Instructions For 2014 Form C: Wisconsin Allocation And Separate Accounting Data printable pdf download

Instructions for 2014 Form C:

Wisconsin Allocation and Separate Accounting Data

Purpose of Form C

If a corporation is required or eligible to use separate

Part I: Allocation of Book Income or Net Income

accounting, it uses Form C to compute the amount of

per Income Statement

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 comput-

contributory to the operations outside Wisconsin.

ed on a separate company basis. Indicate the basis

used for the allocation and provide further details in

A corporation or combined group engaged in a

Part II, line 19.

unitary business must obtain the approval of the

Department to use separate accounting. A request

For example, if the allocation is based on actual ex-

for approval should set forth in detail why separate

penses, as figured on a separate company basis,

accounting more clearly reflects the corporation’s

incurred at each location, write “actual” in the “Basis

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 request 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

PO 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 C with Wisconsin Form 4 or 6.

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 C if it

is eligible according to the explanation above. If you

are completing Form C 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 4V and 4W for non-combined members;

and Form 6, Part II lines 2 and 4 for combined

On lines 1 through 14, enter the amounts as if all of

members.

the corporation’s income or loss is eligible for sepa-

rate accounting. If the corporation has other income

■ Lines 6 through 10. Federal Taxable Income –

or loss that is required to be apportioned instead of

Allocate

the federal

Schedule M-1 adjustments

allocated, you will account for the amount you are

to Wisconsin and outside Wisconsin. For federal

apportioning when you complete line 15.

Schedule M-3 filers, allocate the sum of the addition

adjustments from Parts II and III on line 7 and the

sum of the subtraction adjustments from Parts II and

III on line 9.

IC-144

Instructions For 2014 Form C: Wisconsin Allocation And Separate Accounting Data

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