Instructions For Form 720 - Kentucky Corporation Income Tax And Llet Return

Line 14—Enter the LLET paid on the original return. This line is

(e) Change of address—The corporation has changed its

used only when filing an amended return.

address since it filed its prior year Kentucky tax return.

(f)

Change of Accounting Period—The corporation has changed

Line 15—Enter the LLET overpayment on the original return. This

its accounting period since it filed its prior year Kentucky

line is used only when filing an amended return.

tax return. Attach a statement to the tax return showing the

corporation's taxable year end before the change and its

Line 16—If the total of Lines 6 and 15 is greater than the total of

new taxable year end. If the corporation received written

Lines 7 through 14, enter the LLET due on this line and on the

approval from the Internal Revenue Service to change its

Tax Payment Summary.

taxable year, attach a copy of the letter.

Line 17—If the total of Lines 6 and 15 is less than the total of Lines

Item G—Check the applicable box:

7 through 14, enter the LLET overpayment on this line.

(a) Amended Return—This is an amended tax return. Provide

Line 18—Enter the portion of Line 17 to be credited to the 2013

an explanation of all changes in Part V—Explanation of

income tax liability on Part II, Line 12. If filing an amended return,

Amended Return Changes.

do not enter an amount on this line.

(b) Amended Return–RAR—This is an amended tax return as a

Line 19—Enter the portion of Line 17 to be credited to 2014

result of a Revenue Agent Report (RAR) (Form 4549). Provide

LLET. If filing an amended return, do not enter an amount on

an explanation in Part V— Explanation of Amended Return

this line.

Changes and attach Form 4549, Department of Treasury—

Internal Revenue Service Income Tax Examination

Line 20—Enter the portion of Line 17 to be refunded (Line 17

Changes.

less Lines 18 and 19).

PART I—LLET COMPUTATION

PART II—INCOME TAX COMPUTATION

Line 1—To compute the income tax liability, apply the following

Line 1—Enter the amount from Schedule LLET, Section D,

rates:

Line 1.

(a)

4 percent of the first $50,000 of taxable net income;

Line 2—Enter the recycling/composting equipment LLET

credit recapture amount from Schedule RC–R, Line 12. Attach

(b)

5 percent of the amount of taxable net income in excess of

Schedule RC–R, Recycling or Composting Equipment Tax Credit

$50,000 but not in excess of $100,000; and

Recapture.

(c)

6 percent of the amount of taxable net income in excess of

$100,000.

Line 3—Enter the total of Lines 1 and 2.

Short–Period Computation of Income Tax—A corporation filing

Line 4—Enter the nonrefundable LLET credit from Kentucky

an income tax return for a period of less than 12 months is

Schedule(s) K–1. Copies of Kentucky Schedule(s) K–1 must be

required to annualize taxable net income. To annualize, multiply

attached to the corporation's tax return in order to claim the

taxable net income computed for the short-period by 365 and

credit.

divided by the number of days in the short–period. The income

tax liability shall be the tax computed on the annualized income

multiplied by the number of days in the short–period and divided

Line 5—Enter the total tax credits from Schedule TCS, Part III,

by 365. Annualization is not permitted if the return is for the

Column E, Line 1.

initial or final period of operations. KRS 141.140

Line 6—Enter the greater of Line 3 less Lines 4 and 5 or $175.

Line 2—Enter the recycling/composting equipment income

tax credit recapture from Schedule RC-R, line 13. Attach

Line 7—Enter the amount of tax withheld on Form PTE–WH. Form

Schedule RC-R, Recycling or Composting Equipment Tax Credit

PTE-WH must be attached to the tax return.

Recapture.

Line 8—Enter the total LLET estimated tax payments made for

Line 3—Enter the amount of the Tax Installment on LIFO

the taxable year. Do not include the amount credited from the

Recapture. A corporation may be liable for the additional tax due

prior year.

to LIFO recapture under federal Regulations Section 1.1363–2,

if the corporation used the LIFO inventory pricing method for

Line 9—Enter the refundable certified rehabilitation tax credit

its last tax year as a C corporation prior to becoming an S

(attach the Kentucky Heritage Council certification(s)).

corporation. To determine the LIFO recapture, complete the

worksheet below.

Line 10—Enter the refundable film industry tax credit (attach the

Kentucky Film Office certification(s)).

1. Kentucky taxable income from

Form 720, Part III, Line 25 ......................

Line 11—Enter the amount of LLET paid with Form 41A720SL,

2. LIFO recapture amount ..........................

Application for Six–Month Extension of Time to File Kentucky

3. Add Lines 1 and 2...................................

Corporation or Limited Liability Pass–Through Entity Return.

4. Income tax on Line 3 ..............................

5. Income tax from Form 720, Part II,

Line 12—Enter the amount credited to the 2013 LLET from Form

Line 1 .......................................................

720, Part I, Line 19 of the 2012 return.

6. Line 4 less Line 5 ....................................

Line 13—Enter the income tax overpayment from Part II, Line

7. Tax installment on LIFO Recapture

17 credited to the 2013 LLET. If filing an amended return, enter

(Line 6 multiplied by 25%) (enter

the amount from the original return.

on Line 3) ................................................

Note: See the S corporation's instructions for its reporting

requirements.

Instructions For Form 720 - Kentucky Corporation Income Tax And Llet Return - 2013 Page 8

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