Vermont Corporate Income Tax Return (Co-411) Instructions (Page 3 of 5) in pdf

FORM CO-411

CORPORATE INCOME TAX RETURN INSTRUCTIONS

HEADER INFORMATION – PLEASE COMPLETE ALL FIELDS

a statement showing a detail of the taxes claimed as deductions on

THAT APPLY.

the Federal return(s).

Name/Address Print or type the Corporate name and address in

Subtract: (c) Enter the amount of interest received from U.S.

the space provided. Place an “X” in the Name/Address Change box if

Government obligations included on the Federal return(s).

applicable since the last return has been filed. (If you provided updated

Subtract: (d) Enter the total amounts of IRC Section 78 “gross up”

information with an extension request or estimated payment, it is possible

foreign dividends and other income included on Federal Form 1120,

that we have not yet updated the account.) If the address is in a country

Line 28 which is excludable from state taxation. (Attach Federal Form

other than the United States, place an “X” the “International Address”

1118 to support “gross up” amounts as well as any appropriate schedules.)

box beneath the address.

Subtract: (e) Enter the wage expense associated with work opportunity

Ignore the “Computer Generated” box.

credit disallowed on the Federal return by IRC Section 280C(a).

Box A Check all applicable boxes for the characteristic(s) of the return.

Line 3 Net Taxable Income Add Lines 1, 2(a) and 2(b). Subtract Lines

Checking “Final Return” means you have ceased activity in Vermont and

2(c), 2(d), and 2(e). Enter the result here.

your corporate income tax account will be cancelled.

Line 4 Non-Business Income Allocated Everywhere Enter the amount

Box B Enter the corporation’s federal employer identification number.

from Form BA-402, Part 1, Line 1a.

If filing a consolidated return, enter the FEIN of the parent corporation.

Line 5 Net Apportionable Income Subtract Line 4 from Line 3. Enter

If the parent of the federal group does not have nexus (taxable presence)

the result here.

in Vermont, the parent for Vermont purposes is the group member that

Line 6 Vermont Apportionment Percentage Enter 100% or the amount

conducts the most activity and has the most stable presence in Vermont.

from Form BA-402, Line 22. Attach Form BA-402 if Line 6 is not 100%,

Box C Enter the beginning and ending dates of the fiscal year

or if any income is allocated to a jurisdiction other than Vermont. If no

(YYYYMMDD).

BA-402 is attached, line 6 will be adjusted to 100%.

Box D Enter the corporation’s primary NAICS (North American

Line 7 Net Income Apportioned to Vermont Multiply Line 5 by Line

Industrial Classification System) code. See if you

6 and enter the result here.

do not know your company’s code.

Line 8 Total Net Income Allocated and Apportioned to Vermont If

LINE-BY-LINE INSTRUCTIONS

income is sourced entirely from Vermont; enter the amount from Line

For Negative Values Place an “X” in the pink box to the left of the line

3. If income is not entirely sourced in Vermont, add Form BA-402, Part

number containing the negative value.

1, Line 1b and Line 7. Enter the result here.

Use whole dollar amounts for all values.

If Line 8 is negative you have incurred a Vermont Net Operating Loss

Line 1 Federal (or Recomputed Federal) Taxable Income Enter the

(VNOL), available to carry forward to offset Vermont net taxable income

amount from Federal Form 1120, Line 28 (taxable income), less Line

for up to 10 years. Include a statement/schedule to track the availability

29b (special deductions).

of the VNOL. The schedule must detail loss years, utilization years,

expiration years and available carryover.

Net Operating Loss - For tax years starting January 1, 2007 and later,

Vermont is no longer coupled to the federal net operating loss deduction.

Vermont Net Operating Loss may not be carried back to a prior

Any federal NOL deduction (generally Federal Form 1120, Line

year return. VNOL remains available to carry forward even if the

29a) should be added back to arrive at the income amount for Form

company has elected to carry back the operating loss for federal

CO-411, Line 1.

purposes.

Line 9 Vermont Net Operating Loss Summary Enter any deduction

Bonus Depreciation - Vermont does not allow the special bonus

taken for a Vermont net operating loss (VNOL). VNOL would have been

depreciation provision of the Federal Jobs Creation and Worker Assistant

Act of 2002, the Federal Jobs and Growth Tax Relief Reconciliation Act

incurred as a negative amount after apportionment and allocation of VT

income in 2007 or later, or may have been converted from available

of 2003, or the Economic Stimulus Act of 2008, or the 2009 and 2010

extension. {IRC 168(K)}. If taken in the current or in prior years, the

pre-2007 NOLs into an “Initial VNOL” in 2007. For tracking, VNOL

federal taxable income must be recomputed without the 30% or 50%

must be applied on a first-in first-out basis. Any converted Initial VNOL

special bonus depreciation. Provide a pro-forma Federal Form 1120 or a

must be used first.

detailed schedule/spreadsheet for the recomputed federal taxable income

Provide a schedule detailing the origin of the VNOL. If VNOL used or

amount for Form CO-411, Line 1. Check the box under Line 1.

carried over includes any Initial VNOL converted from remaining pre-

Consolidated Returns - If electing to file a Vermont consolidated return

2007 NOL, provide a copy of the conversion worksheet from the 2007

under 32 V.S.A. § 5862(c) and the Vermont group is different from

return, updating for amounts used.

the federal group, complete a pro-forma federal return including only

Line 9 cannot be greater than Line 8; VNOL cannot reduce Vermont Net

the members of the Vermont group. The Vermont group includes only

Taxable Income below 0.

VT nexus members of the federal consolidated group. All reported

Line 10 Vermont Net Taxable Income Subtract Line 9 from Line 8.

information should be based on the activity of the Vermont members

Line 11 Vermont Tax Compute the tax using the Vermont corporate

only. The election to file a Vermont consolidated return is binding.

income tax rates on page 2. Enter this amount or the minimum tax,

Line 2 Adjustments to Taxable Income

whichever is more. The minimum tax is due even if the corporation

Add: (a) Enter the amount of interest received from non-Vermont

operated at a loss. For tax years starting on and after January 1, 2012,

state and local obligations that were exempted from Federal tax (i.e.,

structure of the minimum tax has changed. Minimum tax is based

Municipal Bonds).

on Vermont Gross Receipts, reported on line 18, and defined in the

Add: (b) Enter the amount of state and local tax deductions taken

instructions to line 18, below.

on the Federal return(s). State and local income taxes are taxes on or

measured by income, franchise taxes measured by net income, franchise

taxes for the privilege of doing business, and capital stock taxes. Attach

Vermont Corporate Income Tax Return (Co-411) Instructions Page 3

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