Instructions For Maryland Form 500 - Corporation Income Tax Return

responsibte

from any office of the Maryland Revenue Adminis-

MW506

- Emptoyefs

- Annual Employer Withholding Rec-

mation needed. The request must be signed by an

Also,

l f you do not have a label, type or print the wrred

digits each for the month, the day and the year. The

corporation.

TAXABLE YEAR OR PERIOD

1 -TAXABLE INCOME PER FEDERAL

income

SWViW.

indude

MODlFlCATlON

- total net

l f

taxabie year consists of net operating iosses from

modifications

SPECIFIC

A corporation included in a consolidated federal

The type of tax and tax year(s) are necessary

to identify the subject of the document and the

filing and claiming net operating loss or special

INSTRUCTIONS

deductions must attach a schedule detailing the

intention of payments. This information ensures that

deduction(s) on a separate return basis.

documents and payments are applied to the correct

NOTE: Complete the federal inwme tax

SPECIAL

account.

return first and use it in preparation of the Maryland

ADDITION MODIFICATIONS:

The corporation is

Use of Paid Preparers

return. After completing the Maryland return,

for the timely filing of returns, payment

All entries must be positive amounts.

ATTACH A COPY OF PAGES 1 THROUGH 4 OF

of tax, responding to requests and all other require-

THE FEDERAL INCOME TAX RETURN TO FORM

ments, even if a paid preparer is used.

AND LOCAL INCOME TAX

LINE 2a - STATE

500.

Substitute Forms Maryland corporation income

Enter the total of all net income taxes and all

tax returns

NAME, ADDRESS AND OTHER

may be reproduced and filed on wmput-

other taxes based on income that are imposed by

er-prepared

computer-generated

substitute

forms

INFORMATION

any state or by a political subdivision

of any state

provided that they are approved in advance by the

and deducted on the federal return.

IMPORTANT - PLEASE REMOVE THE LABEL

Maryland Revenue Administration Division. Repro-

Attach a schedule listing the type and amount of

FROM THE TAX BOOKLET COVER AND ATTACH

ductions or substitutes of forms in which machine-

all taxes deducted on the federal return. The sched-

IT TO THE DESIGNATED AREA ON THE FORM

readable taxpayer information has been preprinted

ule of taxes must reconcile to the amount of tax

500. IF SOMEONE ELSE IS PREPARING THE

by the Revenue Administration Division may not be

expense reported on the federal return.

RETURN, GIVE THE PREPARER THE BOOKLET

used.

SO THAT THE LABEL

MAY BE USED. If any of the

For additional information, see Administrative

information on the label is incorrect,

DO N6T USE

LINE 2b - DIVIDENDS AND INTEREST

Release No. 26, Procedures for Computer-

THE LABEL.

FROM ANOTHER STATE, LOCAL

Printed Substitute Forms, which can be obtained

FEDERAL TAX EXEMPT OBLlGATlON

name and address in the designated area. Enter the

Enter dividends and interest (less related expens-

tration Diiision. (See back cover of tax booklet for

corporate name exactly as specified in the Articles

es) attributable to any obligation or security of

address and phone number for substitute forms

of Incorporation, or as amended, and continue with

another state, a wlitical

subdivision or authority of

information.)

any Trading As” (T/A) name if applicable.

another state. Also include interest and dividends

Employers

Employer Withholding of IncomeTax

that are exempted by federal law or treaty from fed-

Enter the Federal Employer Identification Num-

that make payments to individuals of salaries,

ber (FEIN). If a FEIN has not been secured, enter

eral but not state inwme tax, and

attributable to the

wages, or compensation for

personal services must

States or a foreign government or an author-

“APPLIED FOR’ tbllowed

by the date of application.

United

withhold income tax

prescribed in published

ity,

commission,

instrumentality

or territory

If a FEIN has not been applied for, do so immedi-

tables and remit the withholding to the Maryland

ately.

Attach

schedule listing the source and amount

Revenue

Administration

Division.

of all dividends and interest reported on line 2b and

Enter the date of incorporation and the Federal

The tax withheld must be remitted with Form

any related expenses. Also

in the schedule

B u s i n e s s Activky

Code Number. The date of incor-

Return of Income Tax Withheld

any interest and dividends exempt by federal law or

poration must be expressed numerically, using two

on a monthly basis if the quarterly withholding is

treaty from federal but not state income tax.

$700 or more. i f the quarterly withholding is less

B u s i n e s s Actii’ky Code is a six-digit

number avail-

than $700 the tax withheld is to be remitted quarter-

able from the federal return which identifies the prin-

LINE 2~ - NET OPERATlNG LOSS

ly. Employers may not change from monthly to quar-

cipal

business

activity.

terly withholding without approval of the Revenue

Check the applicable box if: (1) the name or

Administration

Division.

net operating loss deduction is allowed for

If a

address has changed; (2) this is the first f i l i n g o f

this taxable year, and if, in the taxable year of the

An annual reconciliation is required to be filed on

the corporation; (3) this is an inactive corporation

corresponding net operating loss, total addition

Form MW508

(in Malyland

and elsewhere - Do not check the box

modifications

exceed

total

subtraction

modifications,

onciliation Report and submitted with

the state copy

for inactive if the corporation is inactive in Maryland

enter the smaller of:

of the wage and tax statements issued to the

but active elsewhere.); (4) this is the final return of

employees. If the employer is required to submit

Net operating loss deduction

the loss

attributable to

a corporation that has dissolved, liquidated or

wage and tax statement information on magnetic

year (tax year in which the net operating loss

withdrawn from Maryland: (5) you use a paid

media for

federal reporting purposes, i t

is required

occurred)

preparer and do not want Maryland forms mailed

to submit magnetic media for state reporting pur-

O R

to you next year; or, (6) this is a manufacturing

poses. A separate Form MW 508 is not required for

Cumulative net operating loss deductions attribut-

magnetic

media

filers.

able to the

loss year

that are allowed for this taxable

For additional information regarding employer

year and all prior taxabie years

withholding tax, contact the Maryland Revenue

+ net addition modification (amount that addition

Administration Division. (See back wver of tax

ENTER THE BEGINNING AND ENDING DATES

modifications exceed subtraction modifications)

booklet for address and phone number.)

IN THE SPACE PROVtDED

AT THE TOP OF FORM

for the loss year

500. The form

used in filing must reflect the preprint-

Notice The Maryland Revenue Adminis-

Privacy

for the loss year.

operating loss

ed tax year in which the corporation’s tax year

tration Division requests tax return information to

begins.

The above items are each considered to be a

administer the income

tax laws of Maryland, includ-

positive amount for purposes of this calculation.

ing the determination and collection of the correct

The same taxable year or period used for the

the result of combining amounts is negative, use

taxes and other amounts. Failure to provide all or

federal return must be used for Form 500.

zero.

part of the requested information may result in the

disallowance of claimed amounts and an increased

If the total net operating loss deduction for this

LINE

tax liabiiii In addition, the law makes provision for

RETURN

securing information from

taxpayers that fail to sup

more than one taxable year, calculate the modiica-

Enter the taxab!e

income (after net operating loss

ply required information, and a penalty may apply.

tion separately for each loss and enter the total.

and special deductions) as it appears on the federal

Taxpayers have a right to access their tax records

Attach a schedule of the calculation if, in the

tax return filed with the Internal Revenue

maintained

the

Revenue

Administration

Division,

taxable year of the net operating loss, total addition

and may inspect, amend or otherwise correct them.

exceed total subtraction mod6ications.

Only in the instance of a current net operating

To obtain a copy of such tax records,

submit a writ-

NOTE This entry is a modiication

and not the net

loss may line 1 be reported at less than zero. Use a

ten

request

containing

the

wrporate

name,

address

operating loss. The net operating loss is shown only

minus sign (-) in front of the number to indicate a

and identification numbers and specifying

the intbr-

on line 1. For more information see Administrative

loss. In the case of a net operating loss deduction,

Release No. 18.

taxable income cannot be reported at less than

authorized corporate officer.

zero.

As authorized by law, information furnished to the

LINE 2d - OTHER ADDITIONS

A wrporation inciuded

in a consolidated filing for

Revenue Administration Division may be given to

If one or more of these apply, enter the total

federal inwme tax purposes must enter its separate

the Internal Revenue Service, a proper official

amount on line 2d and identify each item using the

federal taxable income. Attach a copy

of pages one

any state that exchanges tax information with Mary-

code

letter.

through four of the actual consolidated federal

land, and to an offir

of this State having a right to

inwme tax return and a schedule reconciling the

a. The oil percentage depletion allowance as

the information in that officer’s offidal capacity

inwme and expenses of each member of the wn-

deducted on the federal return, under Internal

the information may be obtained in accordance with

solidated

filing.

Revenue Code Section 613 or 613A. Other

a proper judicial or legislative order.

Instructions For Maryland Form 500 - Corporation Income Tax Return - 2002 Page 3

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