Form 512-S And Form 512-Sa - Oklahoma Small Business Corporation Income Tax

General Filing Information

Oklahoma Depletion In Lieu

Underpayment of Estimated Tax

of Federal Depletion

Interest

Oklahoma depletion on oil and gas well production,

All S corporations, which are paying tax at the

at the option of the taxpayer, may be computed at

corporate level, are required to make estimated tax

22% of gross income derived from each Oklahoma

payments when the tax for the taxable year can

property during the taxable year. Major oil

reasonably be expected to be $500 or more. The

companies, as defined in Title 52 O.S. Section

estimated tax payments shall not be less than 70%

288.2, when computing Oklahoma depletion shall

of the amount of tax due (tax liability less all

be limited to 50% of the net income (computed

credits except amounts paid on estimated tax and

without the allowance for depletion) from each prop-

extension payments), or 100% of the prior year’s

erty. Any depletion deduction allowable is the

tax liability. Should deficiencies occur, the amount

amount so computed minus Federal depletion

of underpayment shall be subject to interest at an

claimed. If Oklahoma options are exercised, the

annual rate of 20%, or fraction thereof, for the

Federal depletion not used due to 65% limit may

period of underpayment. Enclose Form OW-8-P.

not be carried over. Lease bonus received is

Note: No underpayment of estimated tax interest

considered income subject to depletion. If deple-

shall be imposed if the tax liability shown on the

tion is claimed on a lease bonus and no income is

return is less than $1,000.

received as a result of non-producing properties,

upon expiration of the lease, such depletion must

be restored. A complete schedule by property must

Amended Returns

be furnished.

Use Form 512-S for all amended returns. Place an X

in the space provided, in the upper right hand corner

Refundable Credits...

of the form, next to the form number (512-S X).

Enclose Federal Amended Form 1120-S when appli-

A refundable credit is available for qualified capital

cable.

expenditures, wages and training expenses

incurred by a business enterprise whose principal

When amending Form 512-S for S corporations which

activity is data processing services, computer

are paying tax at the corporate level, line 9 (tax paid

systems design services or other computer related

on estimate) must be adjusted by subtracting previ-

services that as of July 1, 2005, maintains an

ous overpayments or adding tax previously paid. An

Oklahoma annual payroll of at least $85 million and

overpayment on an amended return may not be

an Oklahoma labor force of 1,000 or more persons.

credited to estimated tax, but will be refunded. The

The Computer Industry Credit may be claimed by

amount applied to estimated tax on the original return

filing Form 580 any time on or after July 1, 2006,

cannot be adjusted.

or the credit may be claimed on the estimated tax

line of the income tax return. Form 580 must be

enclosed with the return. Title 68 O.S. Section

Adjustments by Internal

2357.201 and Rule 710:50-15-100.

Revenue Service

A refundable credit is available for qualified capital

expenditures, wages and training expenses

Taxpayers who file "consents" extending the time

incurred by a business enterprise whose principal

for making Federal adjustments automatically

activity is the manufacture of wing components for

extend the time for making State adjustments. The

large commercial aircraft and other aerospace

taxpayer is also required to file an amended return

structures and components for commercial and

reporting all Internal Revenue Service adjustments.

government aerospace products. The Aerospace

A copy of the finalized RAR must be furnished.

Industry Credit may be claimed by filing Form 581

any time on or after July 1, 2006, or the credit may

Bank and Credit Unions

be claimed on the estimated tax line of the income

tax return. Form 581 must be enclosed with the

State and national banks and state credit unions, making

return. Title 68 O.S. Section 2357.202 and Rule

a Federal Subchapter S election, shall not pay an “In

710:50-15-100.

Lieu” tax of 6% per Title 68 O.S. Section 2370. The

income or loss of that entity shall be reported at the

shareholder level.

Form 512-S And Form 512-Sa - Oklahoma Small Business Corporation Income Tax - 2006 Page 4

Related Articles

Related forms

Related Categories