FINANCIAL INSTITUTIONS REQUIRED TO FILE A RETURN. Any banking institution or savings and loan association organized under
the laws of the United States and located or doing business in this state and any bank, savings and loan association, mutual savings bank or trust
company organized under the laws of this state or any other state doing business within this state, any person licensed in this state pursuant to
SDCL 54-4 and any person in the business of buying loans, notes or other evidences of debt but not including brokers licensed pursuant to
SDCL 47-31B must file an annual return.
FILING OF RETURNS. Returns are due fifteen days after the taxpayer’s federal income tax return is due. All taxpayer’s shall submit a copy
of their federal income tax return filed with the Internal Revenue Service, complete with schedules, for the tax year.
DATE ON WHICH TAX SHALL BE PAID. A taxpayer whose tax liability from a previous year exceeded $10,000 is required to remit
quarterly estimates of the amount of tax estimated to be due. One-fourth of the estimated tax liability must be paid with each quarterly
estimate. If your fiscal year ends on December 31, your estimates are due on the 15
of April, July, October, and January. If your fiscal year
ends on a date other than December 31
, the estimated amount shall be made on or before the 15
day of the month following the end of the
quarter which the estimate is due. Your quarterly estimates must total at least 90% of the total amount due from your last tax year.
PENALTY AND INTEREST. If the Secretary of Revenue discovers from the examination of the return or otherwise that the net income of the
taxpayer is incorrect or that no return was filed when one was due, penalty at the rate of ten percent of the tax or additional tax due and interest
at the rate of one and one-quarter (1¼) percent per month or fraction of a month shall be added to the tax or additional tax and paid. SDCL 10-
RATE OF TAX - MINIMUM PAYMENT. All financial institutions are required to pay tax on net income at the rate set by SDCL 10-43-4, but
in no event shall the tax payable be less than $200.00 for each authorized location.
COMPUTATION OF NET INCOME. The computation of net income generally follows the determination of taxable income under the Internal
Revenue Code except for certain specified items. Include a copy of Federal Form 1120 and schedules. Adjustments to be made to items
reported on the federal return are listed on line 4 through 26, see instructions below.
G. EXTENSION OF TIME TO FILE. Taxpayers filing an extension with the IRS may also file an extension with DRR. Submit a copy of your
IRS extension form and pay an estimate of the tax due. If your tax liability exceeds your estimated tax payments due, interest for the unpaid
amount will be assessed.
State Adjustments to Federal Taxable Income in Computing Net Income
NET OPERATING LOSSES AND CAPITAL LOSSES - LINE 4. Net operating losses or capital losses incurred prior to July 1, 1978, and
deducted in computing federal taxable income, must be restored to taxable income in computing net income for state purposes.
INTEREST AND DIVIDENDS FROM STATE AND MUNICIPAL OBLIGATIONS - LINE 5. Interest or dividend income derived from
obligations or securities of states or political subdivisions or authorities thereof, shall be added to taxable income to the extent that such interest
or dividend income has been excluded in computing federal taxable income.
INCOME, FRANCHISE OR PRIVILEGE TAXES PAID - LINE 6. Income, franchise or privilege taxes paid or accrued to any state or political
subdivision thereof, shall be added to taxable income to the extent that such taxes were deducted in determining federal taxable income.
BAD DEBT RECOVERIES - LINE 7. Any amount subsequently received on account of a bad debt previously charged off in computing net
income shall be added to taxable income.
BAD DEBT DEDUCTION ALLOWABLE - LINE 8 AND 14. Bad debts deductions in excess of credits actually ascertained to be worthless
and charged off within the tax year must be added to taxable income.
M. FEDERAL INCOME TAX REFUND - LINE 9. Any amount received as a federal income tax refund shall be added to taxable income provided
the tax was deducted when originally paid.
DIVIDENDS RECEIVED FROM OTHER CORPORATIONS - LINE 10. Dividends received from other corporations to the extent that such
dividends have been deducted from net income as determined under the Internal Revenue Code.
FEDERAL INCOME TAXES PAID OR ACCRUED - LINE 15. Federal income taxes shall be deducted from taxable income in the year in
which they are paid when the cash method of accounting is used in determining net income. Federal income taxes shall be deducted from taxable
income in the year in which they are incurred when the accrual method of accounting is used in determining net income.
INTEREST AND DIVIDENDS PROHIBITED FROM STATE TAXATION - LINE 16. Interest and dividends from obligation of the United
States governments and its agencies which this state is prohibited by federal law or treaty from taxing by an income privilege or franchise tax to
the extent such interest and dividends are included in federal taxable income shall be subtracted. Attach schedule and give United States Code
authority for exclusion.
DIVIDENDS FROM RELATED CORPORATIONS - LINE 17. Dividends received from financial institutions subject to the South Dakota
franchise tax shall be deducted to the extent that such dividends are included in federal taxable income.
ADDITIONAL DEPRECIATION EXPENSE - LINE 18. Additional depreciation expenses to provide for the amortization of the excess, if any,
of the remaining undepreciated tax basis as determined under the provisions of this chapter, over the depreciable basis as determined for federal
tax purposes. Such excess shall be determined as of January 1, 1977, or on the first day of the first taxable year starting after January 1, 1977,
and amortized over the remaining depreciable life of that asset or group of assets.
Only losses incurred during the current taxable year will reduce line 3 to an amount less than zero. Net operating loss carryovers may not reduce
net taxable income on line 3 to an amount less than zero.
Line 11 - SDCL 10-43-10.2(8), cash method of accounting preserved.
Line 12 - SDCL 10-43-10.2(9), capital loss from liquidating sale within 12 month period.
Line 20- SDCL 10-43-10.3(6), cash method of accounting preserved.
W. Line 21 - SDCL 10-43-10.3(7), meal and entertainment expenses allowed.
Line 22 - SDCL 10-43-10.3(8), capital gain from liquidating sale within 12 month period.