
Enter taxes imposed by and paid to any state that are mea- monwealth of Puerto Rico and paid during the taxable year.
sured by income.
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2022 Utah TC-20 Instructions 13
Line 2e – Business and Occupation Taxes Paid generated by errors in prior returns in years when Utah and
to Any State federal depreciation or amortization amounts are required to
be the same.
Enter business and occupation taxes deducted for federal
purposes. Line 9 – Expenses Attributable to 50 percent
Unitary Foreign Dividend Exclusion
Line 3 – Safe Harbor Lease (SHL) Adjustments
Enter any expenses directly and indirectly attributable to the
SHLs originated from adjustments primarily available to busi- dividends from subsidiaries excluded on Schedule C, line 7
nesses during the years 1981 and 1982 under ERTA. These (i.e., 50 percent exclusion of dividends from unitary foreign
provisions allowed transfers of certain tax benefi ts for federal subsidiaries). To calculate indirect interest expense attribut-
tax purposes. However, Utah did not adopt these provisions, able to excluded dividends:
and the effects of any remaining SHL adjustments must be
reversed for Utah purposes. 1. Divide the taxpayer’s average investment in dividend pay-
ing subsidiaries by the taxpayer’s average investment in
Add to income: total assets.
SHL Purchaser/Lessor 2. Multiply the result by the total interest expense.
1. Interest expense Line 10 – Installment Sales Income Previously
2. Depreciation claimed on SHL property Reported for Federal but Not Utah
SHL Seller/Lessee Purposes
1. Amount of gain on the sale of federal tax benefi ts Add any installment sales income from installment sales
2. Rental expense on SHL property made in tax years beginning before Jan. 1, 1994, if the Utah
installment provisions of former UC §59-7-119 were used. If
Line 4 – Capital Loss Carryover the Utah installment provisions were used on the Utah return,
then a timing difference was created between federal and Utah.
Enter any capital losses deducted on a Utah corporate return
in previous years but used to offset capital gains on this year’s Line 11 – Nonqualifi ed Withdrawal from Utah
federal return.
my529 Account (UC §59-7-105(10))
Line 5 – Federal Deductions Taken Previously If you withdrew an amount from a Utah my529 account but
on a Utah Return did not use it for qualifi ed higher education expenses, and
the withdrawal did not meet an exception under IRC §529(c)
Enter any deduction on this year’s federal return that was
or §530(d), enter that amount to the extent the amount was
deducted on a prior year Utah return.
deducted on the current or a previously fi led Utah tax return.
Line 6 – Federal Charitable Contributions If you are a my529 account owner, you will receive form TC-
Enter any federal charitable contributions from federal form 675H, my529 Tax Statement for Contributions, Withdrawals,
1120, line 19. and Transfers, from my529. Keep this form with your records.
If you have any questions about my529 accounts, call my529
Line 7 – Gain/Loss on Sections at 800-418-2551, or visit my529.org.
338(h)(10) or 336(e) Line 12 – Income/Loss From IRC Section 936
Enter the amount of any gain or loss determined under Corporations
UC §59-7-114(3) regarding a target corporation under IRC
§338, if that gain or loss has not been included in income, and IRC §936 corporations are fully includable in the combined
the amount of any gain or loss determined under UC §59-7-115 report. Add any income or loss from IRC §936 corporations.
regarding corporations treated for federal purposes as having
Line 13 – Foreign Income/Loss For Worldwide
disposed of its assets under IRC §336(e), if that gain or loss
has not been included in income. Combined Filers
The purpose of this addition is to make sure the gain or loss on Corporations electing to fi le a worldwide combined report must
IRC §§338(h)(10) and 336(e) transactions are treated similarly include income and losses of each corporation in the unitary
for Utah and federal purposes as a deemed sale of assets. The group regardless of the country in which the corporation is
gain or loss is only added if it has not already been included incorporated or conducts business. Add any income or loss
in income. before extraordinary items and prior period adjustments and
before the provision for income, war profi ts and excess profi ts
Line 8 – Adjustments Due to Basis Difference taxes as reported on federal form 5471 for foreign corporations.
Utah laws generally follow the Internal Revenue Code for Line 14 – Income/Loss of Unitary Corporations
depreciation, amortization and basis. However, basis differ-
Not Included in Federal Consolidated
ences occasionally arise due to differences between Utah and
federal laws in limited instances. Some examples include the Return
sale of an asset for which an IRC §338 election was made Add any income and loss of unitary corporations owned greater
in a tax year beginning prior to Jan. 1, 1994 (Utah did not than 50 percent whose income or loss is not included on the
follow IRC §§338 or 338(h)(10) for tax years prior to 1994); federal consolidated return. See Combined Reports on page
and adjustments attributed to the federal consolidated rules 3 for additional information on unitary combined fi lings.
under IRC §1502. A company may not deduct basis differences
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2022 Utah TC-20 Instructions 14
Line 15 – Deductions for a Royalty or Other 2. is exempt from federal income tax, and
Expense Paid to an Entity Related by 3. you used for expenses that you deducted on your federal
Common Ownership tax return.
Enter the amount of any deduction taken on a Utah return for If you own an interest in an LLC, partnership, S-corporation
a royalty or other expense that a corporation pays to an entity or trust that received a PPP grant or loan meeting these re-
related by common ownership for the use of an intangible as- quirements, include your distributed share on this line. (See
set where the intangible asset is owned by the entity, unless the "Other Income" line of Utah Schedule K-1 received from
the entity is subject to income taxes on the royalty or other the LLC, partnership, S-corporation or trust.)
expense in Utah, another state or a foreign government that
has an income tax treaty with the United States in the same Line 17 – RESERVED
tax year.
Line 18 – RESERVED
Line 16 – Payroll Protection Program Grant or Line 19 – Total Additions
Loan Addback
Add lines 1 through 18. Enter the result on line 19 and on
If you received a COVID-19 Payroll Protection Program (PPP) Schedule A, line 2.
grant or loan, enter any amount that:
1. was forgiven during the 2022 tax year,
Schedule C – Subtractions from Unadjusted
Income
Line 1 – Intercompany Dividend Elimination Line 4b – Federal Research and Development
Enter dividends received from U.S. corporations owned greater Credit Expense Reduction
than 50 percent whose income is included on this return and Enter any qualifi ed research and basic research expense
whose dividend has not been previously eliminated. reduction due to claiming the research and development
credit under IRC §41.
Line 2 – Foreign Dividend Gross-up
Enter the foreign dividend gross-up included in gross income Line 4c – Federal Orphan Drug Credit Clinical
for federal income tax purposes under IRC §78. Testing Expense Reduction
Enter any qualifi ed clinical testing expense reduction due to
Line 3 – Net Capital Loss
claiming the federal orphan drug credit under IRC §45C.
You must enter your capital losses if you elected to take a
deduction for capital losses incurred in the taxable year. If a Line 4d – Expense Reduction for Other Federal
current year deduction is not taken, you must carry the loss Credits
forward as provided in IRC §1212(a)(1)(B) and (C).
Enter any expense reduction attributable to claiming any other
Line 4a – Federal Jobs Credit Salary Reduction federal credit. Attach applicable federal form.
Enter the amount of any salary expense reduction due to claim-
ing the federal jobs credit under IRC §51.
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2022 Utah TC-20 Instructions 15
Line 4e – Federal Qualifi ed Tax Credit Bond A foreign operating company is a corporation (other than an
Credit, Income Increase IRC §936 corporation) incorporated in the United States with
80 percent or more of its business activity, based on the aver-
Enter any increase in interest income for federal tax purposes due age of the property and payroll factors, conducted outside the
to claiming the qualifi ed tax credit bond credit under IRC §54A. United States, and which has at least:
Line 4f – Federal Qualifi ed Zone Academy 1. $1,000,000 of payroll (as included in the payroll factor)
located outside of the United States, and
Bond Credit, Income Increase
2. $2,000,000 of property (as included in the property factor)
Enter any gross income increase for federal tax purposes located outside of the United States.
due to claiming the qualifi ed zone academy bond credit under
IRC §1397E. Line 9 – Gain/Loss on Certain Stock Sales
Line 5 – Safe Harbor Lease (SHL) Adjustments Enter the gain or loss on the sales of stock included in tax-
able income, yet not taxable for federal purposes because
You must reverse the effects of any remaining SHL adjust- the transaction is considered to be a deemed sale of assets
ments for Utah purposes. For general SHL information, see under IRC §§338(h)(10) or 336(e).
the instructions for Schedule B, line 3.
The purpose of this subtraction is to avoid the double taxation
Subtract from income: that would occur if both the gain on the stock sale and the
SHL Purchaser/Lessor gain on the deemed sale of assets were included in income.
Utah law follows the federal statute that taxes the gain on the
1. Rental income deemed sale of assets.
2. Amortization of the purchase price of tax benefi ts (purchase
price of tax benefi ts must be capitalized) Line 10 – Adjustments Due to Basis Difference
SHL Seller/Lessee Enter adjustments to gains, losses, depreciation expense,
amortization expense and similar items due to a difference
1. Interest income
between basis for federal and Utah purposes as explained in
2. Depreciation on SHL property instructions for Schedule B, line 8.
Line 6 – Federal Income Previously Line 11 – Interest Expense
Taxed by Utah Enter interest expense not deducted on the federal corporate
Enter any income on the federal corporate return, form 1120, return under IRC §§265(b) or 291(e).
that was previously taxed by Utah. Attach supporting schedules
and documentation. Line 12 – Dividends from Admitted Insurance
Company Subsidiaries
Line 7 – Fifty percent Exclusion for Dividends
Enter dividends received from admitted insurance company
from Unitary Foreign Subsidiaries subsidiaries exempt under UC §59-7-102(1)(c).
Enter 50 percent of the dividends received or deemed received
from subsidiaries that are members of the unitary group and Line 13 – Contributions to Utah my529
are organized or incorporated outside of the United States, Account(s) (UC §59-7-106(1)(r))
unless those subsidiaries are included in a combined report. If a qualifi ed contribution was made to your my529 account,
In that case, the dividends are eliminated as an intercompany you may claim a deduction on line 13. To qualify, the contribu-
transaction on line 1. tion must be made during the taxable year and not deducted
For corporations fi ling a water’s edge combined report, the on your federal return.
50-percent exclusion includes dividends from unitary foreign If you are a my529 account owner, you will receive form
corporations, IRC Section 965(a) income, IRC 951A (GILTI) TC-675H, my529 Tax Statement for Contributions, Withdraw-
income, and subpart F income. als, and Transfers, from my529. Enter on line 13 the amount
from form TC-675H, box 1C.
Line 8 – Fifty percent Exclusion of Foreign
Operating Company Income/Loss Keep form TC-675H with your records. If you have any ques-
tions about my529 accounts, call my529 at 1-800-418-2551,
If you are fi ling a water’s edge combined report, enter 50 or visit my529.org.
percent of the adjusted income or loss of a foreign operating
company. The exclusion is determined after: Line 14 – RESERVED
1. the removal of all intercompany transactions between the
foreign operating company and any other entity within the Line 15 – Dividends Received from a Captive
water’s edge group, Real Estate Investment Trust by a
2. the exclusion of all income generated from intangible Member of the Unitary Group
property, and If any member of the unitary group is a “controlling entity of
3. the exclusion of all income from assets held for investment a captive real estate investment trust,” include the dividends
and not from a regular business trading activity. received or deemed received from each captive real estate
investment trust.
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2022 Utah TC-20 Instructions 16
Line 16 – IRC Section 857(b)(2)(E) Deduction Line 18 – COVID-19 Utah Grant Funds Included
from a Captive REIT in Unadjusted Income (UC §59-7-
Enter the amount of any federal deduction taken under IRC 106(1)(x))
§857(b)(2)(E) on federal form 1120-REIT for each captive real Enter the amount of any federally-funded COVID-19 grant
estate investment trust included in the Utah combined group. funds or forgiven loans received from Utah or a local Utah
government that are included in unadjusted income on this
Line 17 – FDIC Payments return.
Enter any FDIC premiums that were not allowed as a deduc-
tion on the federal return under IRC §162(r). Lines 19-20 – RESERVED
Line 21 – Total Subtractions
Add lines 1 through 20. Enter the result on line 21 and on
Schedule A, line 4.
Schedule D – Utah Contributions Deduction
Utah allows a deduction for charitable contributions Line 4 – Utah Contribution Carryforward
(UC §59-7-109).
Charitable contributions which exceed the allowable deduction
Line 1 – Apportionable Income Before for Utah may be carried forward to the fi ve succeeding taxable
years in the same manner as allowed under federal law. Enter
Contributions Deduction
the excess Utah contributions carried forward to this tax year.
Enter amount from Schedule A, line 9. If this is a loss, no Attach a schedule showing contributions made that exceed
contribution deduction is allowed. the Utah contribution limitation and that have not been previ-
ously deducted and are available to be carried forward to the
Line 2 – Utah Contribution Limitation current year.
Charitable contributions for the current year, including excess
contributions carried forward from a prior year, cannot exceed Line 5 – Total Contributions Available
10 percent of the apportionable income before contributions. Add line 3 and line 4.
(See UC §59-7-109(2).)
Multiply line 1 by 10% (.10) and enter the limitation amount. Line 6 – Utah Contributions Deduction
Enter the lesser of line 2 or line 5 here and on Schedule A,
Line 3 – Current Year Contributions line 10.
Enter charitable contributions made for the current year.
Line 7 – Contribution Carryover to Next Year
Subtract line 6 from line 5. This is the amount of your Utah
contribution carryover to the next taxable year.
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2022 Utah TC-20 Instructions 17
Schedule E – Prepayments of Any Type
Line 1 – Overpayment Applied from Prior Year Line 3 – Other Prepayments
Enter the amount of any refund applied from the prior year to List the date and amount of each prepayment made for the
the current year’s tax liability. fi ling period. Enter the check number if a payment was not
made electronically. Enter the total amount on line 3. Attach
Line 2 – Extension Prepayment additional pages, if necessary.
List the date and amount of any extension prepayment. Enter
the check number if a payment was not made electronically. Line 4 – Total Prepayments
Add lines 1, 2 and 3. Enter the total on this line and on Sched-
ule A, line 29.
Schedule H – Nonbusiness Income Net of
Expenses
Complete TC-20, Schedule H to determine nonbusiness If the transaction creating the income meets the defi nition of
income allocated to Utah and outside Utah. nonbusiness income, the election only applies for sales result-
Business income is all income that is apportionable under ing from the intangible property. You must treat any income
the U.S. Constitution and is not allocated under Utah law. It from the sale related to tangible property as nonbusiness
includes income arising from transactions or activity performed income, include it on Schedule H, and allocate it as in UC
in the regular course of the taxpayer’s trade or business. It also §§59-7-307 – 310.
includes any tangible and intangible property if the acquisi- Interest income is business income where the intangible
tion, management, employment, development or disposition with respect to which the interest was received arises out of
is or was related to the operation of the taxpayer’s trade or or was created in the regular course of the taxpayer’s trade or
business during the tax year. business operations, or where the purpose for acquiring and
Nonbusiness income is all income other than business holding the intangible is an integral, functional, or operative
income. The burden of proof is on the taxpayer to justify how component of the taxpayer’s trade or business operations, or
the income is claimed on the return. otherwise materially contributes to the production of business
income of the trade or business operations. See Tax Commis-
Effective for taxable years beginning on or after Jan. 1, 2022, sion Rule R865-6F-8(2)(e)(iii).
business income also includes income that would be allo-
cable to Utah under the U.S. Constitution, but is apportioned Dividends are business income where the stock with re-
rather than allocated if an election is made. This election is spect to which the dividends were received arose out of or
irrevocable. was acquired in the regular course of the taxpayer’s trade or
business operations or where the acquiring and holding of
If a transaction results from the sale of property that would the stock is an integral, functional, or operative component
otherwise meet the defi nition of nonbusiness income, you of the taxpayer’s trade or business operations, or otherwise
may elect to treat only the sales from intangible property as materially contributes to the production of business income of
business income by marking the box on page 1 of the return the trade or business operations. See Tax Commission Rule
on or before the fi ling deadline. Also attach a statement to the R865-6F-8(2)(e)(iv).
return explaining the transaction and showing a breakdown of
the total income between the sales of tangible and intangible
property.
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2022 Utah TC-20 Instructions 18
Gain or loss from the sale, exchange, or other disposition Line 8 – End-of-Year Assets
of real property or of tangible or intangible personal property
constitutes business income if the property while owned by Enter in column A the total end-of-year value of assets used
the taxpayer was used in, or was otherwise included in the to produce Utah nonbusiness income from line 2, column D.
property factor of the taxpayer’s trade or business. See Tax Enter in column B the end-of-year value of your total assets.
Commission Rule R865-6F-8(2)(e)(ii). Include all assets in column B, including Utah assets.
Rental income from real and tangible property is business Line 9 – Sum of Beginning and
income if the property with respect to which the rental income Ending Asset Values
was received is or was used in the taxpayer’s trade or busi-
ness and therefore is includable in the property factor. See Add lines 7 and 8 for each respective column.
Tax Commission Rule R865-6F-8(2)(e)(i).
Line 10 – Average Asset Value
Complete Schedule H as follows:
Divide line 9 by 2 for each column.
• Complete lines 1a through 14 if you are claiming only Utah
nonbusiness income. Line 11 – Utah Nonbusiness Asset Ratio
• Complete lines 15a through 28 if you are claiming only Divide line 10, column A by line 10, column B. Round the
non-Utah nonbusiness income. result to four decimal places. Do not enter a decimal greater
• Complete lines 1a through 28 if you are claiming both Utah than 1.0000, and do not enter a negative number.
and non-Utah nonbusiness income.
Line 12 – Interest Expense
Use additional pages or supporting schedules in the same
format, if necessary, to provide complete information, including Enter the total amount of interest deducted on federal form
a description of the business purpose for making the invest- 1120, line 18 and elsewhere on the federal return.
ment, the transactions creating the nonbusiness income, and
Line 13 – Indirect Related Expenses for Utah
the use of revenues generated by the nonbusiness investment.
Nonbusiness Income
Multiply line 12 by the ratio on line 11.
Utah Nonbusiness Income
Line 14 – Total Utah Nonbusiness Income Net
Lines 1a-1e – Utah Nonbusiness Income
of Expenses
Complete the information in each column and enter the gross
Subtract line 13 from line 6. Enter the amount here and on
Utah nonbusiness income from each class of income being
Schedule A, page 1, line 6.
allocated. Use additional pages or supporting schedules in
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 Lines 15a-15e – Non-Utah Nonbusiness Income
Enter the total of the amounts on lines 1a through 1e in column Complete the information in each column and enter the gross
C and column D. non-Utah nonbusiness income from each class of income
being specifi cally allocated. Use additional pages or support-
Line 3 – Total Utah Nonbusiness Income ing schedules in the same format, if necessary, to provide
Enter the total of column E, lines 1a through 1e. complete information about additional sources of non-Utah
nonbusiness income.
Lines 4a-4e – Direct Related Expenses
Describe and enter amounts of direct expenses on the same Line 16 – Total of Columns C and D
letter line as the corresponding Utah nonbusiness income is Enter the total of the amounts on lines 15a through 15e in
listed on lines 1a through 1e. Direct related expenses include column C and column D.
wages, interest, depreciation, etc. (UC §59-7-101).
Line 17 – Total Non-Utah Nonbusiness Income
Line 5 – Total Direct Related Expenses Enter the total of the amounts on lines 15a through 15e in
Enter the sum of direct related expenses by adding lines 4a column E.
through 4e.
Lines 18a-18e – Direct Related Expenses
Line 6 – Utah Nonbusiness Income Net of Describe and enter amounts of direct expenses on the same
Direct Related Expenses letter line as the corresponding non-Utah nonbusiness income
Subtract line 5 from line 3. on lines 15a through 15e. Direct related expenses include
wages, interest, depreciation, etc. (UC §59-7-101).
Line 7 – Beginning-of-Year Assets
Line 19 – Total Direct Related Expenses
Enter in column A the total beginning-of-year value of assets
used to produce Utah nonbusiness income from line 2, column Enter the sum of direct related expenses by adding lines 18a
C. Enter in column B the beginning-of-year value of your total through 18e.
assets. Include all assets in column B, including Utah assets.
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2022 Utah TC-20 Instructions 19
Line 20 – Non-Utah Nonbusiness Income Net of Line 24 – Average Asset Values
Direct Related Expenses Divide line 23 by 2 for each column.
Subtract line 19 from line 17.
Line 25 – Non-Utah Nonbusiness Asset Ratio
Line 21 – Beginning-of-Year Assets Divide line 24, column A by line 24, column B. Round the
Enter in column A the total beginning-of-year value of assets result to four decimal places. Do not enter a decimal greater
used to produce non-Utah nonbusiness income from line 16, than 1.0000, and do not enter a negative number.
column C. Enter in column B the beginning-of-year value of
your total assets. Include all assets in column B, including Line 26 – Interest Expense
Utah assets. Enter the total amount of interest deducted on federal form
1120, line 18 and elsewhere on the federal return.
Line 22 – End-of-Year Assets
Enter in column A the total end-of-year value of assets used Line 27 – Indirect Related Expenses for Non-
to produce non-Utah nonbusiness income from line 16, col- Utah Nonbusiness Income
umn D. Enter in column B the end-of-year value of your total Multiply line 26 by the ratio on line 25.
assets. Include all assets in column B, including Utah assets.
Line 28 – Total Non-Utah Nonbusiness Income
Line 23 – Sum of Beginning and Ending Asset Net of Expenses
Values
Subtract line 27 from line 20. Enter amount here and on
Add lines 21 and 22 for each respective column. Schedule A, page 1, line 7.
Schedule J – Apportionment Schedule
Use TC-20, Schedule J to calculate the portion of the taxpayer’s
income attributable to Utah, if the taxpayer does business both Pass-through Entity Taxpayers
within and outside of Utah. Partners, shareholders and benefi ciaries of pass-through
entities (an entity taxed as a partnership, s-corporation or
Complete TC-20, Schedule J to determine the apportionment
trust) must include their pro rata share of the pass-through
fraction (decimal). The factors express a ratio for property in
entity's property, payroll and sales in their calculation of the
Utah to total property everywhere, for wages and salaries in
apportionment factor on TC-20, Schedule J, page 1.
Utah to total wages and salaries everywhere, and for sales
in Utah to total sales everywhere. Use these factors or ratios If a corporation holds direct and indirect ownership interests in
to arrive at the Utah apportionment fraction calculated to six tiered pass-through entities, it must include its pro rata share
decimals. Then apply this fraction (decimal) to the apportion- of the apportionment factors (property, payroll and sales) of
able income (or loss) on Schedule A to arrive at the amount the pass-through entities, applying the respective ownership
of income (or loss) apportioned to Utah. In cases where one percentages. For example, a corporation that holds 50 percent
or more of the factors is omitted due to peculiar aspects of interest in Partnership A that in turn holds 20 percent interest
the business operations, use the number of factors present in Partnership B would include 50 percent of the factors of
to determine the Utah apportionment fraction. Partnership A, and 10 percent (50 percent of 20 percent) of
the factors of Partnership B.
Your economic activities, and your method of apportioning
income in the previous year, dictate the apportionment method
you may use.
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2022 Utah TC-20 Instructions 20
• Payroll factor fraction: Add together the amount of payroll
Apportionment Method
in Utah attributable to economic activities that are classi-
To determine if you must apportion income using the sales fi ed in an excluded NAICS code. Divide this number by
factor formula or if you qualify as an optional apportionment the total amount of payroll in Utah. A taxpayer engaged
taxpayer, take into account the economic activities of each of in activities in an excluded NAICS code must remove an
the entities included in the return. Include the economic activi- individual’s payroll from this calculation of the payroll fac-
ties of any pass-through entities whose income and factors tor fraction if the individual’s payroll may be attributed to
are included in the return. economic activities in both excluded NAICS codes and
NAICS codes that are not excluded, or to providing man-
agement, information technology, fi nance, accounting,
Sales Factor Weighted Taxpayers legal or human resource services.
A sales factor weighted taxpayer may only use the sales factor
Add the property and payroll factor fractions and divide that
fraction to apportion income.
sum by two. If either the property factor fraction or payroll factor
You must use the sales factor formula if you: fraction has a denominator of zero, or is otherwise excluded,
1. apportioned income using the sales factor formula during divide by one. If the average is more than 50 percent, you
the prior taxable year, are an optional apportionment taxpayer. If the average is not
more than 50 percent, you are not an optional apportionment
2. do not meet the defi nition of an optional apportionment taxpayer and must apportion income to Utah using the sales
taxpayer (see instructions below), or factor.
3. generate more than 50 percent of total sales everywhere
Optional apportionment taxpayers may calculate the ap-
from economic activities in any NAICS codes OTHER
portionment fraction using either the equally-weighted three
THAN these identifi ed NAICS codes:
factor formula (Schedule J, Part 1) or the sales factor formula
• Sector 21, Mining; (Schedule J, Part 2). If you choose to use the sales factor
• Industry Group 2212, Natural Gas Distribution; formula, you must fi le using only the sales factor in the next
taxable year.
• Sector 31-33, Manufacturing EXCEPT:
• Industry Group 3254, Pharmaceutical and Medicine Excluded NAICS codes are NAICS codes of the 2017 North
Manufacturing American Industry Classifi cation System within:
• Industry Group 3333, Commercial and Service • Code 211120, Crude Petroleum Extraction
Industry Machinery Manufacturing • Industry Group 2121, Coal Mining
• Subsector 334, Computer and Electronic Product • Industry Group 2212, Natural Gas Distribution
Manufacturing • Subsector 311, Food Manufacturing
• Code 336111, Automobile Manufacturing • Industry Group 3121, Beverage Manufacturing
• Sector 48-49, Transportation and Warehousing • Code 327310, Cement Manufacturing
• Sector 51, Information EXCEPT: • Subsector 482, Rail Transportation
• Subsector 519, Other Information Services • Code 512110, Motion Picture and Video Production
• Sector 52, Finance and Insurance • Subsector 515, Broadcasting (except Internet)
Report property and payroll factors on Schedule J, page 1, • Code 522110, Commercial Banking
but do not use them to calculate the apportionment of sales
factor weighted taxpayers.
Sales factor weighted taxpayers must calculate the appor- Line Instructions
tionment fraction on Schedule J, Page 2 using Part 2 - Sales Business Activity
Factor Formula.
Briefl y describe the nature and location(s) of your Utah busi-
ness activities in the space provided at the top of this schedule.
Optional Apportionment Taxpayers
Lines 1a - 1f – Property Factor
If you did not use the sales factor fraction in the prior year,
and you do not generate more than 50 percent of total sales Show the average cost value during the taxable year of real
everywhere from economic activities in any NAICS codes and tangible personal property used in the business within
OTHER THAN the identifi ed NAICS codes listed above, Utah (including leased property) in column A and overall
determine if you are an optional apportionment taxpayer by (including Utah) in column B.
fi rst calculating the following two fractions: Property you own is valued at its original cost. Property you
• Property factor fraction: Add together the value of property rent is valued at eight times the net annual rental rate. Net
in Utah attributable to economic activities that are classi- annual rental rate is the annual rental rate you pay less the
fi ed in an excluded NAICS code. Divide this number by annual rate you receive from sub-rentals.
the value of all property in Utah. Remove property from The average value of property must be determined by averag-
this calculation if the property is attributable to economic ing the cost values at the beginning and end of the tax period.
activities in both excluded NAICS codes and non-excluded However, monthly values may be used or required if monthly
NAICS codes. averaging more clearly refl ects your property’s average value.
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2022 Utah TC-20 Instructions 21
Attach a supporting schedule whenever you use monthly 1. the purchaser is the United States Government, or
averaging. 2. the taxpayer is not taxable in the state of the purchaser.
If you are a pass-through entity taxpayer, add to line 1e any Overall sales, including Utah, are listed in column B.
amounts listed on line J of any TC-65 Schedule K-1 you have
received. Note: Securities brokerage businesses must follow the provi-
sions in UC §59-7-319(6).
Enter totals of lines 1a through 1e in the respective columns
on line 1f. 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
Line 2 – Property Factor Calculation received.
Determine the property factor (decimal) by dividing line 1f, Enter totals of lines 5a through 5g in their respective columns
column A by line 1f, column B. on line 5h.
Line 3 – Payroll Factor Line 6 – Sales Factor Calculation
Wages, salaries, commissions and other includable com- Determine the sales factor (decimal) by dividing line 5h, column
pensation paid to employees for personal services must be A by line 5h, column B.
included in the Utah factor to the extent the services, for which
the compensation was paid, were rendered in Utah.
NAICS Code for Taxpayer
Compensation is paid in Utah if:
1. the individual’s service is performed entirely within Utah; Line 7 – NAICS Code
2. the individual’s service is performed both within and outside This is a mandatory fi eld. Your NAICS code may dictate your
Utah, but the service performed outside Utah is incidental apportionment method.
to the individual’s service within Utah; or Enter on line 7 the NAICS code for the primary business activ-
3. some of the service is performed in Utah and: ity. Do not use the holding company NAICS code.
a. the base of operations or, if there is no base of operations,
the place where the service is directed or controlled, is Apportionment Fraction
within Utah; or
b. the base of operations or the place where the service
is directed or controlled is not in any state where some Part 1 – Equally-Weighted Three Factor
part of the service is performed, but the individual’s Formula
residence is in Utah.
If you are an optional apportionment taxpayer using the
Amounts reportable for employment security purposes may equally-weighted three factor formula, complete lines 8 and
ordinarily be used to determine the wage factor. 9. Otherwise, leave lines 8 and 9 blank.
Overall wages, including Utah, are listed in column B.
Line 8 – Total Factors
If you are a pass-through entity taxpayer, add to line 3a any
amounts listed on line K of any TC-65 Schedule K-1 you have Enter the sum of the factors from lines 2, 4 and 6.
received.
Line 9 – Apportionment Fraction
Line 4 – Payroll Factor Calculation Calculate the apportionment fraction to six decimals by dividing
Determine the payroll factor (decimal) by dividing line 3a, line 8 by the number of factors used (typically 3 – property,
column A by line 3a, column B. payroll and sales).
• If one or more of the factors are not present (i.e., there is a
Lines 5a - 5h – Sales Factor zero in the denominator on lines 1f, 3a or 5h in column B),
The sales factor is the fraction the sales or charges for ser- divide by the number of factors present.
vices within Utah for the taxable year bear to the overall sales • If the numerator is zero, but a denominator is present,
for the taxable year. Gross receipts from the performance of include that factor in the number of factors present.
services in Utah are assigned to the Utah sales numerator if Enter the apportionment fraction (decimal) here and on
the purchaser of the service receives a greater benefi t of the Schedule A, line 12.
service in Utah than in any other state.
Taxpayers that perform a service both in and outside Utah
must include service income on line 5g in column A (Inside Part 2 – Sales Factor Formula
Utah) if the purchaser of the service receives a greater See instructions above for the defi nition and qualifi cations
benefi t of the service in Utah than in any other state. The of a taxpayer who must apportion income using the sales
former “cost of performance” method no longer applies. (See factor formula.
UC §59-7-319(3)(a).)
Leave line 10 blank if you are using the equally-weighted
Sales of tangible personal property are in Utah if the property three-factor formula.
is delivered or shipped to a purchaser within Utah regardless
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
or other place of storage in Utah and:
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2022 Utah TC-20 Instructions 22
Line 10 – Apportionment Fraction • Trucking Companies (R865-6F-19)
Enter the sales factor from line 6 of Schedule J, page 1. This • Railroads (R865-6F-29)
is the apportionment fraction for this apportionment method. • Publishing Companies (R865-6F-31)
(Property and payroll factors are not used in the calculation of • Financial Institutions (R865-6F-32)
the apportionment fraction for taxpayers who must apportion
income using the sales factor formula.) • Telecommunications (R865-6F-33)
Enter the apportionment fraction (decimal) here and on • Registered Securities or Commodities Broker or Dealer
Schedule A, line 12. (R865-6F-36)
• Airlines (UC §§59-7-312 thru 319)
• Sale of Management, Distribution or Administration Ser-
Specialized Apportionment Laws
vices to or on Behalf of a Regulated Investment Company
and Rules (UC §59-7-319(5))
Specialized apportionment procedures apply for:
Schedule –MCorporations Included in Combined
Filings
Any corporation fi ling a combined report must complete
Schedule M if one or more of the subsidiaries or affi liated Minimum Tax
corporations is incorporated, qualifi ed, or doing business in Line a – Number of Corporations
Utah. Federal schedules are not acceptable as substitutes.
Enter on line “a” the total number of corporations incorporated,
You may not use any other form as a substitute for qualifi ed and doing business in Utah (including the parent
Schedule M without prior approval from the Tax Commis- corporation if incorporated, qualifi ed or doing business in
sion. See Guidelines for Substitute Utah Tax Forms, at Utah) that are listed on the Schedule M.
tax.utah.gov/developers/substitute-forms.
List only corporations incorporated, qualifi ed or doing busi- Line b – Total Minimum Tax
ness in Utah. Corporations not listed on Schedule M will not Multiply the number of corporations listed on line “a” by $100
be considered to have met the Utah fi ling requirements. Use (the minimum tax). Also, enter this amount on Schedule A,
the Schedule M Supplemental Sheet if you need more space. line 18b.
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2022 Utah TC-20 Instructions 23
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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| 2022 Utah TC-20 Instructions 24 Common Return Errors 1. Unitary businesses not fi ling a combined report – Groups of corporations that are engaged in an integrated unitary business must fi le on a combined basis. See in- structions on page 4. 2. Utah sales factor on Schedule J – Out-of-state corpora- tions qualifi ed in Utah, but not doing business in Utah must Please arrange your return in the fi le a corporate return paying the minimum tax. However, sales into Utah are not required to be included in the gross following order: receipts numerator, except as provided under Utah Rule 1. Utah form TC-20 R865-6F-24. Conversely, corporations making sales from 2. Utah schedules A through M (if required), in alphabeti- Utah into a state where they are qualifi ed but not doing cal order business must include such sales in the Utah gross receipts 3. Federal extension form, if applicable numerator as throwback sales, except as provided under 4. First six pages only of your federal return (plus Form Utah Rule R865-6F-24. 1120, Schedule M-3 and IRS form 1125-A, if applicable) 3. Net capital losses may not be carried back – Capital 5. Other supporting documentation only as requested in losses may be deducted in full in the year incurred or may these instructions be carried forward. See UC §59-7-106(2). 4. Dissolution or withdrawal – Corporations no longer in Do not send a copy of your entire federal corporation business or no longer doing business in Utah are required return. to legally dissolve or withdraw the corporation. See instruc- tions on page 1. 5. Pass-through entity income and factors – Income or loss from partnership or joint venture interests must be included in income and apportioned to Utah. |