Pennsylvania Free Printable 2016 PA Corporate Net Income Tax - CT-1 Instructions (REV-1200) for 2017 Pennsylvania CT-1 PA Corporation Tax Booklet

It appears you don't have a PDF plugin for this browser. Please use the link below to download 2016-pennsylvania-form-rev-1200.pdf, and you can print it directly from your computer.

CT-1 PA Corporation Tax Booklet
2016 PA Corporate Net Income Tax - CT-1 Instructions (REV-1200)

CT-1 INSTRUCTIONS FOR CALENDAR YEAR 2016 AND FISCAL YEARS BEGINNING IN 2016 HIGHLIGHTS PLEASE CAREFULLY REVIEW HIGHLIGHTS BEFORE COMPLETING ANY TAX REPORTS OR SCHEDULES. NEW: The Capital Stock/Foreign Franchise tax has been phased out for tax years beginning on or after Jan. 1, 2016. 2. NEW: RCT-101, PA Corporate Net Income Tax Report for 2016 is a revised, year-specific, four page form. It includes a revised Page 1, eliminating CS-FF and LOANS from Step D. It also includes a revised Page 2, Bonus Depreciation, Corporate Net Income Tax and Sales Factor apportionment. This form MUST be used for filing all tax years beginning on or after Jan. 1, 2016. 3. NEW: Taxpayers claiming Add-Back on RCT-101, PA Corporate Net Income Tax Report, must include schedules REV-802 and REV-803 when filing the report. Act 52 of 2013 requires the add-back of intangible expenses to income for interest, royalties, patents, trademarks, etc., between affiliated entities in certain instances. 4. NEW: Amended reports filed for tax years beginning on or after Jan. 1, 2016, MUST be filed on the revised, year-specific RCT-101. You must check the amended report checkbox on Page 1, Step B. See Page 11 for details. 5. IMPORTANT: Amended reports filed for tax years beginning prior to Jan. 1, 2016, MUST be filed on the non-year-specific RCT-101. You must check the amended report checkbox on Page 1, Step B. See Page 11 for details. 6. Failure to submit a properly completed and signed tax report may result in the delay of processing and the imposition of late filing penalties and/or estimated assessments. 7. IMPORTANT: Taxpayers granted an extension to file the federal income tax return will automatically be granted an extension to file RCT-101, PA Corporate Net Income Tax Report. Corporate taxpayers granted a federal extension must indicate this by checking the "Federal Extension Granted" box under Step B on Page 1 of RCT-101, and include a copy of the federal extension request with the report. 8. Act 52 of 2013 increased the limitation of the net loss deduction from the greater of 25 percent of PA taxable income or $4 million to the greater of 30 percent of PA taxable income or $5 million. 9. Corporations participating in a consolidated federal tax filing must provide consolidating income statements and balance sheets to the department, including separate company schedules and all consolidations and eliminations. 10. Business income will be apportioned to Pennsylvania by use of the sales factor only. 11. The electronic funds transfer requirement was reduced from $10,000 to $1,000; all payments of $1,000 or more must be made electronically. 12. The PA corporate tax report and schedules are available on the PA Department of Revenue’s website at www.revenue.pa.gov and are indexed by form number. The form numbers for supporting schedules begin with “REV”. These numbers can be found on Page 2 of the instructions. 1. IMPORTANT - Use the department’s website to stay up-to-date on tax law changes, tax rates, tax forms and special instructions regarding form changes. Estimated payments and requests for extension of time to file should be made online. Visit the Online Services Center at www.revenue.pa.gov. All third party preparers who prepared 11 or more PA Corporate Net Income Tax Reports in the prior calendar year are required to electronically file all PA Corporate Net Income Tax Reports in subsequent years. Once a third-party preparer is subject to this filing mandate, the third-party preparer shall continue to be subject to the mandate regardless of how many PA Corporate Net Income Tax Reports the individual prepares during a calendar year. For information on refunds and transfers of overpayment, see Page 14. Page 1 of RCT-101 contains a check box labeled “E-File Opt Out.” This box is used to indicate that the taxpayer has instructed the preparer to not file the report electronically. A list of software vendors approved for electronic filing of the PA Corporate Net Income Tax Report can be found by visiting the Online Services Center at www.revenue.pa.gov. Page 1 of RCT-101 contains a checkbox labeled Regulated Investment Co/Sub Paragraph 18. This box must be checked for any report requiring a special calculation of tax liability or any of the conditions listed below. These reports cannot be submitted electronically and must be filed in paper form, with a complete explanation of the filing, to ensure timely and accurate processing. See Page 4 “Special Handling” for the mailing address. Examples of reports having “Special Handling” status include those filed by: • Corporations requesting extra-statutory treatment beyond that provided by law; • Corporations with two distinct activities like warehousing/ trucking & distribution/trucking or persons/transportation & property/transportation; • Corporations having net operating loss (NOL) limitations under IRC Section 381 and IRC Section 382; and • Corporations filing any tax report for a tax year beginning prior to 2001. • Corporations whose corporate net income tax or apportionment figure exceeds 13 digits. Tax rates for years beginning in Corporate Net Income Tax 2016 9.99 % 2017 9.99 % TABLE OF CONTENTS GENERAL INSTRUCTIONS What must be included with the PA Corporate Net Income Tax Report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5 Assembly of the PA Corporate Net Income Tax Report RCT-101 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .7 Federal S Corporations . . . . . . . . . . . . . . . . . . . . . . . . . . . . .7 Inactive Corporations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .7 Copy of Federal Form 1120, 1120C or 1120S . . . . . . . . . . .8 Confirmation of “Deposits on Account” for a Non-Filed Year .8 Electronic Payment Requirement . . . . . . . . . . . . . . . . . . . . .8 Due Date of Report and Payment . . . . . . . . . . . . . . . . . . . . .8 Filing Requirements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .8 Out of Existence/Withdrawal . . . . . . . . . . . . . . . . . . . . . . . . .8 Bulk Sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .9 Reinstatement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .9 Recording Dollar Amounts . . . . . . . . . . . . . . . . . . . . . . . . . . .9 Filing Period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .9 Extension of Time to File . . . . . . . . . . . . . . . . . . . . . . . . . . . .9 Penalties . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .9 Interest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .9 Transfers/Refunds of Corporate Taxes . . . . . . . . . . . . . . . . .9 Assignment of Tax Credit (Overpayment) . . . . . . . . . . . . . .10 Department Notices . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .10 Amended Reports/Reports of Change . . . . . . . . . . . . . . . . .11 Changes In Federal Taxable Income . . . . . . . . . . . . . . . . . .11 SPECIFIC INSTRUCTIONS LINE BY LINE INSTRUCTIONS FOR THE PA CORPORATE TAX REPORT, RCT-101 RCT-101-PAGE 1 IRS Filing Type . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .13 STEP A Tax Period . . . . . . . . . . . . . . . . . . . . . . . . . . . .13 STEP B Check Special Filing Status . . . . . . . . . . . . . . .13 STEP C Name, Address, Federal EIN Business Activity Code, Revenue ID & Parent Corporation EIN . . . . . . . .13 STEP D Tax Summary . . . . . . . . . . . . . . . . . . . . . . . . . .13 STEP E Payment Due/Overpayment . . . . . . . . . . . . . . .14 STEP F Transfer/Refund Methods . . . . . . . . . . . . . . . . .14 E-File Opt Out . . . . . . . . . . . . . . . . . . . . . . . . .14 STEP G Signature . . . . . . . . . . . . . . . . . . . . . . . . . . . . .14 RCT-101-PAGE 2 SECTION A: BONUS DEPRECIATION . . . . . . . . . . . . . . . .14 SECTION B: PA CORPORATE NET INCOME TAX . . . . . .14 Taxable Built-in Gains . . . . . . . . . . . . . . . . . . . . . . . . . .14 Deductions from and Additions to Income . . . . . . . . . . .14 Apportionment and Allocation . . . . . . . . . . . . . . . . . . . .15 Net Operating Loss Deduction . . . . . . . . . . . . . . . . . . . .16 Determination of Tax . . . . . . . . . . . . . . . . . . . . . . . . . . .16 Schedule C-1 Apportionment . . . . . . . . . . . . . . . . . . . . . . .16 2 REV-1200 SPECIFIC INSTRUCTIONS CONT. RCT-101 – PAGE 3 SECTION C: CORPORATE STATUS CHANGES . . . . . . . .16 SECTION D: GENERAL INFORMATION QUESTIONNAIRE 17 RCT-101 – PAGE 4 SCHEDULE OF REAL PROPERTY . . . . . . . . . . . . . . . . . . .17 CORPORATE OFFICERS . . . . . . . . . . . . . . . . . . . . . . . . . .17 PREPARER’S INFORMATION . . . . . . . . . . . . . . . . . . . . . . .17 SUPPLEMENTAL SCHEDULES REV-802, Schedule C-6 . . . . . . . . . . . . . . . . . . . . . . . . . . . .17 REV-803, Schedule C-7 . . . . . . . . . . . . . . . . . . . . . . . . . . . .17 RCT-106, Insert Sheet . . . . . . . . . . . . . . . . . . . . . . . . . . . . .17 REV-798, Schedule C-2 . . . . . . . . . . . . . . . . . . . . . . . . . . . .17 REV-798, Schedule X . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .17 RCT-103, Net Operating Loss Schedule . . . . . . . . . . . . . . .18 REV-860, Schedule C-5 . . . . . . . . . . . . . . . . . . . . . . . . . . . .18 REV-860, Schedule OA, Schedule OD . . . . . . . . . . . . . . . . .18 REV-861, Schedule DA . . . . . . . . . . . . . . . . . . . . . . . . . . . . .18 REV-934, Sched. of Non-business Income . . . . . . . . . . . . .19 REV-986, Claim of Exemption from CNIT . . . . . . . . . . . . . . .19 RCT-101D De Minimis Activity . . . . . . . . . . . . . . . . . . . . . . .19 REV-799, Schedule C-3 . . . . . . . . . . . . . . . . . . . . . . . . . . . .19 REV-799, Schedule C-4 . . . . . . . . . . . . . . . . . . . . . . . . . . . .20 REV-1175, Schedule AR . . . . . . . . . . . . . . . . . . . . . . . . . . . .20 APPORTIONMENT, EXEMPTIONS AND ALLOCATION Apportionment of Taxable Income . . . . . . . . . . . . . . . . . . . .20 Sales Factor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .20 Special Apportionment Fractions . . . . . . . . . . . . . . . . . . . . .21 Railroad, Truck, Bus or Airline Companies . . . . . . . . . . .21 Pipeline or Natural Gas Companies . . . . . . . . . . . . . . . .21 Water Transportation Companies Operating on High Seas . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .21 Water Transportation Companies Operating on Inland Waters . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .21 Apportionment & Investments in Unincorporated Entities . . . . . . . . . . . . . . . . . . . . . . . . . . .21 Nonbusiness Income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .21 MISCELLANEOUS Restricted Credits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .22 www.revenue.pa.gov WHO MUST FILE All business entities that have elected to file as a corporation with the IRS: • Corporation • Business Trust • Limited Liability Company • S Corporation that has Built-in Gains or • Any other entity electing to file as a corporation under federal Check the Box rule • Any corporation whose activity exceeds P.L. 86-272 Solicitation Only CUSTOMER SERVICES AND ASSISTANCE CONTACT NUMBERS Estimated Payments . . . . . . . . .1-888-PATAXES (728-2937) General BUSINESS Tax Questions . . . . . . . . 717-787-1064 Extension to File Annual Report . . . . . . . . . . . 717-705-6225 Transfer/Refund of Overpayments. . . . . . . . . . 717-705-6225 E-filed Reports. . . . . . . . . . . . . . . . . . . . . . . . . 717-346-1987 TAX CREDITS CONTACT NUMBERS Keystone Opportunity Zone Credit. . . . . . . . . . . 717-346-0327 Educational Improvement/Opportunity Scholarship Tax Credit . . . . . . . . . . . . . . . . . . . . . . . . . . 1-800-379-7448 or 717-787-7120 Neighborhood Assistance Credit . . . . . . . . 1-800-379-7448 or 717-787-1984 Employment Incentive Payment Credit. . . . . . 1-800-345-2555 Jobs Creation Tax Credit . . . . . . . . . . . . . . 1-800-379-7448 or 717-787-7120 Pennsylvania Research & Development Tax Credit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 717-705-6225 Organ and Bone Marrow Donor ACT . . . . . . . . . 717-787-8211 Mobile Telecommunications Broadband Investment Tax Credit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 717-772-3896 Coal Refuse Energy and Reclamation Tax Credit . 717-772-3896 FORMS ORDERING SERVICES To obtain tax instructions, single copies of PA corporation tax forms, coupons or brochures, use one of these services: Internet: www.revenue.pa.gov Toll-Free Phone Services 1-888-PATAXES (1-888-728-2937) Touch-tone service is required for this automated 24-hour toll-free line. Call to order forms or check the status of a corporate tax account. www.revenue.pa.gov FORMS ORDERING SERVICES CONT. Automated 24-hour Forms Ordering Message Service 1-800-362-2050 Serves taxpayers without touch-tone phone service. Services for Taxpayers with Special Hearing and/or Speaking Needs 1-800-447-3020 (TTY only) Written Requests: PA DEPARTMENT OF REVENUE TAX FORMS SERVICE UNIT 1854 BROOkWOOD ST HARRISBURG PA 17104-2244 ONLINE SERVICES Online Customer Service Center Find the answer to your question using the department’s Online Customer Service Center at www.revenue.pa.gov. Pennsylvania Tax Update Stay up-to-date on Department of Revenue news with the PA Tax Update, a free, bi-monthly e-newsletter. Visit www.revenue.pa.gov to sign up for a PA Tax Update e-alert. WHERE TO FILE MAILING ADDRESSES RCT-101-PA CORPORATE TAX REPORT, RCT-101-I-INACTIVE PA CORPORATE TAX REPORT, RCT101D-DECLARATION OF DE MINIMIS ACTIVITY, RCT-128CREPORTS OF CHANGE IN CORPORATE NET INCOME TAX If you are including payment, please use the following address: PA DEPARTMENT OF REVENUE PAYMENT ENCLOSED PO BOX 280427 HARRISBURG PA 17128-0427 If you are requesting a refund or transfer of credit, please use the following address: PA DEPARTMENT OF REVENUE REFUND REQUESTED PO BOX 280706 HARRISBURG PA 17128-0706 If you are neither including payment nor requesting a refund or transfer of credit, please use the following address. This includes reports when payment was made electronically. PA DEPARTMENT OF REVENUE NO PAYMENT, NO REFUND PO BOX 280708 HARRISBURG PA 17128-0708 REV-1200 3 REV-976-ELECTION NOT TO BE TAXED AS A PENNSYLVANIA S CORPORATION MAILING ADDRESSES CONT. PA DEPARTMENT OF REVENUE BUREAU OF CORPORATION TAXES PA “S” UNIT PO BOX 280701 HARRISBURG PA 17128-0701 REV-857-ESTIMATED TAX PAYMENTS PA DEPARTMENT OF REVENUE BUREAU OF CORPORATION TAXES 327 WALNUT ST FL 3 PO BOX 280422 HARRISBURG PA 17128-2005 PA-20S/PA-65, PA S CORPORATION/ PARTNERSHIP INFORMATION RETURN CT-V-FED/STATE PAYMENT VOUCHER PA DEPARTMENT OF REVENUE BUREAU OF INDIVIDUAL TAXES PO BOX 280509 HARRISBURG PA 17128-0509 PA DEPARTMENT OF REVENUE BUREAU OF CORPORATION TAXES 327 WALNUT ST FL 3 PO BOX 280427 HARRISBURG PA 17128-2005 REV-853-ANNUAL EXTENSION OVERNIGHT MAILING PA DEPARTMENT OF REVENUE BUREAU OF IMAGING AND DOCUMENT MANAGEMENT 1854 BROOKWOOD ST HARRISBURG PA 17104-2244 PA DEPARTMENT OF REVENUE BUREAU OF CORPORATION TAXES 327 WALNUT ST FL 3 PO BOX 280425 HARRISBURG PA 17128-2005 REV-854-EIN/FILING PERIOD/ADDRESS CHANGE SPECIAL HANDLING (see cover page for instruction and examples) PA DEPARTMENT OF REVENUE BUREAU OF CORPORATION TAXES PO BOX 280704 HARRISBURG PA 17128-0704 PA DEPARTMENT OF REVENUE BUREAU OF CORPORATION TAXES 327 WALNUT ST FL 3 PO BOX 280701 HARRISBURG PA 17128-0701 REV-1605-SCHEDULE CO-NAME OF CORPORATE OFFICERS EMAIL ADDRESSES PA DEPARTMENT OF REVENUE BUREAU OF CORPORATION TAXES 327 WALNUT ST FL 3 PO BOX 280701 HARRISBURG PA 17128-0701 NEW FOR 2016 NOTICE OF ADjUSTMENT LETTER If you believe the adjustments are in error, please contact the department via email at: [email protected] WHAT’S NEW The Capital Stock/Foreign Franchise tax has been phased out for tax years beginning on or after Jan. 1, 2016. This means that many business types such as S corporations, LLC’s taxed as passthrough entities and business trusts that are not federally taxed as a C corporation will need to file their final RCT-101 corporation tax report for the 2015 reporting period. These reports must be marked as final reports. Corporations not subject to the PA corporate net income tax for the years mentioned above include, single member LLC’s, Multi Member LLC’s taxed as a partnership or S corporation, Business Trusts and PA S corporations (except PA S corporations that have Built-InGains). Solicitation only corporations would also no longer be required to file a RCT-101, PA Corporate Net Income Tax Report, unless activity exceeds solicitation only. Corporations subject to the PA corporate net income tax (including PA S corporations that have Built-In-Gains) must continue to file a PA corporate net income tax report. RCT-101 is a revised, year specific, four page form and includes a revised Page 1, eliminating CS-FF and LOANS from Step D. It also 4 REV-1200 includes a revised Page 2, Bonus Depreciation, Corporate Net Income Tax, and Sales Factor Apportionment (Schedule C-1). Use ONLY this year-specific RCT-101 for filing all tax years beginning on or after Jan. 1, 2016. All reports for tax years beginning prior to Jan. 1, 2016 MUST be filed on the non-year-specific RCT-101. These forms can be found on the department’s website at www.revenue.pa.gov. RCT-101-I, Inactive PA Corporate Net Income Tax Report, is a revised, year-specific form. It includes a revised Page 1, eliminating CS-FF and LOANS Tax. This form MUST be used for filing all tax years beginning on or after Jan. 1, 2016. All reports for tax years beginning prior to Jan. 1, 2016 MUST be filed on the non-year-specific RCT-101. These forms can be found on the department’s website at www.revenue.pa.gov. Amended reports filed for tax years beginning on or after Jan. 1, 2016, MUST be filed on the revised, year-specific RCT-101. You must check the Amended Report checkbox on Page 1, Step B, and include REV-1175 with the report. Amended reports filed for tax years beginning prior to Jan. 1, 2016, MUST be filed on the nonyear-specific RCT-101. You must check the Amended Report checkbox on Page 1, Step B, and include REV-1175 with the report. www.revenue.pa.gov REMINDERS Act 52 of 2013 requires the add-back of intangible expenses to income for interest, royalties, patents, trademarks, etc., between affiliated entities in certain circumstances. Taxpayers claiming Add-Back on RCT-101, PA Corporate Net Income Tax Report, must provide schedules REV-802 and REV-803 by submitting them with RCT-101. Completing the sales factor as 0/0, leaving the sales factor field blank or typing “none” in this field will result in apportionment being changed to 100 percent in Pennsylvania, automatically changing the reported tax liabilities. A corporation with no sales both inside and outside Pennsylvania should complete SCHEDULE C-1 on Page 2 of RCT-101, using “0” as the numerator and “1” as the denominator. Failure to submit a properly completed and signed tax report may result in the delay of processing and the imposition of late filing penalties and/or estimated assessments. The penalty imposed for failure to file reports when due is a minimum of $500, regardless of the determined tax liability, plus an additional 1 percent of any determined tax liability over $25,000. Taxpayers filing a full year report and disclosing a bulk sale should not fill in the bulk sale checkbox on Page 3 of RCT101, PA Corporate Net Income Tax Report. Rather, you must complete REV-181, Application for Tax Clearance Certificate and mail separately to the Bureau of Compliance. DO NOT send with RCT-101. If a taxpayer is filing a short period report and has a bulk sale, you must fill in the bulk sale checkbox on Page 3 of RCT-101. You must also complete REV-181, Application for Tax Clearance Certificate and mail separately to the Bureau of Compliance. DO NOT send with RCT-101. WHAT MUST BE INCLUDED WITH THE pA CORpORATE NET INCOME TAx REpORT When filing a PA Corporate Net Income Tax Report, RCT-101, all corporate taxpayers are required to include forms and schedules to support the calculation of the tax liability. The type of information required depends on how the entity reports income to the IRS. The following chart lists the forms and schedules the taxpayer must include with the RCT-101 each year. This list is not meant to be all-inclusive. Explanation of forms appears on Pages 17-20. IF TAXPAYER IS ORGANIzED AS TAXPAYER FILES TAXPAYER MUST PROVIDE THE FOLLOWING WITH RCT-101 WITH THE IRS Business Trust Federal Form 1120C, Corporation Federal Form 1120, Limited Liability Company or Federal Form 1120S, S Corporations that have Built-in (Taxpayer elected to not be taxed as a Gains Pennsylvania Any other entity electing to file S Corporation) as a corporation under federal Check the Box rules Federal Form 1120F, or Any other Corporate Income Tax Return 1. Complete copy of federal income tax return, on separate company basis, with all supporting schedules. Corporations participating in a consolidated federal income tax filing must provide consolidating income statements and balance sheets to the department, including separate company schedules and all consolidations and eliminations. 2. Completed federal Schedules L, M-1 & M-2 regardless of federal requirements.* 3. Consolidated balance sheet (Corporation owns more than 50 percent of another corporation). See Page 11 of these instructions. 4. RCT-103 to support net operating loss carry-forward, if applicable. 5. Schedules C-3 and C-4 to support adjustments for bonus depreciation, if applicable. 6. REV-934, Schedule of Non-Business Income, if applicable. 7. Other supporting statements if necessary, with references to supporting statements on the applicable form. 8. REV-798, Schedule C-2, Dividend Deduction, if applicable and Schedule X, if applicable. 9. REV-860, Schedule C-5, OA and OD 10. RCT-106, Insert Sheet *Taxpayers required to file federal Schedule M-3 may submit such in lieu of federal Schedule M-1. www.revenue.pa.gov REV-1200 5 In certain situations corporate taxpayers are also required to provide additional information when filing RCT-101. Examples of these are as follows. IF THE CORPORATE TAXPAYER IS Apportioning income for the first time. Filing the final PA Corporate Net Income Tax Report. Claiming the Keystone Opportunity Zone/Keystone Opportunity Expansion Zone or Strategic Development Area Credit. Claiming an Employment Incentive Payment Credit. TAXPAYER MUST ALSO PROVIDE A copy of a tax return from another state. A complete Schedule DA - Disposition of Assets Schedule (REV-861). 1. A completed RCT-101 KOZ, showing the calculation of the credit. 2. A copy of the Keystone Opportunity Zone approval letter issued by the Department of Community and Economic Development for the current year. Schedule W – Certifications for New Employees. WHEN IS A FORM OR SCHEDULE REQUIRED? FORM RCT-106 USED FOR Support of Sales Factor Apportionment or Special Apportionment REQUIRED WHEN CORPORATE TAXPAYER Has taxable activity in at least one other state and is apportioning income to the other state based on sales. RCT-106 is also required by taxpayers who are required to utilize special apportionment methods (revenue miles, etc.). Support of Net Operating Loss Deduction Is deducting a net operating loss carry-forward in the calculation of corporate net income tax. Bonus Depreciation Adjustment Is claiming a deduction to recover disallowed federal bonus depreciation in the calculation of corporate net income tax. Schedule C-5 REV-860 Schedule of Tax Expense Is subject to corporate net income tax and reports taxes paid as an expense on the federal income tax return. Schedule OD REV-860 REV-934 Schedule of Non-Business Income Is claiming non-business income. Schedule to Provide Reason for Filing an Amended Report and Summary of Change in Tax Liability for Amended Report Is amending a PA Corporate Net Income Tax Report. RCT-103 Schedule C-2 REV-798 Schedule C-3 REV-799 Schedule C-4 REV-799 Support of Dividend Deduction Is claiming a Dividend Received Deduction in the calculation of corporate net income tax. Adjustment for Sale of Sec. 168(k) Property Is claiming a deduction to recover remaining federal bonus depreciation in the calculation of corporate net income tax in the year an asset is sold. Schedule OA REV-860 Other Additions Other Deductions Is reporting an "Other Deduction" on RCT-101, Section C, Line 2D. Schedule X REV-798 Parent and Subsidiary Corporations Has more than 50 percent of its stock owned by another corporation, individual or other business entity or owns more than 50 percent of another corporation. REV-986 Schedule to Determine Corporate Net Income Tax Filing Requirement Activity exceeds Solicitation Only - P.L. 86-272 Add-Back for Intangible Expense or Related Interest Expense Is adding back intangible expense or related interest expense. Schedule AR REV-1175 REV-802 REV-803 6 REV-1200 Claiming a Credit for Tax Paid by Affiliated Entities Is reporting an "Other Addition" on RCT-101, Section C, Line 3E. Is claiming a credit for tax paid by affiliated entities. www.revenue.pa.gov ASSEMBLY OF THE COMpLETED pA CORpORATE TAx REpORT RCT-101 pACKAGE Assemble the completed PA Corporate Net Income Tax Report in the following order. Failure to submit a properly completed and signed report may result in the delay of processing and the imposition of late filing penalties and/or estimated assessments. 1. RCT-101, PA Corporate Net Income Tax Report, Pages 1 through 4 completed and assembled in order. 2. RCT-103, Net Operating Loss Schedule, if applicable. 3. Federal Form 7004, if applicable 4. Pennsylvania Extension Approval Letter, if applicable 5. Pennsylvania schedules and forms, as required and in the following order: REV-1175, Schedule AR - If filing an amended PA • Corporate Net Income Tax Report. • REV-798, Schedule C-2, Dividend Deduction • REV-798, Schedule X • REV-799, Schedule C-3, Adjustment for Bonus Depreciation • REV-799, Schedule C-4, Adjustment for Disposition of Section 168(k) Property & Recapture of Depreciation on Listed Property • REV-860, Schedules C-5, OA and OD • RCT-106, Insert Sheet • REV-934, Schedule of Nonbusiness Income 6. All other documentation to support the RCT-101, PA Corporate Net Income Tax Report 7. Complete federal tax return and supporting schedules, as required: • Federal Form 1120 • Federal Form 1120C • Federal Form 1120S 8. Consolidating schedules, when applicable pENNSYLVANIA CORpORATE TAx REpORT INSTRUCTIONS FOR FORM RCT-101 FEDERAL S CORPORATIONS GENERAL INSTRUCTIONS The Capital Stock/Foreign Franchise tax has been phased out for tax years beginning on or after Jan. 1, 2016. However, PA S Corporations that have built-in gains are required to file RCT101. Any federal subchapter S corporation that does not desire to be a Pennsylvania S corporation must file the Election Not to be Taxed as a Pennsylvania S Corporation, REV-976, on or before the due date or extended due date of the report for the first year in which the election is to be in effect. This election must be signed by all of the shareholders and once made cannot be revoked for five years. The completed REV-976 should be mailed to the following address: BUREAU OF CORPORATION TAXES PA “S” UNIT PO BOX 280701 HARRISBURG PA 17128-0701 To revoke an election not to be taxed as a PA S Corporation, the corporation must send a letter signed by shareholders holding more than one-half of the shares of stock of the corporation on the day on which the revocation is made. This letter must contain the name of the corporation, federal EIN, Revenue ID number and the effective date of the revocation. If no effective date is provided, the revocation will be effective for the first tax period for which the revocation was timely submitted. In the case of a corporation with qualified subchapter S subsidiaries, the letter must also include the names and Revenue ID numbers of all qualified subchapter S subsidiaries doing business in Pennsylvania. Qualified subchapter S subsidiaries may not be Pennsylvania S corporations, or elect not to be Pennsylvania S corporations, separate from the parent corporation. Federal subchapter S cor- www.revenue.pa.gov porations doing business in Pennsylvania that do not make this election are required to file both RCT-101 and PA-20S/PA-65, and the shareholders of these corporations must report the income from these corporations on their PA personal income tax returns. IMPORTANT: This election must be filed by all federal subchapter S corporations that do not want to be taxed as Pennsylvania S corporations, regardless of any prior actions taken by a corporation on this issue. If a corporation has elected to be taxed as an S corporation for federal tax purposes, but has elected not to be taxed as a PA S corporation, it must: (1) complete Section B of RCT-101, (2) include a copy of federal Form 1120S with the PA Corporate Net Income Tax Report, and (3) include a schedule reflecting adjustments to Line 21 of federal Form 1120S for the pass-through items on Schedule K, Shareholders’ Share of Income, Credits, Deductions, etc. These adjustments should produce taxable income similar to that for a C corporation and must be reported in Section B, Line 1 of the RCT-101. INACTIVE CORPORATIONS Inactive corporations must complete and file form RCT-101-I. Only skeleton corporations - those performing no business activity and owning no assets anywhere - may use the RCT-101-I. Corporations that have business activity outside Pennsylvania must complete and file the PA Corporate Net Income Tax Report, RCT-101. A copy of federal Form 1120 must be included and apportionment fractions must be reported. CAUTION: Prior period forms are not acceptable. Do not use forms for other years when filing a PA Corporate Net Income Tax Report, RCT-101, or an Inactive PA Corporate Net Income Tax Report, RCT-101-I. REV-1200 7 COPY OF FEDERAL FORM 1120, 1120C OR 1120S IMPORTANT: A copy of the federal income tax return - Form 1120, 1120C, 1120S, or other applicable federal form must be included with the PA Corporate Net Income Tax Report. This is in addition to any requirement to supply a copy of the federal tax return with any other filing. Pennsylvania does not allow consolidated filing of corporate tax reports. A corporation filing a consolidated return to the federal government must include the following: 1. Separate company income statement reflecting taxable income that would have been returned to and ascertained by the federal government, if a separate return had been made to the federal government. 2. Separate company balance sheet reflecting financial position of the taxpayer at the beginning and end of the taxable period, if separate return had been made to the federal government. A corporation with subsidiaries also must include a consolidated balance sheet. DUE DATE OF REPORT AND PAYMENT The PA Corporate Net Income Tax Report, RCT-101, is due 30 days after the federal due date for both calendar and fiscal year filers. Domestic International Sales Companies (DISC) must file on or before the 15th day of the 10th month following the close of the fiscal year. If the due date falls on a Saturday, Sunday or holiday, the report is due the next business day. FILING REQUIREMENTS First reports of domestic corporations must begin with the date of incorporation. All domestic corporations are required to file annual reports even if no business activity was conducted during the taxable period. First reports of foreign corporations must begin with the beginning date of the fiscal period in which the Certificate of Authority was issued or the date Pennsylvania activity began, whichever date is earlier. 3. Schedules reflected on the federal Form 1120, 1120C or 1120S on a separate company basis, including a schedule of taxes expensed. IMPORTANT: All corporations are required to file annual reports even if no business activity was conducted within the commonwealth during the tax period. In general, PA Corporate Net Income Tax Reports are due 30 days after the original due date of the federal tax return. CAUTION: Failure to submit a properly completed and signed report may result in the delay of processing and imposition of late filing penalties and/or estimated assessments. A PA corporation that has ceased doing business and completely or totally divested itself of ALL assets, or a foreign corporation that has ceased to do business in Pennsylvania and liquidated ALL PA assets may be relieved of the responsibility of filing corporate tax reports by indicating Final Report in Section C, Corporate Status Change, found on Page 3 of RCT-101. 4. Corporations participating in a consolidated federal income tax filing must provide consolidating income statements and balance sheets to the department, including separate company schedules and all consolidations and eliminations. CONFIRMATION OF “DEPOSITS ON ACCOUNT” FOR A NON-FILED TAX YEAR. Prior to filing a PA Corporate Net Income Tax Report, taxpayers can confirm the total amount of deposits on account by calling 1-888-PATAXES (728-2937). You will be asked to enter your Revenue ID number and a specific tax year. Once confirmed, the system will provide: 1. Total deposits by tax type for a specific tax year; or 2. A detailed response for each cash deposit and credit by tax type for a specific tax year. (Note: “restricted credits” are NOT uniquely identified by name of program) The system will provide details on up to 20 transactions. HOW TO PAY If the total taxes owed are less than $1,000, you may send a check, made payable to the PA Dept. of Revenue, enclosed with the tax report, to the address listed on Page 3. ELECTRONIC PAYMENT REQUIREMENT The PA Departments of Treasury and Revenue have implemented programs that enable taxpayers to pay certain taxes electronically. All payments of $1,000 or more must be remitted electronically or by certified or cashier’s check remitted in person or by express mail courier. Failure to make a payment by an approved method may result in the imposition of a 3 percent penalty of the tax due, up to $500. For information on electronic filing options, visit the Online Services Center at www.revenue.pa.gov. 8 REV-1200 OUT-OF-EXISTENCE/WITHDRAWAL NOTE: Entities formed under the laws of the Commonwealth of Pennsylvania must answer the questions under “PA Corporations” in this section. Entities formed under the laws of another jurisdiction are required to answer the questions under “Foreign Corporations”. By completing this section of RCT-101, a corporate taxpayer wishing to be removed from the active records of the PA Department of Revenue will no longer be required to file the Out of Existence/Withdrawal Affidavit. However, taxpayers desiring to dissolve or formally withdraw with the Department of State are still required to file an Application for Corporate Clearance, REV181. To qualify for out-of-existence or withdrawn status, the corporation must: 1. File all corporate tax reports and pay all taxes due the commonwealth up to and including the date of cessation of activities and divestiture of assets. Where capital assets have been sold prior to liquidation, complete in detail a schedule reflecting the gain or loss realized as a result of the sale. 2. Include with the corporate tax reports a “Disposition of Assets,” Schedule DA, REV-861, which must reflect the date or dates of divestiture of all assets. Where a distribution of assets is made directly by the corporation to its shareholders in return for their stock, include with the “Distribution of Assets,” a copy of federal Form 1099-DIV. CAUTION: Failure to submit the “Distribution of Assets” could delay the acceptance of the return as a final report resulting in continued corporate tax reporting requirements. Corporate taxpayers reporting the disposition of PA real estate must provide evidence that the transfer of title has www.revenue.pa.gov been filed with the Recorder of Deeds of the respective county. This information must be provided in order to be removed from the active records of the Bureau of Corporation Taxes. PA corporations that never transacted business or held title to assets, or foreign corporations that never transacted business in Pennsylvania, are required to file annual tax reports until they file final returns and qualify for out-of-existence or withdrawn status. Such inactive corporations should mail the executed Out-of-Existence/ Withdrawal Affidavit, REV-238, directly to: PA DEPARTMENT OF REVENUE BUREAU OF COMPLIANCE PO BOX 280947 HARRISBURG PA 17128-0947 BULk SALES Taxpayers filing a full year report and disclosing a bulk sale, should not fill in the bulk sale checkbox on Page 3 of the PA Corporate Net Income Tax Report. Rather, you must complete REV181, Application for Tax Clearance Certificate and mail separately to the Bureau of Compliance. DO NOT send with the PA Corporate Net Income Tax Report. If a taxpayer is filing a short period report and has a bulk sale, fill in the bulk sale checkbox on Page 3 of the PA Corporate Net Income Tax Report. You must also complete REV-181, Application for Tax Clearance Certificate, and mail separately to the Bureau of Compliance. DO NOT send with the PA Corporate Net Income Tax Report. REINSTATEMENT A corporation considered out-of-existence through the acceptance of an affidavit may reinstate with the PA Department of Revenue by confirming with the PA Department of State, that the corporation name is available for use by calling 717-787-1057. A corporation considered out-of-existence/withdrawn, must be reinstated on Department of Revenue records before its corporate franchise can again be utilized. This can be effected by filing PA Corporate Net Income Tax Reports from the date of out-of-existence status through the end of the last calendar or fiscal period of no activity. Taxpayer’s filing RCT-101-I for this purpose must check the reinstatement box found in Step J, Corporate Status Changes, and enter the beginning date of the first tax period in which business resumed (effective date). RECORDING DOLLAR AMOUNTS All RCT-101 forms and schedules must show money amounts in whole-dollars. Eliminate any amount less than $0.50 and increase any amount that is $0.50 or more to the next highest dollar. Negative amounts should be written as follows: -3,456. FILING PERIOD Reports must be filed on the same filing basis as reported to the federal government. Where a change in filing period has occurred, the taxpayer must provide the new month, day and year by electronically filing REV-854 using the Online Services Center at www.revenue.pa.gov. Indicate a permanent change in filing period on the RCT-101 (Page 1, Step B). www.revenue.pa.gov EXTENSION OF TIME TO FILE A request for an extension of time to file must be submitted on or before the due date of the PA Corporate Net Income Tax Report. Taxpayers granted an extension to file the federal income tax return will automatically be granted an extension to file PA Corporate Net Income Tax Report, RCT-101. Corporate taxpayers granted a federal extension must indicate this on Page 1 of RCT-101 and include a copy of the federal extension request with the report. Corporations that do not request an extension to file the federal income tax return may still request a 60-day extension to file the PA Corporate Net Income Tax Report. To apply for an annual extension, complete the Annual Extension Request, REV-853, electronically using the Online Services Center at www.revenue.pa.gov. After review by the PA Department of Revenue, you will receive written notification as to whether your extension was approved or denied. You may also use REV-853 to make an annual tax payment with the extension request. If the taxes total more than $1,000, you must make the required payment by an electronic payment method. (Refer to Page 8, Electronic Payment Requirement.) All payments of $1,000 or more must be made electronically or by certified or cashier’s check remitted in person or by express mail courier. PENALTIES IMPOSED FOR FAILURE TO FILE REPORTS WHEN DUE If a report is filed late, the taxpayer should wait until assessed by the department to remit the penalty amount. Interest does not accrue on penalties. Do not include penalty with tax amounts reported on form RCT-101. The penalty imposed for failure to file reports when due is now a minimum of $500, regardless of the determined tax liability, plus an additional one percent of any determined tax liability over $25,000. INTEREST Interest is charged on late payments received after the due date of a tax report. Taxpayers should not precalculate interest or include interest with the tax amount reported on the RCT-101 (Step D, Column A). The department will forecast interest on unpaid tax balances and provide a notice to the taxpayer. Taxpayers may request a payoff of unpaid balances (that includes interest on unpaid tax and collection agency fees, if applicable) by contacting the Bureau of Corporation Taxes Accounting Division at 717-705-6225. TRANSFERS/REFUNDS OF CORPORATE TAXES After completing Step D on Page 1 of the RCT-101 Annual Report, if an overpayment exists taxpayers must instruct the department to either transfer any available credit to the next tax year or consider any available credit for refund, or both, under Step F. If no option is selected, the department will automatically transfer any overpayment to the next tax year for estimated tax purposes after offsetting current period liabilities and other unpaid liabilities within the account. A tax period overpayment summary will be mailed to the taxpayer confirming the disposition of the credit. REV-1200 9 ASSIGNMENT OF TAX CREDIT (OVERPAYMENT) Department regulation (61 Pa. Code 151.21-151.22) provides authorization for taxpayers to assign a credit to another taxpayer. To accomplish the assignment, the Department of Revenue requires both assignor and assignee to complete REV-774, Assignment of Tax Credit. Only credits that meet the following conditions can be assigned: • • • • All taxes (corporate, sales/use, employer withholding, liquid fuels, etc), interest, penalties, fees and additions to tax owed by the taxpayer (assignor) must be paid in full. Restricted credits (credits originating from special credit programs) may be sold or assigned. These credits include the Research and Development Tax Credit (R&D), Film Production Tax Credit (FPT), Neighborhood Assistance Tax Credit (NAT), Resource Enhancement and Protection Tax Credit (REAP), Keystone Innovation Zone Tax Credit (KIZ), Keystone Special Development Zone Credit (KSDZ), Historic Preservation Tax Credit (HPTC), and Coal Refuse Energy and Reclamation Tax Credit (CRER). For information regarding the sale or assignment of R&D, KIZ, NAT, FPT, HPTC and KSDZ credits, call the Department of Community and Economic Development at 717-787-7120 or visit www.NewPa.com. For information regarding the sale or assignment of REAP tax credits, call the State Conservation Commission at 717-705-4032 or visit http://www.agriculture.pa.gov/ Protect/StateConservationCommission/REAP/Pages/d efault.aspx Additional information regarding the sale or assignment of tax credits can be obtained from Corporation Tax Bulletin 2014-04 found on the Department of Revenue website at www.revenue.pa.gov. Call the Bureau of Corporation Taxes Accounting Division at 717-705-6225 if you have questions regarding credit assignment or restricted credits limitations or to request the REV-774 Assignment of Tax Credit Form. The form can also be found at www.revenue.pa.gov. Send REV-774 directly to: PA DEPARTMENT OF REVENUE BUREAU OF CORPORATION TAXES ACCOUNTING DIVISION PO BOX 280701 HARRISBURG PA 17128-0701 DEPARTMENT NOTICES Notice of Adjustment – This notice provides a copy of the changes if the department made one or more adjustment that resulted in a recalculation of tax. The accompanying worksheet details the amounts originally reported and the adjustments made by the department. The notice also provides instructions for amending if taxpayers believe they submitted incorrect data on the original report, and instructions of what taxpayers should do if they believe the department’s adjustments are in error. Assessment Notice – This notice is provided to taxpayers as official notification of an unpaid or underpaid balance due the commonwealth. Balances include tax, interest, penalty, other fees and forecasted interest. The elements of the notice are unique to a specific tax type and tax period. The date of the 10 REV-1200 notice establishes a lien with the commonwealth and initiates the window to petition for reassessment. Taxpayers must file petitions for reassessment on or before the due dates specified on notices. For additional information visit the Board of Appeals website at www.boardofappeals.state.pa.us. Basis of Assessment – Attached to every Assessment Notice is a Basis of Assessment, which explains the adjustments made by the department in the determination of the liability. This is in addition to other detailed worksheets that may have been prepared and provided to the taxpayer. Estimated Assessment Notice – This notice identifies estimated liabilities that have been imposed for a specific tax type and tax period. Estimated liabilities are imposed for failure to file a complete PA Corporate Net Income Tax Report. The assessment includes tax, interest and penalties that represent a first lien upon the entity’s franchise and property, both real and personal. These liabilities are not subject to appeal. To resolve the estimate, taxpayers must file a complete PA Corporate Net Income Tax Report. The Department of Revenue is required to remove estimated assessments 90 days following receipt of a complete PA Corporate Net Income Tax Report. Tax Period Overpayment Summary – This notice confirms the disposition of a tax overpayment. Tax credits may develop from the filing of tax reports, adjustments to a tax liability by the Department of Revenue and the Department of the Auditor General, tax relief granted from various levels of appeal or from account maintenance initiated by the department. Statement of Account – This notice provides a summary of a taxpayer’s account. Three categories of information are contained on the notice: • • • • Summary of Active (filed) tax periods – Tax periods displayed include the three most recently filed periods and those with open, unpaid balances. Summary of Non-filed tax periods (includes estimated tax and estimated prepayments) – Tax periods displayed include the current non-filed tax period estimated prepayments and restricted credits. Summary of Restricted Credits – This section includes a summary of restricted tax credits available for future periods. Business taxpayers and tax practitioners now have the ability to electronically request and receive a more detailed version of the Statement of Account (e-SOA) in PDF format through the new Document Center section in e-TIDES. The e-SOA can be requested at any time and is made available in PDF format in the Document Center to print or download on the next business day. The new online delivery saves time and money and provides more up-to-date information. You can access the e-SOA by visiting www.revenue.pa.gov and selecting Online Services then select e-TIDES. The exact steps needed to access the new functionality in the e-TIDES Document Center varies slightly based on your current access. To learn more, visit the Get Assistance section in e-TIDES for step-by-step instructions on getting setup to electronically request an e-SOA. Audit Assessment Notice – This notice is provided to taxpayers as official notification of an unpaid or underpaid balance due the commonwealth as the result of a field audit. Balances include tax, interest, penalty, other fees and forecasted interest. The elements of the notice are unique to a specific tax type and tax period. The date of the notice establishes a lien with the commonwealth and initiates the window to petition for www.revenue.pa.gov reassessment. Taxpayers must file petitions for reassessment on or before the due dates specified on notices. For additional information visit the Board of Appeals website at www.boardofappeals.state.pa.us. AMENDED REPORTS Amended reports must be filed when requesting the Bureau of Corporation Taxes to adjust the corporate net income taxes for a particular year. Phone calls and/or letters submitted to the department are not acceptable and will not be considered an amended report. CAUTION: Amended reports filed for tax years beginning on or after Jan. 1, 2016, MUST be filed on the revised, year-specific RCT-101. Taxpayers must complete all sections of the report; this includes those sections originally filed and those sections being amended. The apportionment must be completed with the factors as originally filed or being amended. This must be numeric with a numerator and a denominator present. If no activity anywhere, the numerator must be “0” and the denominator must be “1”. The amended report check box under Step B, Page 1 of RCT-101 must be checked and REV-1175 must be included with the report. CAUTION: Amended reports filed for tax years beginning prior to Jan. 1, 2016 MUST be filed on the non-year specific RCT101. Taxpayers must complete all sections of the report; this includes those sections originally filed and those sections being amended. The apportionment must be completed with the factors as originally filed or being amended. This must be numeric with a numerator and a denominator present. If no activity anywhere, the numerator must be “0” and the denominator must be “1”. The amended report check box under Step B, Page 1 of RCT-101 must be checked and REV-1175 must be included with the report. A taxpayer may file an amended report anytime within three years of the filing of the original report. When filing the amended report the taxpayer must consent to an assessment period of three years from the filing of the original report or one year from the filing of the amended report, whichever expires last. If you fail to provide such consent the department might not consider the amended report. This consent to extend the assessment period is included as part of the affirmation statement at the bottom of Page 1 of RCT-101. If, after reviewing the amended report, the department determines the tax liability reflected on the taxpayer’s PA corporate tax account is incorrect, an adjustment will be made to the liability. The department will then generate a credit for the amount of any overpayment, strike all or part of any previous assessment or issue an assessment for any additional tax liability. An amended report should only be filed if an original PA Corporate Net Income Tax Report, RCT-101, was previously filed for the same tax period. An amended report must contain documentation to support the adjustment(s). All amended tax reports must include Schedule AR, REV-1175, which includes a detailed explanation of the reason for filing the amended report and a summary of the change to the tax liability. In completing the Summary of Tax Change, enter the corporate net income tax; the tax liability currently reflected on the taxpayer’s account; the amended tax liability; and the amount of change in the tax. When filing an amended RCT-101, the tax liability in Column A of Step D should reflect the amended liability. Column B, Estimated Payments and Credits on Deposit, must reflect the payments and credits on the account at the time the amended report is filed. Column C, Restricted Credits, must report the www.revenue.pa.gov restricted credits the taxpayer is entitled to based on the filing of the amended report. Amended reports cannot be filed for the following: 1. To challenge PA statute or regulations. 2. To challenge department policy or interpretation of statutes or regulations. 3. For the sole purpose of claiming the report is a final report. IMPORTANT: REV-238 or REV-181 must be filed instead. 4. To change or correct taxpayer information electronically such as the Revenue ID or EIN. Use REV-854 found at www.revenue.pa.gov and select Online Services, then e-Tides. 5. To change the end of the tax year. (A new original report must be filed including an explanation why the original tax year end was incorrect). See the following section concerning changes in federal taxable income. IMPORTANT: • • The filing of an amended PA Corporate Net Income Tax Report does not replace the filing of a petition, nor does it extend a corporate taxpayer’s time to file an appeal. The department is not obligated to revise tax due the commonwealth upon review of an amended report. Its failure to revise tax due the commonwealth is not an appealable action and will not change any existing appeal rights of the taxpayer. CHANGES IN FEDERAL TAXABLE INCOME/REPORTS OF CHANGE Changes in federal taxable income must be reported to the department within the statutory period to report the change. This includes changes in federal taxable income resulting from the taxpayer filing an amended federal income tax return and changes initiated by the federal government due to an audit or examination of the federal return. For tax years beginning prior to Jan. 1, 2013, changes in federal taxable income must be reported to the department within 30 days of the change. This has been extended to six months for tax years beginning after Dec. 31, 2012. If a taxpayer files an amended federal income tax return for a period for which the department issued an Official Notice of Settlement, the taxpayer must report the change on an amended PA Corporate Net Income Tax Report. When completing an amended report, the taxpayer must indicate that the report is being filed due to the filing of an amended federal income tax return and enter the date on Page 1 that the amended federal return was filed. If a taxpayer files an amended federal return for a period for which the department did not issue an Official Notice of Settlement, the taxpayer must report the change on RCT-128C, Report of Change in Corporate Net Income Tax. Changes to federal taxable income initiated by the federal government as part of an audit or examination of the federal income tax return must be reported on RCT-128C and include the federal audit date or date filed with the IRS, regardless of whether the PA corporate net income tax for that period was settled by the department. REV-1200 11 pREVENTING RCT-101 pROCESSING ERRORS CAUTION The business tax system enables a more robust and analytical review of the RCT-101, PA Corporate Net Income Tax Report data. To prevent a report from suspending, taxpayers are encouraged to provide a complete and accurate report that will process smoothly, following the below tips. 1. The Revenue ID must be present for processing of the report, along with all other applicable fields in STEP C. 2. NEVER input the word “none” in numeric fields. 3. Checkbox indicators-Pay close attention to all checkboxes within the report such as IRS Type (Page 1), STEP B (Page 1), SECTIONS C AND D (Page 3) and Schedule of Real Property (Page 4). 4. Taxpayer’s claiming Add-Back on Page 2 of RCT-101, SECTION B, Line 3E, must provide schedules REV-802 and REV-803 by submitting them with RCT-101. 5. If taking a deduction for bonus depreciation, Section A 1.,Current Year Federal Depreciation of 168K Property, must be completed on Page 2. Also, REV-799, Schedule C-3, must be completed and included with the report. IMPORTANT: RCT-101 is a revised, year specific, four page form and includes a revised Page 1, eliminating CS-FF and LOANS from Step D. It also includes a revised Page 2, Bonus Depreciation, Corporate Net Income Tax, and Sales Factor Apportionment (Schedule C-1). Use ONLY this year-specific RCT-101 for filing all tax years beginning on or after Jan. 1, 2016. All reports for tax years beginning prior to Jan. 1, 2016 MUST be filed on the nonyear specific RCT-101. These forms can be found on the department’s website at www.revenue.pa.gov. Amended Reports Amended reports filed for tax years beginning on or after Jan. 1, 2016, MUST be filed on the revised, year-specific RCT-101. You must check the amended report checkbox on Page 1, Step B, and include REV-1175 with the report. Amended reports filed for tax years beginning prior to Jan. 1, 2016, MUST be filed on the non-year-specific RCT-101. You must check the amended report checkbox on Page 1, Step B, and include REV-1175 with the report. Taxpayers must complete all sections of the amended report; this includes those sections originally filed and those sections being amended. The apportionment must be completed with the factors as originally filed or being amended. This must be numeric with a numerator and a denominator present. If no activity anywhere, the numerator must be “0” and denominator must be “1”. REV-1175 must be included with the report. Apportionment a) Completing the sales factor as 0/0, leaving the sales factor field blank or typing “none” in this field will result in apportionment being changed to 100 percent in Pennsylvania, automatically changing the reported tax liabilities. Partnerships’ factors also must be provided per a corporation’s ownership percentage and not entered as zeros. 12 REV-1200 b) Eligible corporations claiming sales factor apportionment must complete RCT-106 and carry to RCT-101, Page 2, Section B, Line 7 and Schedule C-1. c) Amounts differing from information on federal forms 1120, 1120C or 1120S must be reconciled. d) If a corporation owns underlying partnerships, the partnerships’ sales must be passed through to the corporate owner, in relation to the ownership percentage. A corporation’s ownership interest in a partnership or other unincorporated entity (hereinafter referred to as a partnership) must be included in the apportionment fraction as a direct interest of the corporation in the assets of the partnership. The portion of the partnership’s gross receipts, net of returns and allowances, are included in the numerator and denominator of the corporation’s sales factor to the extent of the taxpayer’s interest in the partnerships for that period, as appropriate. Sales of tangible personal property are considered in-state if the property is delivered or shipped to a purchaser within Pennsylvania. This sales calculation should be reflected on the Partner’s Share of Sales from Partnerships line on RCT-106. NOTE: For tax periods beginning on or after Jan. 1, 2013, all business income must be apportioned to PA by multiplying income by the sales factor ONLY. IMPORTANT: A corporation with no sales both inside and outside Pennsylvania must complete RCT-106, using “0” as the numerator and “1” as the denominator. Bulk Sales a) Taxpayers filing a full year report and disclosing a bulk sale should not fill in the bulk sale checkbox on Page 3 of the RCT-101, PA Corporate Net Income Tax Report. Rather, you must complete REV-181, Application for Tax Clearance Certificate and mail separately to the Bureau of Compliance. DO NOT send with RCT-101. b) If a taxpayer is filing a short period report and has a bulk sale, you must fill in the bulk sale checkbox on Page 3 of RCT-101. You must also complete REV-181, Application for Tax Clearance Certificate and mail separately to the Bureau of Compliance. DO NOT send with RCT-101. Reports where the taxpayer is calculating a liability using a method other than the standard calculation, including any position granted as the result of an appeal in a prior year cannot be filed electronically. In such cases, the RCT-101, PA Corporate Net Income Tax Report and all required schedules, including the reason the report cannot be e-filed, MUST be mailed to: PA DEPARTMENT OF REVENUE BUREAU OF CORPORATION TAXES PO BOX 280704 HARRISBURG PA 17128-0704 www.revenue.pa.gov SPECIFIC INSTRUCTIONS LINE BY LINE INSTRUCTIONS FOR THE RCT-101, PA CORPORATE NET INCOME TAX REPORT RCT-101—PAGE 1 Indicate the type of return filed with the IRS. If the activity is included in the federal tax return of another company, either as part of a consolidated group or as a disregarded entity, indicate the type of return filed by the entity reporting the activity. Step A TAX PERIOD (REQUIRED) Taxpayers must enter the month, day and year for the tax period beginning and ending dates using the MMDDYYYY format. Step B CHECk SPECIAL FILING STATUS Amended Report – Check box if the corporation is amending a PA Corporate Net Income Tax Report previously filed with the department. CAUTION: Federal Extension Granted – Check box if the corporation was granted an extension of time to file its federal income tax return. If not checked a penalty will be imposed. A copy of the extension request, federal Form 7004, must be included. 52-53 Week Filer – Check box if the corporation is a 52-53 week filer. Address Change – Check box if the address reported in Step C is a change from prior tax periods. Be sure to file REV-854 electronically using the Online Services Center at www.revenue.pa.gov. Change Fed Group – Check box if the corporate taxpayer is filing a PA Corporate Net Income Tax Report for less than a full year due to a change in federal consolidated group. This must be indicated on the last report prior to the change. First Report – Check box if this is the corporation’s first PA Corporate Net Income Tax Report filing. kOz/EIP/SDA Credit – Check box if the corporate taxpayer is claiming the Keystone Opportunity Zone Credit, Employer Incentive Payment Credit or the Strategic Development Area Credit. ADD-BACk – Act 52 of 2013 requires the add-back of intangible expenses to income for interest, royalties, patents, trademarks, etc. between affiliated entities in certain instances. File Period Change – Check box if the filing period (tax period ending) is a permanent change. Be sure to file REV-854 electronically using the Online Services Center at www.revenue.pa.gov. This must be indicated on the first report filed with the new tax year end. S Corp Taxable Built-in Gains – PA S corporations and QSSS are subject to PA corporate net income tax. Their taxable income is their net recognized built-in gains as determined for federal income tax purposes pursuant to IRC Section 1374(d) (2). To report taxable built-in gains, check the box and complete Line 1 of Section B. www.revenue.pa.gov Regulated Investment Company – Check box if the corporation is a regulated investment company. Every domestic and foreign corporation that meets the following four parameters will be taxed as a regulated investment company for Pennsylvania purposes: 1. Is registered to do business in PA; 2. Maintains an office in PA; 3. Has timely filed an election to be taxed as a regulated investment company by the federal government; and 4. Duly qualifies to be taxed as a regulated investment company under the provisions of the IRC. Sub Paragraph 18 – See cover page for details. Step C NAME, ADDRESS, FEDERAL EIN, BUSINESS ACTIVITY CODE, REVENUE ID AND PARENT CORPORATION EIN. Print or type the corporation name, complete address, 10-digit Revenue ID and nine-digit Federal ID (EIN). You must provide the Revenue ID number on Page 1 of RCT-101. DO NOT LEAVE BLANK. If you do not know your Revenue ID number, please call 717-705-6225. Failure to submit a properly completed report may result in the delay of processing and the imposition of late filing penalties and/or estimated assessments. Be sure to use only address information for Address Line 1 and Address Line 2 on Page 1 of RCT-101 and all other tax forms. IMPORTANT: Do not include individual’s names on these lines. Foreign corporations filing from outside the United States must use Province, Country Code and Foreign Postal Code address fields, if applicable. The six-digit Business Activity Code entered here is the same Business Activity Code reported to the IRS on the federal income tax return. Parent Corporation EIN – Taxpayers that are included in a consolidated federal income tax return must provide the nine-digit EIN of the corporation that files the consolidated federal income tax return. If you are not included in a consolidated federal return, leave blank. Step D TAX SUMMARY Column A. Tax Liability from Tax Report. Carry tax liability from Page 2, Section B, Line 15 to Page 1: All RCT-101 forms and schedules must show money amounts in whole-dollars. Eliminate any amount less than $0.50 and increase any amount that is $0.50 or more to the next highest dollar. Do not
Extracted from PDF file 2016-pennsylvania-form-rev-1200.pdf, last modified November 2016

More about the Pennsylvania Form REV-1200 Corporate Income Tax TY 2016

We last updated the CT-1 PA Corporation Tax Booklet in February 2017, so this is the latest version of Form REV-1200, fully updated for tax year 2016. You can download or print current or past-year PDFs of Form REV-1200 directly from TaxFormFinder. You can print other Pennsylvania tax forms here.

Other Pennsylvania Corporate Income Tax Forms:

TaxFormFinder has an additional 174 Pennsylvania income tax forms that you may need, plus all federal income tax forms.

Form Code Form Name
Form RCT-101 PA Corporate Tax Report
Form PA-41 RK-1 PA-41 Schedule RK-1 - Resident Schedule of Shareholder/Partner/Beneficiary Pass Through Income, Loss and Credits
Form PA-41 PA Fiduciary Income Tax Return
Form RCT-101D Declaration of de minimis Pennsylvania Activity
Form REV-1605 Schedule CO - Names of Corporate Officers

Download all PA tax forms View all 175 Pennsylvania Income Tax Forms


Form Sources:

Pennsylvania usually releases forms for the current tax year between January and April. We last updated Pennsylvania Form REV-1200 from the Department of Revenue in February 2017.

Show Sources >

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 Pennsylvania Form REV-1200

We have a total of six past-year versions of Form REV-1200 in the TaxFormFinder archives, including for the previous tax year. Download past year versions of this tax form as PDFs here:


2016 Form REV-1200

2016 PA Corporate Net Income Tax - CT-1 Instructions (REV-1200)

Forms/Publications 2015 Form REV-1200

2015 CT-1 PA Corporation Tax Instructions (REV-1200)

Forms/Publications 2014 Form REV-1200

2014 CT-1 PA Corporation Tax Booklet (REV-1200)

2013 CT-1 PA Corporation Tax Booklet (REV-1200) 2013 Form REV-1200

2013 CT-1 PA Corporation Tax Booklet (REV-1200)

2012 CT-1 PA Corporation Tax Booklet (REV-1200) 2012 Form REV-1200

2012 CT-1 PA Corporation Tax Booklet (REV-1200)

2011 CT-1 PA Corporation Tax Booklet (REV-1200) 2011 Form REV-1200

2011 CT-1 PA Corporation Tax Booklet (REV-1200)


TaxFormFinder Disclaimer:

While we do our best to keep our list of Pennsylvania 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.

** This Document Provided By TaxFormFinder.org **
Source: http://www.taxformfinder.org/pennsylvania/form-rev-1200