Form 0405-611 - 2006 Alaska Corporation Net Income Tax Return Instructions Page 2
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10FORM 0405-611 - 2006 ALASKA CORPORATION NET INCOME TAX RETURN
INSTRUCTIONS
10) To avoid interest and penalties, pay any tax due within two
AVOID COMMON MISTAKES
To facilitate the processing of the return, be sure to do the
and one-half months of the tax year-end and file the return
following:
within thirty (30) days of the due date for the federal return.
Note that the thirty days may or may not correspond to the
15th day of the following month.
1)
The water's edge combined reporting method is mandatory
in Alaska.
Do not file using a world-wide combined
reporting method. (SEE Page 4: “Water’s Edge Method of
GENERAL INSTRUCTIONS
Reporting” and “Unitary Group or Unitary business”.)
I. BASIC FILING PROCEDURES
2)
Use the correct form and schedules.
Non-affiliated
WHO MUST FILE
corporations operating solely in Alaska are encouraged to
Every corporation having taxable nexus with the state must file
use the short form, Form 0405-611SF. All other corporations
an Alaska Corporation Net Income Tax Return. Taxable nexus,
must use the standard Form 0405-611.
sometimes referred to as “doing business” within the state, is
the act of conducting business activity within the state that is
3)
Unless the corporation changed its name, enter the name
not protected under Public Law 86-272. Taxable nexus may
as it appeared in the prior return. If this is a consolidated
exist as a result of a corporation’s direct activity, the activity of
return, see specific instructions on page 6 regarding
its employees or agents, or through its interest in a partnership
taxpayer identification.
If the name on this return is
or limited liability company. Taxable nexus may include, but is
different from the name reported on the prior return,
not limited to:
complete question 4 of Schedule B ( Form 0405-611 only).
1)
owning or using property in the state, including leased or
mobile property;
4)
Accurately complete all “RETURN DATA” questions on
2)
presence of employees in the state for business purposes;
page one. You must know the answers to these questions
3)
making sales into the state; or
to file accurately. We need this data to process the returns
4)
the generation of income from sources within the state
efficiently. Do not assume that because the corporation
without regard to whether there is a physical presence in
filed using the short form last year that it is eligible to use
the state.
the short form this year.
In addition, Alaska requires that a corporation registered to do
5)
Provide the name and phone number of a contact person
business in the state must file a report even if it did not have
who can answer any question that we may have regarding
taxable nexus with Alaska during the tax year (see instructions
the return. This must be an officer or employee who is
on page 3 for "Inactive Corporation").
authorized to answer any such questions. Generally, we
cannot discuss taxpayer information with an outside party
WHICH FORM TO USE
unless we have a Power of Attorney.
Form 0405-611 is the standard Alaska Corporation Net Income
Tax Return form designed to accommodate any taxpayer
6)
Complete all taxpayer data on page one and all affiliate
including the most complex filing under the water’s edge
taxpayer data on Schedule B (Form 0405-611 only). Refer to
method. The standard form must be used whenever the
instructions on page 6 for assistance in finding Alaska
taxpayer 1) has taxable nexus or business activity outside of
Corporation File Numbers.
Alaska, or 2) is a member of an affiliated group.
7)
If this taxpayer and one or more other Alaska taxpayers are
The short form, Form 0405-611SF, is designed for taxpayers with
included in a consolidated federal return, these same
less complex filing requirements. The short form is available to
taxpayers must file a consolidated Alaska return if they are
taxpayers that 1) conduct business only in Alaska, and 2) are
members of the same unitary group.
If the federal
not a member of an affiliated group.
common parent is not an Alaska taxpayer, identify the
common parent on Schedule B, question 2.
AFFILIATED GROUP DEFINED
An affiliated group is a group of corporations in which 50% or
8)
Attach schedules as instructed in the forms. Schedules
more of the voting stock of each member of the group is directly
providing detail, by company, are required where specified
or indirectly owned by one or more corporate or non-corporate
in the forms.
Attaching complete schedules will ensure a
common owner(s), or by one or more of the members of the
valid filing and prevent unnecessary correspondence with
group.
our examination unit. Be sure that attached schedules are
properly referenced and agree to the totals reported on the
form.
Taxpayers using the combined method of reporting
SMALL BUSINESS CORPORATION
should consult Alaska’s Guide to Returns Based on a
(S CORPORATION)
Combined Report for a listing of schedules supporting a
An S Corporation doing business in Alaska is required to file an
combined report.
Alaska return. Generally, an S Corporation will satisfy its filing
requirement by filing the applicable Form 0405-611 (pages 1 and
9)
Attach a copy of the signed federal income tax return of the
2) or Form 0405-611SF (page 1) with the S Corporation box on
taxpayer as filed with the Internal Revenue Service. If the
page one checked. Alaska does not impose a tax on the S
taxpayer is included in a federal consolidated return, attach
Corporation for pass-through items of income or loss.
the consolidated return and not the taxpayer’s separate
Schedule A lines 1-20 need not be completed unless a
company return. Do not attach a pro forma return. Send
corporate level tax is applicable. Attach a copy of pages 1
only the portions of the federal return specified in the
through 4 of the federal Form 1120S and Form 7004 if
instructions on page 3 if the federal return exceeds 50
applicable.
pages.
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