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

2012 Rhode Island Business Corporation Tax Return

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

5. RATE OF TAX:

ject to taxation under Chapter 44-11 shall consent to the making of such con-

solidated return. If the affiliated group includes corporations which are not

subject to the Rhode Island Business Corporation Income Tax, these

Nine percent (9%) of net income apportioned to Rhode Island; or an

corporations must be excluded from the Rhode Island affiliated group.

annual franchise tax on its authorized capital stock at the rate of $2.50 for

In filing a consolidated return separate income statements, balance sheets,

each $10,000.00 or fractional part thereof minimum of $500.00, whichever

and apportionment schedules for each corporation joining in the filing, must

amount shall yield the greatest tax.

be filed with the consolidated return.

In the case of corporations having capital stock of no-par value, $100.00

If only one company in an affiliated group has a Rhode Island filing

per share shall be deemed to be the par value for the purposes of the fran-

requirement and is filing on a separate basis, the consolidated box should

chise tax.

not be checked on the front of the return as this is not considered a consol-

idated return.

Limited liability companies, limited liability partnerships, limited partner-

ships, and single member limited liability companies not treated as a corpo-

ration on the federal level shall pay an annual charge equal to the minimum

10. CAPITAL INVESTMENT IN SMALL BUSINESSES

tax imposed upon a corporation under RIGL 44-11-2(e).

Title 44, Chapter 44-43 of the General Laws provides a deduction for pur-

poses of computing net income under the Rhode Island Business

6. DECLARATION OF ESTIMATED TAX BY

Corporation Tax (Chapter 44-11) for a qualifying investment in a certified

venture capital partnership and for credits to entrepreneurs of a qualifying

CORPORATIONS:

business entity for certain wages paid to employees of such entity.

Every corporation shall file a declaration of its estimated tax for the taxable

year if its estimated tax on any basis (income or franchise) for such taxable

year can reasonably be expected to exceed $500.00. The entire amount of

such estimated tax shall constitute the amount of the advance required to be

paid. The due dates and amounts of the installments are as follows: The 15th

day of the 3rd month of the taxable year (40%) and the 15th day of the 6th

month of the taxable year (60%).

Underpayment-Interest on declaration of estimated tax

In case of any underpayment of the estimate by a corporation there shall

be added to the tax as the case may be for the taxable year, an amount

determined at the rate of 18% per annum upon the amount of the underpay-

ment for the period of the underpayment. “The amount of the underpayment”

shall be the excess of the installment or installments which would be required

to be paid if the advance payments were equal to eighty percent (80%) of the

tax shown on the return for the taxable year or, if no return was filed eighty

percent (80%) of the tax for such year, over the amount, if any, of the install-

ment paid on or before the last date prescribed for payment.

The law provides for the assessment of a penalty of 5% of the tax imposed

on such corporations for such taxable year for failure to file required estimat-

ed tax payments.

7. CHANGE IN NET INCOME BY FEDERAL

GOVERNMENT:

Any change in net income for any prior year directly affects the tax

liability to the State of Rhode Island and such changes must be reported to

the Tax Administrator within 60 days of final adjustment or determination on

Form RI-1120X.

8. SUPPORTING SCHEDULES:

All schedules are to be firmly attached to the back the return. Each sched-

ule must be clearly identified with the item which it supports. Write upon one

side

the

sheet

only,

that

schedule

may

read

without detaching from the return. If space permits, more than one

schedule may be placed on a single sheet.

9. CONSOLIDATED RETURNS:

An affiliated group, as defined in regulations promulgated by the Tax

Administrator, may file a consolidated return for the taxable year

provided that all the corporations which constitute such affiliated group

at any time during the period for which the return is made and which are sub-

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2012 Rhode Island Business Corporation Tax Instructions (Form Ri-1120c, Form Ri-1120s And Form Ri-1065) - 2012 Page 2

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