FORM CO-411 Instructions Corporate Income Tax Return

Transcription

1 New fr 2014 Wh Must File? FORM CO-411 Instructins Crprate Incme Tax Return Please print in BLUE r BLACK ink nly. All C Crpratins use Frm CO-411 and related schedules. The frm set has been mdified t accmmdate stand-alne crpratins as well as cmbined reprting fr unitary grups. Frm CO-411U has been discntinued. See details in Frms and Schedules Summary sectin, belw. There is nw a mechanism t exclude incme received frm a pass-thrugh entity which was already taxed n a cmpsite return (f that pass thrugh entity). This is necessitated by adptin f mandatry cmpsite filing requirements fr certain pass thrugh entities. This nly applies t crpratins which have been distributed incme frm a pass-thrugh entity which has paid cmpsite tax, and have additinal activity in Vermnt which requires them t file a crprate incme tax return. The deductin is reprted as a negative amunt n Schedule BA-402, Line 1b (nnbusiness incme) and flws thrugh t Frm CO-411, Line 9, r Schedule CO-421, Line 4. C Crpratins (Stand-alne Crpratins, nt a member f an affiliated grup) Every C Crpratin must file Frm CO-411, Vermnt Crprate Incme Tax Return, if: It was incrprated under the laws f the State f Vermnt; r It received incme allcable r apprtined t Vermnt including incme received as a sharehlder, partner, r member. It has an pen crprate incme tax accunt. If there was n activity r tax liability in Vermnt fr the year, but the business wuld like t maintain the accunt, an inactive return must be filed. N tax is due. Affiliated Grups f Crpratins Engaged in Unitary Business Beginning in 2006, taxable crpratins which are part f an affiliated grup engaging in unitary business are required t file cmbined reprts, reprting the cmbined net incme f the grup. See 32 V.S.A. 5862(d). In general, an affiliated grup means a grup f tw r mre crpratins in which mre than 50 percent f the vting stck f each member crpratin is directly r indirectly wned by a cmmn wner r wners, either crprate r nncrprate, r by ne r mre f the member crpratins. Unitary business means ne r mre related business rganizatin engaged in business activity bth within and withut the state amng which there exists a unity f wnership, peratin, and use; r an interdependence f their functins. Taxable crpratins which are part f an affiliated grup engaging in unitary business are required t file cmbined reprts, reprting the cmbined net incme f the grup. Page 1 f 12

2 Principal VT Crpratin The grup must designate a Principal VT Crpratin (PVC), which will be respnsible fr preparing all returns and making payments. The PVC must have nexus in Vermnt. The PVC is the parent crpratin if the grup includes members f a federal cnslidated grup and the parent has nexus in Vermnt. If the parent is nt taxable in Vermnt r there is n parent, the taxpayer designates the PVC, which is the grup member that is subject t Vermnt crprate incme tax and that has the greatest amunt f business activity in Vermnt. The PVC shuld be the same crpratin frm year t year, and shuld nt be changed based n mderate fluctuatins in level f business activity within the state. Determinatin f Tax Cnslidated Returns Vermnt incme and tax are determined n a separate cmpany basis fr each taxable member f the grup. The cmbined grup s tax liability is the sum f the separate taxpayer-affiliates liabilities. Each Vermnt-nexus-member f the grup applies its apprtinment factr t the cmbined net incme f the entire grup. The apprtinment is determined with Schedule BA-402 fr each Vermnt-nexus-member f the grup, using the separate cmpany s Vermnt factrs as numeratr, and the entire grup s factrs as the denminatr. Other items such as allcated incme, credits, and net perating lsses are accunted fr n a separate cmpany basis. Members f a federal cnslidated grup that are nt engaged in unitary business may elect t file a single cnslidated Vermnt return, under 32 V.S.A. 5862(c), prvided that the cnslidated members have the same fiscal year. The Vermnt cnslidated grup includes nly the members f the federal cnslidated grup that are taxable in Vermnt, and might nt cntain all f the crpratins in the federal grup. An electin t file a cnslidated return is binding fr 5 years. Determinatin f Whether r Nt the Crpratins are Cnducting Unitary Business Review Regulatin (d) carefully t determine if an affiliated grup is cnducting unitary business (in which case the grup must file a cmbined return see abve). Examples f affiliated grups nt cnducting unitary business are: (1) all members f the grup cnduct all f their business within Vermnt; r (2) the members f the cnslidated grup truly have n intercnnectin ther than cmmn wnership (i.e., n cmmn lines f business, n shared resurces, n cmmn management). Parent Crpratin The cnslidated return must be filed by the parent crpratin f the federal grup if that cmpany has nexus (taxable presence) in Vermnt. If the parent f the federal grup des nt have nexus in Vermnt, the parent fr Vermnt purpses is the grup member that cnducts the mst activity and has the mst stable presence in Vermnt ver time. The intentin is that a grup has the same parent crpratin frm year t year, rather than t have the parent crpratin change due t fluctuatin in activity levels. Cnslidated Return fr Affiliated Grups Engaged in Unitary Business Fr affiliated grups engaging in unitary business which include members f a federal cnslidated grup, the prvisins f 32 V.S.A. 5862(c) remain intact, but underneath the umbrella f 32 V.S.A. 5862(d). That is, separate cmpanies that are part f a federal cnslidated grup must file within the cmbined reprt if they meet the unitary definitin. Then, within the cmbined reprt, the VT-nexus members f the federal cnslidated grup may elect t be treated as a cnslidated filer, i.e., a single taxpayer. Page 2 f 12

3 If this electin is made, the Vermnt cnslidated grup is treated as a single taxpayer within the affiliated grup, and prvides nly ne Schedule BA-402 Apprtinment and Allcatin Schedule. Incme will be summed and taxed as thugh the Vermnt-nexus-members f the cnslidated grup are ne taxpayer. If the cnslidated taxpayer is in a minimum tax psitin, the minimum tax is assessed ne time, nt nce fr each nexus member f the grup. An electin t file a cnslidated return is binding fr 5 years. Nnprfit and Exempt Organizatins A nnprfit rganizatin that engaged in activities in Vermnt which prduced unrelated business incme subject t federal incme tax under Internal Revenue Cde Sectin 511 during the tax year is required t file a Vermnt Crprate Incme Tax Return. Please review the Nnprfit Incme Tax Return Instructins at the end f this dcument, and Technical Bulletin 59 fr mre infrmatin. What if the Crpratin has a Vermnt Crprate Tax Accunt, but is Nt Currently Ding Business in Vermnt? Crpratins having an existing Vermnt Crprate Incme Tax accunt, but nt therwise ding business in Vermnt, are nt required t pay the minimum tax, but must file Frm CO-411. Mark the N Vermnt Activity bx n the bttm f page 1 f the CO-411. What abut Subchapter S Crpratins, Partnerships, and Limited Liability Cmpanies (LLCs)? Subchapter S Crpratins, Partnerships, and Limited Liability Cmpanies electing nt t be taxed as a crpratin file Frm BI-471 Vermnt Business Incme Tax Return. See separate instructins fr that frm. Frms and Schedules Summary Frm CO-411 Crprate Incme Tax Return: This is the initiating frm, and the three pages are required fr all crprate incme tax filers. Schedule BA-402 Apprtinment & Allcatin Schedule: Fr use by all taxable entities having activity (incme and/r expenses, regardless f prfit r lss) in Vermnt and/r at least ne ther state/prvince. Cmplete Schedule BA-402 unless the apprtinment is 100% fr Vermnt. Returns filed withut Schedule BA-402 will be adjusted t 100% Vermnt apprtinment. If the crpratin is part f an affiliated grup engaged in unitary business, a separate BA-402 is filed fr each taxable crpratin in the grup, unless cnslidated filing is elected. Schedule BA-403 Applicatin fr Extensin f Time t File Vermnt Crprate/Business Incme Tax Return: T request an extensin f time t file the Vermnt Crprate r Business Incme Tax return. An extensin f time t file a Federal return autmatically extends the time t file with Vermnt until 30 days beynd the Federal extensin date. Hwever, tax is due n the riginal due date. Schedule BA-404 Tax Credits Earned, Applied, Expired, and Carried Frward: Required fr cmpanies that have earned r applied tax credits r incentives. This schedule is required f each separate entity claiming credits if a cnslidated return r cmbined reprt is filed. Be sure t include all dcumentatin required per the prgram guidelines f the credit yu are claiming. Schedule BA-405 Expired EATI Credit: Annual Activity Reprt: Required by thse entities awarded Ecnmic Advancement Tax Incentives (EATI) credits, fr use fr each f the six years fllwing the end f the EATI authrizatin perid. Schedule BA-410 Affiliatin Schedule: Fr use by thse entities electing t file a Vermnt cnslidated return per 32 V.S.A. 5862(c) r a cmbined reprt fr a unitary grup under V.S.A. 5862(d). Page 3 f 12

4 Frm CO-414 Crprate Estimated Tax Payment Vucher: T make estimated payments fr crprate incme tax (generally quarterly) thrughut the year. Frm CO-422 Crprate Incme Tax Return Payment Vucher t direct a payment t a crprate incme tax accunt and perid, if yu d nt have anther frm r cupn available. CO-422 is nt necessary if yu are sending a check with CO-411, CO-414, r BA-403. Vermnt Net Operating Lss statement and summary: Fr each taxable affiliate that has a Vermnt Net Operating Lss. See Technical Bulletins 35 and 40, and instructins belw, fr details. Federal Infrmatin: Fr all taxable members f the grup, prvide the fllwing: The first five pages f the federal 1120 (r ther return filed) (ne frm if the cnslidated grup is the same as the Vermnt unitary grup, r ne fr each separate member if the affiliates are nt part f the same federal cnslidated grup). If the cnslidated/ cmbined grup is different than the federal grup, this will be a pr-frma return; Federal Frm 4562 as filed and pr-frma, if any members f the grup have taken bnus depreciatin; Cpies f federal statements regarding ther incme and deductins, net perating lss, and taxes and licenses. Additinal Schedules fr Cmbined Reprting fr Affiliated Grups Engaged in Unitary Business New fr 2014 Starting in 2014, unitary grups file Frm CO-411. The CO-411U has been discntinued. Each return package will have a BA-402 which reprts the PVC s apprtinment percentage, and carries frward t Line 6 f the CO-411. The tax calculatin fr the PVC ccurs n Frm CO-411, Lines 6 thrugh 17, cmparable t the CO-421. Fr each additinal taxable affiliate, calculate tax by preparing a BA-402 and CO-421, Unitary Affiliate Schedule. This prcess is unchanged frm prir years. Ttal tax due fr the grup is the sum f CO-411, Line 16 (the tax fr the PVC) and all CO-421s, Lines 11 (tax fr each additinal taxable affiliate). This ttal amunt is reprted n CO-411, Line 18. A prperly prepared cmbined reprt fr unitary grup will cntain ne fewer Schedule CO-421 than Schedule BA-402, because the apprtinment percentage frm the first BA-402 and tax calculatin fr the PVC will be reprted n the CO-411. Schedule CO-421 Unitary Affiliate Schedule: Required f each affiliate taxpayer (ther than the PVC) filing unitary cmbined returns t determine the separate VT tax f each grup member. (Schedule CO-421 is nt required fr members f the grup that have elected t be treated as a cnslidated filer, as tax will be calculated n the CO-411.) Separate attributes, such as apprtinment f grup incme, credits and incentives, net perating lss deductins, and allcated nn-business incme are accunted fr n this schedule. The amunt f tax due fr each affiliate carries thrugh t the Frm CO-411. Schedule CO-419 Apprtinment f Freign Dividends: Used by unitary-cmbined filers (if applicable) t determine the amunt f apprtined freign dividends taxable t the State f Vermnt. Prepare CO-419 fr the PVC, and fr every taxable affiliate in the grup. CO-419(s) is/are nt necessary if there were n taxable freign dividends paid int the grup, r if mdified apprtinment and factr relief are nt being calculated. Refer t Regulatin Sec (d) -7(f) and -8(b) regarding what dividends are taxable. Page 4 f 12

5 Filing Dates and Payments Estimated Taxes Schedule CO-420 Freign Divided Factr Increments: Used by unitary-cmbined filers (if applicable) t determine the incremental factrs t Sales and Receipts, Salaries and Wages, and Prperty, in rder t prvide factr relief fr apprtinment f freign dividends. Prepare ne CO-420 fr each entity that paid freign dividends subject t mdified apprtinment t any member f the cmbined grup. D nt prepare Schedule(s) CO-420 if there are n freign dividends, r if factr relief and mdified apprtinment are nt being calculated. General Instructins Returns must be filed by the 15th day f the third mnth fllwing the crpratin s year-end, r the extended due date. The Vermnt extended due date is thirty (30) days beynd the extended Federal due date. Crpratins needing a Vermnt extensin shuld file Frm BA-403, Applicatin fr Extensin f Time t File Vermnt Crprate/Business Incme Tax Return, by the riginal due date, and mark the Extended Return bx in Part A when filing their crprate return. The BA-403 requires that yu indicate which Federal Incme Tax Frm will be filed. Fr nnprfits reprting URBI n Frm CO-411, the due date is the same as the date the Federal return is due. If any extensin is requested, the Vermnt extended due date is thirty (30) days after the Federal extended due date. An extensin f time t file des nt extend the time t pay the tax due. Any tax due, including the Vermnt minimum tax, must be paid by the riginal due date f the return. Any tax due which is unpaid by the riginal due date will accrue interest and late payment penalties. Any crpratin anticipating a Vermnt tax liability ver $500 must make estimated payments f the 15th day f the 4th, 6th, 9th, and 12th mnths f the taxable year. Use payment vucher, Frm CO-414. If payment is t be applied t a Vermnt cnslidated grup r cmbined reprt fr unitary grup, prvide infrmatin fr the Vermnt parent r PVC, respectively. Interest, Late Fees, and Penalties Interest is charged n payments nt made by the statutry due date. The rate f interest is established each year. Current and histrical interest rates are available here: If the filing is ver 60 days late frm the riginal due date, a $50 late file penalty applies even if n tax is due unless the return is timely filed under extensin. The failure t pay an incme tax liability when due will result in impsitin f a penalty equal t 1% per mnth f the utstanding liability. Estimated payments nt made when due are subject t interest and a late payment penalty f 1% fr each mnth that the payment is late, up t a maximum f 25%. Changes in Return Infrmatin An amended Vermnt incme tax return must be filed whenever the taxpayer s federal tax return is amended r crrected, r whenever the infrmatin n the Vermnt return, as previusly filed, is incrrect. An amended return cannt be filed until the riginal incme tax return has been filed. An amended Vermnt return is due within 60 days after yu becme aware f any changes. This requirement may be the result f any infrmatin that makes yur return materially false, inaccurate, r incmplete; yu are ntified by the Internal Revenue Service that yur Federal taxable incme has been adjusted; r, yu file an amended return with the Internal Revenue Service. If an amended return is nt filed with Vermnt within the prescribed time, late filing fees may be assessed and penalty may be assessed n any additinal tax. Include a cpy f the IRS reprt if the change is a result f a Federal audit. Page 5 f 12

6 Amended Returns Net Operating Lsses File an amended return using the CO-411 fr the tax year yu are amending. Mark the Amended Return bx in the upper right crner. Cmplete all header infrmatin, including the Tax Year Begin and End fields. Include a brief statement r explanatin summarizing the nature f the amendment(s). If that return required schedules fr explanatin, attach thse same schedules, as amended, t clarify the change. Amended returns claiming a refund must be filed within three (3) years frm the date a return is required t be filed r six (6) mnths after a refund was received frm the United States with respect t a change in the amunt f taxable incme reprted in a return filed under the laws f the United States. Fr taxable years beginning January 1, 2007 and later, there is created a Vermnt Net Operating Lss (VNOL), defined as any negative incme after allcatin and apprtinment f Vermnt net incme pursuant t 32 V.S.A The VNOL is available t carry frward t ffset Vermnt incme fr 10 years fllwing the lss year. Carry backs are nt available. Please see Technical Bulletin #35 fr a mre detailed explanatin f VNOL. Fr any year in which a VNOL is generated, is available, r is applied, crpratins must include a detailed schedule summarizing lss years, utilizatin years, expiratin years, and available carryver. Fr tax years 2007 and later, Frm CO-411, Line 1 will n lnger include any federal net perating lss deducted frm taxable incme. Crpratins can receive the benefit f prir, unused perating lsses by cmpleting a ne-time cnversin t an Initial Vermnt Net Operating Lss. Fr details n the cnversin t an Initial VNOL, please see Technical Bulletin #40. In general, the cnversin can nly take place in 2007, and the Initial VNOL will expire peridically, based n the lss year(s) f the cmpnent prtins. Fr any year in which a part r all f an Initial VNOL is used r remains available, crpratins must include a cpy f the spreadsheet used t calculate the Initial VNOL in 2007, with updates t shw amunts used. Carry backs Vermnt Net Operating Lss may nt be carried back t a prir year. VNOL remains available t carry frward even if the cmpany has elected t carry back the perating lss fr federal purpses. Crprate Incme Tax Return Instructins HEADER INFORMATION COMPLETE ALL FIELDS THAT APPLY. Entity Name/Address Other Infrmatin Print r type the entity name and address in the space prvided. If the return is a cmbined return fr an affiliated grup cnducting unitary business, use the PVC s name and address. If the return is fr a cnslidated return by an affiliated grup nt cnducting unitary business, use the Parent Crpratin s name and address. If the address is in a cuntry ther than the United States, enter the name f the freign cuntry in the space prvided. Place an X in the apprpriate bxes t the right f the entity name and address t indicate if: There has been an Accunting Perid/Fiscal Year-End change This is an Amended Return This is an Extended Return in this case, Frm BA-403 shuld have been filed n the riginal return due date This is a Unitary Cmbined return Page 6 f 12

7 This is a Cnslidated return This is a Final Return this means the entity has ceased ding business in Vermnt, and the crprate incme tax accunt will be clsed Enter the entity s federal emplyer identificatin number Enter the entity s primary NAICS (Nrth American Industrial Classificatin System) cde. See fr applicable cdes. Enter the beginning and ending dates f the entity s fiscal year (YYYYMMDD). If the business uses a 52/53 week year, use the first and last day and mnth that wuld be reprted if the 52/53 system was nt being used. Fr affiliated grups nly: Enter the ttal number f cmpanies in the Water s Edge Grup and the number f taxpayer affiliates with Vermnt nexus. Include the PVC as ne. Cunt all VT-nexus affiliates separately regardless f whether they have elected cnslidated treatment fr reprting/tax purpses (See sectins 4 and 5 f the Unitary regulatins, Reg (d).) Leave these fields blank if return is being filed fr a stand-alne crpratin. Place an X in the apprpriate bx t indicate federal tax return filed. Line-by-Line Instructins Place an X in the bx left f the line number t indicate a lss (r negative) amunt. Fr all line references t ther schedules, it is understd that the reference is fr the matching schedule prepared fr that affiliate cmpany, as identified by the name and FEIN fields n the schedules. Line 1 Federal (r Recmputed Federal) Taxable Incme: Enter the amunt frm Federal Frm 1120, Line 28 (taxable incme), less Line 29b (special deductins). Line 2 Line 3 Line 4 Add: Line 4(a) Net Operating Lss: Fr tax years starting January 1, 2007 and later, Vermnt is n lnger cupled t the federal net perating lss deductin. Any federal NOL deductin (generally Federal Frm 1120, Line 29a) shuld nt be deducted frm Line 28 (taxable incme) t arrive at the incme amunt fr Frm CO-411, Line 1. Vermnt Net Operating Lss will be deducted frm CO-411, Line 12 r CO-421, Line 7. Fr a Cmbined Reprt Enter the grup s cmbined net incme r lss as reprted t the federal gvernment, and accunting fr mdificatins abve, fr all cmpanies in the water s edge cmbined grup. Bnus Depreciatin Adjustment: Vermnt des nt allw the special bnus depreciatin prvisin f the Federal Jbs Creatin and Wrker Assistant Act f 2002, the Federal Jbs and Grwth Tax Relief Recnciliatin Act f 2003, the Ecnmic Stimulus Act f 2008, r the 2009 extensin fr certain transprtatin and aircraft prperty {IRC 168(k)}. If taken in the current r in prir years, the Federal taxable incme must be recmputed withut the 30% r 50% special bnus depreciatin. Reprt the net adjustment frm federal incme t Vermnt incme as a result f disallwing bnus depreciatin. Reprt an increase in incme as a psitive number, and a decrease as a negative number. Federal Taxable Incme adjusted fr disallwance f Bnus Depreciatin: Add Lines 1 and 2 t arrive at federal taxable incme, as adjusted t disallw bnus depreciatin. Vermnt Adjustments t Taxable Incme. Interest n nn-vermnt state and lcal bligatins: Enter the amunt f interest received frm nn- Vermnt state and lcal bligatins that were exempted frm Federal tax (e.g., Municipal bnds). Page 7 f 12

8 Line 4(b) Subtract: Line 4(c) Line 4(d) Line 4(e) Line 4(f) Line 4(g) Line 5 State and lcal incme r franchise taxes: Enter the amunt f state and lcal tax deductins taken n the Federal return(s). State and lcal incme taxes are taxes n r measured by incme; franchise taxes are thse measured by net incme, r fr the privilege f ding business, r capital stck taxes. These are deductible fr federal incme tax, but taxable in Vermnt. Attach a statement shwing a detail f the taxes claimed as deductins n the Federal return(s). Incme r lss allcated everywhere: Enter the amunt f interest received frm nn-vermnt state and lcal bligatins that were exempted frm Federal tax (e.g., Municipal bnds). Freign dividends received frm verseas business rganizatins as defined by (d): Fr unitary grups nly. Enter the ttal amunt f incme included n Federal Frm 1120, Schedule C, Lines 12, 13, and 14, and subject t a mdified apprtinment factr, calculated n Frms CO-419 and CO-420. If yu are calculating the mdified apprtinment factr, these dividends are subtracted frm apprtinable incme here, and then the amunt f taxable freign dividends calculated with the mdified apprtinment percentage is added back n CO-411, Line 10 r CO-421, Line 5. If there are n taxable freign dividends, r yu are nt calculating the mdified apprtinment, enter 0. Stand-alne crpratins, enter 0. Interest n U.S. Gvernment bligatins: Enter the amunt f interest received frm U.S. Gvernment bligatins included n the Federal return(s). Grss Up required by IRC Sec. 78 and ther excludable incme: Enter the ttal amunt f incme included n Federal Frm 1120, Schedule C, Line 15. Targeted Jb Credit salary and wage expense: Enter the wage expense assciated with wrk pprtunity credit disallwed n the Federal return by IRC Sectin 280C(a). Net Apprtinable Incme. Line 3 plus Lines 4(a) and 4(b) less Lines 4(c) thrugh 4(g). Line 6 Vermnt Apprtinment Percentage Enter 100% r the amunt frm Schedule BA-402, Line 22. Express as a percentage, with 6 digits t the right f the decimal. Attach Schedule BA-402 if Line 6 is nt 100%, r if any incme is apprtined r allcated t a jurisdictin ther than Vermnt. If n Schedule BA-402 is attached, Line 6 will be adjusted t 100%. Line 7 Apprtinable Incme Enter the amunt frm Frm CO-411, page 1, Line 5. Line 8 Incme Apprtined t Vermnt Multiply Line 6 by Line 7. Line 9 Incme Allcated t Vermnt Enter the amunt frm Schedule BA-402, Line 1b. Line 10 If incme was received frm a pass-thugh entity, and that entity paid cmpsite tax, enter the negative amunt in rder t exclude that incme and prevent duble taxatin. (This shuld be reprted n Schedule BA-402, Line 1b.) Include a statement identifying the entity that earned the incme and paid cmpsite tax. Freign Dividends Apprtined t Vermnt Fr cmbined reprts nly. Enter the amunt frm Schedule BA-402, Line 1d (same as Schedule CO-419, Line 17) fr this affiliate. Refer t Regulatin (d) -7(f) and -8(b), and Schedules CO-419 and CO-420, and Instructins. Enter 0 if this return is fr a stand-alne crpratin. Line 11 Net VT Incme Allcated and Apprtined t Vermnt Add Lines 8, 9, and 10. Page 8 f 12

9 Line 12 VT Net Operating Lss deductin applied (attach schedule). If Line 11 is negative yu have incurred a Vermnt Net Operating Lss (VNOL), available t carry frward t ffset Vermnt net taxable incme fr up t 10 years. VNOL may nt be carried back t a prir year return. VNOL remains available t carry frward even if the cmpany has elected t carry back the perating lss fr federal purpses. VNOL wuld have been incurred as a negative amunt after apprtinment and allcatin f VT incme in 2007 r later, r may have been cnverted frm available pre-2007 NOLs int an Initial VNOL in Fr tracking, VNOL must be applied n a first-in first-ut basis. Any cnverted Initial VNOL must be used first. Include a statement/schedule t track the availability f the VNOL. The schedule must detail lss years, utilizatin years, expiratin years, and available carryver. If VNOL used r carried ver includes any Initial VNOL cnverted frm remaining pre-2007 NOL, prvide a cpy f the cnversin wrksheet frm the 2007 return, updating fr amunts used. Enter any deductin taken fr a VNOL. Line 12 cannt be greater than Line 11; VNOL cannt reduce Vermnt Net Taxable Incme belw zer. Line 13 VT Net Taxable Incme fr this entity. Subtract Line 12 frm Line 11. Line 14 VT Tax. Apply VT Tax Rates (belw) t amunt n Line 13. Cmpute the tax using the tax cmputatin schedule, belw. Enter this amunt r the minimum tax, whichever is mre. The minimum tax is due even if the crpratin perated at a lss. Fr tax years starting n and after January 1, 2012, the structure f the minimum tax has changed. Minimum tax is based n Vermnt Grss Receipts, reprted n Line 17, and defined in the instructins t Line 17, belw. Graduated rates effective fr tax years beginning n r after January 1, TAX COMPUTATION SCHEDULE If Vermnt Net Incme is: Tax is: $10,000 r less % (r minimum tax, per VT Grss Receipts). $10,001 t $25, $600 plus 7.0% f excess ver $10,000. $25,001 and ver... $1,650 plus 8.50% f excess ver $25,000 If Vermnt Grss Receipts are: Minimum Tax is: $2,000,000 r less... $300 $2,000,001 - $5,000, $500 $5,000,001 and ver....$750 Exceptins t the minimum tax are: 1. SMALL FARM CORPORATIONS as defined in Title 32 V.S.A. 5832(2) (A), pay a minimum annual entity tax f $75.00, and incme tax greater than that based n the graduated rates, abve. The entity must be slely wned by active participants and have grss receipts f less than $100, INACTIVE CORPORATIONS are nt required t pay the annual entity tax. Inactive crpratins are nn-vermnt crpratins with n taxable activity r investments in this state that file t keep the accunt active, r Vermnt crpratins which have neither receipts, expenses, nr activity ther than minimal start-up r clse-ut expenses. Check the N VT Activity bx if the exceptin applies. 3. HOMEOWNERS AND CONDOMINIUM ASSOCIATIONS that file Federal Frm 1120-H are nt required t pay the Vermnt minimum crprate tax. If the assciatin des nt make this electin, then it is subject t the regular crprate rates and must pay the minimum tax and any additinal incme tax due based n the rates. Include a cpy f the 1120-H if claiming this exceptin, and mark the apprpriate bx at the bttm f CO-411, p.1. Page 9 f 12

10 Line 15 Credits If Vermnt tax credits are claimed, Schedule BA-404 must be filed, and all authrizatin dcuments, dcumentatin, and calculatins as required by the prgram guidelines f the credit being claimed must be attached t. Enter the amunt frm Schedule BA-404, Clumn C, Line 23. Line 15 cannt reduce tax belw the minimum tax. Line 16 Tax Due fr this entity Subtract Line 15 frm Line 14. Line 17 Grss Receipts Enter the ttal grss receipts fr the crpratin attributable t Vermnt. Grss receipts are the ttal amunts the rganizatin received frm all Vermnt surces during its annual accunting perid, withut subtracting any csts r expenses. The amunt f the grss receipts may nt be less than $0. This amunt is used t determine the minimum tax. Line 18 Ttal Tax Due Fr stand-alne crpratins, this is the amunt frm Line 16. Line 19 Line 19a Line 19b Line 19c Line 19d Line 19e Fr cmbined reprts fr a unitary grup, enter the sum f Line 16 n page 2 and, if there are multiple taxable affiliates, Line 11 f all attached Schedules CO-421. Payments. Estimated Payments. Enter the ttal amunt f Estimated Payments made fr this tax year. Payment with Extensin. Enter the amunt f any payment with Extensin made fr this tax year. Nnresident Estimated Payments. Enter the amunt f estimated payments made n behalf f this cmpany by pass-thrugh business (S-Crp, Partnership, r LLC) f which this crpratin is a sharehlder, partner, r member. Payments wuld have been made by the pass-thrugh business using Vermnt Frm WH-435. The entity s business incme tax return must be filed in rder t receive credits fr the payments. Real Estate Withhlding Payments. Enter the amunt f real estate withhlding (REW) n sales (Frm RW-171, Schedule A). REW wuld have been paid n yur behalf by the buyer f VT real estate that yu sld. Prir Year Overpayment Applied. Enter the amunt f prir year verpayment applied t the current year taxes. Line 19f Ttal Payments. Enter the sum f Lines 19a thrugh 19e. Line 20 Balance Due. If Line 18 is mre than Line 19f, subtract Line 19f frm Line 18. Make checks payable t VT DEPARTMENT OF TAXES. Line 21 Overpayment. If Line 19f is mre than Line 18, subtract Line 18 frm Line 19f. Line 22 Overpayment t be applied t next tax year. Enter the amunt f verpayment t be applied tward next year s crprate incme taxes. Line 23 Overpayment t be refunded. Enter the amunt f verpayment t be refunded. Line 22 plus Line 23 must equal Line 21. Be sure t sign and date the return. Prvide a phne number t expedite reslutin f any issues that may arise. Check the bx if yu authrize the VT Department f Taxes t cntact yur tax preparer directly with any questins abut this return. Make check payable t Vermnt Department f Taxes. Send return and check t: Vermnt Department f Taxes 133 State Street Mntpelier, VT Page 10 f 12

11 Vermnt Nnprfit Incme Tax Return Instructins Starting in tax year 2010, nnprfit rganizatins with unrelated business incme in Vermnt are required t cmplete CO-411 and include a cpy f their federal return. Wh must file? Hw t file? A nnprfit rganizatin that carried ut business in Vermnt and had unrelated business incme f greater than $1,000 in Vermnt is required t cmplete the Vermnt Crprate Incme Tax Return. If yur nnprfit has affiliates that engaged in yur unrelated business incme, yu will need t fllw the instructins fr cmbined reprting. If yu have n affiliates engaged in unrelated business activities, cmplete CO-411. Fr purpses f determining if there is a filing requirement, and cnsistent with federal treatment, the $1,000 threshld refers t grss receipts, and nt net incme. Carrying ut business in Vermnt fr any tax year means: Owning prperty in Vermnt that yielded rental incme Having an ffice in Vermnt where emplyees carried ut unrelated business Carrying ut services in Vermnt that prduced unrelated business incme. Unrelated business incme is defined by the Internal Revenue Service. Publicatin 598 frm the Internal Revenue Service prvides the fllwing general descriptin: Unrelated business incme is the incme frm a trade r business regularly carried n by an exempt rganizatin and nt substantially related t the perfrmance by the rganizatin f its exempt purpse r functin, except that the rganizatin uses the prfits derived frm this activity. The tw key terms in this descriptin are regularly carried ut and nt substantially related t the perfrmance f its exempt purpse r functin. Vermnt uses the same definitin f unrelated business incme as des the Internal Revenue Service. If yur incme meets the requirements t reprt incme n federal frm 990-T, then yu must cmplete Vermnt crprate incme tax frms as well. The instructins fr Vermnt Frm CO-411 are the same instructins that nnprfits need t fllw fr filing the state return. In additin, nnprfits shall include the first page f federal frm 990 and the cmplete 990-T. The unrelated taxable incme reprted n Line 34 f 990-T is reprted as taxable incme n Line 1 f CO-411. Exceptins fr nnprfits filing CO-411 Line 2a Line 2c Nnprfit rganizatins d nt need t include interest f any kind in the calculatin f net taxable incme. Therefre reprt 0 n Line 2a even if yur rganizatin has interest n nn-vermnt state and lcal bligatins. Interest n US Gvernment bligatins are nt included in the calculatin f Line 1 incme and therefre shuld nt be reprted n Line 2c used fr reducing the calculated Vermnt Net Taxable Incme. Page 11 f 12

12 Apprtinment f incme If a nnprfit rganizatin s incme is derived entirely frm activities within the state, its Vermnt net incme is allcated entirely t Vermnt. If the nnprfit rganizatin s incme is derived frm activities cnducted bth in Vermnt and anther state r states, its Vermnt net incme is apprtined as prvided in 32 V.S.A n Vermnt Schedule BA-402. Fr example, incme derived frm sales f tangible persnal prperty that ccur in mre than ne state as a fundraising activity is apprtined between r amng the states. In cases where the nnprfit rganizatin is a part f an affiliated grup and ther members f the affiliated grup reprt unrelated business incme, the Vermnt nnprfit rganizatin must cmplete BA-402 and apprtin the cmbined grup s unrelated business incme. See Technical Bulletin 59, Unrelated Business Incme, at fr further infrmatin n this subject. Page 12 f 12