Instructions For Form 1120s - Iowa Income Tax Return For S Corporations - 2012

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Iowa Department of Revenue
2012 IA 1120S - Instructions
Iowa Income Tax Return for S Corporations
File Electronically. Go to for details.
General Instructions and Information
WHO MUST FILE
MOTOR FUEL TAX CREDIT
Every S corporation doing business in Iowa, deriving income from sources within
If the S corporation does not have a motor fuel tax refund permit or canceled its
Iowa, or which is domiciled in Iowa, must file an Iowa S corporation return. S
refund permit within the first 30 days of the year, a motor fuel credit may be
corporations, interest charge domestic international sales corporations, and foreign
claimed by each shareholder on his or her individual income tax return. If a
sales corporations should file form IA 1120S. If the S corporation is a financial
motor fuel credit is claimed, complete the IA 4136 and attach it to the IA
institution, it must also file form IA 1120F. Please note: A non-Iowa S corporation
1120S. Each shareholder’s share is recorded in Part III of the shareholder’s IA
should not file only because one or more of its shareholders are Iowa residents or
K-1.
because the S corporation is registered with the Iowa Secretary of State.
OTHER TAX CREDITS
WHEN AND WHERE TO FILE
Shareholders may qualify for various tax credits passed through to them by the S
The IA 1120S is due on or before the last day of the fourth month after the close
corporation. The S corporation must complete the appropriate form(s), where
of the taxable year. If you owe tax per line 11, Part III, an automatic extension
applicable, to compute these credits (for example: IA 128; IA 137) and attach them
of up to six months to file will be granted only if at least 90% of the total tax
to the IA 1120S. The S corporation is not required to complete an IA 148 Tax
liability is paid by the due date of the return. The 6-month extension also
Credits Schedule. Each shareholder’s share of Iowa tax credits is recorded in Part
applies to all filers with zero balance due.
III of the shareholder’s IA K-1. Shareholders must complete an IA 148 Tax Credit
Mail returns to: Corporation Tax Return Processing, Iowa Department of
Schedule to claim credits reporting the S Corporation in Part IV as the pass-
Revenue, PO Box 10468, Des Moines IA 50306-0468.
through entity.
COMPOSITE FILING
AMENDED RETURNS
S corporations may elect by the due date to file an Iowa individual income
If an amended federal return was filed for a prior period, the taxpayer must file
composite tax return (IA 1040C) and pay any tax due on behalf of nonresident
an amended Iowa return. Use IA 1120S to file and check the “Amended Return”
shareholders. See chapter 48 of the Iowa Administrative Rules for further
box. The IA 1120S cannot be used for sales tax or withholding credits/refunds.
information or contact Taxpayer Services at: 1-800-367-3388 (Iowa, Omaha,
FOR ADDITONAL INFORMATION
Rock Island, Moline) or 515-281-3114 (Des Moines, out of state) or e-mail
Call Taxpayer Services at 1-800-367-3388 (Iowa, Omaha, Rock Island, Moline)
idr@iowa.gov.
or 515-281-3114 (Des Moines, out of state) or e-mail idr@iowa.gov.
Completing the Return
Fill in all requested information that applies to your S corporation.
Line 4: Add lines 2 and 3.
Fiscal-year or short-period filers: Enter your beginning and ending dates
Line 5: Enter 50% of federal income tax paid or accrued, including federal tax paid
here.
on built-in gains or passive investment income.
Calendar-year filers may leave this section blank.
Line 6: Enter the amount of interest and dividends from federal securities as
shown on your federal return.
Part I: Corporation Name and Address
Line 7: Enter total of other reductions from your federal income which are not
Fill in all requested information that applies to your S corporation.
taxable for Iowa purposes and attach schedule.
Enter the business code number provided by the Internal Revenue Service (IRS)
Line 8: Add lines 5, 6, and 7.
for the specific industry group corresponding to the S corporation’s primary
business activity.
Line 9: Subtract line 8 from line 4. This can result in either a positive or a
negative amount.
Enter the number of the (Iowa) county that is the commercial domicile or
principle place of business of this S corporation. Enter 00 if the S corporation
Line 10: Add line 9 and line 1.
does not have a physical location in Iowa.
Line 11: S corporations that are subject to tax on built-in gains under section
Enter the total number of shareholders.
1374 of the Internal Revenue Code or passive investment income under section
1375 of the Internal Revenue Code are subject to Iowa corporation income tax
If this is a first or final return, check all boxes that apply to the S corporation.
on this income to the extent received from business carried on in this state or
If you checked “other,” enter a short one or two word description.
from sources in this state.
Part II: Corporation Information
The starting point for computing the Iowa tax on built-in gains or passive
Complete all requested information.
investment income is the amount of built-in gains or passive investment income
Part III: Modification of Corporation Income
subject to federal tax after considering the federal income limitation.
This schedule is to show those modifications or adjustments to federal Schedule
For tax years beginning on or after January 1, 2008, an adjustment is made to
K income as required by chapter 53 of the Iowa Administrative Code and to
the preceding amounts for 50% of federal income tax and/or Iowa corporation
show the total modified net income from the S corporation.
income tax deducted in computing the federal built-in gains tax. The allocation
Line 1: Net together items of income or loss on the federal Schedule K and
and apportionment rules of chapter 701-54 apply if the S corporation is carrying
those deductions on the federal Schedule K that do not qualify as itemized
on business within and without the state of Iowa.
deductions. Enter that net figure on this line.
Any net operating loss carryforward arising in a taxable year for which the
Line 2: Enter the amount of interest and dividends from foreign securities, from
corporation was a C corporation is allowed as a deduction against the net
securities of state and other political subdivisions, and from regulated investment
recognized built-in gains or passive investment income of the S corporation for
companies exempt from federal income tax.
the taxable year. For purposes of determining the amount of any such loss which
may be carried to any of the 15 subsequent taxable years (20 years for tax years
Line 3: Enter total of other additions to Iowa income and attach schedule. Iowa
beginning after August 5, 1997) after the year of the net operating loss, the
did not adopt the 30% federal bonus depreciation provisions for assets placed in
amount of the net recognized built-in gain or passive investment income is
service on or after September 11, 2001, but before May 6, 2003, nor the 50% or
treated as taxable income. The amount of Iowa taxable built-in gains or passive
100% bonus depreciation provisions for assets acquired after December 31, 2007,
investment income is subject to tax at the same rates as C corporation income
and before January 1, 2013; therefore, an adjustment must be computed on form
(6%, 8%, 10%, 12%).
IA 4562A. Also include any amount of Iowa corporation income tax deducted in
computing federal net income. The section 179 expensing limit is $139,000
Under $25,000, multiply by 6%.
for tax years beginning in 2012.
42-005a (09/20/12)

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