Vermont Business Income Tax Return Instructions

Facsimile Substitute Forms

Appeals

Any facsimile or substitute form must be approved by the

All appeals for any return adjustment, assessment, bill, and reduced

Department of Taxes prior to its use. If you use computer‑generated

refund should be addressed to: Vermont Department of Taxes, PO

returns, the software company is responsible for requesting approval

Box 1645, Montpelier, VT 05601‑1645. Appeals must be received

and receiving an assigned bar code. A $25 fee may be assessed for

within 60 days of the notice of adjustment, assessment, or denial

a taxpayer or preparer who files returns that cannot be processed

of refund.

or require special steps to process. Call (802) 828‑2512 for further

information on facsimile or substitute forms.

FORM BI-471

2011 BUSINESS INCOME TAX RETURN INSTRUCTIONS

Please use blue or black ink only.

Please do not staple or bind your return. You may use binder clips, paper clips or rubber bands.

HEADER INFORMATION ‑ Please complete all fields that apply.

the affiliation, Form BA-410, Affiliation Schedule, is required

with the return of the parent corporation. The Parent corporation is

Name/Address Print or type the entity name and address in the space

required to file a Vermont business income tax return and is subject

provided. Check the “International” box if the address is outside

to the minimum tax.

the United States. Check the “Computer-Generated” box if you

Line-by-Line Instructions

do not want us to send you a blank form next year.

Box A Check all applicable boxes for the characteristic(s) of the

Line 1 Enter the minimum entity tax of $250. Enter multiples of

return. If filing as a composite filer, note that you are making a

the minimum tax if filing a composite return including entities (not

binding election. See Technical Bulletin (TB‑#5).

just individuals) and composite tax is less than what the minimum

tax would be if each entity filed separately. If you are not filing

Box B Enter your Federal Identification Number. Enter the

a composite return, then go to Line 4. If a composite filer, see

beginning and ending dates of the fiscal year in the requested

Technical Bulletin (TB‑05).

format (YYYYMMDD.)

Line 2 For Composite returns only, enter the income passed through

Box C Enter the primary 6‑digit North American Industrial

to nonresidents and taxed at the composite rate. This is the number

Classification System (NAICS) number.

See

from Form BI‑472, Line 12 or BI‑473, Line17.

if you do not know your company’s code.

Line 3 Multiply Line 2 by the composite tax rate of 8.50%. Enter

Box D Check the box indicating the Federal tax form filed. See Line

the result.

1 instructions below if the entity is permitted to file as an individual/

sole proprietor.

Line 4 Subchapter S Corporations subject to federal income tax on

items such as built‑in gains, capital gains, or LIFO recapture, apply

Boxes E, F, G – Answer the three questions.

the corporate income tax rate provided in the instructions for Form

Box H –

Vermont income, including income passed through to

CO‑411 to the Vermont apportioned/allocated tax base. Enter the

individuals, must be calculated without regard for federal “bonus”

tax due on Line 4. Provide a statement that details the nature and

depreciation allowed certain assets starting in 2008 under IRC

calculation of the tax amount.

168(k). If the entity took advantage of the bonus depreciation

Line 5 Total Tax Due Add Lines 1, 3, and 4.

provisions, enter the net adjustment to entity income if the bonus

depreciation was not allowed. Attach a statement to detail the

Line 6 Payments and Credits Enter amount from side 2, Line 16.

difference. If the entity did not take advantage of the bonus

Line 7 Balance Due If Line 5 is greater than Line 6, enter the

depreciation provisions in 2008 ‑ 201, enter “0.”

difference and include check payable to “Vermont Department

Tax Computation Section

of Taxes.” All tax is due at the original filing date, regardless of

extension of time to file the return.

Exceptions

Line 8 Refund If Line 6 is greater than Line 5, enter the amount,

SMALL FARMS as defined in Title 32 V.S.A. §5832(2)(A), pay

if any, you would like refunded.

an annual entity tax of $75.00. The entity must be solely owned by

Line 8a Credit Forward If Line 6 is greater than Line 5, enter the

active participants and have gross receipts of less than $100,000. A

amount, if any, you would like credited to the next tax year.

real estate venture is not considered a farm. Partnerships and LLCs

must provide a copy of the Federal Schedule F.

Schedule 1 Tax Payments and Credits Computations

ENTITIES with NO VERMONT ACTIVITY or TAXABLE

Line 9 Enter the amount of the 2010 overpayment/credit applied

INVESTMENTS are not required to pay the annual entity tax.

to the 2011 taxes.

PA RT N E R S H I P S e l e c t i n g N O T t o b e TA X E D A S

Line 10 Enter the amount of your 2011 estimated tax Payments

PARTNERSHIPS, under Internal Revenue Code Sec. 761 or

and any payment made with your extension application.

Check‑the‑Box Regulations are not required to pay the annual entity

tax. Provide a statement as to the election being taken and cite

Lines 11, 12, and 13. (Composite Filers Only)

the authority for the election.

(Estimated payments and credits usually pass through to the

QUALIFIED SUBCHAPTER S SUBSIDIARIES permitted to

owners. For a composite filing, they are credited against tax due

file with their parent corporation under the Internal Revenue Code

at the entity level).

are not required to pay the annual entity tax. However, to establish

Vermont Business Income Tax Return Instructions - 2011 Page 3

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