Free 2003 Utah Regulated Investment Company Tax Return TC-20R - Utah

What's New?
· Interest Rate: The interest rate for the 2004 calendar year is 3 percent. · Payment Agreement Request: If a regulated investment company owes taxes and is unable to pay all or a portion of the amount owed, the corporation may complete a "Payment Agreement Request," form TC-804B. The form can be obtained online at tax.utah.gov.

Important Information Regarding Extension of Time to File
An extension of time to file your tax return is NOT an extension of time to pay your taxes. Tax must be paid by the due date. You are automatically allowed an extension of up to six months to file your return. However, if the prepayment requirements have not been met on or before the original due date, penalties will be assessed. Need more information? Telephone (801) 297-2200 or 1-800-662-4335 Forms (801) 297-6700 or 1-800-662-4335 ext. 6700 You can find additional tax information and forms on the Tax Commission's web page, tax.utah.gov. If you need an accommodation under the Americans with Disabilities Act, contact the Tax Commission at (801) 297-3811 or Telecommunications Device for the Deaf (TDD) (801) 297-2020. Please allow three working days for a response.

Online Services
Visit our website for detailed tax information and all Utah State tax forms/instructions.

References
UCA: Utah Code Annotated IRC: Internal Revenue Code

tax.utah.gov
Pay tax due and make payments online with a credit card or e-check.

Need forms? Print online at tax.utah.gov, or call (801) 297-6700 or 1-800-662-4335, ext. 6700

paymentexpress.utah.gov

General Instructions and Information
Corporation Identification Numbers
The Utah State Tax Commission uses the Employer Identification Number (EIN) as the corporation's taxpayer identification number with the state. The Utah Department of Commerce issues a registration number upon incorporation or qualification in Utah. Enter the EIN and Utah Incorporation/Qualification Number in the fields provided. Include your EIN and Utah Incorporation/Qualification Number for proper identification of the corporate tax return or correspondence.

Due Date
Returns are due on or before April 15 (for calendar year filers) or the 15th day of the fourth month following the close of the taxable year (for fiscal year filers).

Filing Extension
RICs are automatically allowed an extension of up to six months to file a return without filing an extension form. This is an extension of time to file the return -- NOT an extension of time to pay taxes. To avoid penalty and interest, the prepayment requirements must be met on or before the original return due date and all returns must be filed within the six-month extension period.

Corporation Changes
Regulated investment company (RIC) changes (e.g., name change, physical and/or mailing address changes, merger, or ceasing to do business in Utah) must be reported to both: Division of Corporations Department of Commerce 160 E 300 S Salt Lake City, UT 84145 and Master File Maintenance Utah State Tax Commission 210 N 1950 W Salt Lake City, UT 84134-3310

Prepayment Requirements
Every RIC having a Utah tax liability of $3,000 or more in the current year, or a tax liability of $3,000 or more in the previous year, must make quarterly estimated tax prepayments. An RIC is not subject to the prepayment requirements the first year the RIC is required to file a return in Utah if the RIC makes a payment on or before the due date, without extension, equal to or greater than the minimum tax. Quarterly prepayments are due in four equal payments on the 15th day of the 4th, 6th, 9th and 12th months of the RIC's taxable year. RICs may elect to make the quarterly prepayments equal to 90 percent of the current year's tax or 100 percent of the prior year's tax. As defined in IRC Section 6655, the applicable percentage of the required annual payment for annualized income installments, for adjusted seasonal installments, and for estimated tax payments based on the current year tax liability, is the following: Installment Percentage 1st 22.5 2nd 45.0 3rd 67.5 4th 90.0 If a taxpayer elects a different annualization period than the period used for federal purposes, the taxpayer must make an election with the Tax Commission at the same time as provided in IRC Section 6655. Prepayments should be made with form TC-559, "Utah Corporation Franchise/Income Tax Payment Coupon."

Dissolution or Withdrawal
RICs that cease to do business in Utah must either dissolve or withdraw the corporation. RICs that are incorporated in Utah must file Articles of Dissolution with the Department of Commerce. In addition, Utah RICs should obtain a Certificate of Tax Clearance prior to dissolution. RICs that are incorporated outside of Utah (foreign) MUST obtain a Certificate of Tax Clearance from the Tax Commission before withdrawing from Utah. Foreign RICs must file an Application for Withdrawal with the Department of Commerce. To request a Certificate of Tax Clearance, complete form TC-2001 and submit it to the attention of the Customer Services Call Unit at the Tax Commission address above. To close related tax accounts, (sales, withholding, etc.), send a letter, with the account number(s) and the last date of business, to the attention of Master File Maintenance at the Tax Commission address above.

Prepayment of Minimum Tax
RICs that meet the prepayment requirement in the current year and that had a tax liability of $100 (the minimum tax) for the previous year may choose to prepay the minimum tax amount of $100 on the 15th day of the 12th month instead of four increments of $25. RICs that met the prepayment requirement in the previous year and have a tax liability of $100 (the minimum tax) in the current year may choose to prepay the minimum tax amount of $100 on the 15th day of 12th month instead of four increments of $25. In this scenario, the RIC must pay $100, not 90 percent.

Who Must File
Every regulated investment company (RIC) or fund of such company, as defined in IRC Sections 851(a) or 851(h), that is organized under the laws of Utah must file form TC-20R.

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RICs not making the required tax prepayments are subject to a penalty as stated in "Penalties," below.

Exceptions to Penalty on Estimated Tax
Annualized Exception
An RIC may annualize its income before determining the amount of each installment. It is recommended that federal guidelines be followed in determining annualized income. If the RIC meets the annualized exception at the federal level, for any installment, check the appropriate box(es) on form TC-20R, line 15.

Minimum Tax
There is a minimum tax (privilege tax) of $100 on every RIC regardless of whether the RIC exercises its right to do business.

Penalties
The penalty for failure to file a tax due return by the due date is the greater of $20 or 10 percent of the unpaid tax. In addition, if a tax balance remains unpaid 90 days after the due date, a second penalty, the greater of $20 or 10 percent of the tax balance, will be added for failure to pay timely. The penalty for failure to pay tax due as reported on a timely filed return, or within 30 days of a notice of deficiency, is the greater of $20 or 10 percent of the tax due. The penalty for underpayment of the extension prepayment is 2 percent per month of the unpaid tax during the extension period. If the return is not filed by the extension due date, failure to file and failure to pay penalties will apply as if the extension has not been granted. Penalty for failure to file an information return or complete supporting schedule is $50 for each return or schedule, up to a maximum of $1,000. The penalty for each underpayment of required estimated tax or required quarterly installment is determined by applying the state interest rate(s) in effect for the period of the underpayment, plus four percentage points, to the amount of the underpayment for the period of the underpayment. For a list of additional penalties that may be imposed, refer to UCA §59-1-401. The Tax Commission will calculate the penalty for underpayment of required prepayments. Taxpayers who would like to calculate their own penalty may contact the Tax Commission at (801) 297-7790 or 1-800-662-4335, ext. 7790 for assistance.

Recurring Seasonal Exception
An RIC with recurring seasonal income may annualize its income before determining the amount of each installment. It is recommended that federal guidelines be followed in determining seasonal income. If the RIC meets the seasonal exception at the federal level, for any installment, check the appropriate box(es) on form TC-20R, line 15.

Interest
The interest rate applicable for most taxes and fees administered by the Tax Commission is two percentage points above the federal short-term rate in effect for the preceding fourth calendar quarter. The IRS publishes this rate in September of each year. The interest rate for most taxes and fees administered by the Tax Commission for the 2004 calendar year is 3 percent.

Suspension for Failure to Pay Tax Due
Utah law provides for suspension of the RICs right to do business in Utah if the RIC fails to pay tax due before 5:00 p.m. on the last day of the 11th month after the due date.

Supporting Federal Information
Form 1120-RIC, as filed with the IRS, should be included with the filing of the Utah Return (form TC-20R). Other detail schedules should NOT be included with the initial filing. The Auditing Division of the Tax Commission may request these detail schedules at a later date.

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Instructions for Return
Rounding Off to Whole-Dollar Amounts
All entries must be made in whole-dollar amounts. When filing an amended return, enter the amount of tax paid with the original return and/or subsequent payments of the tax prior to filing the amended return less any previous refunds (exclude refund interest). Remember: Except for the amounts amended, the amounts entered on the return must match the original return.

Corporation Name and Address Area
Enter the RIC name, address and telephone number. If the address has changed, check the physical address and/or mailing address box. To make additional changes, see "Corporation Changes" in the General Instructions.

Line-by-Line Instructions
Line 1 ­ Net Income/Loss
Enter the RIC taxable income from federal form 1120-RIC, line 26.

Corporation Identification Numbers
Enter the Employer Identification Number (EIN) and Utah Incorporation/Qualification Number in the appropriate fields.

Line 2 ­ Municipal Interest
Enter the municipal interest as determined by IRC Section 852(b)(2).

Line 3 ­ Net Capital Gain
Enter net capital gain exclusion as determined by IRC Section 852(b)(2).

Amended Returns
To amend a return use the tax form and instructions for the year you are amending.

Line 4 ­ Net Taxable Income
Add lines 1 through 3.

Line 5 ­ Capital Gain Dividends
Enter the deduction for capital gains dividends as defined in IRC Sections 852(b)(3)(c) and 852(b)(5).

Amend your return promptly if:
1. An error is discovered on your state or federal return after it has been filed; or 2. Your federal return is audited or adjusted by the IRS and the IRS audit or adjustment affects your state return. You must report such changes or corrected net income within 90 days of the IRS's final determination. Do not submit an amended return for the purpose of claiming a loss carryback refund. The Tax Commission automatically calculates this. Any refund will be mailed to the corporation. To qualify for a refund or credit, an amended return must be filed within three years following the date the original return was filed. A return filed before the due date is considered filed on the due date. To amend a previously filed return, enter a number in the box titled "Enter code (1-4) for amended return" that best corresponds to your "REASON FOR AMENDING." See codes below:

Line 6 ­ Exempt Interest Dividends
Enter the exempt interest dividends as defined in IRC Sections 852(b)(3)(c) and 852(b)(5).

Line 7 ­ Total Net Taxable Income
Line 4 less lines 5 and 6.

Line 8 ­ Calculation of Tax
Multiply line 7 by .05, or enter the $100 minimum tax due, whichever is greater.

Line 9 ­ Total Penalties and Interest
Enter any applicable penalty and interest amounts on the appropriate lines. Enter the total amount on this line. The Tax Commission will calculate the penalty for underpayment of required prepayments. See "General Instructions" regarding penalties and interest.

Line 10 - Utah Use Tax
Use tax is required on all taxable items purchased for storage, use or consumption in Utah, if Utah sales and use tax was not paid at the time of purchase. Purchases include amounts paid or charged for purchases made on the Internet or through catalogs. Credit is allowed for sales taxes paid to another state, but not to a foreign country. If the sales tax rate in the other state is lower than the Utah sales tax rate, the corporation is required to pay the difference. If the sales tax rate in the other state is greater than Utah's sales tax rate, no sales or use tax credit or refund applies. Enter use tax of $400 or less. If the amount exceeds $400, the purchaser is required to obtain a sales and use tax license and to pay the use tax on a sales and use tax return.

The Reasons for Amending
1. You filed an amended return with the IRS. (Attach a copy of your amended federal return.) 2. You made an error on your state return. (Attach an explanation of the adjustments made.) 3. Federal audit adjustments that resulted in changes in federal taxable income were issued and became final. (Attach a copy of the IRS adjustment.) 4. Other (Attach explanation to return.) Complete the return, entering the corrected figures. Enter other amounts shown on the original return.

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Sales and use tax rates vary throughout Utah. Use the "Use Tax Rate Chart" to find the sales tax rate for the location where the merchandise was delivered, stored, used or consumed. If the city is not listed, use the county rate. Complete the worksheet on this page to determine the amount of use tax due. Credit for sales taxes paid to another state cannot exceed the Utah tax that would otherwise be due on those items. If sales taxes were paid to more than one state, complete a worksheet for each state. Enter the sum of the use tax from each worksheet.

Use Tax Rate Chart (Effective Dec. 31, 2003)
.0600 .0700 .0600 .0625 .0700 .0610 .0635 Beaver County Beaver Box Elder County Brigham, Perry, Willard Snowville Cache County Cache Valley Transit, Hyde Park, Hyrum, Logan, Millville, Nibley, N.Logan, Providence, Richmond, River Heights, Smithfield Carbon County Price, Wellington Daggett County Davis County Duchesne County Roosevelt Emery County Green River Garfield County Boulder, Panguitch, Tropic Grand County Moab Iron County Brian Head Juab County Nephi Kane County Kanab, Orderville Millard County Morgan County Piute County Rich County Garden City .0660 .0760 .0600 .0650 .0600 .0625 .0600 .0625 .0610 .0735 .0600 .0625 Salt Lake County Alta San Juan County Monticello Sanpete County Ephraim, Gunnison Sevier County Richfield, Salina Summit County Park City Tooele County Erda, Grantsville, Lakepoint, Lincoln, Tooele City, Stansbury Park Uintah County Vernal Utah County Alpine, American Fork, Lehi, Lindon, Mapleton, Orem, Payson, Pleasant Grove, Provo, Provo Canyon, Salem, Highland, Spanish Fork, Springville, Cedar Hills Wasatch County Heber Washington Cnty Hurricane, Ivins, La Verkin, St. George, Santa Clara, Washington City Springdale Wayne County Weber County

Line 11 - Total Tax, Penalty, and Interest Due
Add lines 8, 9 and 10.

Line 12 - Total Prepayments
Enter the total from Schedule E, line 4.

Line 13 - Total Remitted
If line 11 is larger than line 12, subtract line 12 from line 11. Make check or money order payable to the Utah State Tax Commission. Do not mail cash. The Tax Commission assumes no liability for loss of cash placed in mail. Attach a schedule for any nonrefundable credits claimed.

.0600 .0625 .0600 .0650 .0600 .0625 .0575 .0750 .0700 .0800 .0600 .0775 .0600 .0775 .0600 .0625 .0675 .0775 .0575 .0600 .0600 .0600 .0700

.0650 .0675 .0600 .0625

Line 14 - Total Refund
If line 12 is larger than line 11, subtract line 11 from line 12.

.0600 .0625 .0600 .0625

Line 15 - Quarterly Estimated Prepayments Meeting Exception
Check boxes corresponding to the four quarterly prepayments for those quarters in which penalty exceptions exist. Refer to "Exceptions to Penalty on Estimated Tax" in the General Instructions for more information. Attach supporting documentation.

.0750 .0600 .0650

Worksheet for Computing Utah Use Tax

Signature and Date
Sign and date the return. A refund will not be granted unless the return is signed and dated.

(Retain this worksheet for your records.)
1. Total amount of purchases subject to use tax ...... $___________ 2. Use tax rate (decimal) ........................................... $___________ 3. Use tax (multiply line 1 by line 2) .......................... $___________ 4. Credit for sales tax paid to another state .............. $___________ 5. Amount of use tax due (line 3 less line 4) Enter ZERO if less than zero ................................ $___________

Supplemental Information to be Supplied by all Corporations
All RICs must complete this section, located on the back of the return.

Instructions for Schedule E ­ Prepayments of any Type
Line 1
Enter the total amount of all refunds applied from the prior year.

Line 3
List the date, check number and amount of all prepayments made for the filing period. Enter the total amount on line 3. Attach additional pages, if necessary.

Line 2
List the date, check number and amount of extension prepayment.

Line 4
Add lines 1, 2 and 3. Enter the total on this line and on TC-20R, line 12.

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