Instructions 2012 Kentucky Corporation Income Tax And Llet Return

Department of Revenue. Attach a copy of the federal approval

Interest: Failure to pay estimated tax installments on or before

to the return when filed. KRS 141.140

the due date prescribed by 141.042 and 141.044 shall result in an

assessment of interest on the late payment or underpayment.

Mailing/Payment—If including payments for other taxes in

The interest due on any late payment or underpayment shall

addition to corporation income tax or LLET, send a separate

be at the rate provided by KRS 131.183(1). KRS 141.042(4) and

check or money order for each type of tax. Mail the Kentucky

KRS 141.985

Corporation Income Tax and LLET Return to the Kentucky

Department of Revenue, Frankfort, KY 40620. Make the check(s)

Penalty: Failure to pay estimated tax installments equal to the

payable to the Kentucky State Treasurer.

amount determined by subtracting $5,000 from 70% of the total

income tax liability imposed by KRS 141.040 as computed by

Filing/Payment Date—A Kentucky Corporation Income Tax

the taxpayer on the return filed for the tax year will result in an

and LLET Return must be filed and payment must be made

underpayment penalty of 10% of the underpayment. The penalty

on or before the 15th day of the fourth month following the

will not apply, if the estimated tax installments are equal to the

close of the taxable year. KRS 141.160, KRS 141.220 and 103

income tax liability imposed by KRS 141.040 for the prior tax

KAR 15:050

year, and the income tax liability imposed by KRS 141.040 for

the prior year was equal to or less than $25,000. KRS 131.180(3)

If the filing/payment date falls on a Saturday, Sunday or a legal

and KRS 141.990(3)

holiday, the filing/payment date is deemed to be on the next

business day. KRS 446.030(1)(a)

Amended Return—Amended Kentucky forms must be used to

make any corrections to Form 720 (See table below for required

Extensions—An extension of time to file a Kentucky Corporation

amended form), including net operating loss carrybacks (for

Income Tax and LLET Return may be obtained by either making

years prior to 2005), capital loss carrybacks and Internal Revenue

a specific request to the Department of Revenue or attaching a

Service audit adjustments. Do not submit Federal Form 1139 to

copy of the federal extension to the return when filed. A copy

apply for a refund of Kentucky corporation income tax resulting

of the federal extension submitted after the return is filed does

from net operating loss carryback or a capital loss carryback.

not constitute a valid extension, and late filing penalties will be

Failure to submit the required Kentucky amended forms will

assessed. If a payment is made with an extension, Kentucky

result in delays in processing refunds requested on amended

Form 41A720SL must be used. For further information, see the

returns.

instructions for Form 41A720SL. 103 KAR 15:050

NOTE: An extension of time to file a return does not extend the

Tax Year

Amended Form

date for payment of tax.

2004 & prior ...........720X

Corporation Estimated Taxes

2005 & 2006 ............720–Amended

2007 & 2008 ............720–Amended (2007–2008)

The Corporation Income/Limited Liability Entity Tax Estimated

2009 - 2012 .............720 (check Amended return box

Tax Voucher, Form 720–ES, is used to submit estimated tax

or Amended return—RAR box)

payments for corporation income and LLET. See Electronic

Funds Transfer (EFT) on page 4. If the corporation is required to

make estimated tax payments but did not receive Form 720–ES,

Net Operating Losses—For tax years beginning on or after

contact the Department of Revenue at (502) 564-3658 or visit

January 1, 2005, the net operating loss carryback deduction

shall not be allowed. Any net operating losses shall be carried

forward. See Kentucky Net Operating Loss Deduction on page

NOTE: See for information on the 2013

10 of these instructions for further discussion.

estimated tax payments.

Internal Revenue Service Audit Adjustments—A corporation

Corporation Estimated Tax Payments—A corporation must make

which has received final adjustments resulting from Internal

estimated tax installments if its combined tax liability under KRS

Revenue Service audits must submit a copy of the “final

141.040 and 141.0401 can reasonably be expected to exceed

determination of the federal audit” within 30 days of the

$5,000. Estimated tax installments are required as follows:

conclusion of the federal audit. Use the required amended form

from the table above for reporting federal audit adjustments and

If the estimated tax is reasonably expected to exceed $5,000

computing additional tax due or refunds. Failure to submit the

before the 2nd day of the 6th month, 50% of the estimated tax

required amended form will result in delays in processing refunds

must be paid by 15th day of the 6th month, 25% by the 15th day

requested on amended returns. Any refund claim resulting from

of the 9th month, and 25% by the 15th day the 12th month.

a federal audit adjustment must be filed within the four years of

the date the tax was paid or within six months of the conclusion

If the estimated tax is reasonably expected to exceed $5,000 after

of the federal audit, whichever is later. KRS 141.210(2)(d) and

the 1st day of the 6th month and before the 2nd day of the 9th

KRS 141.235(2)(b)

month, 75% of the estimated tax must be paid by the 15th day of

the 9th month, and 25% by the 15th day the 12th month.

Interest—Interest at the tax interest rate plus two percent is

applied to corporation income tax and LLET liabilities not paid

If the estimated tax is reasonably expected to exceed $5,000 after

by the date prescribed by law for filing the return (determined

the 1st day of the 9th month, 100% of the estimated tax must be

without regard to extensions thereof). The tax interest rate for

paid by the 15th day the 12th month.

2013 is available online at , or you may

contact the Department of Revenue at (502) 564-8139.

Safe harbor: A corporation can satisfy its declaration requirement

if its estimated tax payments are equal to the combined tax

Penalties

liability under KRS 141.040 and 141.0401 for the prior tax year,

and its combined tax liability for the prior tax year was equal

Failure to file the Kentucky Corporation Income Tax and LLET

to or less than $25,000. If the estimated tax is based on the

Return by the filing date including extensions—2 percent of

corporation’s combined tax liability for the prior tax year, 50%

the tax due for each 30 days or fraction thereof that the return

of the estimated tax must be paid by 15th day of the 6th month,

is late (maximum 20 percent). The minimum penalty is $10 for

25% by the 15th day of the 9th month, and 25% by the 15th day

each tax. KRS 131.180(1)

the 12th month.

Instructions 2012 Kentucky Corporation Income Tax And Llet Return - 2012 Page 5

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