Form 04-611 Instructions - Corporation Net Income Tax Return - Alaska Department Of Revenue Page 2
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8Dividends-Received Deduction.
The 1998
(standard Form 04-611 only). Refer to instructions
In addition, Alaska requires that a
corporation registered to do business in the
regulations have both modified and clarified
on page 5 for assistance in finding Alaska
the Alaska dividends-received deduction. The
Commerce ID #’s.
state must file a report even if it did not
have taxable nexus with Alaska during the
regulations clarify that the dividends-received
deduction limitation is based upon the
7.
If this taxpayer and one or more other Alaska
tax year (see instructions on page 3 for
taxpayers are included in a consolidated federal
"Inactive Corporation").
taxpayer’s Alaska taxable income. Generally
this rule will affect few taxpayers. Schedule L
return,
these
same
taxpayers
must
file
a
consolidated Alaska return if they are members of
WHICH FORM TO USE
is used to calculate the Alaska dividends-
received deduction.
the same unitary group. If the federal common
Form 04-611 is the standard Alaska
parent is not an Alaska taxpayer, identify the
Corporation Net Income Tax Return form
common parent on Schedule B, question 2.
designed to accommodate any taxpayer
Combined Reporting.
Taxpayers using the
including the most complex filing under
combined method of reporting should obtain a
8.
Attach schedules as instructed in the forms.
the water’s edge method. The standard
copy of Alaska’s Guide to Returns Based
on a Combined Report. The guide includes
Schedules providing detail, by company, are
form must be used whenever the taxpayer
required where specified in the forms.
Attaching
1) has taxable nexus or business activity
discussion and examples designed to provide
complete schedules will ensure a valid filing and
outside of Alaska, or 2) is a member of an
guidance in preparing Alaska income tax
prevent unnecessary correspondence with our
affiliated group.
returns, including consolidated returns, that are
examination unit. Be sure that attached schedules
based upon combined reporting.
You can
are properly referenced and agree to the totals
The short form, Form 04-611SF, is
obtain Alaska’s Guide to Returns Based on
reported on the form.
Taxpayers using the
designed for taxpayers with less complex
a Combined Report directly from our web
combined method of reporting should consult
filing requirements.
The short form is
site at:
Alaska’s Guide to Returns Based on a
available to taxpayers that 1) conduct
Combined Report for a listing of schedules
business only in Alaska, and 2) are not a
AVOID COMMON MISTAKES
supporting a combined report.
To facilitate the processing of the return, be
member of an affiliated group.
sure to do the following:
9.
Attach a copy of the signed federal income tax
AFFILIATED GROUP DEFINED
return of the taxpayer as filed with the Internal
An affiliated group is a group of
1.
The water's edge combined reporting
Revenue Service. If the taxpayer is included in a
corporations in which 50% or more of the
method is mandatory in Alaska. Do not file
federal consolidated return, attach the consolidated
voting stock of each member of the group
using a world-wide combined reporting
return and not the taxpayer’s separate company
is directly or indirectly owned by one or
method.
return. Do not attach a pro forma return. Send only
more corporate or non-corporate common
the portions of the federal return specified in the
owner(s), or by one or more of the
2.
Use the correct form and schedules. Non-
instructions on page 3 if the federal return exceeds
members of the group.
affiliated corporations operating solely in
50 pages.
Alaska are encouraged to use the short form,
Form 04-611SF. All other corporations must
SMALL BUSINESS
10. To avoid interest and penalties, pay any tax
CORPORATION
use the standard Form 04-611.
due within two and one-half months of the tax year-
(S CORPORATION)
end and file the return within thirty (30) days of the
3.
Unless the corporation changed its name,
An S Corporation doing business in Alaska
due date for the federal return. Note that the thirty
is required to file an Alaska return.
enter the name as it appeared in the prior
days may or may not correspond to the 15th day of
return. If this is a consolidated return, see
Generally, an S Corporation will satisfy its
the following month.
filing requirement by filing the applicable
specific instructions on page 5 regarding
Form 04-611 (pages 1 and 2) or Form 04-
taxpayer identification. If the name on this
GENERAL INSTRUCTIONS
611SF (page 1) with the S Corporation box
return is different from the name reported on
on page one checked. Alaska does not
the prior return, complete question 4 of
I.
BASIC FILING PROCEDURES
impose a tax on pass-through items of
Schedule B (standard Form 04-611 only).
income or loss of an S Corporation.
4.
Accurately
complete
all
“RETURN
WHO MUST FILE
Schedule A lines 1-20 need not be
Every corporation having taxable nexus with the
completed unless a corporate level tax is
DATA” questions on page one.
You must
state must file an Alaska Corporation Net Income
applicable.
Attach a copy of pages 1
know the answers to these questions to file
Tax Return. Taxable nexus, sometimes referred to
through 4 of the federal Form 1120S and
accurately. We need this data to process the
as “doing business” within the state, is the act of
Form 7004 if applicable.
returns efficiently. Do not assume that because
conducting business activity within the state that is
the corporation filed using the short form in
not protected under Public Law 86-272. Taxable
Alaska imposes both the federal excess net
1997, that it is eligible to use the short form in
nexus may exist as a result of a corporation’s direct
passive income tax and the corporate level
1998.
activity, the activity of its employees or agents, or
tax on built-in gains.
These taxes are
through its interest in a partnership or limited
5.
Provide the name and phone number of a
calculated at the highest Alaska marginal
liability company. Taxable nexus may include, but
tax rate of 9.4%. However, if the corporate
contact person who can answer any question
is not limited to:
level tax is based on income that includes
that we may have regarding the return. This
a. owning or using property in the state, including
net capital gain, then the Alaska capital
must be an officer or employee who is
leased or mobile property;
gain rate of 4.5% may apply. The portion
authorized to answer any such questions.
b. presence of employees in the state for business
of excess net passive income subject to the
Generally,
we
cannot
discuss
taxpayer
purposes;
4.5% rate on net capital gain may not
information with an outside party unless we
c. making sales into the state; or
have a Power of Attorney.
exceed the proportionate share of net
d. the generation of income from sources within the
capital gain included in taxable excess
state without regard to whether there is a physical
passive income calculated by multiplying
6.
Complete all taxpayer data on page one
presence in the state.
excess passive income by the ratio of
and all affiliate taxpayer data on Schedule B
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