Instructions For Form Ia 1120 - Iowa Corporation Income Tax Long Form

2012 Iowa Corporation Income Tax Long Form Instructions

Iowa Offers eFiling for Corporate Income Tax Returns

Bonus Depreciation

of the federal tax credit for installations of solar energy systems

Iowa has not adopted the bonus depreciation provisions of the

for business property located in Iowa. See information on the

federal Tax Relief, Unemployment Insurance Reauthorization and

Department’s Web site for limitations on the amount of credit that

Job Creation Act of 2010 for assets acquired during 2012. The

can be claimed and instructions for filing for an award.

adjustment for depreciation should be made on form IA 4562A to

IA 148 Tax Credits Schedule

account for the difference between federal and Iowa depreciation.

The IA 148 Tax Credits Schedule must be completed for any tax

Small Business Expensing

credits claimed other than the motor fuel tax credit on Schedule

Iowa did adopt the federal provisions relating to increasing the

C1.

expensing amount under section 179 of the Internal Revenue Code.

Other Forms

The section 179 expensing limitation is $139,000 for tax years

The IA 1139-CAP must be used to carry back only a capital loss

beginning in 2012.

for tax periods beginning on or after January 1, 2009.

Net Operating Loss Carryback

The IA 1120X must be used to change a previously-filed IA 1120

For tax years beginning on or after January 1, 2009, corporations

or IA 1120A unless the change was due only to a capital loss

are no longer allowed to carry back Iowa net operating losses. All

carryback.

net operating losses are allowed to be carried forward for 20 tax

Auxiliary Schedules

years. However, any federal refund due to the carryback of a federal

The corporate income tax return has several auxiliary schedules

net operating loss must still be reported as income on the Iowa

that may be needed to complete the return. These schedules can

return to the extent a deduction for federal taxes was allowed on

be obtained by contacting the Iowa Department of Revenue.

prior Iowa returns.

Schedules F and G are used when net operating losses are being

Capital Loss Carryback

carried forward.

Corporations may still carry back a capital loss to the three

Schedule H must be used by corporations with filing status 2 or 3

preceding tax years. Refund requests for a capital loss carryback

to document the computation of any federal tax deduction and/or

should be made on new form IA 1139-CAP.

refunds included in the Iowa return.

Solar Energy System Tax Credit

Schedules I and J must be used by corporations with filing status

An Iowa solar energy system tax credit is available equal to 50%

3 to document information included in the Iowa return.

General Instructions

Which Return to File

the 9th month after the close of their period to file a return.

Regular Corporations: Every corporation doing business in this

Short Year: Where under the provisions of the Internal Revenue

state or deriving income from sources within this state, unless

Code a corporation is required to file a short period return, the Iowa

exempt by section 422.34, Code of Iowa, must file an Iowa

short period return is due 45 days after the original federal due

corporation return, IA 1120 or IA 1120A.

date.

FSCs: Foreign sales corporations domiciled or incorporated in

UBIT (Nonprofit Corporation): A nonprofit corporation reporting

Iowa should file an IA 1120S if any income or loss is reportable

unrelated business income on federal form 990-T must file an

to Iowa.

IA 1120 or IA 1120A on or before the 15th day of the 5th month

S Corporations, IC-DISCs: S corporations and Interest Charge

following the end of the tax period. If the nonprofit corporation

Domestic International Sales Corporations must file an Iowa

has no unrelated business income, even if filing a 990-T to claim

Income Tax Return for an S Corporation, IA 1120S.

the small business health care tax credit, no Iowa return or copy

of the federal return is required to be filed.

Limited Liability Companies (LLCs): Limited liability companies

that are taxed as corporations for federal purposes must file the

Automatic Extension of Time to File

IA 1120. All other limited liability companies must file form IA

All taxpayers who have paid 90% or more of their correct tax on

1065, Partnership Return of Income. Single member LLCs do not

or before the original due date of their return automatically have

need to file an IA 1065. They must include their business income

an additional six months in which to file their return and pay any

on a federal Schedule C on their individual tax returns or on the

additional tax due with no penalty. Taxpayers who have not paid

corporation income tax return of the owner.

90% or more of their correct tax on or before the original due date

Financial Institutions: Every bank, savings and loan association,

of their corporation income tax return are not allowed the 6-month

and other financial institution as defined in Iowa Code section

additional period of time to file and owe both penalty and interest

422.61 doing business in this state as a financial institution must

on the additional tax due after the original due date of their return.

file an Iowa Franchise Tax Return, IA 1120F.

If an additional payment is necessary in order to meet the 90%

requirement, it must be made by the original due date of the return.

When to File

Calendar Year: Return is due no later than April 30, 2013.

Such payments are made using form 42-019, Iowa Corporation Tax

Payment Voucher.

Fiscal Year: Return is due within four months after the end of

the fiscal year.

Interest will accrue on any tax due after the original due date of

the return. All elections made on a return filed within six months

Cooperative: Cooperative associations as defined in section

of the original due date will be considered timely.

6072(d) of the Internal Revenue Code have until the 15th day of

42-002b (09/17/12)

Instructions For Form Ia 1120 - Iowa Corporation Income Tax Long Form - 2012 Page 2

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