2023 Utah Code › Title 59 - Revenue and Taxation › Chapter 10 - Individual Income Tax Act › Part 14 - Pass-Through Entities and Pass-Through Entity Taxpayers Act › Section 1403.3 - Refund of amounts paid or withheld for a pass-through entity.

Effective 5/5/2021
59-10-1403.3.
Refund of amounts paid or withheld for a pass-through entity.
(1) As used in this section:
(a) "Committee" means the Revenue and Taxation Interim Committee.
(b) "Qualifying excess withholding" means an amount that:
(i) is paid or withheld:
(A) by a pass-through entity that has a different taxable year than the pass-through entity that requests a refund under this section; and
(B) on behalf of the pass-through entity that requests the refund, if the pass-through entity that requests the refund also is a pass-through entity taxpayer; and
(ii) is equal to the difference between:
(A) the amount paid or withheld for the taxable year on behalf of the pass-through entity that requests the refund; and
(B) the product of the percentage listed in Subsection 59-10-104(2) and the income, described in Subsection 59-10-1403.2(1)(a)(i), of the pass-through entity that requests the refund.
(2) For a taxable year ending on or after July 1, 2017, a pass-through entity may claim a refund of qualifying excess withholding, if the amount of the qualifying excess withholding is equal to or greater than $250,000.
(3) A pass-through entity that requests a refund of qualifying excess withholding under this section shall:
(a) apply to the commission for a refund on or, subject to Subsection (4), after the day on which the pass-through entity files the pass-through entity's income tax return; and
(b) provide any information that the commission may require to determine that the pass-through entity is eligible to receive the refund.
(4) A pass-through entity shall claim a refund of qualifying excess withholding under this section within 30 days after the earlier of the day on which:
(a) the pass-through entity files an income tax return; or
(b) the pass-through entity's income tax return is due, including any extension of due date authorized in statute.
(5) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the commission may make rules establishing the information that a pass-through entity shall provide to the commission to obtain a refund of qualifying excess withholding under this section.
(6)
(a) On or before November 30, 2018, the committee shall review the $250,000 threshold described in Subsection (2) for the purpose of assessing whether the threshold amount should be maintained, increased, or decreased.
(b) To assist the committee in conducting the review described in Subsection (6)(a), the commission shall provide the committee with:
(i) the total number of refund requests made under this section;
(ii) the total costs of any refunds issued under this section;
(iii) the costs of any audits conducted on refund requests made under this section; and
(iv) an estimation of:
(A) the number of refund requests the commission expects to receive if the Legislature increases the threshold;
(B) the number of refund requests the commission expects to receive if the Legislature decreases the threshold; and
(C) the costs of any audits the commission would conduct if the Legislature increases or decreases the threshold.
Amended by Chapter 367, 2021 General Session