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Interest and Penalty

Special Instructions - Combined Unitary Tentative

Corporation Business Tax Return

Interest is assessed at 1% per month or fraction of a month

The Designated Taxable Member should file one Form

on any underpayment of tax computed from the ﬁ rst day of

CT-1120 EXT on behalf of all members of the combined

the ﬁ fth month following the close of the income year (ﬁ rst day

unitary group included in Form CT-1120CU. All payments

of the fourth month for corporations with a June 30 year end).

should be made under the Designated Taxable Member’s

The penalty for underpayment of tax is 10% of the tax due or

Connecticut tax registration number.

$50, whichever is greater. If no tax is due, the Commissioner

of Revenue Services may impose a $50 penalty for the late

For 2016, the group will select a Designated Taxable Member

ﬁ ling of any return or report that is required by law to be ﬁ led.

when it ﬁ les its Form CT-1120CU. If a payment is made by

a member other than the Designated Taxable Member, it

If a request for a filing extension has been granted, a

will be treated as made by the Designated Taxable Member

corporation may avoid a penalty for failure to pay the full

when the combined unitary return is ﬁ led. Any extension of

amount due by the original due date if it pays:

time to ﬁ le approved for any member of the group will be a

• At least 90% of the tax shown to be due on the return on

valid extension of time to ﬁ le for all members of the group.

or before the original due date of the return; and

Signature

• The balance due with the ﬁ ling of Form CT-1120, or Form

CT-1120CU on or before the extended due date.

An ofﬁ cer of the corporation must sign this form.

Credit Against Estimated Payments

Paid Preparer Signature

An overpayment of tax liability for 2016 will be applied

A paid preparer must sign and date Form CT-1120 EXT.

against the ﬁ rst installment of estimated tax due in 2017 if

Paid preparers must also enter their Social Security Number

the taxpayer timely ﬁ les a completed Form CT-1120 or Form

(SSN) or Preparer Tax Identiﬁ cation Number (PTIN) and their

CT-1120CU and elects to apply an overpayment from 2016

ﬁ rm’s FEIN in the spaces provided.

against its 2017 estimated tax.

Others Who May Sign

Limit on Credits

Anyone (including attorneys, accountants, and enrolled

The amount of tax credits allowable against the Corporation

agents) with a signed Power of Attorney may sign for the

Business Tax for any income year generally may not exceed

corporation in place of a corporate ofﬁ cer.

50.01% of the tax due prior to the application of the tax

Line Instructions

credits. For 2016, Research and Development, Research

Line 1 - Enter the tax due for the current income year

and Experimental Expenditures, and Urban and Industrial

without regard to surtax or recapture. Combined unitary ﬁ lers

Site Reinvestment tax credits that remain after application of

aggregate each taxable member’s tax and enter the total.

the 50.01% limitation may be further used, provided the total

of all credits used shall not exceed 55% of the tax liability.

Line 2 - Enter the surtax amount due.

Each taxable member included in Form CT-1120CU applies

Form CT-1120 ﬁ lers: If Line 1 is $250, enter zero (“0”).

tax credits on a separate company basis, which are then

Otherwise, if gross income (from federal form 1120, Line 11,

aggregated and applied against the combined unitary tax

amount in box at the top of Form CT-1120) is $100 million or

liability.

more, multiply Line 1 by 20% and enter the result.

See Special Notice 2016(1), Combined Unitary Legislation,

Form CT-1120CU ﬁ lers: Each taxable member included

for more information on tax credit usage by members of a

in Form CT-1120CU computes its surtax on a separate

unitary group.

company basis. For any taxable member whose tax exceeds

$250, multiply the tax by 20% and enter the total of the surtax

No tax credit allowed against the Corporation Business Tax

amounts.

shall reduce a company’s minimum tax to an amount less

than $250.

Line 3 - Add Line 1 and Line 2. Include tax credit recapture,

if applicable.

Tax Credit Recapture

Line 4 - Multiply Line 3 by 49.99% (0.4999).

If the corporation is subject to recapture of tax credits, include

the tax credit recapture amount in the total tax for the current

If a corporation has Research and Development, Research

income year.

and Experimental Expenditures, or Urban and Industrial

Site Reinvestment tax credits that remain after the 50.01%

Surtax

limitation, these credits may be further applied, provided

Companies whose gross income equals or exceeds $100

the total of all credits used does not exceed 55% of a

million or who ﬁ le as part of a combined unitary return must

corporation’s tax liability.

pay a surtax of 20% of the tax without regard to credits

Line 5 - Form CT-1120 ﬁ lers, enter $250. Form CT-1120CU

and tax credit recapture. The surtax does not apply to the

ﬁ lers, multiply the number of taxable members included in

minimum tax of $250.

the return by $250 and enter the result.

Line 13 - Subtract Line 12 from Line 9.

Form CT-1120 EXT (Rev. 12/16)

Page 3 of 3

Form Ct-1120 Ext - Application For Extension Of Time To Fileconnecticut Corporation Business Tax Return - 2016 Page 3

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