DAR File No. 27804

Tax Commission, Auditing

R865-9I-21

Return By Partnership Pursuant to Utah Code Ann. Section 59-10-507

NOTICE OF PROPOSED RULE

DAR File No.: 27804
Filed: 04/05/2005, 04:57
Received by: NL

RULE ANALYSIS

Purpose of the rule or reason for the change:

Section 59-10-514, amended by S.B. 133 (2005), allows the Commission rulemaking authority to define what constitutes "filing a return with the Commission". This change will ease the filing requirements of some partnerships. (DAR NOTE: S.B. 133 is found at UT L 2005 Ch 267, and was effective 05/02/2005.)

Summary of the rule or change:

The proposed amendment provides that a partnership, all of whose members are resident individuals, satisfies the requirement to file a partnership return with the Commission by maintaining records of each partner's share of distributive items, and making those records available for audit.

State statutory or constitutional authorization for this rule:

Sections 59-10-507 and 59-10-514

Anticipated cost or savings to:

the state budget:

None--Any costs would have been considered in S.B. 133 (2005).

local governments:

None--Any costs would have been considered in S.B. 133 (2005).

other persons:

None--Any costs would have been considered in S.B. 133 (2005).

Compliance costs for affected persons:

None--In the instance specified in the rule, a partnership is not required to file a return with the Commission, but simply retain the required records for audit purposes.

Comments by the department head on the fiscal impact the rule may have on businesses:

There will be no fiscal impact on businesses, however, some partnerships will no longer be required to file a return, however they must retain the records. Pam Hendrickson, Commission Chair

The full text of this rule may be inspected, during regular business hours, at the Division of Administrative Rules, or at:

Direct questions regarding this rule to:

Cheryl Lee at the above address, by phone at 801-297-3900, by FAX at 801-297-3919, or by Internet E-mail at clee@utah.gov

Interested persons may present their views on this rule by submitting written comments to the address above no later than 5:00 p.m. on:

05/31/2005

This rule may become effective on:

06/01/2005

Authorized by:

Pam Hendrickson, Commissioner

RULE TEXT

R865. Tax Commission, Auditing.

R865-9I. Income Tax.

R865-9I-21. Return By Partnership Pursuant to Utah Code Ann. [Section]Sections 59-10-507 and 59-10-514.

[A.](1) Every partnership having a [resident]nonresident partner [or having any]and income derived from sources in this state [(determined in accordance with Utah Code Ann. Section 59-10-303 and Rule R865-9I-13) ]shall file a return in accordance with forms and instructions provided by the Tax Commission.

[B.](2) If the partnership has income derived from or connected with sources both inside and outside Utah and if any partner was not a resident of Utah, the portion derived from or connected with sources in this state must be determined and shown.

[1.](a) [They]The Utah portion must be determined and shown for each item of the partnership's, and each nonresident partner's, distributive shares of income, credits, deductions, etc., shown on Schedules K and K-1 of the federal return.

[2.](b) The Utah portion may be shown:

(i) alongside the total for each item on the federal schedules K and K-1[,]; or

(ii) [they may be shown ]on an attachment to the Utah return.

(3) A partnership, all of whose partners are resident individuals, shall satisfy the requirement to file a return with the commission by:

(a) maintaining records that show each partner's share of income, losses, credits, and other distributive items; and

(b) making those records available for audit.

KEY: historic preservation, income tax, tax returns, enterprise zones

[June 29, 2004]2005

Notice of Continuation April 22, 2002

59-10-507

59-10-514

ADDITIONAL INFORMATION

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For questions regarding the content or application of this rule, please contact Cheryl Lee at the above address, by phone at 801-297-3900, by FAX at 801-297-3919, or by Internet E-mail at clee@utah.gov

For questions about the rulemaking process, please contact the Division of Administrative Rules (801-538-3764). Please Note: The Division of Administrative Rules is NOT able to answer questions about the content or application of these administrative rules.