Instructions 2012 Kentucky Corporation Income Tax And Llet Return - 2012 Page 6
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20FORM 720—SPECIFIC INSTRUCTIONS
Jeopardy Fee—A $100 minimum penalty on all nonfiled returns,
when the taxpayer fails to file a return or provide information
after being requested to do so by the Department of Revenue.
Period Covered
KRS 131.150(2)
File the 2012 return for calendar year 2012 and fiscal years that
Failure to pay income tax and/or LLET tax by the payment
begin in 2012. For a fiscal year, fill in the taxable period beginning
date—2 percent of the tax due for each 30 days or fraction
and ending at the top of Form 720.
thereof that the payment is overdue (maximum 20 percent). The
minimum penalty is $10 for each tax. KRS 131.180(2)
All corporations must enter the Taxable Year Ending at the top
right of Form 720 and supporting forms and schedules to indicate
Late payment or underpayment of estimated tax—10 percent
the ending month and year for which the return is filed.
of the late payment or underpayment. The minimum penalty
is $25. KRS 131.180(3)
• A calendar year is a period from January 1 through December
31 each year. This would be entered as:
Failure or refusal to file a Kentucky Corporation Income Tax and
LLET Return or furnish information requested in writing—5
1 2 1 2
__ __ / __ __
percent of the tax assessed for each 30 days or fraction thereof
that the return is not filed or the information is not submitted
Mo.
Yr.
(maximum 50 percent). The minimum penalty is $100. KRS
131.180(4)
• A fiscal year is 12 consecutive months ending on the last day of
Negligence—10 percent of the tax assessed. KRS 131.180(7)
any month except December. A fiscal year ending January 31,
2013, would be entered as:
Fraud—50 percent of the tax assessed. KRS 131.180(8)
0 1 1 3
__ __ / __ __
Cost of Collection Fees
Mo.
Yr.
(a) 25 percent on all taxes which become due and owing for any
reporting period, regardless of when due. These collection
fees are in addition to all other penalties provided by law.
• A 52/53-week year is a fiscal year that varies between 52 and
KRS 131.440(1)(b)
53 weeks. Example: A 52/53–week year ending the first week
of January 2013, would be entered as:
(b) 25 percent on all taxes assessed and collected by the
Department of Revenue for taxable periods ending before
1 2 1 2
__ __ / __ __
October 1, 2011. KRS 131.440(1)(b)
Mo.
Yr.
(c) 50 percent of any tax deficiency assessed after the amnesty
period for nonfiled returns eligible for amnesty. KRS
131.440(1)(b)
Failure to properly reflect the Taxable Year Ending may result in
delinquency notices or billings for failure to file.
Records Retention—The Department of Revenue deems
acceptable virtually any records retention system which results
LLET and Income Tax Filing Status
in an essentially unalterable method of records storage and
Caution: KRS 141.200(10) provides that every corporation doing
retrieval, provided: (a) authorized Department of Revenue
business in this state except those exempt from taxation under
personnel are granted access, including any specialized
KRS 141.040(1)(a) to (i) shall, each taxable year, file a separate
equipment; (b) taxpayer maintains adequate back–up; and (c)
return unless the corporation was, for any part of the taxable
taxpayer maintains documentation to verify the retention system
year: (a) an includible corporation in an affiliated group; (b) a
is accurate and complete.
common parent corporation doing business in this state; (c) a
qualified subchapter S subsidiary that is included in the return
filed by the Subchapter S parent corporation; (d) a qualified
real estate investment trust subsidiary that is included in the
return filed by the real estate investment trust parent; or (e)
a disregarded entity that is included in the return filed by its
parent entity.
KRS 141.200(11)(a) provides that an affiliated group, whether or
not filing a federal consolidated return, shall file a mandatory
nexus consolidated return which includes all includible
corporations as defined in KRS 141.200(9)(e).
Item A—Enter the six-digit Kentucky Corporation/LLET Account
Number on the applicable line at the top of each form and
schedule and on all checks and correspondence. This number
was included in correspondence received from the Department
of Revenue at the time of registration.
If the account number is not known, telephone (502) 564–8139.
Item B—Check the box indicating the method used in determining
the amount of LLET due on the Schedule LLET, Section D, Line 1.
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