Iowa Corporation Income Tax Instructions - 2014 (Page 3 of 7) in pdf

IA 1120 Instructions

All corporations filing a return with the

make an examination and determination of the

Department must complete all lines on the front

correct tax after receipt of sufficient written

page for the return to be accepted. “See

notice of the final disposition of any matter

schedule included” is not acceptable; the return

between

the

taxpayer

and

the

Internal

will be considered incomplete and may be

Revenue Service. A copy of the federal

returned.

document showing the final disposition or final

federal adjustments must be included to the

Step 1 - Taxpayer Information

notice in order to begin the 6-month period.

Name/Address

To constitute notice “sufficient to inform the

If name or address is different from the prior

Department,” the notice must be supplied

period return, please fill out the Change/Cancel

under separate cover and not as a part of the

form under the Businesses link found on the

return for the current period.

Department’s website homepage.

Property in Iowa

Short Period

Mark the appropriate box. Property is defined

If the current filing is for less than 12 months,

as any tangible or real property owned or

please check the short period box.

leased with its primary location in Iowa.

Federal Employer Identification Number

Step 3 - Net Income and Additions to

(FEIN)

Income

This is the corporation’s Federal Employer

Line 1: Net Income Enter the amount of

Identification Number.

federal taxable income computed after federal

Business Code

dividend deduction and before federal net

Enter the business code from the list provided

operating loss deduction.

by the IRS for the specific industry group

Line 2: Federal Refund Enter 50% of any

corresponding to the corporation’s primary

federal refunds received in or accrued to this

business activity.

tax period. Check the appropriate box to

indicate the basis of this refund computation.

See step 4, line 5 for additional instructions.

County Number

Enter the number of the Iowa county, which

Line 3: Other Additions Enter the total from

can be found on the Department’s website, that

line 16 of Iowa Schedule A, page 2 of IA 1120

is the corporation’s commercial domicile or

return.

principal place of business. Enter 00 if the

Step 4 - Reductions to Income

commercial domicile or principal place of

Line 5: Federal Tax Paid or Accrued Enter

business is not located in Iowa.

50% of federal income taxes paid or accrued.

First/Final Return

The deduction must be computed using one of

If this is a first or final return, please check the

the following methods:

box that best describes the reason.

Accrual Basis: Taxpayers must determine

the total tax shown on page 1 of federal form

Step 2 - Filing Status

1120 and multiply by 50%. (Total tax, page 1 x

Filing Status/Type of Return

50% = federal tax deduction)

Mark the appropriate box for filing status and

Cash Basis: Taxpayers must compute the

return type.

sum of federal taxes paid in the tax year and

Inactive Return

fuel tax credits applied against the tax liability

Mark the appropriate box if the corporation has

in the tax year. Multiply the resulting amount

no business operations in any state.

by 50%.

Federal Changes

Consolidated Federal Return: If the company

Mark the appropriate box. If yes, provide the

is a member of an affiliated group that files a

tax periods changed.

consolidated federal return but the company

The Department of Revenue has six months to

files a separate Iowa corporation tax return, or

42-002 (09/08/14)

Iowa Corporation Income Tax Instructions - 2014 Page 3

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