Form Tc-20 - Utah Corporation Franchise Or Income Tax Return Instructions

Form Tc-20 - Utah Corporation Franchise Or Income Tax Return Instructions - 2011 Page 25

Common Return Errors

1. Losses applied incorrectly – For tax years beginning on or after Jan. 1, 1994, if an election is made

to forego the federal net operating loss carryback, a similar election is considered to be made for Utah

purposes, unless the taxpayer makes a speciﬁ c election to carryback the Utah loss. Losses may be

carried forward for 15 taxable years. See the instructions for Schedule A, lines 15 and 16. Use form

TC-20L, Utah Application for Refund from a Corporation Loss Carryback to calculate the carryback.

2. Unitary businesses not ﬁ ling a combined report – Groups of corporations that are engaged in an

integrated unitary business must ﬁ le on a combined basis. See instructions on page 4.

3. Utah sales factor – Out-of-state corporations qualiﬁ ed in Utah, but not doing business in Utah are

required to ﬁ le a corporate return paying the minimum tax. However, sales into Utah are not required

to be included in the gross receipts numerator, except as provided under Utah Rule R865-6F-24. Con-

versely, corporations making sales from Utah into a state where they are qualiﬁ ed but not doing business

are required to include such sales in the Utah gross receipts numerator as throwback sales, except as

provided under Utah Rule R865-6F-24.

4. Net capital losses may not be carried back – Capital losses may be deducted in full in the year in-

curred or may be carried forward. See UC 59-7-106(2).

5. Dissolution or withdrawal – Corporations no longer in business or no longer doing business in Utah

are required to legally dissolve or withdraw the corporation. See instructions on page 1.

6. Nonrefundable and refundable credit codes – Use the two-digit codes provided in the instructions,

not the UC section reference.

Please arrange your return in the following order:

1. Utah form TC-20

2. Utah schedules A through M (if required) in alphabetical order

3. Federal extension form, if applicable

4. First ﬁ ve pages only of your federal return (plus Form 1120, Schedule M-3

and IRS form 1125-A, if applicable)

5. Other supporting documentation only as requested in these instructions

Do not send a copy of your entire federal corporation return.

Form Tc-20 - Utah Corporation Franchise Or Income Tax Return Instructions - 2011 Page 25