Oklahoma Small Business Corporate Tax Return Packet (form and instructions)
Extracted from PDF file 2020-oklahoma-512s-pckt.pdf, last modified October 2020
Small Business Corporate Tax Return Packet (form and instructions)2020 Oklahoma Small Business Corporation Income and Franchise Tax Forms and Instructions This packet contains: • Instructions for completing Form 512-S • Form 512-S: Small Business Corporation Income Tax form • Form 512-S-SUP: Supplemental Schedule for Form 512-S, Part 5 • Form 512-SA: Nonresident Shareholder Agreement Income Tax Form Filing date: • Your Oklahoma return is due 30 days after the due date of your federal return. For assistance or forms: • See page 18 for methods of contacting the Oklahoma Tax Commission. 2020 OKLAHOMA SMALL BUSINESS CORPORATION TAX PACKET TABLE OF CONTENTS General Filing Information: Income Tax and Franchise Tax.................................................................................................3-4 General Filing Information: Income Tax................................................................................................................................4-5 General Filing Information: Franchise Tax............................................................................................................................5-6 Amended Returns...................................................................................................................................................................5 Line by Line Instructions: Income Tax................................................................................................................................6-13 Line by Line Instructions: Franchise Tax..........................................................................................................................14-15 Line by Line Instructions: Income Tax and Franchise Tax................................................................................................16-17 When You Are Finished.........................................................................................................................................................17 Direct Deposit Information.....................................................................................................................................................18 How to Contact OTC.............................................................................................................................................................18 COMMON ABBREVIATIONS FOUND IN THIS PACKET FEIN - Federal Employer Identification Number IRC - Internal Revenue Code OS - Oklahoma Statutes OTC - Oklahoma Tax Commission PTE - Pass-Through Entity Sec. - Section(s) HELPFUL HINTS • Refunds must be made by direct deposit. Failure to supply direct deposit information will delay the processing of the refund. • Check your FEIN on all forms and schedules. • The request for your FEIN is authorized by Section 405, Title 42, of the United States Code. You MUST provide this information. It will be used to establish your identity for tax purposes only. • Check your calculations carefully. • Fiscal year dates are a common problem. If you file based on a fiscal year, please list dates on top of form where indicated. • Provide a complete copy of your federal return, and all required schedules. Failure to do so can slow down the processing of your return. • When complete, make copies of all the documents for your records. • Don’t forget to sign your tax returns. • The Oklahoma Tax Commission is not required to give actual notice to taxpayers of changes in any state tax law. Fast, free, 24/7 online filing services at oktap.tax.ok.gov 2 WHAT’S NEW IN THE 2020 OKLAHOMA 512-S TAX PACKET? • The Credit for Railroad Modernization on the Form 511CR was modified to increase both the individual credit amount and the total annual credit cap. To obtain Form 511CR, visit our website at tax.ok.gov. • A donation may be made from your refund to support the Oklahoma Silver Haired Legislature and Alumni Association Programs. See the instructions on pages 16 and 17 for more information. GENERAL FILING INFORMATION: INCOME TAX AND FRANCHISE TAX WHO MUST FILE All corporations having an election in effect under Subchapter S of the Internal Revenue Code (IRC) engaged in business or deriving income from property located in Oklahoma and that are required to file a federal income tax return using Form 1120-S, must file an Oklahoma income tax return on Form 512-S. Do not use Form 512. A complete copy of the federal return must be provided with the Oklahoma income tax return. For S corporations not required to complete the federal Schedules L and M-1, copies of the balance sheets from their financial statement must be provided. Failure to provide the required documentation may cause a delay in the processing of the S corporation’s income tax return as well as the income tax returns of its shareholders. Every corporation organized under the laws of this state, or qualified to do or doing business in Oklahoma in a corporate or organized capacity by virtue or creation of organization under the laws of this state or any other state, territory, district, or a foreign country, including associations, joint stock companies and business trusts as defined by Oklahoma statutes, unless exempt by statutes, must file an annual franchise tax return. The term “doing business” means and includes every act, power, or privilege exercised or enjoyed in this state as an incident to do or by virtue of powers and privileges acquired by the nature of all organizations falling within the purview of the Franchise Tax Code. Corporations required to file a franchise tax return may elect to file a combined corporate income and franchise tax return. To make this election, file Form 200-F. Corporations not filing Form 200-F must file a stand-alone Oklahoma Annual Franchise Tax Return (Form 200). Corporations that remitted the maximum amount of franchise tax for the preceding tax year, or that had their corporate charter suspended, do not qualify to file a combined income and franchise tax return. TIME AND PLACE FOR FILING Corporate returns shall be due no later than 30 days after the due date established under the IRC. In the case of complete liquidation or the dissolution of a corporation, the return shall be made on or before the 15th day of the fourth month following the month in which the corporation is completely liquidated. When the last date for filing any document or performing any act required by the Oklahoma Tax Commission (OTC) falls on a day when the offices are not open for business, the filing of the document or performance of the act shall be considered timely if it is performed by the end of the next business day. A valid extension of time in which to file your federal return automatically extends the due date of your Oklahoma return if no Oklahoma liability is owed. A copy of the federal extension must be provided with your Oklahoma return. If your federal return is not extended, or an Oklahoma liability is owed, an extension of time to file your Oklahoma return may be granted on Form 504-C. Mail your return to the Oklahoma Tax Commission, PO Box 26800, Oklahoma City, OK 73126-0800. FISCAL YEAR AND SHORT PERIOD RETURNS For all fiscal year and short period returns, the beginning and ending dates of the tax year must be shown on the top portion of the return where indicated. Omission of this information may cause a significant delay in the processing of the return, and no interest will accrue on any refund pending. WITHHOLDING ON NONRESIDENT MEMBERS Pass-through entities (PTE) (partnerships, S corporations, limited liability companies or trusts) are required to withhold Oklahoma income tax at a rate of 5% of the Oklahoma share of taxable income distributed to each nonresident member (partner, member, shareholder or beneficiary). A PTE is not required to withhold income tax with regard to any nonresident member who submits Form OW-15 “Nonresident Member Withholding Exemption Affidavit”. 68 Oklahoma Statutes (OS) Sec. 2385.29, 2385.30 and 2385.31. Fast, free, 24/7 online filing services at oktap.tax.ok.gov 3 2020 OKLAHOMA SMALL BUSINESS CORPORATION TAX PACKET WITHHOLDING ON NONRESIDENT MEMBERS (continued) Withholding is not required on distributions made to persons, other than individuals, who are exempt from federal income tax, organizations granted an exemption under IRC Section 501(c)(3), insurance companies subject to the Oklahoma Gross Premium Tax and therefore exempt from Oklahoma income tax under 68 OS Sec. 2359(c) and nonresident members who have filed the Form OW-15 “Nonresident Member Withholding Exemption Affidavit”. Withholding is not required on any distribution of royalty income on which the nonresident royalty interest income tax has already been withheld, on any distribution made to another PTE or on any distribution of income not subject to Oklahoma income tax. The following PTE’s are not required to withhold: • An entity electing to be treated as a disregarded entity for federal income tax purposes. A disregarded entity is an eligible entity that is treated as an entity that is not separate from its single owner. • An entity that does not have a requirement, or properly elects out of the requirement, to file a federal income tax return. • An entity making distributions of income not subject to Oklahoma income tax. • An entity that made the election to become an electing PTE (see “Electing Pass-Through Entity” on page 7 for more information). Distributions Made from the S Corporation S corporations that make distributions subject to Oklahoma withholding must register with the OTC. Register by completing Form OW-11 “Registration for Oklahoma Withholding for Nonresident Members”. This form may be obtained from our website at tax.ok.gov. To file and pay the income tax withheld, the S corporation must complete Form WTP10003 “Oklahoma Nonresident Distributed Income Withholding Tax Annual Return”. The S corporation will file Form WTP10003 on or before the due date (including extensions) of the S corporation’s income tax return. The S corporation must provide nonresident shareholders a Form 500-B by the due date (including extensions) of its income tax return, showing their respective amount of income and tax withheld. Copies of Form 500-Bs, along with the cover Form 501, must be electronically filed with the OTC by the same date. Each nonresident shareholder must provide a copy of the Form 500-B with their Oklahoma income tax return as verification for this withholding. For S corporations paying the tax on behalf of nonresident shareholders, the nonresident shareholder’s withholding may be claimed on Form 512-S, part 1, line 7. A copy of the nonresident shareholder’s Form 500-B must be provided with the Form 512-S. GENERAL FILING INFORMATION: INCOME TAX Agricultural Commodity Processing Facility Exclusion Owners of agricultural commodity processing facilities may exclude 15% of their investment in a new or expanded agricultural commodity processing facility located within Oklahoma. “Agricultural commodity processing facility” means buildings, structures, fixtures and improvements used or operated primarily for the processing or production of agricultural commodities to marketable products. The investment is deemed made when the property is placed in service. Under no circumstances shall this exclusion lower the shareholder’s taxable income below zero. In the event the exclusion does exceed income, any unused portion may be carried over for a period not to exceed six years. Attach a separate schedule showing the type of investment(s), the date placed in service, the cost, the total exclusion and the exclusion available for each shareholder. Do not include this exclusion in the Oklahoma net distributable income; each shareholder shall report their allowable share of the exclusion on the designated line of their individual return. For a nonresident who does not file a nonresident agreement, include the shareholder’s allowable share in Part 5, line 13. Oklahoma Depletion in Lieu of Federal Depletion (Part 5) Oklahoma depletion on oil and gas well production, at the option of the taxpayer, may be computed at 22% of gross income derived from each Oklahoma property during the taxable year. Major oil companies, as defined in Title 52 OS Sec. 288.2, when computing Oklahoma depletion, shall be limited to 50% of the net income (computed without the allowance for depletion) from each property. If Oklahoma options are exercised, the federal depletion not used due to 65% limit may not be carried over. Lease bonus received is considered income subject to depletion. If depletion is claimed on a lease bonus and no income is received as a result of non-producing properties, upon expiration of the lease, such depletion must be restored. A complete schedule by property must be furnished. Note: For each nonresident shareholder whose income is reported in Part 1, line 1a, the depletion is reported in Part 1, line 1c. Fast, free, 24/7 online filing services at oktap.tax.ok.gov 4 2020 OKLAHOMA SMALL BUSINESS CORPORATION TAX PACKET Underpayment of Estimated Tax Interest All S corporations that are paying tax at the corporate level are required to make estimated tax payments when the tax for the taxable year can reasonably be expected to be $500 or more. The estimated tax payments shall not be less than 70% of the amount of tax due (tax liability less all credits except amounts paid on estimated tax and extension payments), or 100% of the prior year’s tax liability. Should deficiencies occur, the amount of underpayment shall be subject to interest at an annual rate of 20%, or fraction thereof, for the period of underpayment. Provide Form OW-8-P. Note: No underpayment of estimated tax interest shall be imposed if the tax liability shown on the return is less than $1,000. Amended Returns The Form 512-S is used for amended returns also. If this is an amended return, place an ‘X’ in the box located in the top section of Form 512-S, page 1. Complete Schedule 512-S-X on page 10. Provide Federal Amended Form 1120-S when applicable. Overpayments cannot be applied to next year’s estimated tax. Line 28 cannot be amended or changed once the original return has been processed. When amending Form 512-S for S corporations that are paying tax at the corporate level, enter on line 9 any amount paid with the original return plus any amount paid after it was filed. Enter on line 10 any refund previously received or overpayment applied. An overpayment on an amended return may not be credited to estimated tax, but will be refunded. The amount applied to estimated tax on the original return cannot be adjusted. Adjustments by Internal Revenue Service Taxpayers who file “consents” extending the time for making federal adjustments automatically extend the time for making state adjustments. The taxpayer is also required to file an amended return reporting all Internal Revenue Service (IRS) adjustments. A copy of the finalized RAR must be furnished. Banks and Credit Unions State and national banks and state credit unions that make a federal subchapter S election shall not pay an “In Lieu” tax of 6% per 68 OS Sec. 2370. The income or loss of that entity shall be reported at the shareholder level. Real Estate Investment Trusts A real estate investment trust that does not become regularly traded on an established securities market within one year of the date on which it first becomes a real estate investment trust, shall be deemed not to have been regularly traded on an established securities market, retroactive to the date it first became a real estate investment trust. An amended return shall be filed reflecting such retroactive designation for any tax year or part year occurring during its initial year of status as a real estate investment trust. For purposes of this paragraph, a real estate investment trust becomes a real estate investment trust on the first day it has met the requirements of IRC Section 856 and has elected to be treated as a real estate investment trust pursuant to IRC Section 856(c)(1). 68 OS Sec. 2358. GENERAL FILING INFORMATION: FRANCHISE TAX Requirement for Filing a Franchise Tax Return All foreign (non-Oklahoma) corporations, including non-profits, must pay an Annual Registered Agent Fee of $100.00. Indicate this amount on line 13 of the Form 512-S, page 6. The maximum annual franchise tax is $20,000.00. Corporations that remitted the maximum amount of franchise tax for the preceding tax year do not qualify to file a combined income and franchise tax return. For these corporations their franchise tax is due and payable on May 1 of each year, and delinquent if not paid on or before June 1. If a taxpayer computes the franchise tax due and determines that it amounts to $250.00 or less, the taxpayer is exempt from the tax and a “no tax due” form is required to be filed. A schedule of corporate officers must still be filed, and for foreign corporations the $100.00 registered agents fee is still due. If the charter or other instrument is suspended, a fee of $150.00 is required for reinstatement. (Line 16 of Form 512-S, page 6.) Franchise Tax Computation The basis for computing Oklahoma franchise tax is the balance sheet, as shown by your books of account at the close of the last preceding income tax accounting year. If electing to change filing to match the due date of the corporate income tax, use the balance sheet for that corporate tax year. The franchise tax for corporations doing business both within and outside of Oklahoma is computed on the proportion to which property owned, or property owned and business done, within Oklahoma bears to total property owned, or total property owned and total business done everywhere. Fast, free, 24/7 online filing services at oktap.tax.ok.gov 5 2020 OKLAHOMA SMALL BUSINESS CORPORATION TAX PACKET Franchise Tax Computation (continued) “Property owned” is the book value of the assets. For the purpose of determining apportionment as between Oklahoma and elsewhere, liabilities are not to be deducted from gross assets. The term “business done” means and includes the engaging in any activity or the performing of any act or acts in this state that constitutes the doing or transacting of business. Business done in Oklahoma includes sales shipped from Oklahoma to another state in which the corporation is not doing business. Intercompany payables and receivables between parent, subsidiary and/or affiliates, are to be eliminated from the calculations necessary to determine the amount of franchise tax due. Oklahoma franchise (excise) tax is levied and assessed at the rate of $1.25 per $1,000.00 or fraction thereof on the amount of capital allocated or employed in Oklahoma. LINE BY LINE INSTRUCTIONS FOR DETERMINING OKLAHOMA NET DISTRIBUTABLE INCOME: INCOME TAX Computation of Allocable and/or Apportionable Income Part 2, Column A and Part 3, Column A are to be completed by all S corporations. All S corporations start with Part 2. Part 2, Column B and Part 3, Column B, are to be completed by S corporations deriving all of their income from within Oklahoma or by S corporations whose business within and without Oklahoma is oil and gas production, mining, farming, income from other pass-throughs or rental. This should be completed using the direct accounting method. Part 4 is to be completed by S corporations conducting a business of a unitary nature. A unitary business is one whose income is derived from the conduct in more than one state of a single business enterprise, all the factors of which are essential to the realization of an ultimate gain derived from the enterprise as a whole, and not from its component parts which are too closely connected and necessary to each other to justify division or separate allocation. Safety Pays OSHA Consultation Service Exemption (Part 2, column B, line 19 or Part 4, line 3) An employer that is eligible for and utilizes the Safety Pays OSHA Consultation Service provided by the Oklahoma Department of Labor shall receive a $1,000 exemption for the tax year the service is utilized. Employers must be able to substantiate their participation in the Oklahoma Department of Labor’s Safety Pays OSHA Consultation Service upon request. Qualified Refinery Property (Part 2, column B, line 5 or Part 4, Line 2) If the election was made to expense the cost of qualified Oklahoma refinery property placed in service before January 1, 2012, on a previous year’s Oklahoma return, the depreciation deduction claimed on the federal return for such property must be added back to arrive at Oklahoma taxable income. This addition must be made regardless of whether the expense was claimed on the corporate return or allocated to its owners. 68 OS Sec. 2357.204. Cost of Complying with Sulfur Regulations A qualified refinery may make an irrevocable election to allocate all or a portion of the cost of complying with sulfur regulations issued by the Environmental Protection Agency as a deduction allowable to its owners. The allocation for each person is equal to the ratable share of the total amount allocated, determined on the basis of the ownership interest of the person. The taxable income of the refinery shall not be reduced by the reason of any amount allowed under this section. 68 OS Sec. 2357.205. If You Are the Refinery To make the election, attach a schedule stating your corporate name and FEIN, a list of the costs of complying with sulfur regulations, some or all of which are being allocated to your owners, and the portion of such costs allocated to each owner (including the owner’s name and federal identification number). You shall also provide each owner with written notice of the amount of the allocation. The notice must include your corporate name and FEIN and the owner’s name and federal identification number. If You Are the Owner (Part 2, column B, line 19, or Part 4, line 6) Deduct the portion of the cost of complying with sulfur regulations which have been allocated to you. Attach the written notice of the allocation received from the refinery. Fast, free, 24/7 online filing services at oktap.tax.ok.gov 6 2020 OKLAHOMA SMALL BUSINESS CORPORATION TAX PACKET Captive Real Estate Investment Trusts (Part 2, column B, line 5 or Part 4, line 2) A captive real estate investment trust that is subject to federal income tax is required to add-back the dividends-paid deduction otherwise allowed by federal law in computing net income. 68 OS Sec. 2358. Indian Employment Exclusion (Part 2, Column B, line 19 or Part 4, line 3) All qualified wages equal to the federal Indian Employment Credit set forth in 26 U.S.C.A., Section 45A, shall be deducted from taxable income. Deduct on the Oklahoma return, an amount equal to the reduction of salaries and wages reported on the federal return as a result of the Form 8845 “Indian Employment Credit”. The deduction allowed shall only be permitted for the tax years in which the federal credit is allowed, even if not used in such year because of tax liability limitations. Provide a copy of the federal return, Form 8845 and if applicable, Form 3800. Electing Pass-Through Entity 68 O.S. Sections 2355.1P-1 through 2355.1P-4 “Electing pass-through entity” means any PTE as defined in 68 OS Sec. 2355.1P-2(6) that has made an election pursuant to 68 OS Sec. 2355.1P-4(F) to pay income tax as computed pursuant to 68 OS Sec. 2358. Any PTE required to file an Oklahoma partnership income tax return or Oklahoma S corporation income tax return may elect to become an electing PTE by filing Form 586 “Pass-Through Entity Election Form”. The election to become an electing PTE has priority over and revokes any election to file a composite Oklahoma partnership return or the requirement of a Subchapter S corporation to report and pay tax on behalf of a nonresident shareholder for the same tax year. An election made by one PTE is not binding on any other PTE; each PTE must make its own election. The election is binding until revoked by the PTE or by the OTC. Form 586 is also used by the PTE to revoke the election. If the amount of tax required to be paid by the PTE pursuant to the provision of the Pass-Through Entity Tax Equity Act of 2019 is not paid when due, the OTC may revoke the PTE’s election effective for the first year for which the tax is not paid. If You Are the Electing PTE Place an “X” in the “Electing PTE” box located at the top of Form 512-S, page 1. Use Form 587-PTE “Pass-Through Entity Income Tax Supplement” to compute the electing PTE’s Oklahoma tax. Each member’s distributive share of the PTE’s Oklahoma net entity income is multiplied by 5% for individual and trust members or 6% for corporate, S corporation and partnership members. The total of which is the electing PTE’s tax. The electing PTE’s taxable income and tax are entered on Form 512-S, Part 1, section One, lines 1 and 2b and 2c. Oklahoma Net Entity Loss If the PTE election results in a net entity loss for Oklahoma income tax purposes in any tax year, the net entity loss may be carried back and carried forward by the electing PTE for Oklahoma income tax purposes as set forth in 68 OS Sec. 2358(A)(3)(b). The electing PTE’s net entity loss equal to the percentage of ownership reported in each part is entered on Form 587-PTE, Part 1, line 18, or Part 2, line 18. If You Are a Member of an Electing PTE (Part 2, column B, line 5, or Part 4, line 6) If you are a member, either directly or indirectly, of an electing PTE you may exclude the Oklahoma income (loss) covered by the election pursuant to the provisions of the Pass-Through Entity Act of 2019. Attach a schedule listing the electing PTE, federal identification number, federal taxable income (loss) and Oklahoma taxable income (loss) in line 1 that is covered by the election pursuant to this Act. Provide a copy of the OTC acknowledgement letter. 68 OS Sec. 2358(A)(11). PART 2 To compute Oklahoma net distributable income, all S corporations start with Part 2. Lines 1-21, Column A Part 2, column A must be completed by all S corporations. List exact figures as reported on the front page of your Federal Form 1120-S. Lines 1-21, Column B Part 2, column B is to be used by S corporations deriving all of their income from within Oklahoma. This column is also to be used by all S corporations whose business, both within and without Oklahoma, is oil and gas production, mining, farming, income from other pass-throughs or rental. This should be completed using the direct accounting method. S corporations conducting business of a unitary nature do not complete column B. Rents and interest expenses paid to a captive real estate investment trust and deducted on your federal return must be added back on column B, line 5 to compute Oklahoma distributable income. Such add-back is not required if the captive real estate investment trust is subject to the add-back for the dividends-paid deduction. See the “Captive Real Estate Investment Trusts” section. Fast, free, 24/7 online filing services at oktap.tax.ok.gov 7 2020 OKLAHOMA SMALL BUSINESS CORPORATION TAX PACKET PART 3 If federal and Oklahoma net distributable incomes are the same, you may complete line 18 of Part 3, then complete Part 5. A copy of your federal Form 1120-S and K-1 must be provided with your Oklahoma return. An Oklahoma return must be filed. Lines 1-18, Column A: Part 3, column A is to be used by all S corporations. List figures as reported on your Federal Form 1120-S, Sch. K. Lines 1-18, Column B Part 3, column B is to be used by S corporations deriving all of their income from within Oklahoma. This will be the same as in column A, except for lines 4b and 4c. This column is also used by S corporations whose business within and without Oklahoma is oil and gas production, mining, farming, income from other pass-throughs or rental. Complete this column on a direct accounting basis as follows: Line 1 Income (loss) shall be allocated in accordance with the situs of such property. Overhead expense shall be allocated on the basis of direct expense in Oklahoma to the total direct expense everywhere. Use page 3, Part 2 or provide a schedule. Lines 2 and 3 Income (loss) from real and tangible personal property shall be allocated in accordance with the situs of such property. Line 4 Accounts receivable interest income and interest income from investments held to generate working capital shall be allocated to Oklahoma on the basis of direct expense. See Part 3, line 1. All other intangible income (loss) shall be allocated in accordance with the situs of the S corporation. Gains or losses from the sale of leases and gains or losses from the sale of real and tangible personal property shall be allocated in accordance with the situs of the property. Line 4b State and Municipal Bond Interest S corporations domiciled in Oklahoma that receive income on bonds issued by any state or political subdivision thereof, exempt from federal taxation but not exempt from taxation by the laws of the State of Oklahoma, shall add the total of such income to arrive at Oklahoma income. 1) Income from all bonds, notes or other obligations issued by the State of Oklahoma, the Oklahoma Capital Improvement Authority, the Oklahoma Municipal Power Authority, the Oklahoma Student Loan Authority and the Oklahoma Transportation Authority (formerly Turnpike Authority) is exempt from Oklahoma income tax. The profit from the sale of such bonds, notes or other obligations shall be free from taxation. 2) Income from local Oklahoma governmental obligations issued after July 1, 2001, other than those provided for in line 1, is exempt from Oklahoma income tax. The exceptions are those obligations issued for the purpose of providing financing for projects for nonprofit corporations. Local governmental obligations shall include bonds or notes issued by, or on behalf of, or for the benefit of Oklahoma educational institutions, cities, towns, or counties or by public trusts, of which any of the foregoing is a beneficiary. 3) Income from Oklahoma State and Municipal Bonds issued prior to July 2, 2001, other than those provided for in line 1, is exempt from Oklahoma income tax only if so provided by the statute authorizing their issuance. 4) Income on bonds issued by another state or political subdivision thereof (non-Oklahoma), exempt from federal taxation, is taxable for Oklahoma income tax. Provide a schedule of all municipal interest received by source and amount. If the income is from a mutual fund that invests in state and local government obligations, provide documentation from the mutual fund to substantiate the percentage of income derived from obligations exempt from Oklahoma tax. Note: If the interest is exempt, the capital gain/loss from the sale of the bond may also be exempt. The gain/loss from sale of a state or municipal bond, other than those provided for in line 1, is exempt only if so provided by the statute authorizing its issuance. Line 4c - Interest on U.S. Government Obligations If you report interest on bonds, notes, and other obligations of the U.S. on your federal return, it may be excluded from your Oklahoma income if a detailed schedule is furnished, accompanied with 1099s showing the amount of interest income and the name of the obligation from which the interest is earned. If the income is from a mutual fund that invests in U.S. Government obligations, provide documentation from the mutual fund to substantiate the percentage of income derived from obligations exempt from Oklahoma tax. Interest from entities such as FNMA and GNMA does not qualify. Fast, free, 24/7 online filing services at oktap.tax.ok.gov 8 2020 OKLAHOMA SMALL BUSINESS CORPORATION TAX PACKET PART 3 (continued) Lines 7 through 9 Gains or losses from the sale of the following shall be allocated in accordance with the situs of the property: • Real or tangible personal property, • Lease, royalty or bonus income from oil and gas properties. Line 10 The gain on property, for which a section 179 expense deduction was passed through to shareholders and which is reported as Supplemental Information on the federal K-1, is to be reported on this line for Oklahoma purposes. Provide the following: description of the property, date the property was acquired, date the property was sold, gross sales price, cost or other basis plus expense of sale (including the S corporation’s basis reduction in the property due to the section 179 expense deduction), depreciation allowed or allowable (not including the section 179 expense deduction), and amount of section 179 expense deduction (if any) passed through to each shareholder for the property and the S corporation’s tax year(s) in which the amount was passed through. Lines 12 through 17 Expenses relative to the income above shall be allocated directly to that income. PART 4 Part 4 is to be used by S corporations conducting a business of unitary nature. A unitary business is one whose income is derived from the conduct in more than one state of a single business enterprise, all the factors of which are essential to the realization of an ultimate gain derived from the enterprise as a whole, and not from its component parts, which are too closely connected and necessary to each other to justify division or separate allocation. Generally, the resulting amount is apportioned to Oklahoma based on the three-factor formula. The basis of the apportionment is the average of three factors consisting of property, payroll and sales. If fewer than three factors are present, the resulting amount is apportioned to Oklahoma on a two-factor or single-factor formula consisting of the arithmetical average of the factors present. A factor is considered present if there is a denominator. Each factor is a ratio of the total within Oklahoma to the total everywhere. To the income apportioned to Oklahoma, there is to be added all income separately allocated to Oklahoma with the result being Oklahoma taxable income. 68 OS Sec. 2358. Line 1 Enter net distributable income from page 3, Part 3, column A, line 18. Line 2 Deductions relating to income that is separately allocable shall not be allowed as apportionable and will be entered here. Rents and interest expenses paid to a captive real estate investment trust and deducted on your federal return must be added back to compute Oklahoma distributable income. Such add-back is not required if the captive real estate investment trust is subject to the add-back for the dividends-paid deduction, see “Captive Real Estate Investment Trusts” on page 7. Line 3 Income from U.S. obligations (see Part 3, line 4c instructions) and net income separately allocated (oil and gas production, mining, farming, or rentals and other pass-through income) will be entered here. Gains or losses from sale of intangible personal property that is directly allocated should also be entered here. Line 4 Total apportionable income. Line 5 Apportionment factor from apportionment schedule. Line 6 Income separately allocated to Oklahoma should be entered here (interest income from state obligations or political subdivisions, oil and gas production, mining, farming, rentals, the Oklahoma distributable income from pass-throughs, etc.). Line 7 Oklahoma net distributable income. Place this figure on page 3, Part 3, column B, line 18. Then complete Part 5. PART 5 All S corporations must complete Part 5. If filing by paper, complete Form 512-S-SUP if there are more than three shareholders. Complete as many Form(s) 512-S-SUP as needed to list all shareholders. Fast, free, 24/7 online filing services at oktap.tax.ok.gov 9 2020 OKLAHOMA SMALL BUSINESS CORPORATION TAX PACKET PART 5 (continued) If your business is either wholly in Oklahoma or of an allocable nature, complete Part 5 after you complete Part 3. If your business is of a unitary nature, complete Part 5 after you complete Part 4. Shareholder’s Pro Rata Share of Income Enter the names, addresses and Social Security Numbers (SSN) or FEINs of the shareholders, and each shareholder’s pro rata share of net income, whether distributed or not. Notice: The amount shown on Part 5 may not be the amount to be entered on the shareholder’s Oklahoma income tax return. This amount includes all allowable S corporation income, losses and deductions; however, some of these items may be limited on the federal individual return. If these items are allowed in full or in part on your federal income tax return, they will be allowed to the same extent on your Oklahoma return. Corporations Please Note: Except for shareholders of an electing PTE, nonresident shareholders must provide a signed Form 512-SA indicating that an income tax form will be filed with Oklahoma reporting their income or loss. This agreement must be provided with the original S corporation income tax return, Form 512-S, for each nonresident shareholder, otherwise the corporation shall be taxed on that part of the corporation’s net income allocable to the shares of stock owned by the nonresident shareholder. Once the agreement has been signed, it is irrevocable for this tax year. If a signed agreement is not submitted with the original filed return, the tax on the corporation is binding. Each shareholder’s SSN or FEIN must be shown for the agreement to be valid. Depletion Enter each shareholder’s allowable depletion. Provide a detailed schedule. Withholding Oklahoma income tax is withheld from oil and gas royalties paid to nonresident S corporations. Enter each shareholder’s portion of such withholding. The S corporation must provide its Form 500-A, Form 1099-MISC, Form K-1 or other documentation to substantiate any Oklahoma withholding received by the S corporation passing through to its shareholders. Note: If you have any nonresident shareholders who have not filed a withholding exemption affidavit (Form OW-15), Oklahoma income tax should have been withheld on any distribution of Oklahoma taxable income. Such withholding is not reported here; instead you should have issued a Form 500-B to your nonresident shareholder. Credits Enter and describe each shareholder’s portion of credits. Provide all forms required to substantiate the credit(s). See the instructions for Part 1 “Oklahoma Credits” for more detail on the credits available. PART 1 - SECTION ONE: INCOME TAX Part 1 is to be completed: • For those nonresident shareholders for whom the Nonresident Shareholder Agreement (Form 512-SA) is not provided. The S corporation will be taxed on the non-resident’s share of income. NOTE: If the nonresident shareholder’s income is taxed at the S corporation level, the income is not to be reported by the shareholder on an Oklahoma income tax return. • For an electing PTE Form 587-PTE must be completed. • If claiming the Refundable Coal Credit or the Refundable Credit for Electricity Generated by Zero-Emission Facilities. Line 1b - Oklahoma Capital Gain Deduction Taxpayers can deduct qualifying gains receiving capital treatment that are included in federal taxable income. “Qualifying gains receiving capital treatment” means the amount of the net capital gains, as defined under IRC Section 1222(11). The qualifying gain must: 1) Be earned on real or tangible personal property located within Oklahoma that you have owned, either directly or indirectly, for at least five uninterrupted years prior to the date of the sale, 2) Be earned on the sale of stock or ownership interest in an Oklahoma headquartered company, limited liability company or partnership where such stock or ownership interest has been owned, directly or indirectly, by you for at least three uninterrupted years (two for individuals) prior to the date of the sale, or Fast, free, 24/7 online filing services at oktap.tax.ok.gov 10 2020 OKLAHOMA SMALL BUSINESS CORPORATION TAX PACKET Line 1b - Oklahoma Capital Gain Deduction (continued) 3) Be earned on the sale of real property, tangible personal property or intangible personal property located within Oklahoma as part of the sale of all or substantially all of the assets of an Oklahoma company, limited liability company or partnership where such property has been directly or indirectly owned by such entity or owned by the owners of such entity, and used in or derived from such entity for a period of at least three uninterrupted years (two for individuals) prior to the date of the sale. Form 561S is used to determine the qualifying Oklahoma net capital gain of the nonresident shareholders whose income is reported on Form 512-S, Part 1. Form 512-S, Part 1 is for those who did not file a nonresident shareholder agreement (Form 512-SA). Provide Form 561S and a copy of your Federal Schedule D. Line 1c - Nonresident Share of Deductions Share of Net Operating Loss (NOL) Carryover Enter the amount of NOL carryover that is attributable to those nonresidents who did not file a nonresident shareholder agreement (Form 512-SA) in the loss year. Provide a detailed schedule. Oklahoma Depletion: For each nonresident shareholder whose income is reported in Part 1, line 1a, Oklahoma depletion on oil and gas well production, at the option of the taxpayer, may be computed at 22% of gross income derived from each Oklahoma property during the taxable year. Major oil companies, as defined in Title 52 OS Sec. 288.2, when computing Oklahoma depletion, shall be limited to 50% of the net income (computed without the allowance for depletion) from each property. Lease bonus received is considered income subject to depletion. If depletion is claimed on a lease bonus and no income is received as a result of non-producing properties, upon expiration of the lease, such depletion must be restored. A complete schedule by property must be furnished. Line 2a - Nonresident Tax The income tax rate is 6%. Lines 2b and 2c - Electing PTE Enter the tax from Form 587-PTE, Parts 1 and 2. Recapture of the Oklahoma Affordable Housing Tax Credit If under IRC Section 42 a portion of any federal low-income housing credits taken on a qualified project is required to be recaptured during the first 10 years after a project is placed in service, the taxpayer claiming Oklahoma Affordable Housing Tax Credits with respect to such project shall also be required to recapture a portion of such credits. The amount of Oklahoma Affordable Housing Tax Credits subject to recapture is proportionally equal to the amount of federal lowincome housing credits subject to recapture. Add the recaptured credit to the Oklahoma income tax and enter a “1” in the box. Making an Oklahoma Installment Payment Pursuant to IRC Section 965(h) If a taxpayer elected to make installment payments of tax due pursuant to the provisions of subsection (h) of Section 965 of the IRC, such election may also apply to the payment of Oklahoma income tax, attributable to the income upon which such installment payments are based. Add the installment payment to the Oklahoma income tax and enter a “2” in the box. Provide a schedule of the tax computation. 68 OS Sec. 2368(K) Oklahoma Credits Provide a copy of the credit form or schedule. Complete the schedule showing each shareholder’s pro rata share of credit. For each credit, enter that portion attributable to the nonresident shareholders who do not file a nonresident shareholder agreement (Form 512-SA) or for the shareholders of an electing PTE. Line 3 - Other Credits The amount of other credits claimed on Form 511CR should be entered on this line. Enter in the box the number that corresponds with the credit to which the taxpayer is entitled. If you are entitled to more than one credit, enter “99” in the box. See the following for a list of credits available on Form 511CR. Provide Form 511CR and any applicable forms or schedules. This form can be obtained from our website at tax.ok.gov. Tax credits transferred or allocated must be reported on OTC Form 569. Failure to file Form 569 will result in the affected credits being denied by the OTC pursuant to 68 OS Sec. 2357.1A-2. Fast, free, 24/7 online filing services at oktap.tax.ok.gov 11 2020 OKLAHOMA SMALL BUSINESS CORPORATION TAX PACKET Line 3 - Other Credits (continued) • Oklahoma Investment/New Jobs Credit Provide Form 506. 68 OS Sec. 2357.4 and Rule 710:50-15-74. • Coal Credit 68 OS Sec. 2357.11 and Rule 710:50-15-76. • Credit for Investment in a Clean-Burning Motor Fuel Property Provide Form 567-A. 68 OS Sec. 2357.22 and Rule 710:50-15-81. • Credit for Tourism Development or Qualified Media Production Facility 68 OS Sec. 2357.34 - 2357.40. • Oklahoma Local Development and Enterprise Zone Incentive Leverage Act Credit 68 OS Sec. 2357.81. • Credit for Qualified Rehabilitation Expenditures 68 OS Sec. 2357.41 and Rule 710:50-15-108. • Credit for Electricity Generated by Zero-Emission Facilities 68 OS Sec. 2357.32A. • Credit for Financial Institutions Making Loans under the Rural Economic Development Loan Act 68 OS Sec. 2370.1. • Credit for Manufacturers of Small Wind Turbines 68 OS Sec. 2357.32B and Rule 710:50-15-92. • Credit for the Construction of Energy Efficient Homes 68 OS Sec. 2357.46 and Rule 710:50-15-104. • Credit for Railroad Modernization 68 OS Sec. 2357.104 and Rule 710:50-15-103. • Research and Development New Jobs Credit Provide Form 563. 68 OS Sec. 54006 and Rule 710:50-15-105. • Credit for Biomedical Research Contribution 68 OS Sec. 2357.45 and Rule 710:50-15-113. • Credits for Employers in the Aerospace Sector Provide Form 565. 68 OS Sec. 2357.301, 2357.302 & 2357.303 and Rule 710:50-15-109. • Wire Transfer Fee Credit 68 OS Sec. 2357.401 and Rule 710:50-15-111. • Credit for Cancer Research Contribution 68 OS Sec. 2357.45 and Rule 710:50-15-113. • Oklahoma Capital Investment Board Tax Credit 74 OS Sec. 5085.7. • Credit for Contributions to a Scholarship-Granting Organization 68 OS Sec. 2357.206 and Rule 710:50-15-114. • Credit for Contributions to an Educational Improvement Grant Organization 68 OS Sec. 2357.206 and Rule 710:50-15-115. • Credit for Venture Capital Investment Provide Form 518-A or 518-B. 68 OS Sec. 2357.206 and Rule 710:50-15-114. • Oklahoma Affordable Housing Tax Credit 68 OS Sec. 2357.403. • Credits for Employers in the Vehicle Manufacturing Industry Provide Form 585. 68 OS Sec. 2357.404 and Rule 710:50-15-116. Fast, free, 24/7 online filing services at oktap.tax.ok.gov 12 2020 OKLAHOMA SMALL BUSINESS CORPORATION TAX PACKET Line 7 - Oklahoma Withholding Enter the portion of Oklahoma withholding that is passing through the S corporation to those nonresident shareholders who did not file a nonresident shareholder agreement (Form 512-SA) or to shareholders of an electing PTE. The shareholder’s portion of such withholding is shown on page 5, Part 5, line 10. Provide the Form 1099-MISC, Form 500-A, Form K-1 or other withholding statement received by the S corporation to substantiate the Oklahoma withholding. Enter the Oklahoma income tax withheld from Oklahoma distributions made to your nonresident shareholders who did not file a nonresident shareholder agreement (Form 512-SA). The shareholder’s withholding is shown on the Form 500-B. Provide a copy of the Form 500-B for each such nonresident shareholder. Note: Do not include the portion of the S corporation’s withholding passing through to resident shareholders or to those nonresident shareholders who filed a nonresident shareholder agreement (Form 512-SA). Line 8 – Refundable Credits Place an “X” in the box(es) to report any credit from Form 577 or Form 578. If claiming the Refundable Coal Credit, provide Form 577. Credits earned, but not used, based upon activity occurring during the tax year will be refunded at 85% of the face amount of the credits. For any credit calculated, the credit allowed is equal to 75% of the amount otherwise provided. A PTE that does not file a claim for a direct refund will allocate the credit to one or more of its shareholders, partners or members. If claiming the Refundable Credit for Electricity Generated by Zero-Emission Facilities, provide Form 578. Credits earned, but not used, based on electricity generated during the tax year may be refunded to the taxpayer at 85% of the face amount of the credits. A PTE that does not file a claim for a direct refund may allocate the credit to one or more of its shareholders, partners or members. Line 9 - Amounts Previously Paid When filing an amended return, enter any amount(s) paid with the original return plus any amount(s) paid after it was filed. Line 10 - Refunds or Overpayment Applied When filing an amended return, enter any refund previously received and/or overpayment previously applied. Line 14 - Support the Oklahoma General Revenue Fund and Public Classroom Support Fund A donation to these funds may be made on a tax due return. For more information regarding these funds, see the instructions for Line 29. Line 15 - Underpayment of Estimated Tax Interest All S corporations are required to make estimated tax payments if the tax liability is $500 or more. To avoid the 20% Underpayment of Estimated Tax Interest, timely filed estimated tax payments are required to be equal to the smaller of 70% of the current year tax liability or 100% of your prior year tax. The tax liability is the tax due less all credits except amounts paid on estimated tax and extension payments. Place an “X” in the box if the underpayment of estimated tax was computed using the annualized income installment method. Note: No Underpayment of Estimated Tax Interest shall be imposed if the tax liability shown on the return is less than $1,000. Provide Form OW-8-P. If an amended return is filed before the due date for filing the original return, including any extension, the tax shown on the amended return is used to determine the amount of underpayment. If the amended return is filed after the due date, including extension, the tax shown on the amended return will not be used to compute the amount of underpayment. Line 16 - Delinquent Penalty and Interest Interest at the rate of 1.25% per month shall be paid on the tax due from the original due date until paid. 90% of the tax liability must be paid by the original due date of the return to avoid a delinquent penalty charge of 5% for late payment. Fast, free, 24/7 online filing services at oktap.tax.ok.gov 13 2020 OKLAHOMA SMALL BUSINESS CORPORATION TAX PACKET NOTE: If a combined Corporate Income and Franchise Tax Return is not being filed, skip the Franchise Tax Instructions and go to the “Page Two, Section Three: Total” instructions on page 16. LINE BY LINE INSTRUCTIONS: FRANCHISE TAX PAGES SIX THROUGH NINE: ANNUAL FRANCHISE TAX RETURN First Step Complete Balance Sheet and Schedules B, C & D on Form 512-S, pages 8 and 9. (Must be returned with annual return.) Balance Sheet Instructions (page 9) Lines 1 – 3 Cash, notes, accounts receivable, and inventories are to be reported at book value. Line 4 United States, municipal, commercial and other bonds owned by the corporation. Line 5 Prepaid expenses and deferred charges are to be included as assets at book value. Line 8 Stock or other evidence of ownership in subsidiary organizations as shown on the corporation’s books of account. Lines 9b, 10b, 11b If accumulated depreciation and depletion appear to be excessive, the excess may be disallowed. Line 13 Patents, trademarks, copyrights, etc., and franchises are to be included as assets to the extent of their cost. In the case of a definite term franchise, the cost thereof may be amortized over its life. Goodwill is an asset and should be shown at book value. All intangibles, including cash, are to be apportioned wholly to Oklahoma unless a commercial or business location for the intangibles has been established elsewhere. Line 14 Life insurance, where the reporting taxpayer is beneficiary, is to be shown at cash surrender value. Line 15 Total net amount of lines 6 through 14. Line 18 Total lines 15, 16, and 17. Line 20 Reserves for taxes are allowed to the extent such taxes are unpaid. Deferred credits are included in capital employed unless they can be shown to be actual liabilities. Line 21 Current liability includes indebtedness payable in three years or less after issuance. Line 26 Stockholder loans must be repaid within three years of creation to be considered a current liability. Contingent assets or liabilities should not be included unless fully explained and the condition under which they become actual is clearly set forth. Line 32 Total lines 23 through 31. The amounts, as shown by the books of account, shall be the measure of value of the assets and liabilities, except when the items on the books of account are in error or lack sufficient detail to truly reflect the amount of capital invested and employed in the business. Second Step Complete the Oklahoma Annual Franchise Tax Return (page 6). Item A: Place the taxpayer FEIN in block A. Item B: Enter the account number issued by the OTC beginning with “FRX”, followed by 10 digits. If no number has been issued, leave blank. Fast, free, 24/7 online filing services at oktap.tax.ok.gov 14 2020 OKLAHOMA SMALL BUSINESS CORPORATION TAX PACKET Second Step (continued) Item C: Place an “X” in the box if your mailing address has changed. Write your new address in the space provided in Item C. Item D: Enter your balance sheet date (MM/DD/YY) of your most recent income tax accounting year. Do NOT leave blank. Lines 1-11 (except 9) are derived from your balance sheet (page 9). Please put the date of the balance sheet in box D. Line 9 - Percent of Oklahoma Assets Select which option you will use to determine the apportionment of Oklahoma assets. Option 1: Percent of Oklahoma assets and business done to total assets and business done (line 6 divided by line 8). Round to six decimal points. Option 2: Percent of Oklahoma assets to total net assets (line 1 divided by line 2). Round to six decimal points. Line 12 - Tax Compute tax at $1.25 per $1,000.00 of capital (either line 4 or line 11). If tax is more than $20,000.00, enter $20,000.00 on line 12. You are exempt from paying tax if your tax liability is $250.00 or less, however, a return must still be filed. Note: Corporations paying the maximum franchise tax of $20,000.00 this year will be required to file a stand-alone franchise tax return (Form 200) next year. A combined corporate income and franchise tax return will not be allowed. Line 13 - Registered Agent Fee If the corporation originated in a state other than Oklahoma, the Oklahoma Secretary of State charges an annual registered agent fee of $100.00 which is collected on the franchise tax return. Line 14 - Interest Tax not paid by the original due date is subject to 1.25% interest per month from the due date until it is paid. Multiply the amount in Line 12 by .0125 for each month the tax is unpaid. Line 15 - Penalty Tax not paid by the original due date is subject to a penalty of 10%. Multiply the amount in Line 12 by .10 to determine the penalty. Line 16 - Reinstatement Fee If your corporate charter has been suspended, you must file a separate franchise return, Form 200, and meet all outstanding filing and payment obligations in order to be reinstated. A $150.00 reinstatement fee is also required. Only one reinstatement fee is required even if multiple past due returns are being filed. Note: To expedite the reinstatement of your corporation, the fee can be paid online through your OkTAP franchise account or by using our online payment service. Line 17 - Previous Payment Enter any Estimated Franchise tax paid with Form 504-C. If filing an amended return, enter any Franchise tax paid with the original return and amounts paid after it was filed. Line 18 - Overpayment Add the amounts from lines 12 through 16. If the result is less than the amount on line 17, subtract line 17 and enter the difference (overpayment) on line 18. Line 19 - Total Due Add the amounts from lines 12 through 16. If the result is larger than the amount on line 17, subtract line 17 and enter the difference (tax due) on line 19. Third Step Schedule A: Officer Information (page 7) Enter the effective date of officers. Please refer to the example on Schedule A. Failure to provide this information could result in the corporation being suspended. PAGE TWO - SECTION TWO: FRANCHISE TAX To complete lines 18-25, use the figures from page 6, lines 12-19. Fast, free, 24/7 online filing services at oktap.tax.ok.gov 15 2020 OKLAHOMA SMALL BUSINESS CORPORATION TAX PACKET LINE BY LINE INSTRUCTIONS: INCOME TAX AND FRANCHISE TAX PAGE TWO - SECTION THREE: TOTAL All Corporations Complete Section Three: Total. Combine income tax and franchise tax. If there is a balance due, complete line 26. If there is an overpayment, complete lines 27-31. Line 29 - Donations From Your Refund You may donate from your tax refund to support a variety of Oklahoma organizations. Enter the amount of your donation and place the number of the organization in the box on line 29 of Form 512-S. If you give to more than one organization, put a “99” in the box and attach a schedule showing how you would like your donation split. 1 Support of Programs for Volunteers to Act as Court Appointed Special Advocates for Abused or Neglected Children You may donate from your tax refund to support programs for volunteers to act as Court Appointed Special Advocates for abused or neglected children. Donations will be placed in the Income Tax Checkoff Revolving Fund for Court Appointed Special Advocates. Monies will be expended by the Office of the Attorney General for the purpose of providing grants to the Oklahoma CASA Association. If you are not receiving a refund, you may still donate. Mail your contribution to: Oklahoma CASA Association, Inc., PO Box 54946, Oklahoma City, OK 73154. 2 Indigent Veteran Burial Program You may donate from your tax refund to support the benefit of the Oklahoma Department of Veterans Affairs Indigent Veteran Burial Program. Monies will be expended by the Oklahoma Department of Veterans Affairs to provide reimbursement to a cemetery or funeral home for costs incurred burying an indigent veteran; provided, the maximum reimbursement shall not exceed $500 per veteran. If you are not receiving a refund, you may still donate. Mail your contribution to: Oklahoma Department of Veterans Affairs, P.O. Box 53067, Oklahoma City, OK 73152. 3 Support the Oklahoma General Revenue Fund You may donate from your tax refund to support the General Revenue Fund of the State of Oklahoma. Appropriation of such funds will be subject to the provisions of Section 23 of Article X of the Oklahoma Constitution. Expenditures from the fund will be made upon warrants issued by the state treasurer against claims filed as prescribed by law with the Director of the Office of Management and Enterprise Services for approval and payment. 4 Oklahoma Emergency Responders Assistance Program You may donate from your tax refund to support the Oklahoma Emergency Responders Assistance Program. Monies will be expended by the Department of Public Safety for the purpose of providing grants to the program for post critical incident care to all emergency first responders and their families who are experiencing emotional trauma. If you are not receiving a refund, you may still donate. Mail your contribution to: Oklahoma Department of Public Safety, Finance Department, Re: Oklahoma Emergency Responders Assistance Program, P.O. Box 11415, Oklahoma City, OK 731360415. 5 Support of Folds of Honor Scholarship Program You may donate from your tax refund to support the Folds of Honor Foundation. Folds of Honor is a 501(c)(3) charitable organization that provides scholarships for K through 12 and post-secondary education for children and spouses of military service men and women fallen or disabled while serving on active duty. If you are not receiving a refund, you may still donate to Folds of Honor. Mail your contribution to: Folds of Honor Foundation, 5800 North Patriot Drive, Owasso, OK 74055. 6 Support the Wildlife Diversity Fund You may donate from your tax refund to help conserve rare or declining fish and wildlife along with common species not hunted or fished. Donations to the Oklahoma Department of Wildlife Conservation’s Wildlife Diversity program supports field surveys of animals considered to be of greatest conservation need, as well as educational wildlife programs for all Oklahomans. Tax deductible donations to the Wildlife Diversity Fund also can be made at wildlifedepartment.com or by mail: P.O. Box 53465, Oklahoma City, OK 73152. Fast, free, 24/7 online filing services at oktap.tax.ok.gov 16 2020 OKLAHOMA SMALL BUSINESS CORPORATION TAX PACKET Line 29 - Donations From Your Refund (continued) 7 Support of Programs for Regional Food Banks in Oklahoma You may donate from your tax refund to support the Regional Food Bank of Oklahoma and the Community Food Bank of Eastern Oklahoma (Oklahoma Food Banks). The Oklahoma Food Banks are the largest hunger-relief organizations in the state – distributing food to charitable and faith-based feeding programs throughout all 77 counties in Oklahoma. Your donation will be used to help provide food to the more than 500,000 Oklahomans at risk of hunger on a daily basis. If you are not receiving a refund, you may still donate. Mail your contribution to: Oklahoma Department of Human Services, Revenue Processing Unit, Re: Programs for OK Food Banks, P.O. Box 248893, Oklahoma City, OK 73124. 8 Public School Classroom Support Fund You may donate from your tax refund to support the Public School Classroom Support Revolving Fund. It will be used by the State Board of Education to provide one or more grants annually to public school classroom teachers. Grants will be used by the classroom teacher for supplies, materials or equipment for the class or classes taught by the teacher. Grant applications will be considered on a statewide competitive basis. You may also mail a donation to: Oklahoma State Board of Education, Public School Classroom Support Fund, Office of the Comptroller, 2500 North Lincoln Boulevard, Room 415, Oklahoma City, OK 73105-4599. 9 Oklahoma Pet Overpopulation Fund You may donate from your tax refund to support the Oklahoma Pet Overpopulation Fund. Monies placed in this fund will be expended for the purpose of developing educational programs on pet overpopulation and for implementing spay/neuter efforts in this state. If you are not receiving a refund, you may still donate. Mail your contribution to: Oklahoma Department of Agriculture, Food and Forestry, Animal Industry Division, 2800 North Lincoln Blvd., Oklahoma City, OK 73105. 10 Support the Oklahoma AIDS Care Fund You may donate from your tax refund to support the Oklahoma AIDS Care Fund. Monies will be expended by the Department of Human Services for the purpose of providing grants to the fund for purposes of emergency assistance, advocacy, education, prevention and collaboration with other entities. If you are not receiving a refund, you may still donate. Mail your contribution to: Oklahoma Department of Human Services, Revenue Processing Unit, Re: OK Aids Care Fund, P.O. Box 248893, Oklahoma City, OK 73124. 11 Oklahoma Silver Haired Legislature and Alumni Association Programs You may donate from your tax refund to support the Oklahoma Silver Haired Legislature and their Alumni Association activities. The Oklahoma Silver Haired Legislature was created in 1981 as a forum to educate senior citizens in the legislative process and to highlight the needs of older persons to the Oklahoma State Legislature. Monies generated from donations will be used to fund expenses of the Silver Haired Legislators, training sessions, interim studies and advocacy activities. If you are not receiving a refund, you may still donate. Mail your contribution to: Oklahoma Silver Haired Legislature and Alumni, P.O. Box 25352, Oklahoma City, OK 73125. Line 31 All refunds must be directly deposited into a bank account. See page 18 “Direct Deposit Information” for details. WHEN YOU ARE FINISHED In the event that you owe taxes, provide a check or money order payable to “Oklahoma Tax Commission”. Enclose a completed Form EF-V with your payment if mailing separate from your return. Payments may also be made electronically. Visit our website for more information, tax.ok.gov. When complete, make copies of all the documents for your records and do not provide any other tax reports or correspondence in the envelope. Please mail the originals, along with any payment due, to: Oklahoma Tax Commission Income Tax PO Box 26800 Oklahoma City, OK 73126-0800 Fast, free, 24/7 online filing services at oktap.tax.ok.gov 17 GET YOUR REFUND FASTER. USE DIRECT DEPOSIT! Complete the direct deposit section on the tax return to have the refund directly deposited into your accou
2020 512-S Packet Instructions
More about the Oklahoma 512S-Pckt Corporate Income Tax TY 2020
We last updated the Small Business Corporate Tax Return Packet (form and instructions) in February 2021, so this is the latest version of 512S-Pckt, fully updated for tax year 2020. You can download or print current or past-year PDFs of 512S-Pckt directly from TaxFormFinder. You can print other Oklahoma tax forms here.
Other Oklahoma Corporate Income Tax Forms:
|Form Code||Form Name|
|Form 564||Credit for Employees in the Aerospace Sector (you will also need Form 511CR)|
|Form 576||Natural Disaster Tax Credit|
|Form 512||Corporate Income Tax Return (form and schedules)|
|Form 512E||Return of Organization Exempt from Income Tax|
|Form 500-A||Information Return|
Oklahoma usually releases forms for the current tax year between January and April. We last updated Oklahoma 512S-Pckt from the Tax Commission in February 2021.
About the Corporate Income Tax
The IRS and most states require corporations to file an income tax return, with the exact filing requirements depending on the type of company.
Sole proprietorships or disregarded entities like LLCs are filed on Schedule C (or the state equivalent) of the owner's personal income tax return, flow-through entities like S Corporations or Partnerships are generally required to file an informational return equivilent to the IRS Form 1120S or Form 1065, and full corporations must file the equivalent of federal Form 1120 (and, unlike flow-through corporations, are often subject to a corporate tax liability).
Additional forms are available for a wide variety of specific entities and transactions including fiduciaries, nonprofits, and companies involved in other specific types of business.
Historical Past-Year Versions of Oklahoma 512S-Pckt
We have a total of seven past-year versions of 512S-Pckt in the TaxFormFinder archives, including for the previous tax year. Download past year versions of this tax form as PDFs here:
While we do our best to keep our list of Oklahoma Income Tax Forms up to date and complete, we cannot be held liable for errors or omissions. Is the form on this page out-of-date or not working? Please let us know and we will fix it ASAP.