Form Tc-65 - Partnership/ Limited Liability Partnership/ Limited Liability Company - 2012 Page 23
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26Schedule N · Pass-through Entity
Withholding Tax Instructions
The partnership, as a pass-through entity, must pay or
Requesting the waiver for all or specifi c partners does
withhold tax on behalf of each nonresident individual
not relieve the partnership from the responsibility for the
partner and each resident or nonresident business
payment of Utah tax on the income allocated to partners
partner (collectively referred to as pass-through en-
if the partners do not pay. If the partner or partners for
tity taxpayers) unless a withholding waiver request
whom you requested a waiver fail to fi le a return and
is made (see below). A partnership is not required to
make the required payment in a timely manner, you will
withhold on a partner that is exempt from the tax under
be liable for the withholding on those amounts, plus any
UC §59-7-102(1)(a) or §59-10-104.1, or the partner-
associated penalties and interest.
ship is a plan under IRC Sections 401, 408 or 457 and
Line A – Name of Partner
is not required to fi le a return under UC Chapter 7. A
publicly traded partnership meeting the requirements
(Pass-through Entity Taxpayer)
of UC §59-10-1403.2(1)(b) does not have to withhold
Enter the name of each nonresident individual partner,
Utah tax on its partners.
or resident or nonresident business partner (referred
to as a pass-through entity taxpayer).
A partner’s share of taxable income is based on the
percent determined in the partnership agreement for
Line B – Withholding Waiver for this Partner
the partner on the last day of the partnership fi ling
If you entered either a “1” or a “2” in the Withholding
period, unless there was a change in ownership dur-
Waiver Request box at the top of the Schedule N,
ing the fi ling period. If there was a change in partners
enter an “X” on line B if this partner is included in the
during the year, each partner’s percentage of income
waiver request.
is prorated by the number of days the interest was
owned during the fi ling period.
If you check this box, enter a “0” on line F for the partner.
Partners may take a credit for the amount of tax paid
Line C – SSN/EIN of Partner
by the partnership on their behalf. To claim the credit,
Enter the social security number (SSN) of each non-
the partner must fi le a Utah income tax return for the
resident individual partner, or the federal employer
taxable year. A partner subject to withholding by the
identifi cation number (EIN) of each resident or non-
partnership and who has no other Utah source income
resident business partner.
may elect to forego the credit and not fi le a Utah income
tax return. However, partners with income or loss from
Line D – Percent of Income or Ownership for
other Utah sources must fi le a Utah income tax return.
Partner
A partner who is eligible for Utah tax credits, in addi-
Enter the percent of income for each partner based on
tion to the pass-through tax withheld, must fi le a Utah
the partnership agreement, or the percent of owner-
income tax return to claim those credits.
ship in the partnership by each partner, to four decimal
places. You must enter either the percent of income
If the partner is a pass-through entity, it must fi le a Utah
or the percent of ownership in the partnership for all
return to report its income/loss and withholding alloca-
partners; do not mix the percentages. See Utah Rule
tions to its partners/members/shareholders.
R865-9I-13.
Partnerships having partners for whom withholding is
required must complete Schedule N showing the amount
Line E – Income (Loss) Attributable to Utah
of Utah income attributable to the partner, the amount
Enter the income (loss) attributable to Utah and taxable
of Utah tax on such income (5%), any Utah mineral
to the pass-through entity taxpayer.
production withholding tax and upper-tier Utah pass-
Calculate this income for a pass-through entity tax-
through entity withholding tax credited to the partners,
payer by multiplying the amount on Schedule A, line
and the net amount of withholding tax this partnership
16 by each pass-through entity taxpayer’s percentage
must pay on behalf of such partners. Use additional
shown on line D (or in accordance with the partnership
forms TC-65, Schedule N, if needed,
agreement, if different).
Withholding Waiver Request
If the partner received a guaranteed payment attribut-
able to Utah source income, include that guaranteed
(UC §59-10-1403.2(5))
payment (other than any health insurance included in
the guaranteed payment) in the amount reported on
You may request a waiver from the requirement to with-
line E. Utah pass-through withholding tax must include
hold Utah income tax on pass-through entity taxpayers
that payment. Guaranteed payments are sourced to
by entering a “1” in the box if the waiver is for all partners,
the state or country where the income was generated,
or a “2” if the waiver is for only certain partners. Also
regardless of provisions which are contrary in the
enter an “X” on line B and a “0” in column F for each
partnership agreement.
partner for whom the waiver is requested.
Page 21
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