Instructions For Schedule U-St - Member'S Separate Income Tax

Updated 1-9-13

Combined Reporting Instructions

2012 Schedule U-ST Instructions

Member’s Separate Income Tax

Each taxable member of a combined group must complete Schedule U-ST. Schedule U-ST determines

the income tax liability of each such taxable member from all sources, including the tax liability due with

respect to the members’ apportioned share of the combined group’s taxable income and the tax liability

due with respect to allocable or apportionable income that is derived from sources other than the activities

of the combined group. The use of any net operating losses or credits as applied against the member’s

current year income is also accounted for on Schedule U-ST.

Beginning with tax year 2011, business corporations with taxable years ending in the same month as the

taxable year for which the combined report is being filed will pay the non-income measure of excise

(M.G.L. c. 63 §39(a)(1)) as part of the combined report. A business corporation subject to the non-income

measure of excise and that has a separate taxable year ending at a different time than the taxable year of

the combined report is still required to file Form 355 or 355S and pay the non-income measure of excise

at the end of the corporation’s separate taxable year.

Header for Schedule U-ST

For each Schedule U-ST filed, enter the name of the member (as shown on the federal income tax return,

if filed), its Federal Identification number and the beginning and ending dates of the member’s taxable

year as shown on its federal income tax return. This may be different than the taxable year for which the

combined report is being filed and will include any part of the member’s separate taxable year for which it

was not considered unitary with the group and separately accounted for its income. Other than in the

case where either the group or the member is using a 52-53 week year, the ending date of the member’s

taxable year may not be later than the ending date of the year for which the combined report is being

filed.

Check one box to indicate whether the member is subject to the financial institution excise, the utility

corporation excise or the general business corporation excise. Note that S corporations taxable under

M.G.L. Ch. 63, sec. 2B are considered financial institutions and that S corporations taxable under M.G.L.

Ch. 63, sec 32D are considered business corporations.

Check the box to indicate that this member is an insurance mutual holding company as defined in M.G.L.

Ch. 63 sec 39. Note that an insurance mutual holding company is not subject to the non-income measure

of excise.

Check one box to indicate whether the member is either a manufacturing corporation under the rules

stated in M.G.L. Ch. 63, sec 42B and 830 CMR 58.2.1, a research and development corporation within

the meaning of M.G.L. Ch. 63, sec. 42B, a regulated investment corporation (i.e., RIC) or real investment

trust (i.e., REIT) within the meaning of the Internal Revenue Code (I.R.C.). Do not check any box if the

member is not included in one of these categories. A member is a Research and Development (R & D)

corporation if its principal activity is research and development and it otherwise meets the requirements

set forth in M.G.L. Ch. 63, sec.42B. A member is a manufacturing corporation if it is engaged in

manufacturing in Massachusetts and has filed an application to be formally classified as such under 830

CMR 58.2.1 and has been so classified.

A taxable member that is qualified as a section 38 manufacturer or is a mutual fund service corporation

must check the applicable box here and on Schedule U-MSI and must complete and attach Schedule F-2

to this return. If neither box applies, leave this item blank.

Instructions For Schedule U-St - Member'S Separate Income Tax - 2012