Instructions For Form Tc-20s - Utah S Corporation Tax Return - 2012 Page 24
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28Schedule N – Pass-through Entity
Withholding Tax Instructions
The S corporation, as a pass-through entity, must pay
Requesting the waiver for all or specifi c shareholders
or withhold tax on behalf of each nonresident individual
does not relieve the S corporation from the responsibility
shareholder and each resident or nonresident trust
for the payment of Utah tax on the income allocated
business shareholder (collectively referred to as pass-
to shareholders if the shareholders do not pay. If the
through entity taxpayers) unless a withholding waiver
shareholder or shareholders for whom you requested
request is made (see below). An S corporation is not
a waiver fail to fi le a return and make the required
required to withhold on a shareholder that is exempt
payment in a timely manner, you will be liable for the
from the tax under UC §59-7-102(1)(a) or §59-10-104.1,
withholding on those amounts, plus any associated
or this corporation is a plan under IRC Sections 401,
penalties and interest.
408 or 457 and is not required to fi le a return under
Line A – Name of Shareholder (Pass-through
UC Chapter 7, or is a publicly traded partnership as
defi ned under UC §59-1403.2(1)(b).
Entity Taxpayer)
Enter the name of each nonresident individual share-
Ownership Percent: A shareholder’s share of tax-
holder, or resident or nonresident trust shareholder
able income is based on the ratio of stock held by the
(referred to as a pass-through entity taxpayer).
shareholder to the total outstanding stock on the last
day of the corporate fi ling period, unless there was a
Line B – Withholding Waiver for this Shareholder
change in ownership during the fi ling period. If there
If you entered either a “1” or a “2” in the Withholding
was a change in shareholders or in the relative interest
Waiver Request box at the top of the Schedule N,
in stock the shareholders owned, each shareholder’s
enter an “X” on line B if this shareholder is included in
percentage of ownership is prorated by the number
the waiver request.
of days the stock was owned during the fi ling period.
If you check this box, enter a “0” on line F for the
Shareholders may take a credit for the amount of tax
shareholder.
paid by the S corporation on their behalf. To claim the
credit, the shareholder must fi le a Utah income tax
Line C – SSN/EIN of Shareholder
return for the taxable year. A shareholder subject to
Enter the social security number (SSN) of each non-
withholding by the S corporation and who has no other
resident individual shareholder, or the federal employer
Utah source income may elect to forego the credit and
identifi cation number (EIN) of each resident or nonresi-
not fi le a Utah income tax return. However, shareholders
dent business shareholder.
with income or loss from other Utah sources must fi le
a Utah income tax return. A shareholder who is eligible
Line D – Percent of Ownership in S Corporation
for Utah tax credits, in addition to the pass-through tax
by Shareholder
withheld, must fi le a Utah income tax return to claim
Enter the percent of the S corporation the pass-through
those credits.
entity taxpayer owns, to four decimal places.
If the shareholder is a pass-through entity, it must fi le
Line E – Income (Loss) Attributable to Utah
a Utah return to report its income/loss and withhold-
Enter the income (loss) attributable to Utah and taxable
ing allocations to its partners/members/shareholders.
to the pass-through entity taxpayer.
S corporations having shareholders for whom withhold-
Calculate this income for a pass-through entity tax-
ing is required must complete Schedule N showing the
payer by multiplying the amount on Schedule A, line
amount of Utah income attributable to the sharehold-
13 by each pass-through entity taxpayer’s percentage
ers, the amount of Utah tax on such income (5%), any
shown on line D.
Utah mineral production withholding tax and upper-tier
Utah pass-through entity withholding tax credited to the
Line F – 5% of Income
shareholders, and the net amount of withholding tax this
Multiply the amount of income attributable to Utah for
S corporation must pay on behalf of such shareholders.
each pass-through entity taxpayer (line E) by 5%. If
Use additional forms TC-20S, Schedule N, if needed.
the amount on line E is a loss, enter “0.” Also enter
“0” if the waiver request has been requested for this
Withholding Waiver Request
shareholder (box B checked).
(UC §59-10-1403.2(5))
Line G – Mineral Production Withholding Credit
You may request a waiver from the requirement to
Enter the amount of any mineral production withholding
withhold Utah income tax on pass-through entity tax-
tax allocated by the S corporation to the pass-through
payers by entering a “1” in the box if the waiver is for
entity taxpayer. The credit for mineral production with-
all shareholders, or a “2” if the waiver is for only certain
holding tax reduces the amount of Utah withholding
shareholders. Also enter an “X” on line B and a “0” in
tax that is calculated for this shareholder on Schedule
column F for each shareholder for whom the waiver
N. The credit should also be reported on line 20 of
is requested.
Schedule K-1 for this shareholder.
Page 22
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