Vermont Business Income Tax Return (Form Bi-471) Instructions (Page 3 of 5) in pdf

Facsimile Substitute Forms

paid to the entity and not to the individual shareholders, partners

or members.

Any facsimile or substitute form must be approved by the

Other requirements: A signature on a composite return indicates

Department of Taxes prior to its use. If you use computer‑generated

that the information presented on that return is true, correct and

returns, the software company is responsible for requesting approval

complete. Nonetheless, the Department of Taxes may contact

and receiving an assigned bar code. A $25 fee may be assessed for

a taxpayer or preparer who files returns that cannot be processed

the Subchapter S Corporation, Partnership, or Limited Liability

Company for further information about the return. It is recommended

or require special steps to process. Call (802) 828‑2512 for further

that composite filers maintain a power of attorney (POA) with their

information on facsimile or substitute forms.

records that is signed by each qualified nonresident shareholder,

Appeals

partner or member. The POA gives the Sub‑chapter S Corporation,

Partnership or Limited Liability Company the authority to act on the

All appeals for any return adjustment, assessment, bill, and reduced

shareholder’s, partner’s or member’s behalf. The Department may

refund should be addressed to: Vermont Department of Taxes, PO

ask the composite filer to submit a copy of a POA before disclosing

Box 1645, Montpelier, VT 05601‑1645. Appeals must be received

confidential information pertaining to the return.

within 60 days of the notice of adjustment, assessment, or denial

of refund.

The POA form is available at the Department’s website “Forms”

page:

FORM BI-471

BUSINESS INCOME TAX RETURN INSTRUCTIONS

Please use blue or black ink only.

Please do not staple or bind your return. You may use binder clips, paper clips or rubber bands.

For years 2013 and later, please see the “STREAMLINED RETURN

INSTRUCTIONS” for entities that are 100% owned by Vermont residents.

These instructions are at the end of the Line-by-Line Instructions.

HEADER INFORMATION ‑ Please complete all fields that apply.

Tax Computation Section

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

Exceptions

space provided. Check the “International” box if the address is

SMALL FARMS as defined in Title 32 V.S.A. § 5832(2)(A), pay

outside the United States. Ignore the “Computer-Generated” box.

an annual entity tax of $75.00. The entity must be solely owned by

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

active participants and have gross receipts of less than $100,000. A

return. If filing as a composite filer, note that you are making a

real estate venture is not considered a farm. Partnerships and LLCs

binding election.

must provide a copy of the Federal Schedule F.

Box B Enter your Federal Identification Number. Enter the

ENTITIES with NO VERMONT ACTIVITY are not required to

beginning and ending dates of the fiscal year in the requested

pay the annual entity tax.

format (YYYYMMDD.)

PA RT N E R S H I P S e l e c t i n g N O T t o b e TA X E D A S

Box C Enter the primary 6‑digit North American Industrial

PARTNERSHIPS, under Internal Revenue Code Sec. 761 or

Classification System (NAICS) number.

See

Check‑the‑Box Regulations are not required to pay the annual entity

if you do not know your company’s code.

tax. Provide a statement as to the election being taken and cite

the authority for the election.

Box D Check the box indicating the Federal tax form filed. See

Line 1 instructions below if the entity is permitted to file as an

QUALIFIED SUBCHAPTER S SUBSIDIARIES permitted to file

individual/sole proprietor.

with their parent corporation under the Internal Revenue Code are

not required to file Form BI‑471 or pay the annual entity tax. The

Boxes E, F, G – Answer the three questions.

Parent corporation is required to file a Vermont business income tax

return and is subject to the minimum tax. If a QSSS has been filing

Box H –

Vermont income, including income passed through to

Vermont returns, mark this exception box, and mark the return final,

individuals, must be calculated without regard for federal “bonus”

depreciation allowed certain assets starting in 2008 under IRC

which will cancel the account. Include a statement identifying the

168(k). If the entity took advantage of the bonus depreciation

entity that files Vermont business income tax returns.

provisions, enter the net adjustment to entity income if the bonus

depreciation was not allowed. Attach a statement to detail the

difference. If the entity did not take advantage of the bonus

depreciation provisions in 2008 ‑ 201, enter “0.”

Vermont Business Income Tax Return (Form Bi-471) Instructions Page 3

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