Form IA 1120-Inst Fillable instructions only 42-002
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For any assets placed in service after September 10 2001 but before May 6 2003 Iowa continues to disallow the Form IA 148 Tax Credits Schedule must be completed for any tax credits claimed other than the motor fuel tax credit IA 4562B Iowa Depreciation Accumulated Adjustment Schedule is available on the Department s Web site and must Iowa did adopt the federal provisions relating to increasing the expensing amount under section 179 of the Internal Iowa no longer allows the carryback of net operating losses for tax years beginning on or after January 1 2009 See schedule attached is not acceptable; the return will be $1 000 $150 000 (1) Accounts receivable interest is to be included in the numerator (2) Other interest net dividends capital and ordinary gains and (3) Capital and ordinary gains rent and royalties from tangible (Total tax page 1 x 50% = federal tax deduction) 1 Enter carryforward of alternative minimum tax credit from the 1 Enter the amount of IRC section 613 percentage depletion of 1 Net Income: Enter the amount of federal taxable income 1 of the Iowa return 10 Enter the amount of Iowa tax expensed on the federal return 10 Enter the amount of Iowa tax refund included in federal 10 Income Subject to Apportionment: Subtract line 9 from line 1065 Partnership Return of Income Single member LLCs do not 11 Enter the amount of wages not subtracted from federal taxable 11 Iowa Percentage: Enter the amount from line 13 of Iowa 1120 line 18 1120ES Corporation Estimated Tax Return and Instructions 45 004 & 45 010 12 Enter the amount added to federal taxable income due to the 12 Income Apportioned to Iowa: Multiply line 10 by line 11 12 The net operating loss entered here must be reduced by the 13 Foreign dividend income exclusion: Complete Schedule B 13 Iowa Nonbusiness Income: Enter the total from Iowa 14 Enter the amount of interest and dividends from federal 14 Income Before Net Operating Loss: Add lines 12 and 13 14 The exemption amount of $40 000 must be reduced but not 15 Enter any amounts not specifically identified above A detailed 15 Net Operating Loss: Enter amount from Iowa Schedule F 16 Add line 1 lines 3 through 10 and line 15 and enter the sum 16 Add lines 2 through 8 and lines 10 through 15 as applicable 16 Income Subject to Tax: Subtract line 15 from line 14 and 17 Tax: Enter the amount of tax computed from the tax rate 18 Alternative Minimum Tax: Enter the amount from line 18 18 If line 16 is greater than line 17 enter the difference as your 18 If line 16 is less than line 17 enter zero here and on IA 19 may be subject to a penalty for this underpayment The 19 Total Tax: Add lines 17 and 18 and enter the total 2 Enter the amount of Social Security taxes for tips not 2 Enter the current period regular tax liability minus allowable 2 Enter the total amount from line 2a through 2o on federal form 2 Federal Refund: Enter 50% of any federal refunds received 20 Credits: Enter the amount from line 4 of Iowa Schedule C1 2013 Iowa Corporation Income Tax Instructions 21 Payments: Enter the amount from line 4 of Iowa Schedule 22 Total Credits and Payments: Add lines 20 and 21 and enter 2220 penalty on line 25 then enter remaining overpayment 23 Net Amount: Subtract line 22 from line 19 and enter the 24 Tax Due: Enter the amount from line 23 if it is greater than 25 Penalty for Underpayment of Estimated Tax: Corporations 26 Failure to Timely File a Return: A penalty of 10% will be 26 of page 1 The underpayment penalty is computed on form 27 Interest: Interest accrues on the unpaid tax at a rate prescribed 28 Total Amount Due: Add lines 24 25 26 and 27 Payment 29 Overpayment: Enter the amount from line 23 if it is less than 3 42 002d (07/03/13) 3 Enter any net capital loss included in the computation of line 3 Enter any net capital loss previously not allowed as an Iowa 3 Enter the applicable amounts from lines 2l and 2m on federal 3 Enter the current period Iowa tentative minimum tax line 16 3 Other Additions: Enter the total from line 16 of Iowa 3 to document information included in the Iowa return 30 Credit to Next Period s Estimated Tax: Enter the amount 30% bonus depreciation provisions of the federal Job Creation and Worker Assistance Act of 2002 In addition Iowa 31 Refund Requested: Subtract line 30 from line 29 and enter 4 Enter any net contributions deducted in excess of the federal 4 Enter any net contributions previously not allowed as an Iowa 4 Net Income after Additions: Add lines 1 2 and 3 and enter 4 Subtract line 3 from line 2 If zero or less enter zero 4 Subtract lines 3a and 3b from line 2 42 002 (07/03/13) 42 002b (07/18/13) 42 002c (07/03/13) 42 002e (09/24/12) 42 002f (07/18/13) 422 61 doing business in this state as a financial institution must 4562B 5 7 Enter deductions relating to sale leaseback safe harbor leases 5 7 Enter income amounts related to sale leaseback safe harbor 5 Alternative minimum tax credit: Enter the smaller of line 1 5 Federal Tax Paid or Accrued: Enter 50% of federal income 50% of the applicable federal income tax Do not enter negative 515 281 3114 (Des Moines out of state) or 1 800 367 3388 (Iowa Omaha Rock Island Moline only) 6 Balance to carry forward to next tax period Subtract line 5 6 Enter the amount of adjusted current earnings adjustment 6 Other Reductions: Enter the total from line 16 of Iowa 6072(d) of the Internal Revenue Code have until the 15th day of 7 Current period alternative minimum tax from line 18 of IA 4626 7 Total Reductions: Add lines 5 and 6 and enter the total 8 and enter the difference 8 Depreciation Adjustment: Attach forms IA 4562A and IA 8 Net Income After Reductions: Subtract line 7 from line 4 8 Total AMT carryforward to next tax period Add lines 6 and 7 9 Enter the amount of interest and dividends exempt from federal 9 Nonbusiness Income: Enter the total from line 17 of Iowa 90% or more of their correct tax on or before the original due date A custom farming contract tax credit is available for corporation A small business corporation or a new corporation for its first year Accrual Basis taxpayers should determine the total tax added to the tax due for failure to timely file a return if the Additional Information Additional information about this topic can be located in the section additional instructions additional period of time to file and owe both penalty and interest ADDITIONAL SCHEDULES AND FORMS INDEX additional tax due with no penalty Taxpayers who have not paid adjustments must be attached to the notice in order to begin the 6 affiliated group that files a consolidated federal return but against the tax liability in the tax year Multiply the resulting aid in determining whether that income is business or alcohol and cellulosic biofuel tax credit form 6478 All corporations filing a return with the Department must All lines on Schedule H must be completed All taxpayers who have paid 90% or more of their correct tax on allowed If adjusting an amount from a partnership or LLC Alternative Minimum Tax alternative minimum tax is due or attach federal form 4626 Alternative Minimum Tax Loss Carryover G 42 020 amount by 50% amount determined under IRC section 611 as claimed on the amount of the items of tax preferences and adjustments arising amounts on lines 1 through 8 if the corporation s commercial amounts The effective tax rate equals line 5 page 1 divided an additional six months in which to file their return and pay any an oil gas or geothermal well that exceeds the cost depletion and enter the difference and enter the result and enter the sum and enter the total and enter total and indirectly related interest expenses on the appropriate line and interest income and depreciation expense for the lessee and other financial institution as defined in Iowa Code section and real property must be included in the numerator if the any for alternative minimum tax incurred in prior tax years and any interest from state and municipal bonds and regulated appropriate line If an entry is made on line 6 or 14 please are both applicable only the failure to file penalty will apply are listed in Iowa Rule 40 3 If municipal interest taxable for are no longer allowed to carry back Iowa net operating losses All at least 90% of the correct amount of tax is not paid by the attach a schedule of the formula used to compute the tax Attach detailed schedules showing the computation of the attach federal Schedule D If an entry is made on line 1 do attach pages 1 5 of the consolidated federal return Automatic Extension of Time to File Auxiliary Schedules be added to the tax due for willful failure to file a return or be attached to the return Initial return taxpayers are subject be completed to record the cumulative effect of the adjustment and attached to the Iowa return be obtained by contacting the Iowa Department of Revenue beginning in 2013 below zero by 25% of the amount that line 13 exceeds between Iowa and federal laws between the taxpayer and the Internal Revenue Service A copy of Bonus Depreciation business activity http://www irs gov/instructions/i1120/ar03 html Business Activity Ratio E IA 1120 page 3 business activity ratio of that year s initial return is binding on all Business Code Business income means income which arises from the but less than 80% then 80% of the foreign dividend income by law from the original due date of the return until payment by line 1 page 1 of form IA 1120 Multiply column C by this C lines 13 15 C2 page 2 Calendar Year: Return is due no later than April 30 2014 Capital Loss Carryback carried forward carryforward to the extent of its regular corporation income tax Cash Basis taxpayers should compute the sum of federal cash Make checks payable to Treasurer State of Iowa changed only with permission of the Director of the Iowa Changes to Federal Net Income or Tax Check the appropriate box to indicate the basis of this federal Check the box if claiming a small business exemption check the name/address change box Include name of contact Code a corporation is required to file a short period return the Iowa Column A Gross Income: Enter the amount of income on the Column B Related Expense: Enter directly related expenses Column C Subtotal: Subtract column B from column A and Column D 50% of Applicable Federal Income Tax: Enter column E Column E Net Income: Subtract column D from column C commercial domicile or principal place of business Enter 00 if the commercial domicile or principal place of business is not located Complete all applicable lines All figures are net of amounts Complete all applicable statements and questions complete all lines on the front page for the return to be accepted complete Schedule E Computation of Federal Refund/Deduction H 42 021a computation of the business activity ratio On the return the computed after federal dividend deduction and before federal conducted within Iowa Business income must be apportioned Confidentiality and Fair Information Practices Notice Consequently the subsequent year s total investment income considered incomplete and may be returned to you Consolidated Business Activity Ratio J 42 022b Consolidated Federal Return: If you were a member of an consolidating income statements and complete Schedule H Cooperative: Cooperative associations as defined in section Corporation Income Tax Payment Voucher 42 019 corporation income tax return of the owner corporation may apply any alternative minimum tax credit corporation return IA 1120 corporation s commercial domicile is outside Iowa However corporation s unitary trade or business a part of which is Corporations may still carry back a capital loss to the three corporations to compute the alternative minimum tax credit if County Number credit can only be changed after the due date if the change is credits and payments For example credit from prior period credits Attach schedule IA 4136 and schedule IA 148 Credits C1 IA 1120 page 2 credits claimed other than the motor fuel tax credit on Schedule Custom Farming Contract Tax Credit date of the return December 31 2007 and before January 1 2014 Form IA 4562A must be filed to account for these differences Deduct any interest from state and municipal securities and Deduction deduction that was not taken at the federal level deductions and the Iowa foreign dividend exclusion Deficiency: A penalty of 5% will be added to the tax due if Department of Revenue depreciation describes the reason determined without regard for the net operating loss deduction difference dividends or FSC dividends the amount must be recomputed do NOT complete Schedule D does not allow the 50% or 100% bonus depreciation provisions allowed for federal purposes for assets acquired after domestic dividends If the percentage of ownership is less Domestic International Sales Corporations must file an Iowa domicile is Iowa Enter amounts on lines 9 through 16 if the Electronic filing is available for Iowa corporation income tax returns employee Any Department of Revenue employee who discloses Enter all applicable amounts on the lines specified For line 1 Enter all applicable amounts on the lines specified Include Enter the business code from the list provided by the IRS for the enter the difference enter the difference but not below zero Enter the FEIN or PTIN for the preparer s identification Enter the number of the Iowa county that is the corporation s ePay (direct debit) ACH Credit or payment by check Go examination and determination of the correct tax after receipt of exceed 90% of the alternative minimum taxable income excluded Foreign dividend gross up is excluded at 100% exempt by section 422 34 Code of Iowa must file an Iowa expensing amount under section 179 of the Internal Revenue Code Failure to Timely Pay the Tax Due or Penalty for Audit Federal Changes Federal Employer Identification Number (FEIN) Federal form 4626 must be attached to this return federal income tax deduction using the following formula federal return federal return a schedule should be included Federal Tax file an Iowa Franchise Tax Return IA 1120F Filing Status/Type of Return Financial Institutions: Every bank savings and loan association First/Final Return Fiscal Year: Return is due within four months after the end of follows the same criteria as IRC section 243 does for For a corporation first doing business in Iowa the inclusion of for attributing certain income from intangibles for attribution of income from intangibles for federal tax purposes for assets acquired during 2012 and 2013 for filing with intent to evade tax for property placed into service prior to January 1 1986 This for tax periods beginning on or after January 1 2009 For tax years beginning on or after January 1 2009 corporations Foreign Dividend Exclusion B IA 1120 page 2 form 4626 form 8846 from line 1 and enter the difference Enter on IA 148 column FSCs: Foreign sales corporations domiciled or incorporated in General Instructions Go to www iowa gov/tax for details on electronic filing greater then 100% of the foreign dividend income is Hours: 8 a m 4 p m Monday Friday IA 1120 IA 1120 All other limited liability companies must file form IA IA 1120 on or before the 15th day of the 5th month following IA 1120 page 1 IA 1120 RETURN INDEX IA 1120S Income Tax Return for S Corporations 42 004 IA 1120X Amended Corporation Income Tax Return 42 024 IA 1139 CAP Application for Refund Due to the Carryback of Capital Losses 42 026 IA 148 Tax Credits Schedule IA 148 Tax Credits Schedule 41 148 IA 2220 and the total from that form is placed on line 25 IA 2220 Underpayment of Estimated Tax by Corporations 45 006 IA 4562A Depreciation Adjustment Schedule 41 105 IA 851 Affiliations I 42 022a If an additional payment is necessary in order to meet the 90% If corporate business is entirely within Iowa If name or address is different from your prior period return please if the commercial domicile is in Iowa See Iowa Rule 54 2(3) If this is a first or final return please check the box that best If your business activity is 100% Iowa you do not need to If your current filing is for less than 12 months please check the in calculating interest due on unpaid tax in Iowa in or accrued to this tax period Check the appropriate box in the year of the net operating loss The deduction for a net Inactive Return include a reconciliation of federal income to income reported includes interest expense and depreciation expense for the income income Do not include Iowa tax refunds from Iowa income due to the Work Opportunity Credit form 5884 income may at the taxpayer s election be included in the income tax purposes If tax is annualized check the box and income tax purposes the corporation must annualize for Iowa Income Tax Return for an S Corporation IA 1120S information exchange program Except as allowed by law Information from this return may be made available to the Internal information on this return cannot be released to anyone who is Instructions Instructions for Page Four Instructions for Page One Instructions for Page Three Instructions for Page Two Interest will accrue on any tax due after the original due date of Internet: www iowa gov/tax E mail: iowataxforms@iowa gov investment companies IRC section 936 Puerto Rican investment income determined to be business income in the investment income in the business activity ratio can later be Iowa alternative minimum tax here and on the IA 1120 line Iowa did adopt the federal provisions relating to increasing the Iowa differs from total municipal interest reported on the Iowa has not adopted the bonus depreciation provisions allowed Iowa If the recipient of the service receives some of the benefit Iowa Offers eFiling for Corporation Income Tax Returns Iowa should file an IA 1120S if any income or loss is reportable is entirely within Iowa Carry the result to six decimal places is excluded If the percentage of ownership is 80% or is limited to the federal tax deduction shown on line 5 page 1 is not subject to Iowa alternative minimum tax A small business is received Any portion of a month is considered a full month its business activity ratio for that and all subsequent years leases for property This includes rent income for the lessor Legal Information lessor and rent expense for the lessee liability limitation Limited Liability Companies (LLCs): Limited liability companies line 13 of the IA 1120 page 1 Line 16: Add lines 9 through 15 Line 17: Add lines 8 and 16 Enter this amount on line 9 of the Line 8: Add lines 1 through 7 of column E Enter this amount on Mark the appropriate box for filing status and return type Mark the appropriate box if the corporation has no business Mark the appropriate box If yes provide the tax periods changed Mark the appropriate box Property is defined as any tangible or Minimum Tax Credit and Carryforward Worksheet IA 8827 IA 1120 page 4 Minimum Tax IA 4626 IA 1120 page 4 month period motor fuel credit nonrefundable credits and other refundable NAME SCHEDULE FORM NO NAME SCHEDULE PAGE Name/Address need to file an IA 1065 They must include their business income Net Operating Loss Carryback Net Operating Loss Carryover F 42 020 net operating loss deduction net operating loss must still be reported as income on the Iowa net operating losses are allowed to be carried forward for 20 tax nonbusiness income Nonbusiness Income D IA 1120 page 3 nonrefundable credits not an Iowa Department of Revenue or Internal Revenue Service not include any amounts previously deducted on line 13 of Iowa Note: Care should be taken to correctly distinguish between notice must be supplied under separate cover and not as a part of Numbered Line Instructions numerator as follows: numerator of the activity ratio in proportion to the extent the of existence which through the operation of Internal Revenue Code of federal security interest by payer of overpayment to be credited to the next tax period This of Schedule IA 4626 page 4 Complete IA 4626 even if no of the correct amount of tax is not paid by the original due of the federal Adjusted Current Earnings Adjustment of the original due date will be considered timely of the service in Iowa the gross receipts are includable in the of their corporation income tax return are not allowed the 6 month of your federal Adjusted Current Earnings Adjustment of your Schedule IA 4626 on a federal Schedule C on their individual tax returns or on the on federal refunds Attach a schedule showing a breakdown on line 12 In effect the deduction is limited to 90% of line on line 6 of IA 4626 on Schedule C1 on the additional tax due after the original due date of their return on the Consolidated on the federal return on the Iowa partnership return The difference should be operating loss applied to the current taxable year must not operations in any state options include payment through Modernized eFile (MeF) or before the original due date of their return automatically have or line 4 here and on Part I of form IA 148 column F or the Iowa consolidated return contains different members original due date of the return Other Additions/Reductions A IA 1120 page 2 Other Forms overpayment should be listed as a payment on Schedule C2 page 1 If the penalty is computed the IA 2220 form must page 2 Payment Voucher Payments C2 IA 1120 page 2 Penalties can only be waived under limited circumstances Penalty for Willful Failure to File: A penalty of 75% will person and phone number Please provide all documentation to the substantial authority Power of Attorney 14 101 preceding tax years Refund requests for a capital loss carryback prior Iowa returns Producing Companies Included in Property in Iowa property is located in Iowa property producing the income Also see Iowa Rule 54 2(3) Provide a breakdown of line 17 taxes and licenses shown real property owned or leased with its primary location in Iowa recipient of the service receives all the benefit of the service in recipient receives benefit of the service in Iowa refundable tax credits refunds included in the Iowa return Regular Corporations: Every corporation doing business in this regulated investment companies exempt from federal income related expense rent royalty and capital or ordinary gain income from real or requested by the last day of the subsequent year requirement it must be made by the original due date of the return return is filed after the original due date of the return and if return to the extent a deduction for federal taxes was allowed on Revenue Code The section 179 expensing limit for tax years beginning in 2013 is $500 000 Revenue Service or to tax officials of another state under a tax royalties from intangibles must be included in the numerator S Corporations IC DISCs: S corporations and Interest Charge Schedule 8827 and the AMT worksheet must be completed by Schedule A Other Additions: Schedule A Other Reductions: Schedule A page 2 Schedule A page 2 of IA 1120 return Schedule A relating to foreign dividends Schedule B Foreign Dividend Exclusion Schedule C1 Credits Schedule C2 enter the dates estimated tax payments were paid Schedule C2 Payments Schedule column C Schedule D line 8 page 3 Schedule D Nonbusiness Income Schedule D page 3 Schedule E Business Activity Ratio Schedule E page 3 or 100% if the corporation s business Schedule H must be used by corporations with filing status 2 or 3 Schedule IA 4626 Schedule IA 8827 schedule must be attached or these amounts may not be schedule page 3 If the corporation has annualized for federal Schedules F and G are used when net operating losses are being Schedules I and J must be used by corporations with filing status section 55(e) is exempt from the federal alternative minimum tax section 936 Puerto Rican dividends or FSC dividends from securities included in federal income Do not include interest See instructions for line 13 Schedule A Separate Company Federal Service Companies: All gross receipts from the performance of services are includable in the numerator of the activity ratio if the Short Period short period box short period return is due 45 days after the original federal due Short Year: Where under the provisions of the Internal Revenue should be made on new form IA 1139 CAP showing why the income should be allocated as nonbusiness shown on line 4e of federal form 4626 If the amount includes shown on page 1 of federal form 1120 and multiply by 50% Small Business Expensing small business health care tax credit no Iowa return or copy of Special Instructions specific industry group corresponding to the corporation s primary specifically identified to indicate the Iowa adjustment being state or deriving income from sources within this state unless Statements STEP 1 Taxpayer Information STEP 2 Filing Status STEP 3 Net Income & Additions to Income STEP 4 Reductions to Income STEP 5 Taxable Income STEP 6 Tax Credits & Payments STEP 7 Balance Due STEP 8 Overpayment subsequent years returns The election to include business subtracted from federal taxable income due to the tip credit Such payments are made using form 42 019 Iowa Corporation Tax sufficient written notice of the final disposition of any matter Sum of all Positive Income tangible personal property is allocated to the situs of the tax deduction computation If filing status 2 or 3 you must tax Exclude interest received from certain Iowa bonds which tax information without legal authority is subject to a fine of tax net of any amortization of any discount or premium IRC tax rate to determine your entry for column D The total amount Taxable Income taxes paid in the tax year and motor fuel tax credits applied taxes paid or accrued The deduction should be computed taxpayer elects whether to include investment income which taxpayers who hire a beginning farmer to do custom farm work than 20% then 70% of the dividend income is excluded If than the federal consolidated return you must compute the that are taxed as corporations for federal purposes must file the that may be needed to complete the return These schedules can that may be used in future years the 9th month after the close of their period to file a return the adjusted current earnings of the corporation from line 10 The adjustment for depreciation should be made on form IA 4562A the amount paid to the beginning farmer The classification of income by the labels customarily given the Consolidated Taxable Income The corporate income tax return has several auxiliary schedules The credit equals 7% (8% if the beginning farmer is a veteran) of The Department of Revenue has six months to make an the difference the end of the tax period If the nonprofit corporation has no the federal document showing the final disposition or final federal the federal return is required to be filed the fiscal year The foreign dividend exclusion including subpart F income The IA 1120X must be used to change a previously filed IA 1120 The IA 1139 CAP must be used to carry back only a capital loss The IA 148 Tax Credits Schedule must be completed for any tax the percentage of ownership is equal to or greater than 20% the return All elections made on a return filed within six months the return for the current period the return is filed by the original due date and at least 90% The section 179 expensing limitation is $500 000 for tax years the sum the total them such as interest dividends rents and royalties is of no These amounts are shown on federal form 1120 Schedule This is the corporation s Federal Employer Identification Number titled Special Instructions to account for the difference between federal and Iowa to compute any alternative minimum tax credit carryforward To constitute notice sufficient to inform the Department the to document the computation of any federal tax deduction and/or to indicate the basis of this refund computation See (5) for to Iowa to Iowa by means of the business activity ratio Investment To obtain copies of schedules and forms To talk to a tax specialist to the extent allocable to Iowa to this penalty to www iowa gov/tax for E payment options Do not send Total Tax Reported UBIT (Nonprofit Corporation): A nonprofit corporation reporting underpaying estimated tax for the entire tax shown on line underpayment penalty is in addition to the penalties on line unless the change was due only to a capital loss carryback unrelated business income even if filing a 990 T to claim the unrelated business income on federal form 990 T must file an used in Iowa Schedule D Dividends are net of special using one of the following methods was determined to be business income in the computation of When referring to the columns designated below enter the When the failure to file penalty and the failure to pay penalty When to File which is determined to be business income is included in the Which Return to File worksheet column E and on Part 1 of the IA 148 Tax Credit Worksheet exceeds line 3 of federal 4626 by 75% and enter Worksheet Multiply the amount by which adjusted line 10 x x 50% = years However any federal refund due to the carryback of a federal your company files a separate Iowa corporation tax return zero Underpayment penalty may be applicable Subtract any