UTAH
2220Forms and
Instructions
TC-20MC
MiscellaneousMiscellaneous
CorporationsCorporations
Utah State Tax Commission • 210 North • 1950 West Salt Lake•tax.utah.govCity, Utah 84134
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UTAH
2220Forms and
Instructions
TC-20MC
MiscellaneousMiscellaneous
CorporationsCorporations
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-20MC – Utah Tax Return for Miscellaneous Corporations Instructions ................................................................................................4
Schedule A – Tax Calculation .....................................................................................................................................................................7
Schedule B – Refundable Credits ............................................................................................................................................................10
Schedule E – Prepayments of Any Type...................................................................................................................................................11
TC-20, Schedule J – Apportionment Schedule ........................................................................................................................................11
TC-559, Corporation/Partnership Payment Coupon .................................................................................................................................14
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-20MC Instructions 1
General Instructions and Information
UT Division of Corporations and Commercial Code
What’s New
Department of Commerce
• Utah Tax Rate: The 2022 Utah Legislature passed SB 59, 160 E 300 S, 2nd Floor
lowering the state corporate income tax rate from 4.95 PO Box 146705
percent to 4.85 percent. Salt Lake City, UT 84114-6705
• Payroll Protection Program Loan Addback: In certain
and submit form TC-69C to:
situations you must add to your income the amount of PPP
grants or loans forgiven in 2022. See line 1 instructions for Master Records
your corporation type, beginning on page 7. Utah State Tax Commission
210 N 1950 W
Salt Lake City, UT 84134-3215
Reminders
• Market Sourcing of Revenues from Performance of Ser-
Dissolution or Withdrawal
vices by Multi-state Taxpayers: Corporations performing
a service both in and outside Utah must calculate the sales Corporations that cease to do business in Utah must either
factor numerator on TC-20, Schedule J by considering the dissolve or withdraw the corporation.
service income to be in Utah if the buyer receives a greater Corporations incorporated in Utah must fi le Articles of Dis-
benefi t of the service in Utah than in any other state. See solution with the Department of Commerce.
TC-20, Schedule J – Apportionment Schedule Instructions
on page 11. Corporations incorporated outside of Utah (foreign corpora-
tions) must obtain a Certifi cate of Tax Clearance from the
• Method of Apportioning Income: To determine if you qualify Tax Commission before withdrawing from Utah. Foreign
as an optional apportionment taxpayer or a sales factor corporations must fi le an Application for Withdrawal with the
weighted taxpayer, see Schedule J – Apportionment Department of Commerce.
Schedule on page 11.
To request a Certifi cate of Tax Clearance, email the Tax
Commission at taxmaster@utah.gov, or call 801-297-2200
Electronic Filing for Corporation or 1-800-662-4335. We will send you an Application for Tax
Clearance to Withdraw a Foreign Corporation to complete
Returns and return.
Utah corporation returns may be fi led electronically under a
joint program between the Internal Revenue Service and the Dissolving and withdrawing corporations must also close their
Utah State Tax Commission. other Utah tax accounts (sales, withholding, etc.). To close
related tax accounts, send a completed TC-69C, Notice of
The federal and state information is submitted at the same time Change for a Business and/or Tax Account, to the attention
and the IRS extracts its federal data and forwards the state of Master Records at the Tax Commission address above.
data to the Tax Commission. No papers need to be mailed to
the agencies when fi ling electronically.
Rounding Off to Whole Dollars
C corporations and S corporations may fi le electronically.
Round off cents to the nearest whole dollar. Round down if
Check with your software provider to see if they offer electronic cents are under 50 cents; round up if cents are 50 cents and
corporation fi ling. above. Do not enter cents on the return.
To learn more about fi ling your corporation return electroni-
cally, go to tax.utah.gov/developers/mef.
Negative Numbers
When reporting losses or other negative numbers, do not
Corporation Identifi cation Numbers use parentheses. Always indicate a negative number with a
The corporation's federal Employer Identifi cation Number minus sign (-).
(EIN) is the Utah identifi cation number. The Utah Department
of Commerce also issues a registration number upon incor-
poration or qualifi cation in Utah. Enter both the EIN and Utah Who Must File
Incorporation/Qualifi cation Number in the proper fi elds. These The Tax Commission does not mail forms for fi ling corporate
numbers are used for identifi cation of the corporate tax return. taxes. Get Utah forms at tax.utah.gov/forms, or by calling the
Forms Hotline at 801-297-6700 or 1-800-662-4335, ext. 6700.
Corporation Changes Note: See What to Attach and What to Keep on page 3 for
what federal information you must fi le with your Utah return.
Report changes (e.g., name change, physical and/or mailing
address changes, merger, or ceasing to do business in Utah)
Homeowners Association
in writing to:
A homeowners association incorporated in Utah (domestic),
qualifi ed in Utah (foreign), or doing business in Utah whether
qualifi ed or not, must fi le form TC-20MC when it has taxable
income for federal purposes and has fi led federal form 1120-H.
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2022 Utah TC-20MC Instructions 2
Regulated Investment Company (RIC) Due Date
Every regulated investment company (RIC) or fund of such The due date for an exempt organization with unrelated busi-
company, as defi ned in IRC §§851(a) or 851(g) and organized ness income (TC-20MC, Schedule A, Part 4) is the same as
under the laws of Utah, must fi le form TC-20MC. the due date of its federal return.
Real Estate Investment Trust (REIT) The due date of the one-day return (TC-20MC, Schedule A,
Part 5) is the same as the due date of the return that includes
Every real estate investment trust (REIT) or fund of such com- the taxable period of the target corporation immediately pre-
pany, as defi ned in IRC §856, registered or doing business in ceding the one-day return.
Utah must fi le form TC-20MC. Doing business in Utah includes
owning an interest in Utah real property. All other returns must be fi led on or before the 15th day of
the fourth month following the close of the taxable year or the
Exempt Corporation with due date of the federal return, whichever is later. If the due
date falls on a Saturday, Sunday or legal holiday, the due date
Unrelated Business Income becomes the next business day.
An exempt corporation incorporated in Utah (domestic),
qualifi ed in Utah (foreign), or doing business in Utah whether
qualifi ed or not, must fi le form TC-20MC when it has unrelated Filing Extension
business income. Corporations are automatically allowed an extension of up
All exempt corporations must register with the Tax Commis- to six months to fi le a return without fi ling an extension form.
sion by fi ling form TC-161, Utah Registration for Exemption This is NOT an extension of time to pay taxes – it is only
from Corporate Franchise or Income Tax. You do not need to an extension of time to fi le your return. To avoid penalty,
fi le form TC-161 if you fi led it in a previous year. the prepayment requirements must be met on or before the
original return due date, and the return must be fi led within
One-day Utah Corporation (IRC the six-month extension period.
Section 338)
Transactions for which an election has been made or con- Minimum Tax
sidered to be made for federal purposes under IRC §338 are There is a minimum tax (privilege tax) of $100 on every regu-
treated as provided in UC §59-7-114. lar C corporation, regulated investment company and real
An election is not available for Utah purposes unless an elec- estate investment trust regardless of whether the corporation
tion is made or considered to be made for federal purposes. exercises its right to do business. The minimum tax does not
apply to S corporations, homeowners associations, or exempt
If an election is made or considered to be made for federal corporations with unrelated business income.
purposes under IRC §338, other than under Subsection 338(h)
(10), the target corporation must fi le a separate entity one-day
form TC-20MC, as is required for federal purposes. The target Prepayment of Minimum Tax
corporation must include in that return the gain or loss on the
Corporations subject to the minimum tax that meet the prepay-
deemed sale of assets in its adjusted income (UC §59-7-114).
ment requirement in the current year and had a tax liability
The gain or loss on the deemed sale of assets must be appor- of $100 (the minimum tax) for the previous year may choose
tioned to Utah using the apportionment fraction, calculated to to prepay the $100 minimum tax on the 15th day of the 12th
six decimals, of the target corporation, calculated on a separate month instead of four payments of $25.
entity basis for the most recent preceding taxable year consisting
Corporations subject to the minimum tax that met the prepay-
of 180 days or more.
ment requirement in the previous year and have a tax liability
If an election is made for federal purposes under of $100 (the minimum tax) in the current year may choose to
IRC §338(h)(10) or IRC §336(e), do not use form TC-20MC, prepay the minimum tax amount of $100 on the 15th day of
use form TC-20. the 12th month instead of four payments of $25. In this case,
the corporation must pay $100, not 90 percent.
Where to File Corporations subject to the minimum tax that do not make
the required prepayments are subject to a penalty. See Pen-
Mail your return to: alties, below.
Utah State Tax Commission
210 N 1950 W
Salt Lake City, UT 84134-0300 Prepayment Requirements
(Does not apply to One-day Target Corporations electing
Taxable Year under Section 338)
The taxable year for Utah tax purposes must match the tax- Extension Prepayments
able year used for federal tax purposes. When the taxable
year changes for federal purposes, the taxable year must be Extension prepayments must equal 90 percent of the cur-
changed for Utah tax purposes. rent year tax liability (or, if applicable, the $100 minimum tax,
whichever is greater) or 100 percent of the previous year’s
tax liability.
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2022 Utah TC-20MC Instructions 3
Corporations subject to the minimum tax must pay the $100 income. If the corporation meets the seasonal exception at
minimum tax (per corporation in a combined group) even if the federal level for any installment, check the appropriate
there was no previous year return. box(es) on form TC-20MC, line 16.
Use form TC-559, Corporation/Partnership Payment Coupon, Prepayment of Minimum Tax Requirement
to make estimated prepayments.
See Prepayment of Minimum Tax instructions above.
Quarterly Payments NOTE: The prepayment penalty does not apply to a one-day
Every corporation having a Utah tax liability of $3,000 or more in the target corporation under IRC §338.
current taxable year, or a tax liability of $3,000 or more in the previ-
ous taxable year, must make quarterly estimated tax payments.
Interest (in addition to penalties due)
A corporation does not need to make quarterly estimated tax
Interest is assessed on underpayments from the due date
payments the fi rst year it fi les in Utah if it pays the minimum
until the liability is paid in full. The interest rate for the 2023
tax on or before the due date, without the extension.
calendar year is 5.0 percent.
Quarterly estimated payments are due on the 15th day of the 4th,
For more information, get Pub 58, Utah Interest and Penalties,
6th, 9th and 12th months of the corporation’s taxable year, unless
at tax.utah.gov/forms.
federal action changes the federal quarterly due dates. Corporations
may elect to make the quarterly estimated tax payments equal to 100
percent of the prior year’s tax in four equal payments, or 90 percent Suspension for Failure to Pay
of the current year’s tax based on the percentages below. As defi ned
in UC §59-7-504(2), the percentage of the payment for annualized Tax Due
income installments, for adjusted seasonal installments, and for Utah law provides for suspension of a corporation’s right to do
estimated tax payments based on the current year tax liability, is: business in Utah if it fails to pay taxes due before 5:00 p.m.
on the last day of the 11th month after the due date.
Installment Percentage
If you cannot pay the full amount you owe, you can request a
1st 22.5 payment plan. Log into your corporate account at tap.utah.gov
2nd 45.0 and click "Request waiver, payment plan or payment plan email."
3rd 67.5 You may also:
4th 90.0 1. complete form TC-804B, Business Tax Payment Agreement
Request (tax.utah.gov/forms), or
If you use a different annualization period than the period
used for federal purposes, you must make an election with the 2. call the Tax Commission at 801-297-7703 or 1-800-662-
Tax Commission at the same time as provided in IRC §6655. 4335 ext. 7703.
Make estimated tax payments with form TC-559, Corporation/
Partnership Payment Coupon. What to Attach and What to Keep
Corporations not making the required tax prepayments are Include the following with your Utah TC-20MC. Also, keep
subject to a penalty as stated in Penalties, below. copies of these with your tax records.
• Utah miscellaneous corporation return schedules:
Penalties Attach to TC-20MC the page 2 and applicable schedules
Utah law (UC §59-1-401) provides penalties for not fi ling tax A (page 1 or page 2), B/E, and/or J.
returns by the due date, not paying tax due on time, not making • Federal return:
suffi cient prepayment on extension returns, and not fi ling informa- • Regulated Investment Company – Attach a copy of
tion returns or supporting schedules. See tax.utah.gov/billing/ your federal form 1120-RIC.
penalties-interest and Pub 58, Utah Interest and Penalties, at • Real Estate Investment Trust – Attach a copy of your
tax.utah.gov/forms. federal form 1120-REIT.
The Tax Commission will calculate the penalty for underpay- • Homeowners Association – Attach a copy of your
ment of required prepayments. federal form 1120-H.
• Unincorporated Exempt Organization or Exempt
Exceptions to Penalty on Estimated Tax Corporation having Unrelated Business Income –
Attach a copy of your federal form 990-T.
Annualized Exception
• One-day Target Corporation with an IRC Section 338
A corporation may annualize its income before determining the Election – Attach a copy of your federal return including
amount of each estimated tax installment. Follow federal guide- the IRC §338 gain or loss and federal form 8023.
lines to determine annualized income. If the corporation meets
the annualized exception at the federal level for any installment, Do not send credit schedules, worksheets or other documen-
check the appropriate box(es) on form TC-20MC, line 16. tation unless specifi cally requested in these instructions. Keep
these in your fi les. We may ask you to provide them later to
Recurring Seasonal Exception verify entries on your Utah return.
A corporation with recurring seasonal income may annualize its
income before determining the amount of each estimated tax
installment. Follow federal guidelines to determine seasonal
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2022 Utah TC-20MC Instructions 4
TC-20MC – Utah Tax Return for Miscellaneous
Corporations Instructions
Filing Period Reason-for-Amending Codes
1 You fi led an amended federal return with the IRS. Attach
File the 2022 return for calendar year 2022 and fi scal years
a copy of your amended federal return.
beginning in 2022 and ending in 2023. If the return is for a
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 ex-
tax year beginning and end dates at the top of the form using planation of the error.
the format mm/dd/yyyy. 3 Your federal return was changed by an IRS audit or
adjustment that affects your Utah return. Attach a copy
of the IRS adjustment.
Corporation Name and Address 4 Other. Attach an explanation to your return.
Enter the corporation name, address and telephone number, Enter the corrected fi gures on the return and/or schedule.
including area code. If the address has changed, see Corpora- Enter all other amounts as shown on your original return. If
tion Changes on page 1. you received a refund on your original return, subtract the
previous refund (exclude refund interest) from the amount of
Zip Code any tax paid with the original return and/or subsequent pay-
Enter your ZIP Code, including the “plus four” at the end, ments of the tax prior to fi ling the amended return. Enter the
without a hyphen. net amount on line 8. Enter a net refund as a negative amount
(preceded by a minus sign).
Foreign Country
If your address is in a foreign country, enter the mailing address Federal Form 8886
where indicated. Enter the foreign city, state/province and postal
code in the City fi eld. Abbreviate if necessary. Leave the State If you fi led federal Form 8886, Reportable Transaction Dis-
and ZIP Code fi elds blank. Enter only the foreign country name closure Statement, with the Internal Revenue Service, enter
in the Foreign country fi eld. an “X” at the top of TC-20MC, where indicated.
EIN and Utah Incorporation/ Line-by-Line Instructions
Qualifi cation Number Line 1 – Corporation Return Type
Enter your Federal EIN and Utah Incorporation/Qualifi cation Enter an “X” on the line that matches the type of corporation
Number issued by the Department of Commerce in the ap- return being fi led. There are six choices:
propriate fi elds. • Regulated Investment Company (complete Part 1 of
Schedule A and attach a copy of federal form 1120-RIC).
Amended Returns • Real Estate Investment Trust (complete Part 2 of Schedule
Do not submit a copy of your original return with your A and attach a copy of federal form 1120-REIT).
amended return. Note: A captive real estate investment trust must fi le a
To amend a previously fi led return, use the tax forms and in- TC-20 instead of a TC-20MC. For more information, see
structions for the year you are amending. Get prior year forms the TC-20 instructions.
and instructions at tax.utah.gov/forms-pubs/previousyears. • Homeowners Association with IRC §528 Income (complete
Part 3 of Schedule A and attach a copy of federal form 1120-H).
Amend your return if:
• Unincorporated Exempt Organization or Exempt Corpora-
• you discover an error on your Utah or federal return after
tion having Unrelated Business Income (complete Part 4
it has been fi led, or
of Schedule A and attach a copy of federal form 990-T).
• your federal return is audited or adjusted by the IRS and
• One-day Target Corporation with an IRC §338 Election
the audit or adjustment affects your Utah return. You must
(complete Part 5 of Schedule A and attach a copy of federal
amend your Utah return within 90 days of the IRS’s fi nal
form 8023).
determination.
• Other (use only when the Tax Commission instructs you
To qualify for a refund or credit, an amended return must be to do so).
fi led by the later of three years after the original return was
due or two years from the date the tax was paid. A return Line 2 – Tax
fi led before the due date is considered fi led on the due date.
Enter the amount of tax calculated in the applicable part on
To amend a previously fi led return, at the top of page 1, on Schedule A.
the “Amended Return” line, enter the code number from the
following list that best describes your Reason for Amending: You MUST complete and attach TC-20MC, Schedule A. Attach
only the page of Schedule A (page 1 or page 2) that applies
to your corporation. See instructions on page 7.
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2022 Utah TC-20MC Instructions 5
Line 3 – Utah Use Tax
Use Tax Worksheet
Use tax is a tax on goods and taxable services purchased for 1. Amount of purchases (except grocery food)
use, storage or other consumption in Utah. Use tax applies only if subject to use tax 1 _________
sales tax was not paid at the time of purchase. If you purchased
2. Use tax rate
an item from an out-of-state seller, including Internet, catalog, (decimal from Use Tax Rate Chart) 2 .__ __ __ __
radio and TV purchases, and the seller did not collect sales tax
on that purchase, you must pay the use tax directly to the Tax 3. Multiply line 1 by line 2 3 _________
Commission. 4. Amount of grocery food purchases
subject to use tax 4 _________
If you have a Utah sales tax license/account, report the use
tax on your sales tax return. If you do not have a Utah sales 5. Multiply line 4 by 3% (.03) 5 _________
tax license/account, report the use tax on line 3 of TC-20MC. 6. Add line 3 and line 5 6 _________
You may take a credit for sales or use tax paid to another state 7. Credit for sales tax paid to another state
(but not a foreign country). If the other state’s tax rate is lower on use tax purchases 7 _________
than Utah’s, you must pay the difference. If the other state’s tax 8. Use tax due (subtract line 7 from line 6) 8 _________
rate is more than Utah’s, no credit or refund is given. If sales (If less than zero, enter "0.")
tax was paid to more than one state, complete the Use Tax
Worksheet below for each state. Add lines 8 on all worksheets
and enter the total on line 3 of TC-20MC.
Use Tax Rate Chart (Effective Dec. 31, 2022)
Sales and use tax rates vary throughout Utah. Use the Use .0635 Beaver County .0795 Garden City
Tax Rate Chart below to get the rate for the location where .0735 Beaver City .0725 Salt Lake County
the merchandise was delivered, stored, used or consumed. .0610 Box Elder County .0875 Alta
Use the county tax rate if the city is not listed. .0665 Brigham City, Perry, Willard .0835 Brighton
.0640 Mantua .0745 Murray, South Salt Lake
Grocery food bought through the Internet or catalog is taxed .0710 Snowville .0775 Salt Lake City,
at 3 percent. The grocery food must be sold for ingestion or .0670 Cache County Inland Port SLC
chewing by humans and consumed for the substance’s taste .0695 Cache Valley Transit, Hyde .0635 San Juan County
Park, Lewiston, Millville .0675 Blanding, Monticello
or nutritional value. The reduced rate does not apply to alco- .0700 Hyrum, Logan, Nibley, N. Logan, .0745 Bluff
holic beverages or tobacco. See Pub 25, Sales and Use Tax, Providence, Richmond, River .0635 Sanpete County
at tax.utah.gov/forms. Heights, Smithfield .0645 Centerfield, Mayfield
.0635 Carbon County .0675 Ephraim, Fairview, Gunnison,
Line 4 – Current Year IRC §965(a) Installment .0645 Helper Mt. Pleasant
.0675 Price .0665 Manti
Amount .0665 Wellington .0635 Sevier County
If you were liable for Utah tax on deferred foreign income de- .0735 Daggett County .0645 Aurora, Redmond
.0845 Dutch John .0665 Monroe
scribed in IRC §965(a) and you chose to pay the tax in eight .0715 Davis County .0675 Richfield, Salina
yearly installments, enter the current-year installment amount .0725 Bountiful, Centerville, .0715 Summit County
on line 4. The installment is a percentage of the total Utah tax Clearfield, Farmington, .0855 Mil. Rec. Park City
due, as reported on line 17 of form TC-20R. Kaysville, Layton, N. Salt .0905 Park City
Lake, S. Weber, Syracuse, .0745 Snyderville Basin Transit
Installment Table W. Bountiful, Woods Cross .0660 Tooele County
.0635 Duchesne County .0690 Erda, Grantsville, Lakepoint,
First installment: 8% (paid with TC-20R) .0645 Duchesne City Lincoln, Stansbury Park
Second Installment: 8% .0675 Roosevelt .0700 Tooele City
.0635 Emery County .0645 Uintah County
Third installment: 8% .0825 Green River .0695 Naples, Vernal
Fourth installment: 8% .0710 Garfield County .0715 Utah County
.0810 Boulder, Panguitch, Tropic .0725 American Fork, Cedar Hills,
Fifth installment: 8% .0830 Bryce Canyon Highland, Lehi, Lindon, Orem,
Sixth installment: 15% .0820 Escalante Payson, Pleasant Grove,
.0685 Grand County Provo, Santaquin, Spanish
Seventh installment: 20% .0885 Moab Fork, Springville, Vineyard
Eighth installment: 25% .0610 Iron County .0635 Wasatch County
.0810 Brian Head .0665 Heber
Line 5 – Total Tax .0620 Cedar City .0745 Independence, Mil. Rec.
.0610 Juab County Wasatch, Mil. Rec. Hideout
Add lines 2, 3 and 4. .0620 Mona .0775 Midway
.0650 Nephi .0825 Park City East
Line 6 – Refundable Credits .0645 Santaquin South .0645 Washington County
.0710 Kane County .0675 Hurricane, Ivins, La Verkin,
Enter the total of the refundable credits listed on Schedule B. .0820 Kanab St. George, Santa Clara,
.0810 Orderville Washington City
Line 7 – Prepayments from Schedule E .0635 Millard County .0805 Springdale
.0645 Fillmore .0745 Virgin
A refundable credit is allowed for advance payments made as .0620 Morgan County .0610 Wayne County
quarterly estimated tax payments, prepayments and extension .0645 Morgan City .0725 Weber County
.0610 Piute County .0745 Falcon Hill Riverdale,
payments (form TC-559). Include any overpayment from a prior .0635 Rich County Riverdale
year that was applied to this year. Enter the prepayments on
Schedule E and carry the total from line 4 of Schedule E to line
7 of the TC-20MC.
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2022 Utah TC-20MC Instructions 6
Line 8 – Amended Returns Only Paid Preparer Authorization
This line is only for amended returns. Enter the amount of tax If the corporation wants to allow the Tax Commission to discuss
paid with the original return and subsequent payments made this return with the paid preparer who signed it, enter an “X”
prior to fi ling this amended return, less any previous refunds in the box on the right-hand side of the signature area of the
(exclude refund interest). Enter a net refund as a negative return where indicated. This authorization applies only to the
amount (preceded by a minus sign). individual whose signature appears in the Paid Preparer Sec-
tion of the return. It does not apply to the fi rm, if any, shown
Line 9 – Total Refundable Credits in that section. If you enter an “X” in the box, the corporation
and Prepayments is authorizing the Tax Commission to call the paid preparer to
Add lines 6 through 8. answer any questions that may arise during the processing of
the return. The paid preparer is also authorized to:
Line 10 – Tax Due • give the Tax Commission any information that is missing
If line 5 is larger than line 9, subtract line 9 from line 5. from the return,
• call the Tax Commission for information about the process-
Line 11 – Penalties and Interest ing of the return or the status of any refund or payment(s),
Enter any penalties and interest that apply to this return. and
• respond to certain Tax Commission notices about math
Line 12 – Total Due - Pay This Amount errors, offsets and return preparation.
Add line 10 and line 11. Pay at tap.utah.gov, or send a check The corporation is not authorizing the preparer to receive any
or money order with your return (make payable to the Utah refund, bind the entity to anything (including any additional
State Tax Commission). Do not mail cash. The Tax Commis- tax liability), or otherwise represent the entity before the Tax
sion assumes no liability for loss of cash placed in the mail. Commission. The authorization will automatically end no later
than the due date (without regard to extensions) for fi ling next
Line 13 – Overpayment
year's tax return.
If line 9 is larger than the sum of lines 5 and 11, subtract the sum
of lines 5 and 11 from line 9. If you want to expand the preparer’s authorization, complete
and submit form TC-737, Power of Attorney and Declaration
Line 14 – Amount of Overpayment to be of Representative (tax.utah.gov/forms). If you want to revoke
the authorization before it ends, submit your request in writ-
Applied to Next Taxable Year
ing to the Utah State Tax Commission, attention Taxpayer
All or part of any overpayment shown on line 13 may be applied Services, 210 N 1950 W, SLC, UT 84134.
as an advance payment for the next tax year. Enter the amount
to be applied (may not exceed the overpayment on line 13). Paid Preparer
Line 15 – Refund The paid preparer must enter his or her name, address and
PTIN in the section below the corporate offi cer’s signature
Subtract line 14 from line 13. This is the amount to be re- on the return.
funded to you.
Preparer Penalties
Line 16 – Quarterly Estimated Prepayments (UC §§59-1-401(11)-(12))
Meeting Exception
The person who prepares, presents, procures, advises, aids,
Check any boxes corresponding to the four quarters to which assists or counsels another on a return, affi davit, claim or
a federal penalty exception applies. See Prepayment Require- similar document administered by the Tax Commission, and
ments on page 2 for exceptions to the underpayment who knows or has reason to believe it may understate a tax,
penalty. Attach supporting documentation. fee or charge is subject to both a civil penalty ($500 per docu-
ment) and criminal penalties (second degree felony with a fi ne
from $1,500 to $25,000).
Signature and Date Line
Sign and date the return. We will not issue a refund without
a signature. Supplemental Information to be
Supplied by All Corporations
All corporations fi ling a TC-20MC must complete the informa-
tion on page 2 of the return.
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2022 Utah TC-20MC Instructions 7
Schedule A – Tax Calculation
Part 1 – Regulated Investment Company Part 2 – Real Estate Investment Trust
Remember to mark line 1 on TC-20MC showing this return is Remember to mark line 1 on TC-20MC showing this return is
for a Regulated Investment Company. for a Real Estate Investment Trust.
Note: A captive real estate investment trust must be included as a
Line 1 – Investment Company Taxable
member of a unitary group fi ling Utah form TC-20 (not TC-20MC).
Income/Loss A real estate investment trust (REIT) is a “captive real estate
Enter the investment company’s taxable income/loss from investment trust” if the shares or benefi cial interests of the REIT
federal form 1120-RIC, line 26. are not regularly traded on an established securities market, and
Add to this amount any COVID-19 Payroll Protection Program more than 50 percent of the voting power or value of the shares
(PPP) grant or loan amount that: or benefi cial interests of the REIT are directly, indirectly or con-
structively owned or controlled by a controlling entity of the REIT.
1. was forgiven during the 2022 tax year,
2. is exempt from federal income tax, and Line 1 – REIT Taxable Income/Loss
3. you used for expenses that you deducted on your federal Enter the real estate investment trust’s taxable income/loss
tax return. from federal form 1120-REIT, line 22.
If you own an interest in an LLC, partnership, S-corporation Add to this amount any COVID-19 Payroll Protection Program
or trust that received a PPP grant or loan meeting these re- (PPP) grant or loan amount that:
quirements, include your distributed share on this line. (See 1. was forgiven during the 2022 tax year,
the "Other Income" line of Utah Schedule K-1 received from
2. is exempt from federal income tax, and
the LLC, partnership, S-corporation or trust.)
3. you used for expenses that you deducted on your federal
Line 2 – Municipal Interest tax return.
Enter any municipal interest as determined by IRC §852(b)(2). If you own an interest in an LLC, partnership, S-corporation
or trust that received a PPP grant or loan meeting these re-
Line 3 – Exclusion of Net Capital Gain quirements, include your distributed share on this line. (See
Enter any net capital gain exclusion as determined by the "Other Income" line of Utah Schedule K-1 received from
IRC §852(b)(2). the LLC, partnership, S-corporation or trust.)
Line 4 – Net Taxable Income Line 2 – Income Taxed for Federal Purposes
Add lines 1 through 3. under the IRC but Not Included in Line 1
Enter the total of all income items taxed for federal purposes
Line 5 – Deduction for Capital Gain Dividends under the Internal Revenue Code but not included in the
Enter any deduction for capital gain dividends as defi ned in amount entered on line 1.
IRC §852(b)(3)(C).
Line 3 – Federal Net Operating Loss Deduction
Line 6 – Exempt Interest Dividends Enter any federal net operating loss deduction from federal
Enter any exempt interest dividends as defi ned in IRC §852(b)(5). form 1120-REIT, line 21a.
Line 7 – Utah Taxable Income/Loss Line 4 – Apportionable Income/Loss
Subtract the sum of lines 5 and 6 from line 4. Add lines 1 through 3.
Line 8 – Initial Tax Line 5 – Apportionment Fraction
Multiply line 7 by 4.85 percent (.0485). This is the initial Utah Enter 1.000000, or the fraction (decimal) from TC-20, Schedule
corporate tax. Do not enter an amount less than zero. J line 9 or 10, if applicable.
Line 9 – Minimum Tax Line 6 – Taxable Income/Loss
The minimum tax for a regulated investment company is $100. Multiply the apportionable income/loss on line 4 by the ap-
portionment fraction on line 5.
Line 10 – Tax
Line 7 – Utah Losses Carried Forward from
Enter the larger of the tax on line 8 or the minimum tax on
Prior Years
line 9. Carry this tax to line 2 of TC-20MC.
Enter Utah net losses carried forward from prior years.
Note: Attach a copy of your federal form 1120-RIC to your
Utah return. Losses carried forward from tax years that began after Jan.
1, 2018 (2018 and later) may not exceed 80 percent of your
Utah taxable income on line 6. There is no income limitation
for losses carried forward from tax years that began BEFORE
Jan. 1, 2018 (2017 and earlier).
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2022 Utah TC-20MC Instructions 8
If you are carrying forward losses from tax years that began 3. you used for expenses that you deducted on your federal
both before AND after Jan. 1, 2018, use the Part 2, Line 7 tax return.
Worksheet, below, to calculate the amount you may claim If you own an interest in an LLC, partnership, S-corporation
this year. or trust that received a PPP grant or loan meeting these re-
Attach documentation to the return to support the losses. quirements, include your distributed share on this line. (See
the "Other Income" line of Utah Schedule K-1 received from
the LLC, partnership, S-corporation or trust.)
Part 2, Line 7 Worksheet
Use this worksheet if you have losses from tax years both before Line 2 – Tax
and after Dec. 31, 2017. Multiply line 1 by 4.85 percent (.0485). This is the Utah cor-
1. Current-year Utah income 1_______ porate tax. Do not enter an amount less than zero. Carry this
(enter the amount from Sch. A, Part 2, line 6) tax to line 2 of TC-20MC.
2. 80% of taxable income 2_______ A homeowners association is not subject to the $100 minimum tax.
(multiply line 1 by 0.8) Homeowners associations fi ling federal form 1120-H and
3. Losses from 2017 and earlier 3_______ Utah TC-20MC are not allowed net operating loss deductions.
4. Available losses from 2017 and earlier 4 _______ Note: Attach a copy of your federal form 1120-H to your Utah
(enter the lesser of line 1 and line 3) return.
5. Taxable income after 2017 and earlier losses 5 _______
(line 1 minus line 4)
6. Losses from 2018 and later 6_______ Part 4 – Unincorporated Exempt
Organization or Exempt Corporation
7. Available losses from 2018 and later 7_______
(enter the lesser of line 2, line 5 and line 6) having Unrelated Business Income
8. Total available losses 8 _______ Remember to mark line 1 on TC-20MC showing this return is for
(add line 4 and line 7) an Unincorporated Exempt Organization or Exempt Corporation
having Unrelated Business Income.
Enter line 8 on Schedule A, Part 2, line 7.
Attach a copy of this worksheet to your return. Line 1 – Unrelated Business Taxable
Income/Loss
Enter the unrelated business taxable income/loss from federal
Line 8 – Utah Taxable income/Loss form 990-T, line 11.
Subtract line 7 from line 6. Add to this amount any COVID-19 Payroll Protection Program
(PPP) grant or loan amount that:
Line 9 – Initial Tax 1. was forgiven during the 2022 tax year,
Multiply line 8 by 4.85 percent (.0485). This is the initial Utah 2. is exempt from federal income tax, and
corporate tax. Do not enter an amount less than zero. 3. you used for expenses that you deducted on your federal
tax return.
Line 10 – Minimum Tax
If you own an interest in an LLC, partnership, S-corporation
The minimum tax for a real estate investment company is $100.
or trust that received a PPP grant or loan meeting these re-
Line 11 – Tax quirements, include your distributed share on this line. (See
the "Other Income" line of Utah Schedule K-1 received from
Enter the larger of the tax on line 9 or the minimum tax on the LLC, partnership, S-corporation or trust.)
line 10. Carry this tax to line 2 of TC-20MC.
Note: Attach a copy of your federal form 1120-REIT to your Line 2 – Apportionment Fraction
Utah return. Enter 1.000000, or the fraction (decimal) from TC-20, Schedule
J, line 9 or 10, if applicable.
Part 3 – Homeowners Association with IRC Note: Only the property, payroll and sales included in the
computation of unrelated business income or directly related
Section 528 Income
to the unrelated business income of an exempt organization
Remember to mark line 1 on TC-20MC showing this return is may be included when apportioning income.
for a Homeowners Association.
Line 3 – Utah Taxable Income/Loss
Line 1 – Taxable Income/Loss
Multiply the unrelated business taxable income/loss on line 1
Enter the taxable income/loss from federal form 1120-H, line 19. by the apportionment fraction on line 2.
Add to this amount any COVID-19 Payroll Protection Program Utah taxable income for an exempt organization having unre-
(PPP) grant or loan amount that: lated business income begins with federal taxable income after
1. was forgiven during the 2022 tax year, deduction of any federal net operating loss. Consequently, Utah
losses are not separately carried forward for these entities.
2. is exempt from federal income tax, and
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2022 Utah TC-20MC Instructions 9
Line 4 – Tax Losses carried forward from tax years that began after Jan.
1, 2018 (2018 and later) may not exceed 80 percent of your
Multiply line 3 by 4.85 percent (.0485). This is the Utah cor- Utah taxable income on line 3. There is no income limitation
porate tax. Do not enter an amount less than zero. Carry this for losses carried forward from tax years that began BEFORE
tax to line 2 of TC-20MC. Jan. 1, 2018 (2017 and earlier).
An unincorporated exempt organization or an exempt corpo- If you are carrying forward losses from tax years that began
ration having unrelated business income is not subject to the both before AND after Jan. 1, 2018, use the Part 5, Line 4
$100 minimum tax. Worksheet, below, to calculate the amount you may claim
Note: Attach a copy of your federal form 990-T to your Utah this year.
return. Attach documentation to the return to support the losses.
Part 5 – One-day Target Corporation with an
Part 5, Line 4 Worksheet
IRC Section 338 Election
Use this worksheet if you have losses from tax years both before
Remember to mark line 1 on TC-20MC showing this return is and after Dec. 31, 2017.
for a One-day Target Corporation with an IRC §338 Election.
1. Current-year Utah income 1_______
Line 1 – Gain/Loss on Deemed Sale of Assets (enter the amount from Sch. A, Part 5, line 3)
2. 80% of taxable income 2_______
Enter the gain or loss on the deemed sale of assets included (multiply line 1 by 0.8)
in federal taxable income before any net operating loss from
the target corporation. 3. Losses from 2017 and earlier 3_______
Add to this amount any COVID-19 Payroll Protection Program 4. Available losses from 2017 and earlier 4 _______
(PPP) grant or loan amount that: (enter the lesser of line 1 and line 3)
1. was forgiven during the 2022 tax year, 5. Taxable income after 2017 and earlier losses 5 _______
(line 1 minus line 4)
2. is exempt from federal income tax, and
6. Losses from 2018 and later 6_______
3. you used for expenses that you deducted on your federal 7. Available losses from 2018 and later 7_______
tax return. (enter the lesser of line 2, line 5 and line 6)
If you own an interest in an LLC, partnership, S-corporation 8. Total available losses 8 _______
or trust that received a PPP grant or loan meeting these re- (add line 4 and line 7)
quirements, include your distributed share on this line. (See
Enter line 8 on Schedule A, Part 5, line 4.
the "Other Income" line of Utah Schedule K-1 received from
the LLC, partnership, S-corporation or trust.) Attach a copy of this worksheet to your return.
Line 2 – Apportionment Fraction
Enter the apportionment fraction of the target corporation.
Line 5 – Utah Taxable Gain/Loss
The gain or loss on the deemed sale of assets must be ap-
portioned to Utah using the apportionment fraction, calculated Subtract line 4 from line 3.
to six decimals, of the target corporation. This fraction must Line 6 – Initial Tax
be calculated on a separate entity basis for the most recent
preceding taxable year consisting of 180 days or more. Multiply line 5 by 4.85 percent (.0485). This is the initial Utah
corporate tax. Do not enter an amount less than zero.
Line 3 – Utah Apportioned Gain/Loss
Line 7 – Minimum Tax
Multiply the gain/loss on deemed sale of assets on line 1 by
the apportionment fraction on line 2. The minimum tax for a one-day target corporation is $100.
Line 4 – Utah Losses Carried Forward Line 8 – Tax
from Prior Years Enter the larger of the tax on line 6 or the minimum tax on
Enter Utah net losses carried forward from prior years. line 7. Carry this tax to line 2 of TC-20MC.
Note: Attach a copy of your federal form 8023 to your Utah
return.
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2022 Utah TC-20MC Instructions 10
Schedule B – Refundable Credits
If you claim any of the following refundable credits, write (46) Mineral Production Withholding Tax Credit
the code and amount of each credit you are claiming on (UC §59-6-102)
Schedule B. Add all the refundable credits and carry the total Enter the total of the mineral production tax withheld as shown
to TC-20MC, line 6. on forms TC-675R or Utah Schedule K-1(s) for the tax year.
An explanation of each refundable credit is listed below. For a fi scal year corporation, the credit is claimed on the
corporate return that is required to be fi led during the year
Use these codes on Schedule B following the December closing period of the form TC-675R.
39 Renewable Commercial Energy Systems Credit Attach copies of form TC-675R or Utah Schedule K-1(s) to
43 Pass-through Entity Withholding Tax Credit the return.
46 Mineral Production Withholding Tax Credit
47 Agricultural Off-highway Gas/Undyed Diesel Fuel (47) Agricultural Off-Highway Gas/Undyed Diesel Fuel
Credit Credit
48 Farm Operation Hand Tools Credit (UC §59-13-202)
You may claim a credit of 31.9 cents per gallon for motor fuel
and undyed diesel fuel bought in Utah during 2022 and used
(39) Renewable Commercial Energy Systems Credit
to operate stationary farm engines and self-propelled farm
(UC §59-7-614)
machinery used solely for commercial non-highway agricultural
Get form TC-40E, Renewable Residential and Commercial use if the fuel was taxed at the time it was bought.
Energy Systems Tax Credits, from the Governor's Offi ce of
This does not include golf courses, horse racing, boat opera-
Energy Development with their certifi cation stamp. Do not
tions, highway seeding, vehicles registered for highway use,
send this form with your return. Keep the form and all related
hobbies, personal farming and other non-agricultural use.
documents with your records to provide the Tax Commission
upon request.
For more information, contact: Credit calculation:
Governor's Offi ce of Energy Development (OED) Gallons _______ x .319 = Credit _______
PO Box 144845
Salt Lake City, UT 84114
801-538-8732 or 801-538-8702
energy.utah.gov/renewable-energy- There is no form for this credit. Keep all related documents
systems-tax-credit with your records to provide the Tax Commission upon request.
(43) Pass-through Entity Withholding Tax Credit (48) Farm Operation Hand Tools Credit
(UC §59-7-614.4) (UC §59-7-614.1)
If a pass-through entity is required to withhold Utah income tax This credit is for sales and use tax paid on hand tools pur-
on any income attributable to this corporation under §59-10- chased and used or consumed primarily and directly in a farm-
1403.2, the pass-through entity must provide a Utah Schedule ing operation in Utah. The credit only applies if the purchase
K-1 showing the amount of Utah withholding paid on behalf price of a tool is more than $250.
of this corporation. Enter this amount as a refundable credit There is no form for this credit. Keep all related documents
using code 43. with your records to provide the Tax Commission upon request.
Attach copies of Utah Schedule K-1(s) to the return to receive
proper credit.
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2022 Utah TC-20MC Instructions 11
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 all prepayments made for the
the current year’s tax liability. fi ling period. Enter the check number if 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 payment was not made electronically. Line 4 – Total Prepayments
Add lines 1, 2 and 3. Enter the total on this line and on
TC-20MC, line 7.
TC-20, Schedule J – Apportionment Schedule
Use TC-20, Schedule J to calculate the portion of the taxpayer’s the pass-through entities, applying the respective ownership
income attributable to Utah, if the taxpayer does business both percentages. For example, a corporation that holds 50 percent
within and outside of Utah. interest in Partnership A that in turn holds 20 percent interest
Complete TC-20, Schedule J to determine the apportionment in Partnership B would include 50 percent of the factors of
fraction (decimal). The factors express a ratio for property in Partnership A, and 10 percent (50 percent of 20 percent) of
Utah to total property everywhere, for wages and salaries in the factors of Partnership B.
Utah to total wages and salaries everywhere, and for sales
in Utah to total sales everywhere. Use these factors or ratios Apportionment Method
to arrive at the Utah apportionment fraction calculated to six
decimals. Then apply this fraction (decimal) to the apportion- To determine if you must apportion income using the sales
able income (or loss) on Schedule A to arrive at the amount factor formula or if you qualify as an optional apportionment
of income (or loss) apportioned to Utah. In cases where one taxpayer, take into account the economic activities of each of
or more of the factors is omitted due to peculiar aspects of the entities included in the return. Include the economic activi-
the business operations, use the number of factors present ties of any pass-through entities whose income and factors
to determine the Utah apportionment fraction. are included in the return.
Your economic activities, and your method of apportioning
income in the previous year, dictate the apportionment method Sales Factor Weighted Taxpayers
you may use. A sales factor weighted taxpayer may only use the sales factor
fraction to apportion income.
Pass-through Entity Taxpayers You must use the sales factor formula if you:
Partners, shareholders and benefi ciaries of pass-through 1. apportioned income using the sales factor formula during
entities (an entity taxed as a partnership, s-corporation or the prior taxable year,
trust) must include their pro rata share of the pass-through 2. do not meet the defi nition of an optional apportionment
entity's property, payroll and sales in their calculation of the taxpayer (see instructions below), or
apportionment factor on TC-20, Schedule J, page 1.
3. generate more than 50 percent of total sales everywhere
If a corporation holds direct and indirect ownership interests in from economic activities in any NAICS codes OTHER
tiered pass-through entities, it must include its pro rata share THAN these identifi ed NAICS codes:
of the apportionment factors (property, payroll and sales) of
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2022 Utah TC-20MC Instructions 12
• 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:
Excluded NAICS codes are NAICS codes of the 2017 North
• Industry Group 3254, Pharmaceutical and Medicine American Industry Classifi cation System within:
Manufacturing
• Code 211120, Crude Petroleum Extraction
• Industry Group 3333, Commercial and Service
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.
Line Instructions
Sales factor weighted taxpayers must calculate the appor-
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.
• Payroll factor fraction: Add together the amount of payroll Attach a supporting schedule whenever you use monthly averaging.
in Utah attributable to economic activities that are classi-
fi ed in an excluded NAICS code. Divide this number by If you are a pass-through entity taxpayer, add to line 1e any
the total amount of payroll in Utah. A taxpayer engaged amounts listed on line J of any TC-65 Schedule K-1 you have
in activities in an excluded NAICS code must remove an received.
individual’s payroll from this calculation of the payroll fac- Enter totals of lines 1a through 1e in the respective columns
tor fraction if the individual’s payroll may be attributed to on line 1f.
economic activities in both excluded NAICS codes and
NAICS codes that are not excluded, or to providing man- Line 2 – Property Factor Calculation
agement, information technology, fi nance, accounting, Determine the property factor (decimal) by dividing line 1f,
legal or human resource services. column A by line 1f, column B.
Add the property and payroll factor fractions and divide that
sum by two. If either the property factor fraction or payroll Line 3 – Payroll Factor
factor fraction has a denominator of zero, or is otherwise ex- Wages, salaries, commissions and other includable com-
cluded, divide by one. If the average is more than 50 percent, pensation paid to employees for personal services must be
you are an optional apportionment taxpayer. If the average included in the Utah factor to the extent the services, for which
is not more than than 50 percent, you are not an optional the compensation was paid, were rendered in Utah.
apportionment taxpayer and must apportion income to Utah
using the sales factor. Compensation is paid in Utah if:
1. the individual’s service is performed entirely within Utah;
Optional apportionment taxpayers may calculate the ap-
portionment fraction using either the equally-weighted three 2. the individual’s service is performed both within and outside
factor formula (Schedule J, Part 1) or the sales factor formula Utah, but the service performed outside Utah is incidental
to the individual’s service within Utah; or
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2022 Utah TC-20MC Instructions 13
3. some of the service is performed in Utah and:
Apportionment Fraction
a. the base of operations or, if there is no base of operations,
the place where the service is directed or controlled, is
within Utah; or Part 1 – Equally-Weighted Three Factor
b. the base of operations or the place where the service Formula
is directed or controlled is not in any state where some If you are an optional apportionment taxpayer using the
part of the service is performed, but the individual’s equally-weighted three factor formula, complete lines 8 and
residence is in Utah. 9. Otherwise, leave lines 8 and 9 blank.
Amounts reportable for employment security purposes may
ordinarily be used to determine the wage factor. Line 8 – Total Factors
Overall wages, including Utah, are listed in column B. Enter the sum of the factors from lines 2, 4 and 6.
If you are a pass-through entity taxpayer, add to line 3a any Line 9 – Apportionment Fraction
amounts listed on line K of any TC-65 Schedule K-1 you have
received. Calculate the apportionment fraction to six decimals by dividing
line 8 by the number of factors used (typically 3 – property,
Line 4 – Payroll Factor Calculation payroll and sales).
Determine the payroll factor (decimal) by dividing line 3a, • If one or more of the factors are not present (i.e., there is a
column A by line 3a, column B. zero in the denominator on lines 1f, 3a or 5h in column B),
divide by the number of factors present.
Lines 5a - 5h – Sales Factor • If the numerator is zero, but a denominator is present,
The sales factor is the fraction the sales or charges for ser- include that factor in the number of factors present.
vices within Utah for the taxable year bear to the overall sales Enter the apportionment fraction (decimal) here and on
for the taxable year. Gross receipts from the performance of Schedule A.
services in Utah are assigned to the Utah sales numerator if
the purchaser of the service receives a greater benefi t of the
service in Utah than in any other state. Part 2 – Sales Factor Formula
Taxpayers that perform a service both in and outside Utah See instructions above for the defi nition and qualifi cations
must include service income on line 5g in column A (Inside of a taxpayer who must apportion income using the sales
Utah) if the purchaser of the service receives a greater factor formula.
benefi t of the service in Utah than in any other state. The
Leave line 10 blank if you are using the equally-weighted
former “cost of performance” method no longer applies. (See
three-factor formula.
UC §59-7-319(3)(a).)
Sales of tangible personal property are in Utah if the property Line 10 – Apportionment Fraction
is delivered or shipped to a purchaser within Utah regardless Enter the sales factor from line 6 of Schedule J, page 1. This
of the F.O.B. point or other conditions of the sale, or if the is the apportionment fraction for this apportionment method.
property is shipped from an offi ce, store, warehouse, factory (Property and payroll factors are not used in the calculation of
or other place of storage in Utah and: the apportionment fraction for taxpayers who must apportion
1. the purchaser is the United States Government, or income using the sales factor formula.)
2. the taxpayer is not taxable in the state of the purchaser. Enter the apportionment fraction (decimal) here and on
Overall sales, including Utah, are listed in column B. Schedule A.
Note: Securities brokerage businesses must follow the provi-
sions in UC §59-7-319(6). Specialized Apportionment Laws
If you are a pass-through entity taxpayer, add to line 5g any and Rules
amounts listed on line L of any TC-65 Schedule K-1 you have Specialized apportionment procedures apply for:
received.
• Trucking Companies (R865-6F-19)
Enter totals of lines 5a through 5g in their respective columns
on line 5h. • Railroads (R865-6F-29)
• Publishing Companies (R865-6F-31)
Line 6 – Sales Factor Calculation • Financial Institutions (R865-6F-32)
Determine the sales factor (decimal) by dividing line 5h, column • Telecommunications (R865-6F-33)
A by line 5h, column B.
• Registered Securities or Commodities Broker or Dealer
(R865-6F-36)
NAICS Code for Taxpayer • Airlines (UC §§59-7-312 thru 319)
Line 7 – NAICS Code • Sale of Management, Distribution or Administration Ser-
vices to or on Behalf of a Regulated Investment Company
This is a mandatory fi eld. Your NAICS code may dictate your (UC §59-7-319(5))
apportionment method.
Enter on line 7 the NAICS code for the primary business activ-
ity. Do not use the holding company NAICS code.
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2022 Utah TC-20MC Instructions 14
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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