2004 Form Tc-20 Utah Corporation Franchise Or Income Tax Return And Instructions (Page 3 of 19) in pdf

end and the new taxable year-end. The tax rates as

justed seasonal installments, and for estimated tax

provided in UCA §59-7-104 and §59-7-201 apply to

payments based on the current year tax liability, is the

short period returns, which includes a minimum tax of

following:

$100.

Installment

Percentage

Due Date

1st

22.5

2nd

45.0

Returns must be filed on or before the 15th day of the

3rd

67.5

fourth month following the close of the taxable year.

4th

90.0

Where to File

If a taxpayer elects a different annualization period than

the period used for federal purposes, the taxpayer must

Mail the completed return and any payment to:

make an election with the Tax Commission at the same

Utah State Tax Commission

time as provided in IRC Section 6655. Estimated tax

210 N 1950 W

payments should be made with form TC-559, “Utah

Salt Lake City, UT 84134-0300

Corporation Franchise/Income Tax Payment Coupon.”

Filing Extension

Penalties

Corporations are automatically allowed an extension of

up to six months to file a return without filing an extension

Utah law provides for uniform tax penalties for failure to

form. This is an extension of time to file the return —

file tax returns, failure to pay tax due and failure to file

NOT an extension of time to pay taxes. To avoid

information returns or supporting schedules.

penalty and interest, the prepayment requirements must

be met on or before the original return due date and all

The penalty for failure to file a tax due return by the

returns must be filed within the six-month extension

due date is the greater of $20 or 10 percent of the unpaid

period.

tax. If a tax balance is still unpaid 90 days after the due

date, a second penalty of $20 or 10 percent of the tax,

whichever is greater, will be added for failure to pay

Prepayment Requirements

timely.

Extension Prepayments

The penalty for failure to pay tax due as reported on

a timely filed return, or within 30 days of a notice of

The required extension prepayments must equal 90

deficiency, is $20 or 10 percent of the tax due, which-

percent of the tax due for the current year’s tax liability

ever is greater.

(or the $100 minimum tax, whichever is greater) or 100

percent of the previous year’s tax liability. Typically,

The penalty for underpayment of the extension pre-

corporations that make estimated prepayments using

payment is 2 percent per month of the unpaid tax

form TC-559, “Utah Corporation Franchise/Income Tax

during the extension period. If the return is not filed by

Payment Coupon,” will have complied with the

the extension due date, failure to file and failure to pay

90-percent requirement and may not need to make

penalties will apply, as if the extension had not been

additional prepayments to avoid extension penalties.

granted.

Quarterly Payments

The penalty for failure to file an information return or

complete supporting schedule is $50 for each return or

Every corporation having a Utah tax liability of $3,000 or

schedule to a maximum of $1,000.

more in the current taxable year, or a tax liability of

$3,000 or more in the previous taxable year, must make

The penalty for each underpayment of required esti-

quarterly estimated tax payments. In addition, a parent

mated tax or required quarterly installment is deter-

company filing a combined report with affiliated compa-

mined by applying the state interest rate(s) in effect for

nies must make the quarterly payment when the aggre-

the period of the underpayment plus four percentage

gate amount is $3,000 or more for all companies listed on

points to the amount of the underpayment for the period

Schedule M, including those paying only the minimum

of the underpayment.

tax.

For a list of additional penalties that may be imposed,

A corporation is not subject to the estimated tax pay-

refer to UCA §59-1-401 and Pub 58.

ment requirements the first year the corporation is

Exceptions to Penalty on Estimated

required to file a return in Utah if the corporation makes

a payment on or before the due date, without the

Tax

automatic extension, equal to or greater than the mini-

Annualized Exception

mum tax.

A corporation may annualize its income before deter-

Quarterly estimated tax payments are due in four equal

mining the amount of each installment. It is recom-

payments on the 15th day of the 4th, 6th, 9th and 12th

mended federal guidelines be followed in determining

months of the corporation’s taxable year. Corporations

annualized income. If the corporation meets the annu-

may elect to make the quarterly estimated tax pay-

alized exception at the federal level, for any installment,

ments equal to 90 percent of the current year’s tax or

indicate by checking the appropriate box(es) on form

100 percent of the prior year’s tax. As defined in IRC

TC-20, Schedule A line 25.

Section 6655, the applicable percentage of the required

payment for annualized income installments, for ad-

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2004 Form Tc-20 Utah Corporation Franchise Or Income Tax Return And Instructions Page 3

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