Instructions For 2009 Form 4c: Wisconsin Allocation And Separate Accounting Data

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Instructions for 2009 Form 4C:
Wisconsin Allocation and Separate Accounting Data
Purpose of Form 4C
If a corporation is required or eligible to use separate
Part I: Allocation of Book Income or Net Income
accounting, it uses Form 4C to compute the amount
per Income Statement
of its taxable income that is allocable to Wisconsin
and outside Wisconsin.
■ Lines 1 and 3. Book Income and Expenses –
Federal Schedule M-1 filers allocate book income
A corporation engaged in a nonunitary business in
and expenses, as computed on a separate company
and outside Wisconsin is required to use separate
basis, to Wisconsin and outside Wisconsin. Fed-
accounting. A nonunitary business is one in which the
eral Schedule M-3 filers should allocate the income
operations in Wisconsin are not dependent upon or
and expenses per the income statement, as com-
contributory to the operations outside Wisconsin.
puted on a separate company basis. Indicate the ba-
sis used for the allocation and provide further details
A corporation or combined group engaged in a
in Part II, line 19.
unitary business must obtain the approval of the
Department
to
use
separate
accounting.
An
For example, if the allocation is based on actual ex-
application for approval should set forth in detail why
penses, as figured on a separate company basis,
separate accounting more clearly reflects
the
incurred at each location, write “actual” in the “Basis
corporation’s Wisconsin net income.
of Allocation” column in Part I and explain this in
Part II, line 19. If the allocation is based on the per-
CAUTION: A unitary business may use separate
centage of sales at each location, enter the percent-
accounting only if it obtains prior approval from the
age allocable to Wisconsin in Part I and explain how
Department.
you determined the percentage in Part II, line 19.
■ Line 5. Total Book Income – The total company
Mail the application for approval to the Audit Bureau,
book income shown on line 5, column 3 must agree
Wisconsin Department of Revenue, Mail Stop 5-144,
with federal Schedule M-1, line 1, computed on a
P.O. Box 8906, Madison, WI 53708-8906 before the
separate company basis. For federal Schedule M-3
end of the taxable year for which the use of separate
filers, the total on line 5, column 3 should agree with
accounting is desired.
the net income per income statement computed on a
separate company basis. Transfer the book income
File Form 4C with Wisconsin Form 4.
or net income per income statement in all 3 columns
of Part I, line 5, to the appropriate columns in Part II,
Special Instructions for Combined Groups
line 6.
A member of a combined group may use Form 4C if
it is eligible according to the explanation above. If you
are completing Form 4C for a member of a combined
Part II: Reconciliation of Book Income or Net
group, include only that corporation’s amounts, de-
Income per Income Statement with Net Income
termined on a separate entity basis.
NOTE: Complete this part after you have completed
Line-by-Line Instructions
Schedules V and W.
On lines 1 through 14, enter the amounts as if all of
■ Lines 6 through 10. Federal Taxable Income –
the corporation’s income or loss is eligible for sepa-
Allocate the federal Schedule M-1 adjustments
rate accounting. If the corporation has other income
to Wisconsin and outside Wisconsin. For federal
or loss that is required to be apportioned instead of
Schedule M-3 filers, allocate the sum of the addition
allocated, you will account for the amount you are
adjustments from Parts II and III on line 7 and the
apportioning when you complete line 15.
sum of the subtraction adjustments from Parts II and
III on line 9.
■ Line 11. Additions to Federal Income – Allocate
your additions to federal income to Wisconsin and
IC-144 (1/22/10)

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