Looking for a Kentucky Tax Forms And Templates? Download it for free!

Form 720X (10-11)

Page 2

*1100020205*

Commonwealth of Kentucky

DEPARTMENT OF REVENUE

PART III— Explanation of Changes to Net Income, Nonbusiness Income, Apportionment Factor, Capital Employed, Credits, etc.

Enter the line reference from page 1 for which a change is reported, and give the reason for each change. Attach

supporting schedules detailing computations.

GENERAL INSTRUCTIONS

Column C—Enter the result of adding the increase in column B

to the amount in column A or subtracting the decrease in column

Purpose of Form—Use Form 720X to report changes, including

B from the amount in column A. If there is no change entered in

federal audit changes, to Form 720, Kentucky Corporation Income

column B, enter the amount from column A.

and License Tax Return, as previously reported. Use this form for

tax periods beginning prior to January 1, 2005.

Line 13—Enter total income tax previously paid for the taxable

year less any refund previously received for the taxable year.

Information on Income, Deductions, Tax Computation, etc.—Refer

to the instructions for Form 720, Kentucky Corporation Income and

PART II—LICENSE TAX

License Tax Return, related schedules and forms, for the year being

amended to determine the taxability of certain types of income,

A corporation may only amend its license tax return to reflect

the allowability of certain expenses as deductions from income,

changes in the apportionment factor or to correct errors or

computation of tax, etc.

omissions of capital.

Where to File—Mail this form to Kentucky Department of Revenue,

Use this form to amend capital employed to exclude the 10 percent

Frankfort, Kentucky 40620.

add back computation as required by HB 390 that was passed

SPECIFIC INSTRUCTIONS

by the 2003 General Assembly and permitted by the governor’s

directive dated April 15, 2004.

PART I—INCOME TAX

Lines 1 and 2—Enter in column A the amount from appropriate

Line 1, Column A—Enter the amount previously reported.

line of Form 720, Part III, as previously reported. Enter in column

Column B—Enter the increase or decrease being made. Explain

B any increases or decreases being made, and explain in Part III.

the increase or decrease in Part III. If the change involves an item

Enter the result of adding the increase in column B to the amount

of income or deduction that is supported by a schedule, statement

in column A or subtracting the decrease in column B from the

or form, attach the appropriate schedule, statement or form. If

amount in column A. If there is no change entered in column B,

the change involves a federal audit adjustment, attach the “final

enter the amount from column A.

determination of the federal audit. ” Do not include changes to net

operating loss deduction here (see line 8 instructions below).

Line 4—Determine corrected tax due on amount reflected on line

3. The tax rate is $2.10 on each $1,000 of capital employed or a

Column C—Enter the result of adding the increase in column B

minimum of $30.

to the amount in column A or subtracting the decrease in column

B from the amount in column A. If there is no change entered in

Line 5—A corporation with gross income of $500,000 or less is

column B, enter the amount from column A.

allowed a credit of $1.40 per thousand of the first $350,000 of

capital employed against the license tax. For the purpose of this

Lines 2 through 6

credit, gross income means total taxable and nontaxable receipts

Note: These lines are applicable only to corporations taxable both

before reduction for cost of goods sold, cost of assets sold or any

within and without Kentucky. Corporations taxable only in Kentucky

other deduction.

omit these lines and enter amount from line 1 on line 7.

Line 6—Subtract the amount on line 5, if applicable, from the amount

Column A—On each line, 2 through 6, enter amount from

on line 4, and enter the result or $30, whichever is greater.

appropriate line of Schedule A, Form 720 as previously reported.

Line 7, Column A—Enter total amount of other credits (KIFA tax

Column B—On lines 2, 4 and 6, enter any increases or decreases

credit, KIRA tax credit, or coal incentive tax credit) from appropriate

being made, explain in Part III and attach a corrected Schedule A,

lines of the Form 720 as previously reported.

Form 720.

Column B—Enter any increase or decrease being made. If an entry

Column C—On lines 2, 4 and 6, enter the result of adding the increase

is made on this line, attach a schedule reflecting computations.

in column B to the amount in column A or subtracting the decrease

Also, attach applicable tax credit schedules.

in column B from the amount in column A. If there is no change

entered in column B, enter the amount from column A.

Column C—Enter the result of adding the increase in column B

Line 8, Column C—Enter the amount of net operating loss deduction

to the amount in column A or subtracting the decrease in column

(NOLD). The amount of NOL to be carried back or forward for

B from the amount in column A. If there is no change entered in

Kentucky income tax purposes is the amount of loss determined

column B, enter amount from column A.

on the Kentucky return; in the case of a corporation taxable

both within and without Kentucky, it is the amount determined

Line 9—Enter total license tax previously paid for the taxable year

after apportionment and allocation (attach schedule showing

less any refund previously received for the taxable year.

computation of the amount claimed).

TAX PAYMENT SUMMARY—If amounts of additional tax due are

Line 10, Column C—Determine corrected income tax by using

reflected on either Part I, line 14, or Part II, line 10, enter amounts

tax rates reflected on the Tax Computation Schedule of Form 720

due in proper place in this section. Compute penalty and interest

used for filing the original return for the year.

from the original due date of the return to the date of payment.

Interest rates are as follows: calendar year 2000, 8 percent; calendar

Line 11, Column A—Enter total amount of credit from appropriate

year 2001, 10 percent; calendar year 2002, 6 percent; calendar year

lines of Tax Computation Schedule or Income Tax Computation

2003, 5 percent; calendar year 2004, 4 percent; calendar year 2005,

of Form 720 as previously reported.

5 percent; calendar year 2006, 7 percent; calendar year 2007, 8

Column B—Enter any increase or decrease being made. If an entry

percent; calendar year 2008, 8 percent from January 1 to April 30

is made on this line, attach a schedule reflecting computations (see

and 10 percent from May 1 to December 31; calendar year 2009, 7

Tax Computation Schedule of Form 720 for year originally filed for

percent; calendar year 2010, 5 percent; calendar year 2011, 5 percent;

limitations). Also attach applicable tax credit schedules or forms.

and calendar year 2012 rate is available at

Form 720x - Amended Kentucky Corporation Income Tax And Corporation License Tax Return Page 2

Related Articles

Related forms

Related Categories