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

18. Alternative Minimum Tax: Enter the amount from line 18

Failure to Timely Pay the Tax Due or Penalty for Audit

of Schedule IA 4626, page 4. Complete IA 4626 even if no

Deficiency: A penalty of 5% will be added to the tax due if

alternative minimum tax is due or attach federal form 4626.

the return is filed by the original due date and at least 90%

Check the box if claiming a small business exemption.

of the correct amount of tax is not paid by the original due

date of the return.

19. Total Tax: Add lines 17 and 18 and enter the total.

When the failure to file penalty and the failure to pay penalty

20. Credits: Enter the amount from line 4 of Iowa Schedule C1,

are both applicable, only the failure to file penalty will apply.

page 2.

Penalties can only be waived under limited circumstances.

21. Payments: Enter the amount from line 4 of Iowa Schedule

Penalty for Willful Failure to File: A penalty of 75% will

C2, page 2.

be added to the tax due for willful failure to file a return or

22. Total Credits and Payments: Add lines 20 and 21 and enter

for filing with intent to evade tax.

the sum.

27. Interest: Interest accrues on the unpaid tax at a rate prescribed

23. Net Amount: Subtract line 22 from line 19 and enter the

by law from the original due date of the return until payment

difference.

is received. Any portion of a month is considered a full month

STEP 7 - Balance Due

in calculating interest due on unpaid tax.

24. Tax Due: Enter the amount from line 23 if it is greater than

28. Total Amount Due: Add lines 24, 25, 26, and 27. Payment

zero.

options include payment through Modernized eFile (MeF),

25. Penalty for Underpayment of Estimated Tax: Corporations

ePay (direct debit), ACH Credit or payment by check. Go

underpaying estimated tax for the entire tax shown on line

to for E-payment options. Do not send

19 may be subject to a penalty for this underpayment. The

cash. Make checks payable to “Treasurer, State of Iowa”.

underpayment penalty is in addition to the penalties on line

STEP 8 - Overpayment

26 of page 1. The underpayment penalty is computed on form

29. Overpayment: Enter the amount from line 23 if it is less than

IA 2220 and the total from that form is placed on line 25,

zero. Underpayment penalty may be applicable. Subtract any

page 1. If the penalty is computed, the IA 2220 form must

2220 penalty on line 25, then enter remaining overpayment.

be attached to the return. Initial return taxpayers are subject

30. Credit to Next Period’s Estimated Tax: Enter the amount

to this penalty.

of overpayment to be credited to the next tax period. This

26. Failure to Timely File a Return: A penalty of 10% will be

credit can only be changed after the due date if the change is

added to the tax due for failure to timely file a return if the

requested by the last day of the subsequent year.

return is filed after the original due date of the return and if

31. Refund Requested: Subtract line 30 from line 29 and enter

at least 90% of the correct amount of tax is not paid by the

the difference.

original due date of the return.

Instructions for Page Two

Schedule A-Other Additions:

include a reconciliation of federal income to income reported

1. Enter the amount of IRC section 613 percentage depletion of

on the Iowa partnership return. The difference should be

an oil, gas, or geothermal well that exceeds the cost depletion

specifically identified to indicate the Iowa adjustment being

amount determined under IRC section 611 as claimed on the

made.

federal return.

16. Add line 1, lines 3 through 10, and line 15 and enter the sum.

3. Enter any net capital loss included in the computation of line

Schedule A-Other Reductions:

1 of the Iowa return.

2. Enter the amount of Social Security taxes for tips not

4. Enter any net contributions deducted in excess of the federal

subtracted from federal taxable income due to the tip credit,

limitation.

form 8846.

5-7. Enter deductions relating to sale-leaseback safe harbor leases

3. Enter any net capital loss previously not allowed as an Iowa

for property placed into service prior to January 1, 1986. This

deduction that was not taken at the federal level.

includes interest expense and depreciation expense for the

4. Enter any net contributions previously not allowed as an Iowa

lessor and rent expense for the lessee.

deduction that was not taken at the federal level.

8. Depreciation Adjustment: Attach forms IA 4562A and IA

5-7. Enter income amounts related to sale-leaseback safe harbor

4562B.

leases for property. This includes rent income for the lessor

9. Enter the amount of interest and dividends exempt from federal

and interest income and depreciation expense for the lessee.

tax. Exclude interest received from certain Iowa bonds, which

8. Depreciation Adjustment: Attach forms IA 4562A and IA

are listed in Iowa Rule 40.3. Attach a schedule if this differs

4562B.

from the amount on the federal Schedule M-1, line 7, or

10. Enter the amount of Iowa tax refund included in federal

federal Schedule M-3, Part II, line 13, columns (b) and (c),

income. Do not include Iowa tax refunds from Iowa

or federal Schedule K, line 9.

refundable tax credits.

10. Enter the amount of Iowa tax expensed on the federal return.

11. Enter the amount of wages not subtracted from federal taxable

Provide a breakdown of line 17, taxes and licenses, shown

income due to the Work Opportunity Credit, form 5884.

on the federal return.

15. Enter any amounts not specifically identified above. A detailed

12. Enter the amount added to federal taxable income due to the

schedule must be attached or these amounts may not be

alcohol and cellulosic biofuel tax credit, form 6478.

allowed. If adjusting an amount from a partnership or LLC,

42-002d (08/31/12)

Instructions For Form Ia 1120 - Iowa Corporation Income Tax Long Form - 2012 Page 4

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