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

IA 1120 Long Form

Instructions for Page One

All corporations filing a return with the Department must complete

STEP 4 - Reductions to Income

all lines on the front page for the return to be accepted. “See

5. Federal Tax Paid or Accrued: Enter the deduction for 50%

schedule attached” is not acceptable; the return will be considered

of federal income taxes paid or accrued. The deduction should

incomplete and may be returned to you.

be computed using one of the following methods.

Accrual Basis taxpayers should determine the total tax shown

STEP 1 - Taxpayer Information

on page 1 of federal form 1120 and multiply by 50%. (Total

Name/Address

tax, page 1 x 50% = federal tax deduction).

If name or address is different from your prior period return, please

Cash Basis taxpayers should compute the sum of federal

check the name/address change box at the top of page 1. Include

taxes paid in the tax year and motor fuel tax credits applied

name of contact person and phone number.

against the tax liability in the tax year. Multiply the resulting

Short Period

amount by 50%.

If your current filing is for less than 12 months, please check the

Consolidated Federal Return: If you were a member of an

short period box at the top of page 1.

affiliated group that files a consolidated federal return but

Federal Employer Identification Number (FEIN)

your company files a separate Iowa corporation tax return,

This is the corporation’s Federal Employer Identification Number.

or the Iowa consolidated return contains different members

Business Code

than the federal consolidated return, you must compute the

Enter the business code from the list provided by the IRS for the

federal income tax deduction using the following formula.

specific industry group corresponding to the corporation’s primary

Separate Company Federal

Total Tax Reported

Federal Tax

business activity.

Taxable Income

50%

on the Consolidated

Deduction

Sum of all Positive Income

Federal Return

County Number

Producing Companies Included in

Enter the number of the Iowa county that is the corporation’s

the Consolidated Taxable Income

Statements

commercial domicile or principal place of business. Enter 00 if the

Check the appropriate box to indicate the basis of this federal

commercial domicile or principal place of business is not located

tax deduction computation. If filing status 2 or 3, you must

in Iowa.

attach pages 1-5 of the consolidated federal return,

First/Final Return

consolidating income statements, and complete Schedule H.

If this is a first or final return, please check the box on page 1 that

All lines on Schedule H must be completed.

best describes the reason.

6. Other Reductions: Enter the total from line 16 of Iowa

Schedule A, page 2.

STEP 2 - Filing Status

7. Total Reductions: Add lines 5 and 6 and enter the total.

Filing Status/Type of Return

Mark the appropriate box on page 1 for filing status and return

8. Net Income After Reductions: Subtract line 7 from line 4

type.

and enter the difference.

Inactive Return

STEP 5 - Taxable Income

Mark the appropriate box if the corporation has no business

9. Nonbusiness Income: Enter the total from line 17 of Iowa

operations in any state.

Schedule D, page 3.

10. Income Subject to Apportionment: Subtract line 9 from line

Federal Changes

Mark the appropriate box. If yes, provide the tax periods changed.

8 and enter the difference.

Additional information about this topic can be located in the section

11. Iowa Percentage: Enter the amount from line 13 of Iowa

titled “Special Instructions.”

Schedule E, page 3, or 100%, if the corporation’s business

is entirely within Iowa. Carry the result to six decimal places.

Property in Iowa

If 100% Iowa, you may be able to use short form IA 1120A.

Mark the appropriate box on page 1. Property is defined as any

tangible or real property owned or leased with its primary location

12. Income Apportioned to Iowa: Multiply line 10 by line 11

in Iowa.

and enter the result.

13. Iowa Nonbusiness Income: Enter the total from Iowa

Numbered Line Instructions

Schedule D, line 8, page 3.

STEP 3 - Net Income & Additions to Income

14. Income Before Net Operating Loss: Add lines 12 and 13

1. Net Income: Enter the amount of federal taxable income

and enter the total.

computed after federal dividend deduction and before federal

15. Net Operating Loss: Enter amount from Iowa Schedule F,

net operating loss deduction.

column E.

2. Federal Refund: Enter the addition for 50% of any federal

16. Income Subject to Tax: Subtract line 15 from line 14 and

refunds received in or accrued to this tax period. Check the

enter the difference but not below zero.

appropriate box to indicate the basis of this refund

STEP 6 - Tax, Credits, & Payments

computation. See (5) for additional instructions.

17. Tax: Enter the amount of tax computed from the tax rate

3. Other Additions: Enter the total from line 16 of Iowa

schedule, page 3. If the corporation has annualized for federal

Schedule A, page 2 of IA 1120 return.

income tax purposes, the corporation must annualize for Iowa

4. Net Income after Additions: Add lines 1, 2, and 3 and enter

income tax purposes. If tax is annualized, check the box and

the total.

attach a schedule of the formula used to compute the tax.

42-002c (09/17/12)

Instructions For Form Ia 1120 - Iowa Corporation Income Tax Long Form - 2012 Page 3

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