Income tax treatment of a pass-through entity -- Returns -- Classification same as under Internal Revenue Code

# (1)

Subject to Subsection (3) and except as provided in Subsection 59-10-1403.2(2), a pass-through entity is not subject to a tax imposed by this chapter.

# (2)

Except as provided in Section 59-10-1403.3, the income, gain, loss, deduction, or credit of a pass-through entity shall be passed through to one or more pass-through entity taxpayers as provided in this part.

# (3)

A pass-through entity is subject to the return filing requirements of Sections 59-10-507, 59-10-514, and 59-10-516.

# (4)

For purposes of taxation under this title, a pass-through entity that transacts business in the state shall be classified in the same manner as the pass-through entity is classified for federal income tax purposes.

# (5)

# (a)

If a change is made in a pass-through entity's net income or loss on the pass-through entity's federal income tax return because of an action of the federal government, the pass-through entity shall file with the commission within 90 days after the date of a final determination of the action:

(i) a copy of the pass-through entity's amended federal income tax return or federal adjustment; and

(ii) an amended state income tax return that conforms with the changes made in the pass-through entity's amended federal income tax return.

# (b)

If a change is made in a pass-through entity's net income on the pass-through entity's federal income tax return because the pass-through entity files an amended federal income tax return, the pass-through entity shall file with the commission, within 90 days after the date the taxpayer files the amended federal income tax return:

(i) a copy of the pass-through entity's amended federal income tax return; and

(ii) an amended state income tax return that conforms with the changes made in the pass-through entity's amended federal income tax return.

# (6)

# (a)

A pass-through entity subject to the return filing requirements under Subsection (3), shall report on the pass-through entity's return:

(i) whether the entity has filed a current annual report with the Division of Corporations; and

(ii) the entity's commerce entity number.

# (b)

Subsection (6)(a) does not apply to an individual, estate, or trust.