Form Fr 1172 - Business Income Tax Return - West Union

2008 Business Income Tax

Instructions

Village of West Union

P.O. Box 529

Mt. Orab, Ohio 45154

Phone (800) 779-3165

FILING DEADLINE: April 15, 2009

The following are the instruction for completing the 2009 West Union Business Income Tax Return. The West Union business income

tax rate of 1% (.01) is based on the net profit of any business conducting business in West Union. The total net profits of businesses

located within the Village of West Union are subject to the West Union income tax. Companies that have locations both inside and

outside the Village of West Union are required to pay tax on the net profit earned within the limits of the village. Sales that originate

within the limits of the Village of West Union are considered taxable regardless of the final destination of the products or services.

Itinerant businesses are not subject to the West Union Income Tax (See 12 Day Occasional Entry Rule in definitions).

DEFINITIONS:

Taxable Gross Income - all income received from products sold or services rendered in which the sale of said products or services

originated within the limits of the Village of West Union, regardless of the final destination of the products or services.

Taxable Net Profits - includes the net gain from business, or profession including those pertaining to capital gains and losses of a

business after deduction of ordinary and necessary expenses without deduction of salaries paid to the partners or owners of the

business.

Non-Taxable Business Income - Any non-earned income is not subject to tax such as interest income, capital gains (excluding

ordinary gains), dividends, and similar income.

Independent Agent - Any person who performs duties in association with a distinct but separate business. Under West Union Tax

Laws, independent agents are considered as sole proprietors and subject to the West Union tax.

12 Day Occasional Entry Rule - Any business that performs activities inside the Village of West Union for any part of twelve (12)

days or less in a calendar year is considered an itinerant business and is not subject to the West Union income tax.

Non-Deductible Expenses - expenses for capital losses, excluding for ordinary losses, expenses incurred in the production of non-

taxable income, taxes based on income, net operating loss, payments to partners, contributions and other non-deductible expenses.

Net Operating Loss - a business net operating loss can be carried forward up to three (3) years and applied towards business profit.

Net operating losses cannot be carried backward against prior net profits or be used to offset any earned wages.

Estimated Tax - an estimate of the amount of tax the business will owe for 2008.

Rental Income - the net profits from the rental of three (3) or more residential and/or one (1) or more commercial rental units is

subject to the West Union Income Tax.

Tax Extension - an extension for filing your tax return can be for up to three (3) months or one month after the deadline for any

federal tax extension granted.

WHO MUST FILE:

Every business located within West Union or conducting business within West Union except itinerant businesses (See 12 Day

Occasional Entry Rule in definitions). Any non-resident business that only withholds employee tax for their employees who are

residents of West Union is not required to file a West Union Income Tax Return, but must file monthly or quarterly Employee

Withholding returns (Form W-1) and an annual Employer Reconciliation return (Form W-3). These forms can be obtained from the

Income Tax Bureau. Contact the Income Tax Bureau for forms to be mailed, faxed to your location, or from the website:

FILING DEADLINE:

The filing deadline for submitting your 2008 West Union Income Tax return is April 15, 2009. You may request an extension for

filing your tax return if you are unable to meet this deadline. Extensions can be for up to three months, or one month after the

deadline for any federal extension granted. Requests for extensions must be made in writing prior to the filing deadline. Any West

Union Tax Return received after the April 15 deadline will be subject to late filing fees and interest charges. Any tax not paid by the

April 15 deadline will be subject to interest charges of 1/2 % per month. Fiscal year businesses must file by the end of the fourth

month after the end of the fiscal year.

LINE BY LINE INSTRUCTIONS:

Line 1 - Enter the total from Sections A, B, C, & D from page 2, or attach copies of appropriate federal tax returns and schedules.

Line 2 – Enter the Allowable Net Loss Carried Forward. (Maximum 3 Years Carried Forward)

Form Fr 1172 - Business Income Tax Return - West Union - 2008 Page 3

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