S Corporation Reconciliation And Shareholders Information Return

WHEN TO FILE AND EXTENSIONS

together with a copy of the amended Federal return. If the net

File Delaware Form 1100S on or before the first day of the

income reported by the taxpayer to the Internal Revenue Service for

fourth month following the close of the taxable year. A request for

Federal income tax purposes is changed or corrected by the Internal

Revenue Service, or the tax computed on the return is redetermined

an automatic extension of six months to the Internal Revenue

Service will automatically extend by six months the filing date for

by the Internal Revenue Service, notice of such changes, corrections

the Delaware return. If an automatic Federal extension has been

or adjustments must be reported to the Division of Revenue within

granted, a copy of the extension must be attached to the final return

90 days after the final determination by the Internal Revenue Service

when filed.

is made.

An extension of time with payment for filing the Delaware S

ATTACH COPY OF FEDERAL RETURN

Corporation Reconciliation and Shareholders Information Return is

You must attach a copy of your Federal return (Form 1120S)

made by filing Voucher 1100P-EXT contained in the Delaware

for the income year, including all schedules and exhibits, including

PAYMENT

PERSONAL

INCOME

TAX

Schedule K and K-1, when filing your Delaware return.

CORPORATIONS coupon booklet on or before the due date of the

A copy of Delaware Schedule A-1 from the Delaware S

original return. Please note that a timely filed extension extends the

Corporation Reconciliation and Shareholders Information Return

period for filing a final return but does not extend the period of time

must be attached to the Delaware personal income tax return when

for making payment. Payment of the estimated personal

filed by the respective resident or non-resident shareholder.

income tax required to be paid on behalf of its non-

resident shareholders must be remitted with the request

MAGNETIC REPORTING OF FORM 1099 INFORMATION

for extension. Section 511 of Title 30 of the Delaware Code

Any S corporation required to report Form 1099-MISC or

provides that the Director may grant an extension of time for filing

1099-R information to the Internal Revenue Service on magnetic

any return and may require a bond not exceeding twice the amount

media must also report to the Delaware Division of Revenue on

of the tax.

magnetic media. The duty to report 1099-MISC information to the

An extension beyond the automatic six month period may be

Division of Revenue applies in the case of Forms 1099-MISC issued

requested by letter on or before the due date of the return. A copy of

to persons resident in Delaware or to non-residents of Delaware for

the Division of Revenue Approval Letter must be attached to the

work performed within Delaware. Forms 1099-R are required to be

final return when filed.

reported to Delaware in the case of any person issued a Form

1099-R on which Delaware taxes are reported as withheld. Even

NOTICE OF FEDERAL TAX ADJUSTMENT

though Delaware participates in the Combined Federal/ State Filing

If a taxpayer files an amended Federal income tax return, it is

Program, the 1099-MISC and 1009-R forms are required to be filed

required within 90 days to file an amended State of Delaware S

directly with Delaware. All others, including 1099-DIV and

Corporation Reconciliation and Shareholders Information Return

1099-INT need not be filed.

SPECIFIC INSTRUCTIONS

IMPORTANT

To ensure the timely and proper processing of your S Corporation Reconciliation and Shareholders Information Return, ALL lines and

schedules must be completed. Specific line items, supported by separate attached schedules, must be entered on the appropriate line of this

return. Failure to complete all lines and schedules will delay the processing of your return. For purposes of these instructions "taxpayer" means

the S Corporation.

INTRODUCTION

all of the following conditions are met: (1) The non-resident

As a result of the enactment of House Bill No. 573, 68 Del.

shareholders must be non-residents of the State of Delaware for the

Laws Ch. 423, effective for tax years beginning on or after January

full taxable year, (2) The non-resident shareholders must not have

1, 1992, S Corporations are no longer subject to the Delaware

income (including spouse's) from sources within the State of

corporate income tax.

Delaware other than his or her distributive share from the S

Effective for taxable years beginning on or after January 1,

Corporation and (3) The non-resident shareholders must have the

1992, non-resident shareholders are subject to Delaware personal

same tax year ending for personal income tax purposes. An S

income tax on their portion of the distributive share of the income

Corporation which has one or more non-resident shareholders is

and deductions of an S Corporation apportioned to Delaware.

required to make estimated personal income tax payments on behalf

An S Corporation is not entitled to adjust its taxable income by

of its non-resident shareholders. S Corporations which conduct

a net operating loss carryback or carryforward. There are no

business in more than one state must allocate and apportion their

statutory modifications or adjustments to Federal taxable income

income among the respective states. Please refer to the specific

instructions for Delaware Schedule A and for Delaware Form 1100S

that permits such net operating loss deductions to be taken into

account in computing Delaware taxable income under Chapter 19,

to calculate distributive income for a non-resident shareholder.

Title 30 of the Delaware Code. Refer to Delaware Tax Ruling 78-3.

DELAWARE SCHEDULE A - RECONCILIATION OF

For Delaware personal income tax purposes, resident

ORDINARY INCOME TO TOTAL INCOME

shareholders are entitled to the benefit of their portion of any net

operating loss incurred by the S Corporation. Commencing with tax

The Ordinary Income reported on

Federal Form 1120S,

Schedule K, Line 1 must be modified for Delaware purposes by

years beginning on or after January 1, 1992 and to the extent that a

net operating loss carryforward resulted from a Delaware S

certain additions and subtractions to reflect the “flow through” items

Corporation, net operating loss deductions may be carried forward

to the shareholders that are not included in ordinary income on

on the personal income tax returns of non-resident shareholders.

Federal Form 1120S. Begin with Schedule 1 on the back of

These losses may include losses incurred in tax periods beginning

Delaware Schedule A.

before January 1, 1992. There is no net operating loss carryover

allowable on the shareholder's Delaware personal income tax return

Delaware Schedule 1(A) - Gross Real and Tangible

Personal Property

that does not derive from a carryover on the shareholder's Federal

personal income tax return for the same year.

Enter on Line 1 the original cost value of all real and tangible

personal property owned at the beginning and at the end of the

NON-RESIDENT SHAREHOLDERS

taxable year allocable (a) within the State of Delaware and (b) within

An S Corporation is exempt from corporate taxation. Resident

and without the State of Delaware. Enter on Line 2 the value of all

real and tangible personal property rented at the beginning and at the

and non-resident shareholders must report their respective share of S

distributive income on their individual personal income tax returns.

end of the taxable year allocable (a) within the State of Delaware

A Composite Personal Income Tax Return, Form 200-C, for

and (b) within and without the State of Delaware. The rented real

qualifying non-resident shareholders of an S Corporation may be

and tangible property is valued at 8 times the annual rental. Goods in

filed in lieu of individual non-resident personal income tax returns if

S Corporation Reconciliation And Shareholders Information Return - 2011 Page 3

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