UTAH
TC-20MC Forms & Instructions
MiscellaneousMiscellaneous
CorporationsCorporations
Utah State Tax Commission • 210 North •1950 West Salt Lake•City,tax.utah.govUtah 84134
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UTAH
TC-20MC Forms & Instructions
MiscellaneousMiscellaneous
CorporationsCorporations
Utah State Tax Commission • 210 North •1950 West Salt Lake•City,tax.utah.govUtah 84134
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Contents
General Instructions and Information .........................................................................................................................................................1
TC-20MC – Utah Tax Return for Miscellaneous Corporations Instructions ................................................................................................4
Schedule A – Tax Calculation .....................................................................................................................................................................7
Schedule B – Refundable Credits ..............................................................................................................................................................9
Schedule E – Prepayments of Any Type...................................................................................................................................................10
TC-20, Schedule J – Apportionment Schedule ........................................................................................................................................10
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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2021 Utah TC-20MC Instructions 1
General Instructions and Information
and submit form TC-69C to:
What’s New
Exceptions Processing
• Net Operating Loss Carryforwards: For tax years starting Utah State Tax Commission
on or after Jan. 1, 2021, Utah net losses carried forward 210 N 1950 W
from certain prior years may not exceed 80 percent of Utah Salt Lake City, UT 84134-3215
taxable income. See pages 7 and 9.
• Payroll Protection Program Loan Addback: In certain
situations you must add to your income the amount of PPP Dissolution or Withdrawal
grants or loans forgiven in 2021. See line 1 instructions for Corporations that cease to do business in Utah must either
your corporation type, beginning on page 7. dissolve or withdraw the corporation.
Corporations incorporated in Utah must fi le Articles of Dis-
Reminders solution with the Department of Commerce.
• Market Sourcing of Revenues from Performance of Ser- Corporations incorporated outside of Utah (foreign corpora-
vices by Multi-state Taxpayers: Corporations performing tions) must obtain a Certifi cate of Tax Clearance from the
a service both in and outside Utah must calculate the sales Tax Commission before withdrawing from Utah. Foreign
factor numerator on TC-20, Schedule J by considering the corporations must fi le an Application for Withdrawal with the
service income to be in Utah if the buyer receives a greater Department of Commerce.
benefi t of the service in Utah than in any other state. See To request a Certifi cate of Tax Clearance, email the Tax
TC-20, Schedule J – Apportionment Schedule Instructions Commission at taxmaster@utah.gov, or call 801-297-2200
on page 11. or 1-800-662-4335. We will send you an Application for Tax
Clearance to Withdraw a Foreign Corporation to complete
Electronic Filing for Corporation and return.
Returns Dissolving and withdrawing corporations must also close their
other Utah tax accounts (sales, withholding, etc.). To close
Utah corporation returns may be fi led electronically under a related tax accounts, send a completed TC-69C, Notice of
joint program between the Internal Revenue Service and the Change for a Business and/or Tax Account, to the attention of
Utah State Tax Commission. Exceptions Processing at the Tax Commission address above.
The federal and state information is submitted at the same time
and the IRS extracts its federal data and forwards the state
data to the Tax Commission. No papers need to be mailed to Rounding Off to Whole Dollars
the agencies when fi ling electronically. Round off cents to the nearest whole dollar. Round down if
C corporations and S corporations may fi le electronically. cents are under 50 cents; round up if cents are 50 cents and
above. Do not enter cents on the return.
Check with your software provider to see if they offer electronic
corporation fi ling.
Who Must File
To learn more about fi ling your corporation return electroni-
cally, go to tax.utah.gov/developers/mef. The Tax Commission does not mail forms for fi ling corporate
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 Identifi cation Numbers Note: See What to Attach and What to Keep later in these
The corporation's federal Employer Identifi cation Number General Instructions for what federal information is required
(EIN) is the Utah identifi cation number. The Utah Department with the Utah return.
of Commerce also issues a registration number upon incor-
poration or qualifi cation in Utah. Enter both the EIN and Utah Homeowners Association
Incorporation/Qualifi cation Number in the proper fi elds. These
numbers are used for identifi cation of the corporate tax return. 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
Corporation Changes income for federal purposes and has fi led federal form 1120-H.
Report changes (e.g., name change, physical and/or mailing
Regulated Investment Company (RIC)
address changes, merger, or ceasing to do business in Utah)
in writing to: Every regulated investment company (RIC) or fund of such
UT Division of Corporations and Commercial Code company, as defi ned in IRC §§851(a) or 851(g) and organized
Department of Commerce under the laws of Utah, must fi le form TC-20MC.
160 E 300 S, 2nd Floor
PO Box 146705
Salt Lake City, UT 84114-6705
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2021 Utah TC-20MC Instructions 2
Real Estate Investment Trust (REIT) 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
Every real estate investment trust (REIT) or fund of such com- due date of the federal return, whichever is later. If the due
pany, as defi ned in IRC §856, registered or doing business in date falls on a Saturday, Sunday or legal holiday, the due date
Utah must fi le form TC-20MC. Doing business in Utah includes becomes the next business day.
owning an interest in Utah real property.
Exempt Corporation with Filing Extension
Unrelated Business Income Corporations are automatically allowed an extension of up
An exempt corporation incorporated in Utah (domestic), to six months to fi le a return without fi ling an extension form.
qualifi ed in Utah (foreign), or doing business in Utah whether This is NOT an extension of time to pay taxes – it is only
qualifi ed or not, must fi le form TC-20MC when it has unrelated an extension of time to fi le your return. To avoid penalty,
business income. the prepayment requirements must be met on or before the
original return due date, and the return must be fi led within
All exempt corporations must register with the Tax Commis-
the six-month extension period.
sion by fi ling form TC-161, Utah Registration for Exemption
from Corporate Franchise or Income Tax. You do not need to
fi le form TC-161 if you fi led it in a previous year. Minimum Tax
There is a minimum tax (privilege tax) of $100 on every regu-
One-day Utah Corporation (IRC
lar C corporation, regulated investment company and real
Section 338) estate investment trust regardless of whether the corporation
Transactions for which an election has been made or con- exercises its right to do business. The minimum tax does not
sidered to be made for federal purposes under IRC §338 are apply to S corporations, homeowners associations, or exempt
treated as provided in UC §59-7-114. corporations with unrelated business income.
An election is not available for Utah purposes unless an elec-
tion is made or considered to be made for federal purposes. Prepayment of Minimum Tax
If an election is made or considered to be made for federal Corporations subject to the minimum tax that meet the prepay-
purposes under IRC §338, other than under Subsection 338(h) ment requirement in the current year and had a tax liability
(10), the target corporation must fi le a separate entity one-day of $100 (the minimum tax) for the previous year may choose
form TC-20MC, as is required for federal purposes. The target to prepay the $100 minimum tax on the 15th day of the 12th
corporation must include in that return the gain or loss on the month instead of four payments of $25.
deemed sale of assets in its adjusted income (UC §59-7-114).
Corporations subject to the minimum tax that met the prepay-
The gain or loss on the deemed sale of assets must be appor- ment requirement in the previous year and have a tax liability
tioned to Utah using the apportionment fraction, calculated to of $100 (the minimum tax) in the current year may choose to
six decimals, of the target corporation, calculated on a separate prepay the minimum tax amount of $100 on the 15th day of
entity basis for the most recent preceding taxable year consisting the 12th month instead of four payments of $25. In this case,
of 180 days or more. the corporation must pay $100, not 90 percent.
If an election is made for federal purposes under IRC §338(h)(10) Corporations subject to the minimum tax that do not make
or IRC §336(e), do not use form TC-20MC, use form TC-20. the required prepayments are subject to a penalty. See Pen-
alties, below.
Where to File
Mail your return to: Prepayment Requirements
Utah State Tax Commission (Does not apply to One-day Target Corporations electing
210 N 1950 W under Section 338)
Salt Lake City, UT 84134-0300
Extension Prepayments
Taxable Year Extension prepayments must equal 90 percent of the cur-
rent year tax liability (or, if applicable, the $100 minimum tax,
The taxable year for Utah tax purposes must match the tax-
whichever is greater) or 100 percent of the previous year’s
able year used for federal tax purposes. When the taxable
tax liability.
year changes for federal purposes, the taxable year must be
changed for Utah tax purposes. Corporations subject to the minimum tax must pay the $100
minimum tax (per corporation in a combined group) even if
there was no previous year return.
Due Date
Use form TC-559, Corporation/Partnership Payment Coupon,
The due date for an exempt organization with unrelated busi- to make estimated prepayments.
ness income (TC-20MC, Schedule A, Part 4) is the same as
the due date of its federal return.
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
the taxable period of the target corporation immediately pre-
ceding the one-day return.
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2021 Utah TC-20MC Instructions 3
Quarterly Payments Prepayment of Minimum Tax Requirement
Every corporation having a Utah tax liability of $3,000 or more in the See Prepayment of Minimum Tax instructions above.
current taxable year, or a tax liability of $3,000 or more in the previ- NOTE: The prepayment penalty does not apply to a one-day
ous taxable year, must make quarterly estimated tax payments. target corporation under IRC §338.
A corporation does not need to make quarterly estimated tax
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. Interest (in addition to penalties due)
Interest is assessed on underpayments from the due date
Quarterly estimated payments are due on the 15th day of the
until the liability is paid in full. The interest rate for the 2022
4th, 6th, 9th and 12th months of the corporation’s taxable year,
calendar year is 2 percent.
unless federal action changes the federal quarterly due dates.
Corporations may elect to make the quarterly estimated tax For more information, get Pub 58, Utah Interest and Penalties,
payments equal to 100 percent of the prior year’s tax in four at tax.utah.gov/forms.
equal payments, or 90 percent 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 income install- Suspension for Failure to Pay
ments, for adjusted seasonal installments, and for estimated Tax Due
tax payments based on the current year tax liability, is: Utah law provides for suspension of a corporation’s right to do
Installment Percentage 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.
1st 22.5
If you cannot pay the full amount you owe, you can request a
2nd 45.0 payment plan. Log into your corporate account at tap.utah.gov
3rd 67.5 and click "Request waiver, payment plan or payment plan
email."
4th 90.0
You may also:
If you use a different annualization period than the period
used for federal purposes, you must make an election with the 1. complete form TC-804B, Business Tax Payment Agreement
Tax Commission at the same time as provided in IRC §6655. Request (tax.utah.gov/forms), or
Make estimated tax payments with form TC-559, Corporation/ 2. call the Tax Commission at 801-297-7703 or 1-800-662-
Partnership Payment Coupon. 4335 ext. 7703.
Corporations not making the required tax prepayments are
subject to a penalty as stated in Penalties, below. What to Attach and What to Keep
Include the following with your Utah TC-20MC. Also, keep
Penalties copies of these with your tax records.
Utah law (UC §59-1-401) provides penalties for not fi ling tax • Utah miscellaneous corporation return schedules:
returns by the due date, not paying tax due on time, not making Attach to TC-20MC the page 2 and applicable schedules
suffi cient prepayment on extension returns, and not fi ling informa- A (page 1 or page 2), B/E, and/or J.
tion returns or supporting schedules. See tax.utah.gov/billing/ • Federal return:
penalties-interest and Pub 58, Utah Interest and Penalties, at
• Regulated Investment Company – Attach a copy of
tax.utah.gov/forms.
your federal form 1120-RIC.
The Tax Commission will calculate the penalty for underpay- • Real Estate Investment Trust – Attach a copy of your
ment of required prepayments. federal form 1120-REIT.
• Homeowners Association – Attach a copy of your
Exceptions to Penalty on Estimated Tax federal form 1120-H.
Annualized Exception • Unincorporated Exempt Organization or Exempt
Corporation having Unrelated Business Income –
A corporation may annualize its income before determining Attach a copy of your federal form 990-T.
the amount of each estimated tax installment. Follow federal
guidelines to determine annualized income. If the corporation • One-day Target Corporation with an IRC Section
meets the annualized exception at the federal level for any 338 Election – Attach a copy of your federal return
installment, check the appropriate box(es) on form TC-20MC, including the IRC §338 gain or loss and federal form
line 16. 8023.
Do not send credit schedules, worksheets, or other docu-
Recurring Seasonal Exception mentation unless specifi cally requested in these instructions.
A corporation with recurring seasonal income may annualize Keep these in your fi les. We may ask you to provide them later
its income before determining the amount of each estimated to verify entries on your Utah return.
tax installment. Follow federal guidelines to determine sea-
sonal income. If the corporation meets the seasonal exception
at the federal level for any installment, check the appropriate
box(es) on form TC-20MC, line 16.
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2021 Utah TC-20MC Instructions 4
TC-20MC – Utah Tax Return for Miscellaneous
Corporations Instructions
Filing Period Reason-for-Amending Codes
File the 2021 return for calendar year 2021 and fi scal years 1 You fi led an amended federal return with the IRS. Attach
beginning in 2021 and ending in 2022. If the return is for a a copy of your amended federal return.
fi scal year or a short tax year (less than 12 months), fi ll in the 2 You made an error on your Utah return. Attach an 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 in the General Instructions.
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 Employer Identifi cation Number (EIN) and Enter an “X” on the line that matches the type of corporation
Utah Incorporation/Qualifi cation Number issued by the Depart- return being fi led. There are six choices:
ment of Commerce in the appropriate 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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2021 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
If you have a Utah sales tax license/account, report the use subject to use tax 4 _________
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, 2021)
Sales and use tax rates vary throughout Utah. Use the Use .0635 Beaver County .0635 Rich County
.0735 Beaver City .0795 Garden City
Tax Rate Chart below to get the rate for the location where .0610 Box Elder County .0725 Salt Lake County
the merchandise was delivered, stored, used or consumed. .0665 Brigham City, Perry, .0875 Alta
Use the county tax rate if the city is not listed. Willard .0835 Brighton
.0640 Mantua .0745 Murray, South Salt
Grocery food bought through the Internet or catalog is taxed .0710 Snowville Lake
at 3 percent. The grocery food must be sold for ingestion or .0670 Cache County .0775 Salt Lake City
chewing by humans and consumed for the substance’s taste .0695 Cache Valley Transit, .0635 San Juan County
Hyde Park, Lewiston, .0675 Blanding, Monticello
or nutritional value. The reduced rate does not apply to alco- Millville .0745 Bluff
holic beverages or tobacco. See Pub 25, Sales and Use Tax, .0700 Hyrum, Logan, .0635 Sanpete County
at tax.utah.gov/forms. Nibley, N. Logan, .0645 Centerfi eld, Mayfi eld
Providence, Rich- .0675 Ephraim, Fairview,
Smithfi eld
Line 4 – Current Year IRC §965(a) Installment mond, River Heights, Gunnison
.0635 Carbon County .0665 Mt. Pleasant
Amount .0645 Helper .0635 Sevier County
If you were liable for Utah tax on deferred foreign income de- .0675 Price .0645 Aurora, Redmond
.0665 Wellington .0675 Richfi eld, Salina
scribed in IRC §965(a) and you chose to pay the tax in eight .0735 Daggett County .0715 Summit County
yearly installments, enter the current-year installment amount .0845 Dutch John .0905 Mil. Rec. Park City, Park
on line 4. The installment is a percentage of the total Utah tax .0715 Davis County City
due, as reported on line 17 of form TC-20R. .0725 Bountiful, Centerville, .0745 Snyderville Basin
Clearfi eld, Farming- Transit
ton, Layton, N. Salt .0660 Tooele County
Installment Table Lake, Syracuse, W. .0690 Erda, Grantsville,
First installment: 8% (paid with TC-20R) Bountiful, Woods Lakepoint, Lincoln,
Cross Stansbury Park
Second Installment: 8% .0635 Duchesne County .0700 Tooele City
Third installment: 8% .0645 Duchesne City .0645 Uintah County
.0675 Roosevelt .0695 Naples, Vernal
Fourth installment: 8% .0635 Emery County .0715 Utah County
Fifth installment: 8% .0825 Green River .0725 American Fork, Cedar
.0710 Garfi eld County Hills, Lindon, Orem,
Sixth installment: 15% .0810 Boulder, Panguitch, Payson, Pleasant
Seventh installment: 20% Tropic Grove, Provo, Santa-
quin, Spanish Fork,
Eighth installment: 25% .0830 Bryce Canyon Vineyard
.0820 Escalante .0610 Wasatch County
Line 5 – Total Tax .0685 Grand County .0640 Heber
.0885 Moab .0720 Independence
Add lines 2, 3 and 4. .0610 Iron County .0750 Midway
.0810 Brian Head .0800 Park City East
Line 6 – Refundable Credits .0620 Cedar City .0645 Washington County
.0610 Juab County .0675 Hurricane, Ivins, La
Enter the total of the refundable credits listed on Schedule B. .0650 Nephi Verkin, St. George,
.0635 Santaquin South Santa Clara, Washing-
Line 7 – Prepayments from Schedule E .0710 Kane County ton City
.0820 Kanab .0805 Springdale
A refundable credit is allowed for advance payments made as .0810 Orderville .0745 Virgin
quarterly estimated tax payments, prepayments and extension .0635 Millard County .0610 Wayne County
.0645 Fillmore .0725 Weber County
payments (form TC-559). Include any overpayment from a prior .0620 Morgan County .0745 Falcon Hill Riverdale,
year that was applied to this year. Enter the prepayments on .0645 Morgan City Riverdale
Schedule E and carry the total from line 4 of Schedule E to line .0610 Piute County
7 of the TC-20MC.
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2021 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. Refer to Prepayment Re- similar document administered by the Tax Commission, and
quirements in the General Instructions for exceptions to the who knows or has reason to believe it may understate a tax,
penalty on underpayments. 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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2021 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 2021 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 2021 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 4.95 percent (.0495). 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, 13 or 14, 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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2021 Utah TC-20MC Instructions 8
If you are carrying forward losses from tax years that began If you own an interest in an LLC, partnership, S-corporation
both before AND after Jan. 1, 2018, use the Part 2, Line 7 or trust that received a PPP grant or loan meeting these re-
Worksheet, below, to calculate the amount you may claim quirements, include your distributed share on this line. (See
this year. the "Other Income" line of Utah Schedule K-1 received from
the LLC, partnership, S-corporation or trust.)
Attach documentation to the return to support the losses.
Line 2 – Tax
Part 2, Line 7 Worksheet Multiply line 1 by 4.95 percent (.0495). This is the Utah cor-
Use this worksheet if you have losses from tax years both before porate tax. Do not enter an amount less than zero. Carry this
and after Dec. 31, 2017. tax to line 2 of TC-20MC.
1. Current-year Utah income 1_______ A homeowners association is not subject to the $100 minimum tax.
(enter the amount from Sch. A, Part 2, line 6)
Homeowners associations fi ling federal form 1120-H and
2. 80% of taxable income 2_______ Utah TC-20MC are not allowed net operating loss deductions.
(multiply line 1 by 0.8)
Note: Attach a copy of your federal form 1120-H to your Utah
3. Losses from 2017 and earlier 3_______ return.
4. Available losses from 2017 and earlier 4 _______
(enter the lesser of line 1 and line 3)
5. Taxable income after 2017 and earlier losses 5 _______ Part 4 – Unincorporated Exempt
(line 1 minus line 4) Organization or Exempt Corporation
6. Losses from 2018 and later 6_______ having Unrelated Business Income
7. Available losses from 2018 and later 7_______ Remember to mark line 1 on TC-20MC showing this return is for
(enter the lesser of line 2, line 5 and line 6) an Unincorporated Exempt Organization or Exempt Corporation
8. Total available losses 8 _______ having Unrelated Business Income.
(add line 4 and line 7)
Line 1 – Unrelated Business Taxable
Enter line 8 on Schedule A, Part 2, line 7.
Income (Loss)
Attach a copy of this worksheet to your return.
Enter the unrelated business taxable income (loss) from federal
form 990-T, line 11.
Line 8 – Utah Taxable income (Loss) Add to this amount any COVID-19 Payroll Protection Program
(PPP) grant or loan amount that:
Subtract line 7 from line 6.
1. was forgiven during the 2021 tax year,
Line 9 – Initial Tax 2. is exempt from federal income tax, and
Multiply line 8 by 4.95 percent (.0495). This is the initial Utah 3. you used for expenses that you deducted on your federal
corporate tax. Do not enter an amount less than zero. tax return.
Line 10 – Minimum Tax If you own an interest in an LLC, partnership, S-corporation
or trust that received a PPP grant or loan meeting these re-
The minimum tax for a real estate investment company is $100. quirements, include your distributed share on this line. (See
the "Other Income" line of Utah Schedule K-1 received from
Line 11 – Tax the LLC, partnership, S-corporation or trust.)
Enter the larger of the tax on line 9 or the minimum tax on
line 10. Carry this tax to line 2 of TC-20MC. Line 2 – Apportionment Fraction
Note: Attach a copy of your federal form 1120-REIT to your Enter 1.000000, or the fraction (decimal) from TC-20, Schedule
Utah return. J, line 9 or 10, if applicable.
Note: Only the property, payroll and sales included in the
computation of unrelated business income or directly related
Part 3 – Homeowners Association with IRC to the unrelated business income of an exempt organization
Section 528 Income may be included when apportioning income.
Remember to mark line 1 on TC-20MC showing this return is
for a Homeowners Association. Line 3 – Utah Taxable Income (Loss)
Multiply the unrelated business taxable income (loss) on line
Line 1 – Taxable Income (Loss) 1 by the apportionment fraction on line 2.
Enter the taxable income (loss) from federal form 1120-H, line 19. Utah taxable income for an exempt organization having unre-
Add to this amount any COVID-19 Payroll Protection Program lated business income begins with federal taxable income after
(PPP) grant or loan amount that: deduction of any federal net operating loss. Consequently, Utah
1. was forgiven during the 2021 tax year, losses are not separately carried forward for these entities.
2. is exempt from federal income tax, and Line 4 – Tax
3. you used for expenses that you deducted on your federal Multiply line 3 by 4.95 percent (.0495). This is the Utah cor-
tax return. porate tax. Do not enter an amount less than zero. Carry this
tax to line 2 of TC-20MC.
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2021 Utah TC-20MC Instructions 9
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
and after Dec. 31, 2017.
Remember to mark line 1 on TC-20MC showing this return is
for a One-day Target Corporation with an IRC §338 Election. 1. Current-year Utah income 1_______
(enter the amount from Sch. A, Part 5, line 3)
Line 1 – Gain (Loss) on Deemed Sale of Assets 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 3. Losses from 2017 and earlier 3_______
the target corporation. 4. Available losses from 2017 and earlier 4 _______
Add to this amount any COVID-19 Payroll Protection Program (enter the lesser of line 1 and line 3)
(PPP) grant or loan amount that: 5. Taxable income after 2017 and earlier losses 5 _______
1. was forgiven during the 2021 tax year, (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_______
(enter the lesser of line 2, line 5 and line 6)
tax return.
8. Total available losses 8 _______
If you own an interest in an LLC, partnership, S-corporation (add line 4 and line 7)
or trust that received a PPP grant or loan meeting these re-
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 Attach a copy of this worksheet to your return.
the LLC, partnership, S-corporation or trust.)
Line 2 – Apportionment Fraction Line 5 – Utah Taxable Gain (Loss)
Enter the apportionment fraction of the target corporation. Subtract line 4 from line 3.
The gain or (loss) on the deemed sale of assets must be ap-
Line 6 – Initial Tax
portioned to Utah using the apportionment fraction, calculated
to six decimals, of the target corporation. This fraction must Multiply line 5 by 4.95 percent (.0495). This is the initial Utah
be calculated on a separate entity basis for the most recent corporate tax. Do not enter an amount less than zero.
preceding taxable year consisting of 180 days or more.
Line 7 – Minimum Tax
Line 3 – Utah Apportioned Gain (Loss) The minimum tax for a one-day target corporation is $100.
Multiply the gain (loss) on deemed sale of assets on line 1 by
the apportionment fraction on line 2. Line 8 – Tax
Enter the larger of the tax on line 6 or the minimum tax on
Line 4 – Utah Losses Carried Forward line 7. Carry this tax to line 2 of TC-20MC.
from Prior Years Note: Attach a copy of your federal form 8023 to your Utah
Enter Utah net losses carried forward from prior years. 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 3. 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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2021 Utah TC-20MC Instructions 10
Schedule B – Refundable Credits
If you claim any of the following refundable credits, write Attach copies of Utah Schedule K-1(s) to the return to receive
the code and amount of each credit you are claiming on proper credit.
Schedule B. Add all the refundable credits and carry the total
to TC-20MC, line 6. (46) Mineral Production Withholding Tax Credit
(UC §59-6-102)
An explanation of each refundable credit is listed below.
Enter the total of the mineral production tax withheld as shown
on forms TC-675R or Utah Schedule K-1(s) for the tax year.
Use these codes on Schedule B For a fi scal year corporation, the credit is claimed on the
39 Renewable Commercial Energy Systems Credit corporate return that is required to be fi led during the year
43 Pass-through Entity Withholding Tax Credit following the December closing period of the form TC-675R.
46 Mineral Production Withholding Tax Credit
47 Agricultural Off-highway Gas/Undyed Diesel Fuel Attach copies of form TC-675R or Utah Schedule K-1(s) to
Credit the return.
48 Farm Operation Hand Tools Credit
(47) Agricultural Off-Highway Gas/Undyed Diesel Fuel
Credit
(39) Renewable Commercial Energy Systems Credit (UC §59-13-202)
(UC §59-7-614) You may claim a credit of 31.4 cents per gallon for motor fuel
Get form TC-40E, Renewable Residential and Commercial and undyed diesel fuel bought in Utah during 2021 and used
Energy Systems Tax Credits, from the Governor's Offi ce of to operate stationary farm engines and self-propelled farm
Energy Development with their certifi cation stamp. Do not machinery used solely for commercial non-highway agricultural
send this form with your return. Keep the form and all related use if the fuel was taxed at the time it was bought.
documents with your records to provide the Tax Commission This does not include golf courses, horse racing, boat opera-
upon request. tions, highway seeding, vehicles registered for highway use,
For more information, contact: hobbies, personal farming and other non-agricultural use.
Governor's Offi ce of Energy Development (OED)
PO Box 144845 Credit calculation:
Salt Lake City, UT 84114
801-538-8732 or 801-538-8702 Gallons _______ x .314 = Credit _______
energy.utah.gov/renewable-energy-
systems-tax-credit There is no form for this credit. Keep all related documents
with your records to provide the Tax Commission upon request.
(43) Pass-through Entity Withholding Tax Credit
(UC §59-7-614.4) (48) Farm Operation Hand Tools Credit
If a pass-through entity is required to withhold Utah income tax (UC §59-7-614.1)
on any income attributable to this corporation under §59-10- This credit is for sales and use tax paid on hand tools pur-
1403.2, the pass-through entity must provide a Utah Schedule chased and used or consumed primarily and directly in a farm-
K-1 showing the amount of Utah withholding paid on behalf ing operation in Utah. The credit only applies if the purchase
of this corporation. Enter this amount as a refundable credit price of a tool is more than $250.
using code 43.
There is no form for this credit. Keep all related documents
with your records to provide the Tax Commission upon request.
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2021 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 If a corporation holds direct and indirect ownership interests in
income attributable to Utah, if the taxpayer does business both tiered pass-through entities, it must include its pro rata share
within and outside of Utah. of the apportionment factors (property, payroll and sales) of
Complete TC-20, Schedule J to determine the apportionment the pass-through entities, applying the respective ownership
fraction (decimal). The factors express a ratio for property in percentages. For example, a corporation that holds 50 percent
Utah to total property everywhere, for wages and salaries in interest in Partnership A that in turn holds 20 percent interest
Utah to total wages and salaries everywhere, and for sales in Partnership B would include 50 percent of the factors of
in Utah to total sales everywhere. Use these factors or ratios Partnership A, and 10 percent (50 percent of 20 percent) of
to arrive at the Utah apportionment fraction calculated to six the factors of Partnership B.
decimals. Then apply this fraction (decimal) to the apportion-
able income (or loss) on Schedule A to arrive at the amount Apportionment Method
of income (or loss) apportioned to Utah. In cases where one
or more of the factors is omitted due to peculiar aspects of To determine if you must apportion income using the single
the business operations, use the number of factors present sales factor formula or if you qualify as an optional apportion-
to determine the Utah apportionment fraction. ment taxpayer, take into account the economic activities of
each of the entities included in the return. Include the eco-
Your economic activities, and your method of apportioning nomic activities of any pass-through entities whose income
income in the previous year, dictate the apportionment method and factors are included in the return.
you may use.
Use the fl owchart (below) to determine the method you must
use to apportion business income.
Pass-through Entity Taxpayers
Partners, shareholders and benefi ciaries of pass-through
entities (an entity taxed as a partnership, s-corporation or
trust) must include their pro rata share of the pass-through
entity's property, payroll and sales in their calculation of the
apportionment factor on TC-20, Schedule J, page 1.
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2021 Utah TC-20MC Instructions 12
Sales Factor Weighted Taxpayers
Optional Apportionment or Sales Factor Weighted? A sales factor weighted taxpayer may only use the sales factor
Did the taxpayer apportion income using the phased-in weighted apportionment formula.
sales factor weighted fraction during the prior taxable year? You must use the single sales factor formula if you either:
1. apportioned income using the sales factor weighted frac-
YES NO
tion during the prior taxable year,
2. apportioned income using the phased-in sales factor for-
Did the taxpayer apportion income using single mula during the prior taxable year, or
sales factor during the prior taxable year?
3. generate more than 50 percent of total sales everywhere
YES NO from economic activities in any NAICS codes OTHER
THAN these identifi ed NAICS codes:
• Sector 21, Mining;
Does the taxpayer generate greater than
50 percent of total sales everywhere from • Industry Group 2212, Natural Gas Distribution;
economic activities in NAICS codes • Sector 31-33, Manufacturing EXCEPT:
OTHER THAN the identified NAICS codes? • Industry Group 3254, Pharmaceutical and Medicine
Manufacturing
YES NO
• Industry Group 3333, Commercial and Service
Industry Machinery Manufacturing
Does average value of the taxpayer’s
property and payroll in Utah attributable • Subsector 334, Computer and Electronic Product
to the excluded NAICS codes exceed Manufacturing
50 percent of the average value of all the • Code 336111, Automobile Manufacturing
taxpayer’s property and payroll in Utah? • Sector 48-49, Transportation and Warehousing
NO YES • Sector 51, Information EXCEPT:
• Subsector 519, Other Information Services
Single Sales Factor Optional Apportionment • Sector 52, Finance and Insurance
Can choose: Report property and payroll factors on Schedule J, page 1,
1. equally-weighted; or but do not use them to calculate the apportionment of sales
2. single sales factor factor weighted taxpayers.
Sales factor weighted taxpayers must calculate the appor-
Excluded NAICS Codes: tionment fraction on Schedule J, Page 2 using Part 2 - Sales
Code 211120 Crude Petroleum Extraction Factor Formula.
Industry Group 2121 Coal Mining
Industry Group 2212 Natural Gas Distribution Optional Apportionment Taxpayers
Subsector 311 Food Manufacturing
Industry Group 3121 Beverage Manufacturing To determine if you are an optional apportionment taxpayer,
Code 327310 Cement Manufacturing fi rst calculate the following property and payroll factor fractions:
Subsector 482 Rail Transportation • Property factor fraction: Add together the value of prop-
Code 512110 Motion Picture and Video Production erty in Utah attributable to economic activities that are
Subsector 515 Broadcasting (except internet) classifi ed in an excluded NAICS code. Divide this number
Code 522110 Commercial Banking by the value of all property in Utah. Remove property from
this calculation if the property is attributable to economic
Identified NAICS Codes:
activities in both excluded NAICS codes and non-excluded
Sector 21 Mining; NAICS codes.
Industry Group 2212 Natural Gas Distribution
Sector 31-33 Manufacturing EXCEPT: • Payroll factor fraction: Add together the amount of payroll
• Industry Group 3254 Pharmaceutical & Medicine in Utah attributable to economic activities that are clas-
Manufacturing sifi ed in an excluded NAICS code. Divide this number by
• Industry Group 3333 Commercial & Service Industry the total amount of payroll in Utah. A taxpayer engaged
Machinery Manufacturing in activities in an excluded NAICS code must remove an
• Subsector 334 Computer & Electronic Manufacturing individual’s payroll from this calculation of the payroll fac-
• Code 336111 Automobile Manufacturing tor fraction if the individual’s payroll may be attributed to
Sector 48-49 Transportation & Warehousing economic activities in both excluded NAICS codes and
Sector 51 Information EXCEPT: NAICS codes that are not excluded, or to providing man-
• Subsector 519 Other Information Services agement, information technology, fi nance, accounting,
Sector 52 Finance & Insurance legal or human resource services.
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2021 Utah TC-20MC Instructions 13
Add the property and payroll factor fractions and divide that included in the Utah factor to the extent the services, for which
sum by two. If either the property factor fraction or payroll factor the compensation was paid, were rendered in Utah.
fraction has a denominator of zero, or is otherwise excluded, Compensation is paid in Utah if:
divide by one. If the average is greater than 50 percent, you
are an optional apportionment taxpayer. 1. the individual’s service is performed entirely within Utah;
Optional apportionment taxpayers may calculate the ap- 2. the individual’s service is performed both within and outside
portionment fraction using either the equally-weighted three Utah, but the service performed outside Utah is incidental
factor formula (Schedule J, Part 1) or the sales factor formula to the individual’s service within Utah; or
(Schedule J, Part 2). 3. some of the service is performed in Utah and:
Excluded NAICS codes are NAICS codes of the 2017 North a. the base of operations or, if there is no base of operations,
American Industry Classifi cation System within: the place where the service is directed or controlled, is
within Utah; or
• Code 211120, Crude Petroleum Extraction
b. the base of operations or the place where the service
• Industry Group 2121, Coal Mining is directed or controlled is not in any state where some
• Industry Group 2212, Natural Gas Distribution part of the service is performed, but the individual’s
• Subsector 311, Food Manufacturing residence is in Utah.
• Industry Group 3121, Beverage Manufacturing Amounts reportable for employment security purposes may
ordinarily be used to determine the wage factor.
• Code 327310, Cement Manufacturing
Overall wages, including Utah, are listed in column B.
• Subsector 482, Rail Transportation
• Code 512110, Motion Picture and Video Production 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
• Subsector 515, Broadcasting (except Internet) received.
• Code 522110, Commercial Banking
Line 4 – Payroll Factor Calculation
Determine the payroll factor (decimal) by dividing line 3a,
Line Instructions column A by line 3a, column B.
Business Activity
Lines 5a - 5h – Sales Factor
Briefl y describe the nature and location(s) of your Utah busi-
The sales factor is the fraction the sales or charges for ser-
ness activities in the space provided at the top of this schedule.
vices within Utah for the taxable year bear to the overall sales
Lines 1a - 1f – Property Factor for the taxable year. Gross receipts from the performance of
services in Utah are assigned to the Utah sales numerator if
Show the average cost value during the taxable year of real the purchaser of the service receives a greater benefi t of the
and tangible personal property used in the business within service in Utah than in any other state.
Utah (including leased property) in column A and overall
(including Utah) in column B. Taxpayers that perform a service both in and outside Utah
must include service income on line 5g in column A (Inside
Property you own is valued at its original cost. Property you Utah) if the purchaser of the service receives a greater
rent is valued at eight times the net annual rental rate. Net benefi t of the service in Utah than in any other state. The
annual rental rate is the annual rental rate you pay less the former “cost of performance” method no longer applies. (See
annual rate you receive from sub-rentals. UC §59-7-319(3)(a).)
The average value of property must be determined by averag- Sales of tangible personal property are in Utah if the property
ing the cost values at the beginning and end of the tax period. is delivered or shipped to a purchaser within Utah regardless
However, monthly values may be used or required if monthly of the F.O.B. point or other conditions of the sale, or if the
averaging more clearly refl ects your property’s average value. property is shipped from an offi ce, store, warehouse, factory
Attach a supporting schedule whenever you use monthly or other place of storage in Utah and:
averaging. 1. the purchaser is the United States Government, or
If you are a pass-through entity taxpayer, add to line 1e any 2. the taxpayer is not taxable in the state of the purchaser.
amounts listed on line J of any TC-65 Schedule K-1 you have
Overall sales, including Utah, are listed in column B.
received.
Note: Securities brokerage businesses must follow the provi-
Enter totals of lines 1a through 1e in the respective columns
sions in UC §59-7-319(6).
on line 1f.
If you are a pass-through entity taxpayer, add to line 5g any
Line 2 – Property Factor Calculation amounts listed on line L of any TC-65 Schedule K-1 you have
Determine the property factor (decimal) by dividing line 1f, received.
column A by line 1f, column B. Enter totals of lines 5a through 5g in their respective columns
on line 5h.
Line 3 – Payroll Factor
Wages, salaries, commissions and other includable com- Line 6 – Sales Factor Calculation
pensation paid to employees for personal services must be Determine the sales factor (decimal) by dividing line 5h, column
A by line 5h, column B.
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2021 Utah TC-20MC Instructions 14
NAICS Code for Taxpayer Part 2 – Sales Factor Formula
See instructions above for the defi nition and qualifi cations
Line 7 – NAICS Code of a taxpayer who must apportion income using the sales
This is a mandatory fi eld. Your NAICS code may dictate your factor formula.
apportionment method. Leave line 10 blank if you are using the equally-weighted
Enter on line 7 the NAICS code for the primary business activ- three-factor formula.
ity. Do not use the holding company NAICS code.
Line 10 – Apportionment Fraction
If multiple NAICS codes apply to this fi ling, attach an explana-
tion showing the percentage of business activity associated Enter the sales factor from line 6 of Schedule J, page 1. This
with each NAICS code. is the apportionment fraction for this apportionment method.
(Property and payroll factors are not used in the calculation of
the apportionment fraction for taxpayers who must apportion
Apportionment Fraction income using the single sales factor formula.)
Enter the apportionment fraction (decimal) here and on
Part 1 – Equally-Weighted Three Factor Schedule A.
Formula
If you are an optional apportionment taxpayer using the Specialized Apportionment Laws
equally-weighted three factor formula, complete lines 8 and and Rules
9. Otherwise, leave lines 8 and 9 blank.
Specialized apportionment procedures apply for:
Line 8 – Total Factors • Trucking Companies (R865-6F-19)
Enter the sum of the factors from lines 2, 4 and 6. • Railroads (R865-6F-29)
• Publishing Companies (R865-6F-31)
Line 9 – Apportionment Fraction
• Financial Institutions (R865-6F-32)
Calculate the apportionment fraction to six decimals by dividing
line 8 by the number of factors used (typically 3 – property, • Telecommunications (R865-6F-33)
payroll and sales). • Registered Securities or Commodities Broker or Dealer
• If one or more of the factors are not present (i.e., there is a (R865-6F-36)
zero in the denominator on lines 1f, 3a or 5h in column B), • Airlines (UC §§59-7-312 thru 319)
divide by the number of factors present. • Sale of Management, Distribution or Administration Ser-
• If the numerator is zero, but a denominator is present, vices to or on Behalf of a Regulated Investment Company
include that factor in the number of factors present. (UC §59-7-319(5))
Enter the apportionment fraction (decimal) here and on
Schedule A.
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2021 Utah TC-20MC Instructions 15
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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