INCOME TAX DEPARTMENT

Transcription

1 INCOME TAX DEPARTMENT BUSINESS NET PROFIT RETURN FORMS: Tax return forms may be obtained at Orrville City Hall offices, The Orrville Public Library or mailed at taxpayers request. Forms, instructions and ordinance are also available on the internet at. All internet forms are in Adobe Acrobat PDF format. CONTACT INFORMATION: Income Tax Department P.O. Box 61 (330) GENERAL INSTRUCTIONS: The instructions provided are to assist in the preparation of the Orrville business net profits tax return. It is to be used as information only. The Orrville City Income Tax Ordinance takes precedence over any general information herewith. The Net Profit Tax Return has been designed to make your filing as easy as possible. Since Orrville s taxing method is similar and consistent with other Ohio cities, most line by line instructions are not included. Questions concerning the preparation of this return may be directed to the Orrville Income Tax Office, (330) WHO SHOULD FILE: All C Corporation, S Corporations, Partnerships or other business entities, whether or not such organization has an office or place of business inside the City of Orrville, that has income as a result of work done, services performed or sales made in the City of Orrville. Non-resident businesses which have branches, offices, stores, warehouses or other places in which business is transacted, that are located within the City of Orrville are considered to be transacting business in Orrville. (See Article II-4, Orrville Income Tax Regulations) If taxpayers business does not have a place of business outside of Orrville, during the period covered, its business allocation is 100%, and are required to pay tax on the entire net profit of the business. Non-resident businesses doing business within and outside the City of Orrville, may allocate net-profits to determine the amount of taxable income by using the business allocation formula, (schedule Y of return form), and explained in Article II-3 through Article II-10, Orrville Income Tax Regulations. If the business filed a previous year return and did not conduct business within Orrville during the current year and is not subject to filing, please complete and return the Business Non-Filing Declaration, located within the tax return booklet. TAXABLE INCOME: Business net profits that are subject to Orrville Income Tax, are those used in the filing of the Federal Income Tax Return, except for exempt items as listed on Schedule X of the city return form. These items should be deducted from federal taxable income. DEDUCTIBLE EXPENSES: Expenses that are deducted on Federal Income Tax Return are allowable with the exception of the items listed on Schedule X of the city return form. These items should be added to the federal taxable income. BUSINESS TAX SCHEDULES: Schedule X: Adjusts the federal net gain or loss for items where Orrville city income tax applies differently from federal tax. Business income attributable to interest, dividends, royalties, capital gain and or losses are not subject to Orrville city income tax. Federal, State and City taxes based on income may not be deducted. Charitable contributions and net operating loss carryforward are not allowed. Partnerships may not deduct guaranteed payments to partners, and Sole-proprietorships may not deduct 1/2 of the federal self-employment tax expense. Schedule Y: Determines the percentage of adjusted net business income allocable to Orrville. It may be used only if business is conducted both within and outside the City of Orrville. When this formula method is used, the following procedure must be followed: 1

2 Step 1 Determine the percentage of the average net book value of real and tangible personal property owned or used in the business, located within Orrville during the period, is of the average net book value of all real and tangible personal property used in the business wherever located. To calculate average net book value, use beginning year and ending year value. The value of rented property is determined by multiplying the annual rentals by eight. Step 2 Determine the percentage which the total wages, salaries and other compensation paid during the period to employees for services performed in Orrville is to the total wages, etc. to all employees located everywhere. Step 3 Determine the percentage which the gross receipts of the business from sales made or services performed in Orrville during the period is of the total gross receipts from all sales and services wherever made or performed. Sales made are (1) the sale of tangible personal property which is delivered within the City of Orrville regardless of where title passes if shipped or delivered from a stock of goods within such municipal corporation; (2) the sale of tangible personal property which is delivered within the City of Orrville regardless of where title passes even though transported from a point outside such city if the taxpayer is regularly engaged through its own employees in the solicitation or promotion of sales within such city and the sales result from such solicitation or promotion; (3) the sale of tangible personal property which is shipped from a place within the City of Orrville to purchasers outside such City regardless of where title passes if the taxpayer is not, through its own employees, regularly engaged in the solicitation or promotion of sales at the place where delivery is made. Step 4 Sum the percentages for each of the above steps used. Step 5 Divide total of Step 4 by the number of percentages used. Filing Deadlines: Orrville Net-Profit Tax Returns are due on or before April 15, for all calendar year taxpayers and within 105 days after the close of the fiscal year, for all FYE taxpayers. Returns filed without the appropriate paperwork or supporting schedules are considered incomplete and may be subject to late filing penalties. Extension of Time to File Return: Time extensions are granted for both calendar and fiscal year-end businesses by completing the Extension Request form located in the tax return booklet and returning it to the Orrville Income Tax Office, with a copy of the taxpayers extension request to the Internal Revenue Service by the original due date of the return. Extending the filing date does not extend the payment of the tax due for the current year. Business Non-Filing Declaration: If your business was mailed our Net Profit Tax Return and you have filed returns for previous years, you are on our active account listing. If you are no longer required to file a return with Orrville because you did not conduct business in Orrville, your business is no longer in existence or has moved, please complete and return the Business Non-Filing Declaration, located in this booklet, to avoid delinquent notices. If applicable, this form may be filed in lieu of the net profits income tax return. Penalty and Interest: Penalty and interest charges are imposed on returns that are filed after the due date of the return, or when payment of due tax is not received on or before the due date of the return. Returns filed with payment of all due tax and postmarked on or before the due date are considered timely. Penalties are imposed on all unpaid taxes at a rate of.5% per month or portion of a month, for the first six months of non-payment. Minimum penalty is $ Interest is also imposed on all unpaid tax at a rate of six per cent (6%) per annum. 2

3 FORM CO For Calendar Year: Business Net Profits Income Tax Return TAX RATE 1% Fiscal period from, 20 through, 20 Nature of business ATTACH COPIES OF FEDERAL INCOME TAX RETURN Returns received without proper supporting schedules will be considered as incomplete. 1. Net Income Per Federal Return $ 2. Add items not deductible (from line M, Schedule X) $ 3. Deduct items not taxable (from line Z, Schedule Z) 4. Adjusted Net Income 5. Allocation Percentage (from line 5, Schedule Y) % 6. Taxable Income 7. Orrville Income Tax 1% of line 6 $ 8. Credits A. Payments on current declaration $ $ B. Carryforward balance from previous year(s) $ $ C. Total credits allowable $ 9. Balance Due: (if line 7 is more than line 8C, enter balance here, and on line 15A) $ 10.Overpayment to be refunded $ or credited $ to next year. $ NO TAXES OR REFUNDS OF LESS THAN $1.00 SHALL BE COLLECTED, REFUNDED OR CARRIED FORWARD TO NEXT YEAR S RETURN. COPY TAX OFFICE USE ONLY TAXPAYER S NAME AND ADDRESS Account # Federal ID# - DECLARATION OF ESTIMATED TAX FOR YEAR Income subject to Orrville tax times tax rate of 1.00% for gross tax of 12.Less overpayment as shown on previous year return 13.Net tax due (line 11 less line 12) 14.Amount paid with this declaration (*1/4 of line 11, less line 12) (Enter here and on line 15B) Processed By $ Cash MO Check Refund requested Voucher Refund copy made 15. TOTAL AMOUNT DUE A. $ (LINE 9) + B.$ (LINE 14) = I CERTIFY THAT I HAVE EXAMINED THIS RETURN (INCLUDING ACCOMPANYING SCHEDULES AND STATEMENTS) AND TO THE BEST OF MY KNOWLEDGE AND BELIEF IT IS TRUE, CORRECT AND COMPLETE. IF PREPARED BY A PERSON OTHER THAN TAXPAYER, THE DECLARATION IS BASED ON ALL INFORMATION OF WHICH PREPARER HAS ANY KNOWLEDGE. Signature of Prepare Date Signature of Taxpayer Date Federal Tax ID No. # 3

4 City of Orrville - Income Tax Return Page 2 SCHEDULE X -- RECONCILIATION WITH FEDERAL INCOME TAX RETURN ITEMS NOT DEDUCTIBLE A. NET LOSS FROM CAPITAL OR OTHER ASSETS $ B. INCOME TAXES (FEDERAL, STATE AND CITY) $ C. NOL CARRIED FORWARD (FROM FEDERAL RETURN) $ D. PAYMENTS TO PARTNERS OR COMP OF S CORP OFFICERS $ E. CONTRIBUTIONS.... $ F. OTHER (EXPLAIN) $ M. TOTAL ADDITIONS $ ITEMS NOT TAXABLE N. CAPITAL GAIN FROM FEDERAL SCHEDULES.... $ O. INTEREST $ P. DIVIDENDS $ Q. ROYALTY INCOME $ R. OTHER (EXPLAIN) $ Z. TOTAL DEDUCTIONS $ SCHEDULE Y -- BUSINESS ALLOCATION FORMULA Within Orrville Everywhere PROPERTY FACTOR BOY EOY BOY EOY Step 1 Value Real & Tangible Personal Property Average Property value Rent Expense Multiplied by 8 Total Property Property Apportionment % PAYROLL FACTOR Step 2 Current Year Wages, Salaries, Commissions and other Compensation paid to all employees. Payroll Apportionment % SALES FACTOR Step 3 Gross Receipts from Sales and Services Performed. Sales Apportionment % Step 4 Sum of all percentages Step 5 Average Percentage Divide total percentages by number of percentages used. Enter here and on line 5 on front of return. 4

5 BUSINESS NON-FILING DECLARATION INCOME TAX DEPARTMENT CITY OF ORRVILLE, OHIO Phone (330) FAX (330) Business Name Mailing Address FTID (Check appropriate boxes, sign and return to Orrville Income Tax Office) I/we certify that I/we are not required to file an income tax return with the City of Orrville, Ohio for year ending December 31,, OR FYE Ending for the following valid reason(s). The above business is not required to file a net profits tax return with the City of Orrville for the above stated period because it ceased all operations effective. The above business is not required to file a net profits tax return with the City of Orrville for the above stated period because it has not conducted business or performed services in the City of Orrville during the aforementioned period. The company does not have physical assets located in Orrville, and did not pay compensation to employees for services performed in Orrville during this period. Other ************************************************************************************** Complete this section for future periods: Business expects to do business in Orrville within the next year, please leave account active. Business does not expect to do business in Orrville in future years, please inactivate our account. We will notify the Orrville tax office if we do business again in Orrville. ************************************************************************************** I declare that to the best of my knowledge, the above checked statements are true and correct. Signature Date Title 5

6 REQUEST FOR EXTENSION OF TIME TO FILE BUSINESS NET PROFITS TAX RETURN CITY OF ORRVILLE Phone (330) FAX (330) Business Name Mailing Address FTID I request an extension of time until to file an Orrville, Ohio Income Tax Return for taxable year ending December 31,, or fiscal year ending. The due date requested should not be later than six months from the original due date, or one month beyond any extended date requested of and granted by the Internal Revenue Service. Include a copy of federal extension form. No penalty shall be assessed to those returns that file within the period as extended. Estimated Orrville tax balance due: $ Signature of Taxpayer Or Signature of Tax Preparer Mail completed extension request to: * Requests for extension must be received by the original due date of the return. City of Orrville -Income Tax P.O. Box 61 Orrville, OH