Instructions For 2015 Form C: Wisconsin Allocation And Separate Accounting Data
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2Instructions for 2015 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 – Fed-
eral Schedule M-1 filers allocate book income and ex-
A corporation engaged in a nonunitary business in
penses, as computed on a separate company basis,
and outside Wisconsin is required to use separate ac-
to Wisconsin and outside Wisconsin. Federal
counting. A nonunitary business is one in which the
Schedule M-3 filers should allocate the income and ex-
operations in Wisconsin are not dependent upon or
penses per the income statement, as computed on a
contributory to the operations outside Wisconsin.
separate company basis. Indicate the basis used for
the allocation and provide further details in Part II, line
A corporation or combined group engaged in a unitary
19.
business must obtain the approval of the Department
to use separate accounting. A request for approval
For example, if the allocation is based on actual ex-
should set forth in detail why separate accounting
penses, as figured on a separate company basis, in-
more clearly reflects the corporation’s Wisconsin net
curred at each location, write “actual” in the “Basis of
income.
Allocation” column in Part I and explain this in Part II,
line 19. If the allocation is based on the percentage of
CAUTION: A unitary business may use separate
sales at each location, enter the percentage allocable
accounting only if it obtains prior approval from the
to Wisconsin in Part I and explain how you determined
Department.
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 3-107,
with federal Schedule M-1, line 1, computed on a sep-
PO Box 8906, Madison, WI 53708-8906 before the
arate company basis. For federal Schedule M-3 filers,
end of the taxable year for which the use of separate
the total on line 5, column 3 should agree with the net
accounting is desired.
income per income statement computed on a separate
company basis. Transfer the book income or net in-
File Form C with Wisconsin Form 4 or 6.
come per income statement in all 3 columns of Part I,
line 5, to the appropriate columns in Part II, line 6.
Special Instructions for Combined Groups
A member of a combined group may use Form C if it
is eligible according to the explanation above. If you
Part II: Reconciliation of Book Income or Net
are completing Form C for a member of a combined
Income per Income Statement with Net Income
group, include only that corporation’s amounts, deter-
mined on a separate entity basis.
NOTE: Complete this part after you have completed
Schedules 4V and 4W for non-combined members;
Line-by-Line Instructions
and Form 6, Part II lines 2 and 4 for combined
members.
On lines 1 through 14, enter the amounts as if all of
the corporation’s income or loss is eligible for separate
■ Lines 6 through 10. Federal Taxable Income –Al-
accounting. If the corporation has other income or loss
locate the federal Schedule M-1 adjustments to Wis-
that is required to be apportioned instead of allocated,
consin and outside Wisconsin. For federal Schedule
you will account for the amount you are apportioning
M-3 filers, allocate the sum of the addition adjustments
when you complete line 15.
from Parts II and III on line 7 and the sum of the sub-
traction 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
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