2004 Form Tc-20 Utah Corporation Franchise Or Income Tax Return And Instructions (Page 19 of 19) in pdf

2004 Form Tc-20 Utah Corporation Franchise Or Income Tax Return And Instructions Page 19

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 specific election to carryback the Utah loss. Losses may be

carried forward for 15 taxable years. See the instructions for Schedule A, lines 12 and 13.

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

integrated unitary business must file on a combined basis. See instructions on page 3.

3. Utah sales factor – Out-of-state corporations qualified in Utah, but not “doing business” in Utah are

required to file 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 Administrative Rule

R865-6F-24. Conversely, corporations making sales from Utah into a state where they are qualified, but

not “doing business” are required to include such sales in the Utah gross receipts numerator as throwback

sales, except as provided under Utah Administrative Rule R865-6F-24.

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

or may be carried forward. See UCA 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 UCA reference.

Please compile 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 four pages of the federal return (plus Form 1120, Schedule M-3, if applicable)

5. Other supporting documentation

2004 Form Tc-20 Utah Corporation Franchise Or Income Tax Return And Instructions Page 19