S Corporation Reconciliation And Shareholders Information Return

STATE OF DELAWARE

2012 S Corporation Reconciliation 2012

And

Shareholders Information Return

INSTRUCTION HIGHLIGHTS

CALENDAR YEAR 2012 AND FISCAL YEAR ENDING 2013 TAX YEAR

Section 1158(a) of Title 30 of the Delaware Code requires that every corporation that is an S Corporation for Federal income tax purposes

pay on behalf of each non-resident shareholder an amount equal to the highest personal income tax rate set in Section 1102(a) of Title 30

on the amount of the non-resident's share of distributive income apportioned to Delaware. If there is an overpayment of estimated tax paid

on behalf of the non-resident shareholders, the overpayment must be included proportionally in the amount of estimated tax claimed by

the non-resident shareholders upon the filing of their Delaware non-resident personal income tax returns. Overpayments of estimated tax

will not be refunded to the S Corporation.

Federal Schedule K-1 cannot be used in lieu of Delaware Schedule A-1 when filing the S Corporation Reconciliation and Shareholders

Information Return. Delaware Schedule A-1 must be filed for each resident and non-resident shareholder of the S Corporation.

Step by step instructions are provided in this Reconciliation booklet. The Division of Revenue Taxpayer Assistance offices are open in all

three counties to assist you and answer your tax questions. Addresses and telephone numbers are listed below.

A Composite Personal Income Tax Return, Form 200-C (available at the offices listed below), for qualifying non-resident shareholders

of an S Corporation may be filed in lieu of individual non-resident personal income tax returns if all of the following conditions are met:

1. Non-resident shareholders included in the composite return must be non-residents of the State of Delaware for the full taxable year.

2. Non-resident shareholders included in the composite return must have no income (including spouse's) from sources within the State of

Delaware other than his or her distributive share from the S Corporation.

3. All non-resident shareholders included in the composite return must have the same tax year ending for income tax purposes.

The provisions of the Job Creation and Worker Assistance Act of 2002 which affect the taxable income of a corporation have been

automatically adopted by the Delaware Director of Revenue.

Title 30 of the Delaware Code authorizes five different income tax credits for which an S Corporation may be eligible. The income tax

credits that are available are the Economic Development, Green Industries, Research & Development, Land & Historic Resource

Conservation and Historic Property Preservation. Please see page 6 of this instruction booklet for details concerning the income tax

credits.

Step by step instructions for completing the Delaware S Corporation Reconciliation and Shareholders Information Return are provided in

this booklet. The Division of Revenue is committed to provide quality services to all businesses. To assist, the Division's Office of

Business Taxes has created a Home Page within the website of the Delaware Division of Revenue. The internet address is

Select Business Taxpayers from the Services column. This site contains information for registering your

business, Tax Tips to guide you in filing various business tax returns and the ability to electronically contact a representative of the Office

of Business Taxes with your tax questions. A new feature added to this site enables any business whose current Delaware business license

expires on December 31, 2012 to renew their business license for 2013 online and pay their license fee by using a credit card. The

business will have the ability to print a temporary license directly from the website and subsequently be mailed a permanent license. In

addition, any business renewing a license online may also elect a one or three year business license.

LOCATION OF OFFICES

TOLL-FREE TELEPHONE NUMBER (DELAWARE ONLY) 1 - 800 - 292 - 7826

WILMINGTON

Division of Revenue

State Office Building

820 N. French Street

Wilmington, Delaware 19801

DOVER

GEORGETOWN

Telephone: (302) 577 - 8205

Division of Revenue

Fax: (302) 577 - 8662

Thomas Collins Building, Suite 2

20653 DuPont Blvd, Suite 2

540 S. DuPont Highway

Georgetown, Delaware 19947

Dover, Delaware 19901

Telephone: (302) 856 - 5358

Telephone: (302) 744 - 1085

Fax: (302) 856 - 5697

Fax: (302) 744 - 1095

S Corporation Reconciliation And Shareholders Information Return - 2012

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