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The Utah TC-51 form, officially known as the Nexus Questionnaire, plays a crucial role for businesses operating in or entering the Utah market. This form collects essential information about a company's activities, presence, and sales within the state, thereby helping the Utah State Tax Commission determine tax obligations. Businesses must provide their exact name, address, and federal identification number, alongside details about the nature of their operations. The form requires companies to disclose their sales history, including total Utah sales and transactions over the last three years. Additionally, it contains a series of nexus questions that assess whether a business has established a physical or economic presence in Utah, which could trigger tax responsibilities. These questions cover various aspects, such as the presence of employees, property holdings, and customer interactions within the state. Furthermore, the TC-51 form also addresses voluntary seller status under the Streamlined Sales Tax Agreement, allowing businesses to clarify their tax collection obligations. By completing this questionnaire, companies can ensure compliance with state tax laws and avoid potential penalties associated with misreporting or failing to register appropriately.
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File Information
| Fact Name | Description |
|---|---|
| Form Purpose | The Utah TC-51 form is a Nexus Questionnaire used to gather information about a company's business activities in Utah for tax purposes. |
| Governing Law | This form is governed by the Utah State Tax Commission regulations and relevant state tax laws. |
| Filing Requirement | Businesses must complete the TC-51 if they engage in activities that may create tax obligations in Utah, such as sales or property ownership. |
| Information Required | The form requires details like business name, address, type of business, and sales data, along with answers to specific nexus questions. |
Documents used along the form
The Utah TC-51 form is often accompanied by various other forms and documents that help clarify a business's tax obligations and operational status in the state. Below is a list of commonly used documents that complement the TC-51 form.
- Utah Corporation Franchise/Income Tax Return: This return is filed annually by corporations operating in Utah to report income and calculate tax liability.
- Utah Sales Tax License Application: Businesses must apply for this license to collect sales tax from customers on taxable sales made within the state.
- Form TC-40: This is the individual income tax return for Utah residents, which may be relevant for sole proprietors or partners in a business.
- Tractor Bill of Sale Form: To officially document your tractor sale, utilize the essential Tractor Bill of Sale form resources for accurate and legal transactions.
- Business License Application: Local jurisdictions often require businesses to obtain a license to operate legally within their area.
- Employee Withholding Allowance Certificate (W-4): This form is used by employees to indicate their tax withholding preferences, affecting the employer's payroll tax obligations.
- Form 1099: Businesses issue this form to report payments made to independent contractors or freelancers, which may affect tax filings.
- Utah Annual Report: Corporations and LLCs must file this report annually to maintain good standing with the state.
- Operating Agreement (for LLCs): This internal document outlines the management structure and operational procedures of a limited liability company.
- Partnership Agreement: This document details the terms of the partnership, including profit sharing and responsibilities among partners.
- Franchise Agreement: If applicable, this contract outlines the terms under which a business operates under a franchisor’s brand and system.
These documents collectively help ensure compliance with state regulations and provide a clear picture of a business's operations and tax responsibilities in Utah. Understanding and preparing these forms can facilitate smoother interactions with tax authorities and enhance overall business management.
Common mistakes
Filling out the Utah TC-51 form can be a straightforward process, but several common mistakes can lead to delays or complications. One frequent error is failing to provide complete company information. The form requires specific details such as the exact business name, federal ID number, and contact information. Omitting any of this information can result in processing delays, as the tax commission may need to reach out for clarification.
Another common mistake is not accurately reporting the nature of the business and the description of services or products sold. This section is crucial for determining tax obligations. A vague or incomplete description can lead to misunderstandings about the business's activities, which may result in incorrect tax assessments. It's important to be as detailed as possible and attach additional sheets if necessary.
Many people also overlook the section regarding past tax filings. If a company has previously filed Utah Corporation Franchise or Income Tax Returns, this information must be clearly stated. Failing to indicate past filings can lead to confusion regarding the business's tax history and obligations. Always double-check this section to ensure all relevant dates and names are accurately recorded.
In addition, answering the nexus questions incorrectly is a common pitfall. These questions determine whether the business has a tax obligation in Utah based on its activities within the state. Misunderstanding the questions or providing inaccurate answers can lead to significant issues. It is advisable to read each question carefully and provide thorough explanations on separate sheets when necessary.
Lastly, many individuals forget to sign the form or neglect to include the required signatures from both the officer and the preparer. The signature section is not just a formality; it serves as a declaration that the information provided is true and complete. Missing signatures can result in the form being rejected, delaying the processing time. Always ensure that all required signatures are included before submitting the form.
Document Preview Example
Utah State Tax Commission
210 N 1950 W • SLC, UT 84134 • tax.utah.gov
Nexus Questionnaire
Company Information
Rev. 8/21
Exact business name
Street address of principal office
Federal ID number
Contact person
City
State
Zip code
Contact phone number
Type of business |
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Corporation |
Sole Proprietor |
L.L.C. |
Partnership |
Other: |
First date that business in Utah began, or that income was derived from sources within Utah:
If no longer doing business within Utah, indicate date business activity ceased:
Nature of business and description of property and/or services sold. Attach additional sheets if necessary.
Who are the company's customers? (check all that apply)
Resellers Final consumers
Do you now or have you ever filed Utah Corporation Franchise/Income Tax Returns? If yes, complete (a), (b) and (c) below.
Yes No
(a)Date first return filed:_____________________________
(b)Date last return filed:_____________________________
(c)Business name under which last return was filed:
What were the company's total Utah sales, number of Utah customer transactions, and total sales to all customers during the last three years?
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Number of Utah |
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Year |
Utah Sales |
Transactions |
Total Sales |
_______________ |
$__________________ |
_______________ |
$__________________ |
_______________ |
$__________________ |
_______________ |
$__________________ |
_______________ |
$__________________ |
_______________ |
$__________________ |
Nexus Questions
Answer "Yes" or "No" to the following questions. For answers that require additional information, include that information on a separate sheet, and reference the question number.
1. |
In either the previous or the current calendar year, did the company sell tangible personal property, products transferred |
Yes |
No |
|
electronically or services for storage, use or consumption in Utah that generated revenues of more than $100,000; or did |
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the company make 200 or more separate transactions in Utah during that period? |
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2. |
Does the company have an office, agency, warehouse or other place of business in Utah? If YES, list company name, ................ Yes |
No |
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location and nature of activities on a separate sheet. |
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3. |
Does the company regularly solicit orders in Utah, whether or not those orders are accepted in Utah? |
Yes |
No |
4. |
Does the company hold title to tangible personal or real property located in Utah, i.e., merchandise inventory, motor vehicles,..... Yes |
No |
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office or industrial equipment, etc.? If YES, list owner, location and description of such property on a separate sheet. |
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5. |
Does the company rent or lease to others or has it at any time in the last three (3) years rented/leased property to others |
Yes |
No |
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who then use the property in Utah? If YES, list lessee's name, location and description of property on a separate sheet. |
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6. |
Does the company rent or lease from others or has it at any time leased or rented from others any tangible personal property .... |
Yes |
No |
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located and/or used in Utah, i.e., warehouse space, motor vehicles, office space, housing space or industrial equipment, etc.? |
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7. |
Does the company have a Utah telephone number or use a Utah answering service? |
Yes |
No |
8. |
Does the company have or has it at any time maintained or consigned stocks or goods in Utah (i.e. distribution |
Yes |
No |
|
warehouse)? |
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9. |
Does the company deliver to a Utah location by using company owned or leased vehicles? |
Yes |
No |
10. |
Are contracts or similar agreements executed in Utah? |
Yes |
No |
1. Repair shop .......................................................................................................................................................................
2. Parts department...............................................................................................................................................................
3. Any kind of office other than an in-home office .................................................................................................................
4. Warehouse ........................................................................................................................................................................
5. Meeting place for directors, officers or employees ............................................................................................................
6. Stock of goods...................................................................................................................................................................
7. Telephone answering service ............................................................................................................................................
8. Mobile stores, i.e., trucks with driver salesmen .................................................................................................................
9. Real property or fixtures of any kind .................................................................................................................................
q. Consigning tangible personal property to any person, including an independent contractor ............................................
r. Maintaining, by either an in-state or an out-of-state resident employee, an office or place of business of any.................
kind other than an in-home office
s. Entering into franchising or licensing agreements.....................................................................................................................
15. Does the company have a standard form or written agreement with employees, sales representatives, commissioned .................
agents or independent contractors? If YES, enclose a sample copy.
16. Are commissioned agents/independent contractors forbidden (by contractual agreement or otherwise) from selling or..................
promoting your competitors' products?
Handling customer complaints ..................................................................................................................................................
Approving or accepting orders ..................................................................................................................................................
Repossessing property .............................................................................................................................................................
Securing deposits on sales .......................................................................................................................................................
Picking up or replacing damaged or returned property.............................................................................................................
Hiring, training or supervising personnel, other than personnel involved only in solicitation.....................................................
Using agency stock checks or any other instrument by which sales are made within Utah by sales personnel .......................
Maintaining sample or display room in excess of two weeks (14 days) during the year ...........................................................
Carrying samples for sale, exchange or distribution in any manner for consideration or other value .......................................
Owning, leasing, maintaining or otherwise using any of the following facilities or property in state of Utah
g.
h.
i.
j.
k.
l.
m.
n.
o.
p.
Providing any kind of technical assistance or service when a purpose of that assistance or service is something..................
other than the facilitation or solicitation of orders
Conducting training courses, seminars or lectures ...................................................................................................................
Installing or supervision of installation.......................................................................................................................................
Investigating credit worthiness ..................................................................................................................................................
Collecting current or delinquent accounts .................................................................................................................................
Making repairs or providing maintenance .................................................................................................................................
The following questions pertain to the type of activities performed by the employees or independent contract agent(s) within Utah.
14. Does the company have any employees, sales representatives, commission agents or independent contractors that carry out or that are responsible for any of the following activities in Utah?
a.
b.
c.
d.
e.
f.
11. Does the company engage in any activity in connection with the leasing or servicing of property located in Utah? ........................
12. Does the company have or has it ever had a security interest in any real or personal property sold or located in Utah? ................
13. Does the company have any employees, commissioned agents, independent contractors or other representatives.......................
residing, selling, soliciting or performing services in Utah? If YES, list on a separate sheet the year(s) in which your
employees or other representatives began performance of these activities in Utah.
Employee and Contract Agent Information
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Yes |
No |
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Yes |
No |
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Yes |
No |
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Yes |
No |
Yes |
No |
Yes |
No |
Yes |
No |
Yes |
No |
Yes |
No |
Yes |
No |
Yes |
No |
Yes |
No |
Yes |
No |
Yes |
No |
Yes |
No |
Yes |
No |
Yes |
No |
Yes |
No |
Yes |
No |
Yes |
No |
Yes |
No |
Yes |
No |
Yes |
No |
Yes |
No |
Yes |
No |
Yes |
No |
Yes |
No |
Yes |
No |
Yes |
No |
Yes |
No |
Yes |
No |
Yes |
No |
17.List names and addresses of employees or representatives, the territory they cover, and designate whether they are employees or independent contractors. Use additional sheets if necessary.
18. Do any of the sales agents in Utah represent your corporation only? |
Yes |
No |
Other Information
19. List the company's three (3) major Utah customers:
20. Are there other types of activities in Utah? Please explain:
SST Voluntary Seller
You are a voluntary seller in Utah under the Streamlined Sales Tax Agreement (see Article IV of SSUTA) if you have met ALL of the following conditions for at least 12 MONTHS PRIOR to registering with Utah:
1.You have had no fixed place of business in Utah for more than 30 days.
2.Less than $50,000 of your property* in located in Utah.
3.Less than $50,000 of your payroll occurs in Utah.
4.Less than 25 percent of your total property* or total payroll*are in Utah.
5.You do not collect sales or use tax in Utah as a condition for you or an affiliate to qualify as a supplier of goods or services to Utah.
6.You are not required to register and collect sales or use tax in Utah as a statutory requirement for yourself or an affiliate to be able to sell, ship or deliver a particular type of product into Utah.
*As defined in the contract between Streamlined Sales Tax Governing Board, Inc and the contractor.
21. Based on the criteria above, are you a voluntary Streamlined Sales Tax seller? |
Yes |
No |
Signatures
Under penalties of perjury, I declare that the information furnished in this questionnaire is, to the best of my knowledge and belief, true, correct and complete. If prepared by a person other than an officer of this corporation, this declaration is based on all information of which you have knowledge.
Name of officer
Title of officer
Signature of officer
Date
Officer's mailing address
City
State
Zip code
Officer's phone number
Name of preparer
Signature of preparer
Date
Preparer's mailing address
City
State
Zip code
Preparer's phone number
Similar forms
- IRS Form SS-4: This form is used to apply for an Employer Identification Number (EIN). Like the TC-51, it requires basic business information such as the business name, address, and type of entity. Both documents are essential for tax identification purposes.
- Utah Form TC-40: This is the individual income tax return form for Utah residents. Similar to the TC-51, it collects information regarding income sources and residency status. Both forms help the state assess tax obligations based on business and personal activities within Utah.
- Utah Form TC-20: This is the corporate franchise tax return. It shares similarities with the TC-51 in that it requires detailed financial information about the business's operations in Utah. Both forms are used to determine tax liabilities based on business activities within the state.
- Sales Tax License Application: This application is necessary for businesses intending to sell goods or services subject to sales tax. Like the TC-51, it requires information about the business and its operations in Utah, ensuring compliance with state tax regulations.
- Ohio ATV Bill of Sale: This form is essential for transferring ownership of all-terrain vehicles in Ohio. It includes vital details such as the buyer and seller information, as well as specifics about the vehicle. Understanding its importance can ensure a smooth process, as highlighted by Ohio PDF Forms.
- Utah Form TC-62: This is the exemption certificate for sales tax. Similar to the TC-51, it is used to provide details about the nature of the business and its transactions in Utah. Both documents play a role in ensuring that the correct tax treatment is applied to business activities.
- Utah Business Entity Registration: This document is required for establishing a legal business entity in Utah. Like the TC-51, it gathers essential information about the business structure, ownership, and location, which are crucial for state records and tax purposes.
Key takeaways
Filling out the Utah TC-51 form is an important step for businesses operating in or considering operations in Utah. Here are some key takeaways to keep in mind:
- Understand the Purpose: The TC-51 form is a Nexus Questionnaire that helps determine whether a business has a tax obligation in Utah based on its activities within the state.
- Provide Accurate Company Information: Ensure that you include the exact business name, address, and contact details. This information is crucial for the state to identify your business correctly.
- Detail Your Business Activities: Clearly describe the nature of your business and the products or services you offer. If necessary, attach additional sheets for clarity.
- Complete Nexus Questions: Answer all nexus questions honestly. These questions assess your business's connection to Utah and may affect your tax responsibilities.
- Track Sales and Transactions: Be prepared to provide data on your total sales and transactions in Utah for the past three years. This information is essential for assessing your tax obligations.
- Consider Voluntary Seller Status: If your business meets specific criteria, you may qualify as a voluntary seller under the Streamlined Sales Tax Agreement. This status can simplify your tax obligations.
- Sign and Date the Form: Ensure that the form is signed by an authorized officer of the company. This signature confirms that the information provided is accurate and complete.
By keeping these takeaways in mind, businesses can navigate the TC-51 form more effectively and ensure compliance with Utah tax laws.