2012 Rhode Island Business Corporation Tax Instructions (Form Ri-1120c, Form Ri-1120s And Form Ri-1065)

2012 Rhode Island Business Corporation Tax

GENERAL INSTRUCTIONS FOR FORM RI-1120C, FORM RI-1120S AND FORM RI-1065

1. WHO MUST FILE:

2. WHEN AND WHERE TO FILE:

Domestic and Foreign Corporations: Every business corporation, joint

Form RI-1120C and Form RI-1120S are due on or before the fifteenth day of

stock company or association exercising corporation functions or otherwise

the third month following the close of the taxable year.

doing business in this state is required to file an annual tax return and is

subject to the income tax (minimum $500.00). Domestic corporations and

Form RI-1065 is due on or before the fifteenth day of the fourth month fol-

foreign corporations qualified to do business in this state are liable for the

lowing the close of the taxable year.

franchise tax as provided in 44-12 of the General Laws of 1956, as amend-

ed, if it exceeds the tax on income.

Returns must be filed with:

Under the provisions of chapter 44-12 of the General Laws of 1956, as

Rhode Island Division of Taxation

amended, corporations which are chartered in Rhode Island and foreign

One Capitol Hill, Suite 9

corporations qualified to do business in this state which were not engaged in

Providence, RI 02908-5811

any business activities in Rhode Island during the last taxable year will be

subject to lower franchise tax rates (minimum of $500.00) if tax returns are

A return is considered timely filed if it is mailed so as to bear a U.S. postmark

accompanied by a supplement affidavit certifying the fact of such inactivity.

on or before the applicable due date.

When the due date for filing Form RI-1120C, Form RI-1120S or Form RI-1065

Subchapter “S” Corporations: A small business corporation having an

falls on a Saturday, Sunday, or a Rhode Island legal holiday, the filing is due

election in effect under subchapter S of the Internal Revenue Code is

on the next business day.

required to file an annual tax return using Form RI-1120S. Such corporation

shall not be subject to the Rhode Island income tax on corporations, but is

subject to and liable for a franchise tax pursuant to §44-12-1 of the General

3. EXTENSION OF TIME FOR FILING:

Laws as last amended (minimum $500.00), except that such corporation

shall be subject to the Rhode Island income tax, to the extent of such income

An automatic six month extension of time for the filing of Form RI-1120C,

as is subject to federal tax under said subchapter S and in those cases will

Form RI-1120S or Form RI-1065 may be requested using Form RI-7004. The

be required to file Form RI-1120S along with RI Schedule S.

extension request may be granted provided Form RI-7004 is filed together

with a payment equal to the full amount of tax reasonably estimated to be

If a subchapter S corporation is taxable for federal purposes, it must attach

due for the taxable year based on income, or franchise whichever shall yield

RI Schedule S and compute and pay any tax due at the 9% tax rate.

the greater tax.

Payment of a minimum amount if a larger amount is due will void the

LLCs, LLPs, LPs, Partnerships and SMLCCs: Limited liability companies,

extension.

limited liability partnerships, limited partnerships, general partnerships, and

single member limited liability companies not treated as a corporation on the

federal level are required to file an annual tax return using Form RI-1065.

4. PAYMENT OF TAX:

Such entities, with the exception of general partnerships, shall be subject to

an annual fee equal to the minimum tax imposed upon a corporation under

RIGL 44-11-2(e). See Rhode Island Regulations CT 12-14 and CT 12-16 for

The balance of tax shown on the return to be due must be paid in full with

more information.

the return. Failure to pay the tax on time will subject the taxpayer to an

assessment of interest and penalties.

Pass-through withholding requirements

Interest Generally

Legislation passed requiring Pass-Through Entities such as “S” corpora-

tions, general partnerships, limited partnerships, limited liability partnerships,

Any tax not paid when due is subject to interest from the time the tax was

trusts or limited liability companies that are not taxed as corporations for fed-

originally due at the rates of 18% per annum (1.5% per month).

eral tax purposes to withhold from the member’s share of income of the enti-

ty which is derived from or attributable to sources within this state distributed

Penalties - Failure to file returns on time

to each nonresident member and pay the withheld amount to the tax division

at either the highest individual rate or nine percent (9%) for corporations. A

In case of failure to file a return within the time prescribed by law, or with-

pass-through entity is not required to withhold tax for a nonresident member

in the extension period, there shall be added to the tax 5% of such tax if

if:

delinquency is for not more than one month plus an additional 5% for each

additional month or fractional part thereof during which such failure contin-

1. the member has a pro rata or distributive share of income from the

ues not exceeding 25% in the aggregate.

pass-through entity from doing business in this state of less than

$1,000.00 per annual accounting period,

The law provides for the imposition of fines up to $5,000.00 for failure to

file the required returns or the filing of false or fraudulent returns.

2. the tax administrator has determined by regulation, ruling or instruction

that the member’s income is not subject to withholding, or

Penalties - Failure to pay tax on time

3. the member elects to have the tax due paid as part of a composite

In case of failure to pay the tax with the return on or before the date

return filed by the pass-through entity, or

prescribed (determined with regard to any extension of time for payment)

there shall be added to the amount shown as tax on such return five-tenths

4. the entity is a publicly traded partnership as defined by section

percent (0.5%) of the amount of such tax if the failure is for not more than

7704(b) of the Internal Revenue Code that is treated as a partnership for

one month, plus an additional five-tenths percent (0.5%) for each additional

the purposes of the Internal Revenue Code and that has agreed to file

month or fractional part thereof during which such failure continues, not

an annual information return reporting the name, address, taxpayer

exceeding 25% in the aggregate.

identification number and other information requested by the tax admin-

istrator of each unit holder with an income in this state in excess of

$500.00.

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2012 Rhode Island Business Corporation Tax Instructions (Form Ri-1120c, Form Ri-1120s And Form Ri-1065) - 2012

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