Limited Liability Company Return Of Income Tc65 (Page 2 of 10) in pdf

TC-65 Instructions

6. Interest.

1. Returns by Partnership/Limited Liability Partnership

Interest is assessed at the rate prescribed by law from the

(LLP)/Limited Liability Company (LLC).

original due date until paid in full. The interest rate applicable

Every partnership/LLP/LLC having a resident partner/member,

for most taxes and fees administered by the Tax Commission is

or having any income derived from sources in Utah, must file a

2 percentage points above the federal short-term rate in effect

return on form TC-65 for the taxable year, and must attach a

for the preceding fourth calendar quarter. The IRS publishes

copy of its federal partnership return, form 1065, for the same

this rate in September of each year.

year (without Schedules K-1) and a schedule of modifications,

if any, as required by instruction 13. In addition, a complete

The interest rate for most taxes and fees administered by the

federal Schedule K-1 must be attached for each nonresident

Tax Commission for the 2002 calendar year is 6 percent.

partner/member whose Utah reportable income is over $1,000.

Do not send Schedules K-1 for Utah resident partners/

For information, taxpayers may request form TC-15, Applicable

members.

Interest Rates, by calling or writing the Utah State Tax

2. When and where the return must be filed.

Commission, 210 N 1950 W, SLC, UT 84134, telephone

A return must be filed with the Utah State Tax Commission, 210

number (801) 297-6700 or 1-800-662-4330 ext. 6700.

N 1950 W, SLC, UT 84134 on or before the 15th day of the

7. Signature.

fourth month following the close of the fiscal year or by April

In the case of a partnership/LLP, the return must be signed by

15th for a calendar year business. If the due date falls on a

a general partner. In the case of an LLC, the return must be

Saturday, Sunday, or legal holiday, the return will be due the

signed by a member or, if the LLC has vested management in

following business day.

a manager or managers, the return must be signed by one of

3. Extension of time for filing return.

these managers. If receivers, trustees in bankruptcy, or

Taxpayers are automatically allowed an extension of up to six

assignees are operating the property or business of the

months to file their returns. This is an extension of time to file

partnership/LLP/LLC, then the receiver, trustee, or assignee

the return and not an extension of time to pay tax due. To avoid

must sign the return.

penalty and interest, the prepayment requirements must be met

on or before the original due date and all returns must be filed

8. Partnership/LLP/LLC not subject to tax.

within the six-month extension period.

A partnership/LLP/LLC is not subject to Utah income tax.

Partners/members conducting business are liable for Utah

The prepayment must equal at least 90 percent of the tax due

income tax in their separate or individual capacities. However,

in the current year, or 100 percent of the previous year's Utah

see Instruction 15.

tax liability.

9. Federal taxable income.

Underpayment of extension prepayment is subject to penalty

Utah law defines federal taxable income as "taxable income as

(see below).

currently defined in Section 63, Internal Revenue Code, 1986."

4. Schedules for partner/member information.

Since Utah's taxable income is based on the federal taxable

General partners'/members' information from Tax Commission

income, a partner's ability to carry forward and carry back

records is printed on form TC-65 Schedule G; limited

partnership losses is determined on a federal level. The loss

partners'/nonmanaging members' information is printed on form

taken by a partner in a given year must match the loss taken on

TC-65 Schedule L. Make any necessary corrections or

the federal return. Losses cannot be independently carried

additions to this information.

back and carried forward in any given year on the partner's

state return.

5. Penalties.

Utah law provides for uniform tax penalties for failure to file tax

10. Character of partnership/LLP/LLC items.

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

(a) Each item of partnership/LLP/LLC income, gain, loss, or

returns or supporting schedules.

deduction has the same character for a partner/member as it

has for federal income tax purposes. When an item is not

The penalty for

failure to file a tax due return

by the due date

characterized for federal income tax purposes, it has the same

is the greater of $20 or 10 percent of the unpaid tax. If a tax

character for a partner/member as if realized directly from the

balance is still unpaid 90 days after the due date, a second

source realized by the partnership/LLP/LLC, or incurred in the

penalty, of $20 or 10 percent of the unpaid tax, whichever is

same manner as incurred by the partnership/LLP/LLC.

greater, will be added for failure to pay timely.

(b) Where a partner's/member's distributive share of an item

of partnership/LLP/LLC income, gain, loss, or deduction is

The penalty for

failure to pay tax due

as reported on a timely

determined for federal income tax purposes by a special

filed return, or within 30 days of a notice of deficiency, is $20 or

provision in the partnership/LLP/LLC agreement with respect to

10 percent of the unpaid tax, whichever is greater .

such item, and where the principal purpose of such provision is

the avoidance or evasion of tax, the partner's/member's

The penalty for

underpayment of the extension prepayment

distributive share of such item and any modification with

is 2 percent per month of the unpaid tax during the extension

respect thereto shall be determined as if the

period. If the return is not filed by the extension due date,

partnership/LLP/LLC agreement made no special provision

penalties may apply, as if the extension has not been granted.

with respect to that item.

The penalty for

failure to file an information return

or a

partner/member, any modification (such as U.S. government

complete supporting schedule is $50 for each return or

bond interest) that relates to an item of the partnership/LLP/

schedule up to a maximum of $1,000.

LLC income, gain, loss, or deduction shall be made in

accordance with the partner's/member's distributive share, for

For a list of additional penalties that may be imposed, refer to

Utah Code Ann. Section 59-1-401.

65i1.frm Rev. 12/01

Limited Liability Company Return Of Income Tc65 Page 2

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