Form Sf-1120 - Corporation Income Tax Return - City Of Springfield

part of which would be allowable as a deduction in determining federal

be allowed for capital losses sustained prior to January 1, 1989. If all

taxable income under the applicable provisions of the Federal Internal

business was not conducted in Springfield in the year in which the loss

evenue Code.

was sustained, use the business allocation percentage formula to arrive

at the deductible portion of the loss. Attach a schedule showing your

If a foreign tax credit, rather than a foreign tax deduction, was claimed

omputation for the amount reported on this line.

on your federal return, enter on line 8 the portion of the foreign tax credit

which was grossed up and included in your Springfield return as

LINE 3. Corporations who are partners in a business activity taxed as a

ividends received.

partnership that has business activity in Springfield must enter on this

line their portion of the Springfield taxable income or loss from the

Enter on line 9 the "foreign taxes paid or accrued" portion of the foreign

partnership(s). Attach a schedule showing your computation for the

tax credit claimed on your federal return, not in excess of the federal

amount reported on this line including the name and taxpayer

limitations thereon. The balance of your foreign tax credit is not

identification number of the partnership(s).

eductible.

LINE 10. Enter on line 10 the nontaxable portion of a gain from the sale

DECLARATION AND PAYMENT OF ESTIMATED TAX

or exchange of property acquired prior to January 1, 1989. The portion

1. WHO MUST FILE: Every corporation subject to the tax on all or part

of the gain occurring prior to the inception of the Ordinance, January 1,

of its net profits must file a Declaration of Estimated Income Tax

1989, is not recognized. Refer to the instructions for Schedule C, line 1

(Form SF-1040ES). A Declaration is not required from corporations if

or computation instructions.

the estimated tax is two hundred fifty dollars ($250.00) or less.

Capital gains from US Government obligations included in income

2 . WHEN AND WHERE TO FILE AND PAY:

reported on page 1, line 1, are not taxable. Remove these gains by

A. Declaration for Calendar Year. The Declaration for a calendar year

including them in the amount reported on line 10.

must be filed on or before April 30th of that year. The estimated

tax is payable in equal installments on or before April 30th, June

LINE 11.

Enter income from entities filing as partnerships that are

30th, September 30th and January 31st.

included in taxable income reported on page 1, line 1.

B. Declaration for Fiscal Year: The Declaration for a year or period

SCHEDULE D

differing from the calendar year must be filed within four (4)

months after the beginning of each fiscal year or period. For

The business allocation percentage formula must be used by

example, if a fiscal year begins on April 1st, the Declaration will be

corporations with business activity both within and outside the City of

due on July 31st. Remaining installments will then be due on the

Springfield who have not been approved to use the separate accounting

last day of the 6th, 9th and 13th months after the beginning of the

ethod.

fiscal year.

LINE 1a. Enter in column 1 the average net book value of all real and

C. Filing and Payment: The Declaration should be filed with the City

tangible personal property owned by the business, regardless of

of Springfield Income Tax Department, 601 Avenue A, Springfield

location, and in column 2 show the net book value of the real and

MI 49037-7774. The first installment payment must accompany

tangible personal property owned and located or used in the City of

the Declaration. The estimated tax may be paid in full with the

Springfield. The average net book value of real and tangible personal

Declaration.

property may be determined by adding the net book values at the

beginning of the year and the net book values at the end of the year and

ASSISTANCE

ividing the sum thus obtained by two.

If you have questions, would like to request forms, or need assistance in

LINE 1b. Enter in column 1 the gross annual rent multiplied by 8 for all

preparing your return call (269) 965-8324. Questions by mail should be

rented real property regardless of location. In column 2 show the gross

annual rent multiplied by 8 for rented real property located in the City of

directed to: Springfield Income Tax Department, 601 Avenue A,

Springfield. Gross annual rent refers to real property only, rented or

Springfield MI 49037-7774.

leased during the taxable period, and should include the actual sums of

money or other consideration paid, directly or indirectly, by the taxpayer

WEBSITE

or the use or possession of such property.

Income tax forms, instructions and additional information are available at

the City of Springfield’s web site,

LINE 2. Enter in column 1 the total compensation paid to all employees

during the year, and in column 2 show the amount of compensation paid

NOTICE

to employees for work or services performed within the City of

pringfield during the year.

These instructions are interpretations of the Springfield Income Tax

Ordinance. The Ordinance will prevail in any disagreement between the

LINE 3. Enter in column 1 the total gross revenue from all sales or

services rendered during the year, and in column 2 show the amount of

instructions and the Ordinance.

revenue derived from sales made or services rendered in the City of

Springfield during the year. If there is no regularly maintained sales force

outside of the city, this allocation factor must be 100% for businesses

ith no other business activity outside the city.

Separate Accounting - The taxpayer may petition for, or the Finance

Director may require, use of the separate accounting method. If such

method is petitioned, the Finance Director may require a detailed

statement to determine whether the net profits attributable to the city will

e apportioned with reasonable accuracy (Ordinance Section 19).

Generally, a corporation that is unitary in nature (i.e., has central

management, purchasing, warehousing, advertising, etc.) cannot use

separate accounting. Taxpayers allocating on any basis other than

separate accounting shall include all interest, dividends and other non-

operating income to arrive at the total income subject to the allocation

ercentage.

Taxpayers using separate accounting shall include in income subject to

tax a proportionate share of dividends, interest and other non-operating

income of the total corporation. This type of income is apportioned to

Springfield activity on the same basis as general administrative and

overhead costs are apportioned.

SCHEDULE G

LINE 1. Net operating losses carried forward are to be reported on this

line. There is no provision for carrying back losses to prior tax years.

Carryover losses are to be allocated to Springfield at the percentage of

business conducted in Springfield in the year in which the loss was

sustained. If all business was not conducted in Springfield in the year in

which the loss was sustained, use the business allocation percentage

formula to arrive at the deductible portion of the loss. Attach a schedule

howing your computation for the amount reported on this line.

LINE 2. Enter on this line the net capital loss carryover applicable to

Springfield. Net capital losses sustained by a corporation for periods

subsequent to January 1, 1989, may be carried forward in the same

manner as under the Federal Internal Revenue Code. No deduction will

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Form Sf-1120 - Corporation Income Tax Return - City Of Springfield - 2007 Page 5

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