Instructions 2012 Kentucky Corporation Income Tax And Llet Return

720

41A720(I) (11-12)

Commonwealth of Kentucky

DEPARTMENT OF REVENUE

INSTRUCTIONS

2012 KENTUCKY CORPORATION INCOME

TAX AND LLET RETURN

HOW TO OBTAIN FORMS AND INSTRUCTIONS

PURPOSE OF INSTRUCTIONS

These instructions have been designed for corporations, other

Forms and instructions are available at all Kentucky Taxpayer

Service Centers (page 15). They may also be obtained by writing

than S corporations, which are required by law to file a Kentucky

Corporation Income Tax and LLET Return. Any corporation

FORMS, Department of Revenue, 501 High Street, Frankfort,

KY 40601-2103, or by calling (502) 564–3658. Forms can be

electing S corporation treatment in accordance with Sections

1361(a) and 1362(a) of the Internal Revenue Code must use Form

downloaded from

720S and related schedules (also available from the Department

of Revenue).

Refer to the chart on page 2 to determine what tax form your

business needs to file.

KENTUCKY TAX LAW CHANGES

2012 Regular Session of the General Assembly

HB 441—Provisions effective July 12, 2012

HB 246—Provisions effective July 12, 2012

Limited Cooperative Associations—KRS Chapter 272A was

created to allow an entity to organize as a limited cooperative

Metropolitan College Tax Credit—KRS 141.381 was amended

association. Section 8 of HB 441 provides that for purposes

to extend the expiration date of the Metropolitan College tax

of KRS 141.0401, each limited cooperative association with

credit from April 15, 2013, to April 15, 2017.

investor members shall be treated as a limited liability pass-

through entity, except to the extent of patronage activities

or dividends. A limited cooperative association shall have

HB 341—Provisions effective July 12, 2012

perpetual existence unless the articles of association state a

Statutory Trusts—KRS Chapter 386A was created to allow an

term for the limited cooperative association’s existence, and

entity to organize as a statutory trust or a series statutory trust.

affords its members protection from general liability. Section

Section 5 of HB 341 provides that for purposes of KRS 141.0401,

5 of HB 441 provides that a limited cooperative association

each statutory trust and foreign statutory trust and each series

may be organized for any lawful purpose, whether or not for

of a series statutory trust or a foreign series statutory trust shall

profit.

be treated as a limited liability pass-through entity. A statutory

trust has perpetual existence and affords its beneficial owner

HB 444—Provisions effective for tax years beginning on or

and trustee protection from general liability. A statutory trust

after January 1, 2010

may have one or more series and each series shall be separate

for all purposes including general liability.

Qualified Air Freight Forwarders—KRS 141.121 was amended

to provide that a qualified air freight forwarder’s apportionment

Section 18 of HB 341 provides that a statutory trust may be

factor shall be determined as follows: (i) the property factor

organized for any lawful purpose, except a statutory trust

shall be determined as provided in KRS 141.120(8)(a); (ii) the

may not: (i) have a predominantly donative purpose; or (ii)

payroll factor shall be determined as provided in KRS 141.120(8)

be organized for the purpose of rendering a professional

(b); and (iii) the sales factor shall be determined as provided

service.

in KRS 141.120(8)(c), except freight forwarding revenues shall

be included in the numerator of the sales factor by multiplying

HB 400—Provisions effective July 12, 2012

the freight forwarding revenues by a fraction, the numerator

of which is miles operated in Kentucky by the affiliated airline

Kentucky Job Retention Agreements—KRS 154.25-010 was

of the qualified air freight forwarder and the denominator of

amended to expand eligible companies to include North

which is the total miles operated by the affiliated airline of the

American Industry Classification Codes: 325211, 325510,

qualified air freight forwarder.

326199, 327211, 327212, 327215, 331111, 331221, 331521, 332312,

332813, 33299, 335110, 335911, 335912, 423510, 493110, 541614,

HB 539—Provisions effective July 12, 2012

551114, and 561439. An eligible company must: (i) employ a

Kentucky Industrial Revitalization Act—KRS 154.26-010 was

minimum of one-thousand (1,000) full-time persons engaged

in automobile or automobile parts or supplies manufacturing;

amended to allow a supplemental project during the term of

(ii) have been operating within the Commonwealth on a

a previously approved Kentucky Industrial Revitalization Act

continuous basis for at least five (5) years preceding the request

project. A supplemental project eligible company means an

for approval by the Kentucky Economic Development Finance

approved company that: (i) has expended approved costs of at

Authority of the project which meets the standards set forth

least $50 million on an existing approved Kentucky Industrial

in KRS 154.25-020; and (iii) have been previously approved

Revitalization Act project; and (ii) employs a minimum of

for economic development incentives by the Commonwealth

seven hundred fifty (750) employees at the site of the Kentucky

related to one (1) or more of its facilities.

Industrial Revitalization Act project.

Instructions 2012 Kentucky Corporation Income Tax And Llet Return - 2012

Related Articles

Related forms

Related Categories