FOR CALENDAR YEAR 2016 AND FISCAL YEARS BEGINNING IN 2016 PLEASE CAREFULLY REVIEW HIGHLIGHTS BEFORE COMPLETING ANY TAX REPORTS OR SCHEDULES. HIGHLIGHTS 1. NEW: The Capital Stock/Foreign Franchise tax has been phased out for tax years beginning on or after Jan. 1, 2016. 2. NEW: RCT-101, PA Corporate Net Income Tax Report for 2016 is a revised, year-specific, four page form. It includes a revised Page 1, eliminating CS-FF and LOANS from Step D. It also includes a revised Page 2, Bonus Depreciation, Corpo- rate Net Income Tax and Sales Factor apportionment. This form MUST be used for filing all tax years beginning on or after Jan. 1, 2016. 3. NEW: Taxpayers claiming Add-Back on RCT-101, PA Corpo- rate Net Income Tax Report, must include schedules REV-802 and REV-803 when filing the report. Act 52 of 2013 requires the add-back of intangible expenses to income for interest, royalties, patents, trademarks, etc., between affiliated entities in certain instances. 4. NEW: Amended reports filed for tax years beginning on or after Jan. 1, 2016, MUST be filed on the revised, year-spe- cific RCT-101. You must check the amended report checkbox on Page 1, Step B. See Page 11 for details. 5. IMPORTANT: Amended reports filed for tax years beginning prior to Jan. 1, 2016, MUST be filed on the non-year-specific RCT-101. You must check the amended report checkbox on Page 1, Step B. See Page 11 for details. 6. Failure to submit a properly completed and signed tax report may result in the delay of processing and the imposition of late filing penalties and/or estimated assessments. 7. IMPORTANT: Taxpayers granted an extension to file the fed- eral income tax return will automatically be granted an exten- sion to file RCT-101, PA Corporate Net Income Tax Report. Corporate taxpayers granted a federal extension must indi- cate this by checking the "Federal Extension Granted" box under Step B on Page 1 of RCT-101, and include a copy of the federal extension request with the report. 8. Act 52 of 2013 increased the limitation of the net loss deduc- tion from the greater of 25 percent of PA taxable income or $4 million to the greater of 30 percent of PA taxable income or $5 million. 9. Corporations participating in a consolidated federal tax filing must provide consolidating income statements and balance sheets to the department, including separate company sched- ules and all consolidations and eliminations. 10. Business income will be apportioned to Pennsylvania by use of the sales factor only. 11. The electronic funds transfer requirement was reduced from $10,000 to $1,000; all payments of $1,000 or more must be made electronically. 12. The PA corporate tax report and schedules are available on the PA Department of Revenue’s website at www.revenue.pa.gov and are indexed by form number. The form numbers for supporting schedules begin with “REV”. These numbers can be found on Page 2 of the instructions. Tax rates for years beginning in 2016 2017 Corporate Net Income Tax 9.99 % 9.99 % IMPORTANT - Use the department’s website to stay up-to-date on tax law changes, tax rates, tax forms and special instructions regarding form changes. Estimated payments and requests for extension of time to file should be made online. Visit the Online Services Center at www.revenue.pa.gov. All third party preparers who prepared 11 or more PA Corporate Net Income Tax Reports in the prior calendar year are required to electronically file all PA Corporate Net Income Tax Reports in subsequent years. Once a third-party preparer is subject to this filing mandate, the third-party preparer shall continue to be sub- ject to the mandate regardless of how many PA Corporate Net Income Tax Reports the individual prepares during a calendar year. For information on refunds and transfers of overpayment, see Page 14. Page 1 of RCT-101 contains a check box labeled “E-File Opt Out.” This box is used to indicate that the taxpayer has instruct- ed the preparer to not file the report electronically. A list of soft- ware vendors approved for electronic filing of the PA Corporate Net Income Tax Report can be found by visiting the Online Services Center at www.revenue.pa.gov. Page 1 of RCT-101 contains a checkbox labeled Regulated Investment Co/Sub Paragraph 18. This box must be checked for any report requiring a special calculation of tax liability or any of the conditions listed below. These reports cannot be submitted electronically and must be filed in paper form, with a complete explanation of the filing, to ensure timely and accurate process- ing. See Page 4 “Special Handling” for the mailing address. Examples of reports having “Special Handling” status include those filed by: • Corporations requesting extra-statutory treatment beyond that provided by law; • Corporations with two distinct activities like warehousing/ truck- ing & distribution/trucking or persons/transportation & proper- ty/transportation; • Corporations having net operating loss (NOL) limitations under IRC Section 381 and IRC Section 382; and • Corporations filing any tax report for a tax year beginning prior to 2001. • Corporations whose corporate net income tax or apportion- ment figure exceeds 13 digits. CT-1 INSTRUCTIONS
Transcript
FOR CALENDAR YEAR 2016 AND FISCAL YEARS BEGINNING IN 2016PLEASE CAREFULLY REVIEW HIGHLIGHTS BEFORE COMPLETING
ANY TAX REPORTS OR SCHEDULES.HIGHLIGHTS
1. NEW: The Capital Stock/Foreign Franchise tax has beenphased out for tax years beginning on or after Jan. 1, 2016.
2. NEW: RCT-101, PA Corporate Net Income Tax Report for2016 is a revised, year-specific, four page form. It includes arevised Page 1, eliminating CS-FF and LOANS from Step D.It also includes a revised Page 2, Bonus Depreciation, Corpo-rate Net Income Tax and Sales Factor apportionment. Thisform MUST be used for filing all tax years beginning on orafter Jan. 1, 2016.
3. NEW: Taxpayers claiming Add-Back on RCT-101, PA Corpo-rate Net Income Tax Report, must include schedules REV-802and REV-803 when filing the report. Act 52 of 2013 requiresthe add-back of intangible expenses to income for interest,royalties, patents, trademarks, etc., between affiliated entitiesin certain instances.
4. NEW: Amended reports filed for tax years beginning on orafter Jan. 1, 2016, MUST be filed on the revised, year-spe-cific RCT-101. You must check the amended report checkboxon Page 1, Step B. See Page 11 for details.
5. IMPORTANT: Amended reports filed for tax years beginningprior to Jan. 1, 2016, MUST be filed on the non-year-specificRCT-101. You must check the amended report checkbox onPage 1, Step B. See Page 11 for details.
6. Failure to submit a properly completed and signed tax reportmay result in the delay of processing and the imposition of latefiling penalties and/or estimated assessments.
7. IMPORTANT: Taxpayers granted an extension to file the fed-eral income tax return will automatically be granted an exten-sion to file RCT-101, PA Corporate Net Income Tax Report.Corporate taxpayers granted a federal extension must indi-cate this by checking the "Federal Extension Granted"box under Step B on Page 1 of RCT-101, and include a copyof the federal extension request with the report.
8. Act 52 of 2013 increased the limitation of the net loss deduc-tion from the greater of 25 percent of PA taxable income or $4million to the greater of 30 percent of PA taxable income or $5million.
9. Corporations participating in a consolidated federal tax filingmust provide consolidating income statements and balancesheets to the department, including separate company sched-ules and all consolidations and eliminations.
10. Business income will be apportioned to Pennsylvania by useof the sales factor only.
11. The electronic funds transfer requirement was reduced from$10,000 to $1,000; all payments of $1,000 or more must bemade electronically.
12. The PA corporate tax report and schedules are available onthe PA Department of Revenue’s website atwww.revenue.pa.gov and are indexed by form number. Theform numbers for supporting schedules begin with “REV”.These numbers can be found on Page 2 of the instructions.
Tax rates for years beginning in 2016 2017Corporate Net Income Tax 9.99 % 9.99 %
IMPORTANT - Use the department’s website to stay up-to-dateon tax law changes, tax rates, tax forms and special instructionsregarding form changes.Estimated payments and requests for extension of time to fileshould be made online. Visit the Online Services Center at www.revenue.pa.gov.All third party preparers who prepared 11 or more PA CorporateNet Income Tax Reports in the prior calendar year are requiredto electronically file all PA Corporate Net Income Tax Reports insubsequent years. Once a third-party preparer is subject to thisfiling mandate, the third-party preparer shall continue to be sub-ject to the mandate regardless of how many PA Corporate NetIncome Tax Reports the individual prepares during a calendaryear.For information on refunds and transfers of overpayment, seePage 14.Page 1 of RCT-101 contains a check box labeled “E-File OptOut.” This box is used to indicate that the taxpayer has instruct-ed the preparer to not file the report electronically. A list of soft-ware vendors approved for electronic filing of the PA CorporateNet Income Tax Report can be found by visiting the OnlineServices Center at www.revenue.pa.gov.Page 1 of RCT-101 contains a checkbox labeled RegulatedInvestment Co/Sub Paragraph 18. This box must be checked forany report requiring a special calculation of tax liability or any ofthe conditions listed below. These reports cannot be submittedelectronically and must be filed in paper form, with a completeexplanation of the filing, to ensure timely and accurate process-ing. See Page 4 “Special Handling” for the mailing address.Examples of reports having “Special Handling” status includethose filed by: • Corporations requesting extra-statutory treatment beyond
that provided by law; • Corporations with two distinct activities like warehousing/ truck-
ing & distribution/trucking or persons/transportation & proper-ty/transportation;
• Corporations having net operating loss (NOL) limitationsunder IRC Section 381 and IRC Section 382; and
• Corporations filing any tax report for a tax year beginning priorto 2001.
• Corporations whose corporate net income tax or apportion-ment figure exceeds 13 digits.
All business entities that have elected to file as a corporationwith the IRS:• Corporation• Business Trust• Limited Liability Company• S Corporation that has Built-in Gains or• Any other entity electing to file as a corporation under federal Check the Box rule• Any corporation whose activity exceeds P.L. 86-272 Solicitation Only
To obtain tax instructions, single copies of PA corporation taxforms, coupons or brochures, use one of these services:Internet: www.revenue.pa.govToll-Free Phone Services1-888-PATAXES (1-888-728-2937)
Touch-tone service is required for this automated 24-hourtoll-free line.Call to order forms or check the status of a corporate taxaccount.
Automated 24-hour Forms Ordering Message Service1-800-362-2050 Serves taxpayers without touch-tone phoneservice.
Services for Taxpayers with Special Hearing and/orSpeaking Needs1-800-447-3020 (TTY only)
Written Requests:PA DEPARTMENT OF REVENUETAX FORMS SERVICE UNIT1854 BROOkWOOD STHARRISBURG PA 17104-2244
Online Customer Service CenterFind the answer to your question using the department’s OnlineCustomer Service Center at www.revenue.pa.gov.
Pennsylvania Tax UpdateStay up-to-date on Department of Revenue news with the PATax Update, a free, bi-monthly e-newsletter. Visitwww.revenue.pa.gov to sign up for a PA Tax Update e-alert.
RCT-101-PA CORPORATE TAX REPORT, RCT-101-I-INACTIVE PA CORPORATE TAX REPORT, RCT-101D-DECLARATION OF DE MINIMIS ACTIVITY, RCT-128C-REPORTS OF CHANGE IN CORPORATE NET INCOME TAX
If you are including payment, please use the followingaddress:
PA DEPARTMENT OF REVENUEPAYMENT ENCLOSEDPO BOX 280427HARRISBURG PA 17128-0427
If you are requesting a refund or transfer of credit, pleaseuse the following address:
PA DEPARTMENT OF REVENUEREFUND REQUESTEDPO BOX 280706HARRISBURG PA 17128-0706
If you are neither including payment nor requesting a refundor transfer of credit, please use the following address. Thisincludes reports when payment was made electronically.
PA DEPARTMENT OF REVENUENO PAYMENT, NO REFUNDPO BOX 280708HARRISBURG PA 17128-0708
TAX CREDITS CONTACT NUMBERS
FORMS ORDERING SERVICES
MAILING ADDRESSES
CONTACT NUMBERS ONLINE SERVICES
WHERE TO FILE
FORMS ORDERING SERVICES CONT.WHO MUST FILE
WHAT’S NEW
REV-857-ESTIMATED TAX PAYMENTS PA DEPARTMENT OF REVENUE
BUREAU OF CORPORATION TAXES327 WALNUT ST FL 3PO BOX 280422HARRISBURG PA 17128-2005
CT-V-FED/STATE PAYMENT VOUCHER PA DEPARTMENT OF REVENUE
BUREAU OF CORPORATION TAXES327 WALNUT ST FL 3PO BOX 280427HARRISBURG PA 17128-2005
REV-853-ANNUAL EXTENSION PA DEPARTMENT OF REVENUE
BUREAU OF CORPORATION TAXES327 WALNUT ST FL 3PO BOX 280425HARRISBURG PA 17128-2005
REV-854-EIN/FILING PERIOD/ADDRESS CHANGE PA DEPARTMENT OF REVENUE
BUREAU OF CORPORATION TAXES327 WALNUT ST FL 3PO BOX 280701HARRISBURG PA 17128-0701
REV-1605-SCHEDULE CO-NAME OF CORPORATEOFFICERS PA DEPARTMENT OF REVENUE
BUREAU OF CORPORATION TAXES327 WALNUT ST FL 3PO BOX 280701HARRISBURG PA 17128-0701
REV-976-ELECTION NOT TO BE TAXED AS APENNSYLVANIA S CORPORATION PA DEPARTMENT OF REVENUE
BUREAU OF CORPORATION TAXESPA “S” UNITPO BOX 280701HARRISBURG PA 17128-0701
PA-20S/PA-65, PA S CORPORATION/ PARTNERSHIPINFORMATION RETURN PA DEPARTMENT OF REVENUE
BUREAU OF INDIVIDUAL TAXESPO BOX 280509HARRISBURG PA 17128-0509
OVERNIGHT MAILING PA DEPARTMENT OF REVENUE
BUREAU OF IMAGING AND DOCUMENT MANAGEMENT1854 BROOKWOOD STHARRISBURG PA 17104-2244
SPECIAL HANDLING (see cover page for instruction and examples) PA DEPARTMENT OF REVENUE
BUREAU OF CORPORATION TAXESPO BOX 280704HARRISBURG PA 17128-0704
NOTICE OF ADjUSTMENT LETTERIf you believe the adjustments are in error, please contact thedepartment via email at: [email protected]
4 REV-1200 www.revenue.pa.gov
MAILING ADDRESSES CONT.
EMAIL ADDRESSES
NEW FOR 2016
The Capital Stock/Foreign Franchise tax has been phased out fortax years beginning on or after Jan. 1, 2016. This means that manybusiness types such as S corporations, LLC’s taxed as pass-through entities and business trusts that are not federally taxed asa C corporation will need to file their final RCT-101 corporation taxreport for the 2015 reporting period. These reports must be markedas final reports.
Corporations not subject to the PA corporate net income tax for theyears mentioned above include, single member LLC’s, Multi Mem-ber LLC’s taxed as a partnership or S corporation, Business Trustsand PA S corporations (except PA S corporations that have Built-In-Gains). Solicitation only corporations would also no longer berequired to file a RCT-101, PA Corporate Net Income Tax Report,unless activity exceeds solicitation only.
Corporations subject to the PA corporate net income tax (includingPA S corporations that have Built-In-Gains) must continue to file aPA corporate net income tax report.
RCT-101 is a revised, year specific, four page form and includes arevised Page 1, eliminating CS-FF and LOANS from Step D. It also
includes a revised Page 2, Bonus Depreciation, Corporate NetIncome Tax, and Sales Factor Apportionment (Schedule C-1). UseONLY this year-specific RCT-101 for filing all tax years beginning onor after Jan. 1, 2016. All reports for tax years beginning prior to Jan.1, 2016 MUST be filed on the non-year-specific RCT-101. Theseforms can be found on the department’s website atwww.revenue.pa.gov.
RCT-101-I, Inactive PA Corporate Net Income Tax Report, is arevised, year-specific form. It includes a revised Page 1, eliminatingCS-FF and LOANS Tax. This form MUST be used for filing all taxyears beginning on or after Jan. 1, 2016. All reports for tax yearsbeginning prior to Jan. 1, 2016 MUST be filed on the non-year-spe-cific RCT-101. These forms can be found on the department’s web-site at www.revenue.pa.gov.
Amended reports filed for tax years beginning on or after Jan. 1,2016, MUST be filed on the revised, year-specific RCT-101. Youmust check the Amended Report checkbox on Page 1, Step B, andinclude REV-1175 with the report. Amended reports filed for taxyears beginning prior to Jan. 1, 2016, MUST be filed on the non-year-specific RCT-101. You must check the Amended Reportcheckbox on Page 1, Step B, and include REV-1175 with the report.
Act 52 of 2013 requires the add-back of intangible expenses toincome for interest, royalties, patents, trademarks, etc.,between affiliated entities in certain circumstances.
Taxpayers claiming Add-Back on RCT-101, PA Corporate NetIncome Tax Report, must provide schedules REV-802 andREV-803 by submitting them with RCT-101.
Completing the sales factor as 0/0, leaving the sales factorfield blank or typing “none” in this field will result in apportion-ment being changed to 100 percent in Pennsylvania, automat-ically changing the reported tax liabilities. A corporation with nosales both inside and outside Pennsylvania should completeSCHEDULE C-1 on Page 2 of RCT-101, using “0” as thenumerator and “1” as the denominator.
Failure to submit a properly completed and signed tax reportmay result in the delay of processing and the imposition of latefiling penalties and/or estimated assessments.
The penalty imposed for failure to file reports when due is aminimum of $500, regardless of the determined tax liability,plus an additional 1 percent of any determined tax liability over$25,000.
Taxpayers filing a full year report and disclosing a bulk saleshould not fill in the bulk sale checkbox on Page 3 of RCT-101, PA Corporate Net Income Tax Report. Rather, you mustcomplete REV-181, Application for Tax Clearance Certificateand mail separately to the Bureau of Compliance. DO NOTsend with RCT-101.
If a taxpayer is filing a short period report and has a bulk sale,you must fill in the bulk sale checkbox on Page 3 of RCT-101.You must also complete REV-181, Application for Tax Clear-ance Certificate and mail separately to the Bureau of Compli-ance. DO NOT send with RCT-101.
REV-1200 5www.revenue.pa.gov
When filing a PA Corporate Net Income Tax Report, RCT-101, all corporate taxpayers are required to include forms and schedules to supportthe calculation of the tax liability. The type of information required depends on how the entity reports income to the IRS. The following chart liststhe forms and schedules the taxpayer must include with the RCT-101 each year. This list is not meant to be all-inclusive. Explanation of formsappears on Pages 17-20.
Federal Form 1120,
Federal Form 1120C,
Federal Form 1120S,(Taxpayer elected tonot be taxed as aPennsylvania S Corporation)
Federal Form 1120F,or
Any other CorporateIncome Tax Return
Corporation
Business Trust
Limited Liability Company or
S Corporations that have Built-inGains
Any other entity electing to fileas a corporation under federalCheck the Box rules
WHAT MUST BE INCLUDED WITH THE pA CORpORATE NET INCOME TAx REpORT
IF TAXPAYERIS ORGANIzED AS TAXPAYER MUST PROVIDE THE FOLLOWING WITH RCT-101TAXPAYER FILES
WITH THE IRS 1. Complete copy of federal income tax return, on separate company basis, with all supporting sched-
ules. Corporations participating in a consolidated federal income tax filing must provide consolidatingincome statements and balance sheets to the department, including separate company schedules andall consolidations and eliminations.
2. Completed federal Schedules L, M-1 & M-2 regardless of federal requirements.*
3. Consolidated balance sheet (Corporation owns more than 50 percent of another corporation). SeePage 11 of these instructions.
4. RCT-103 to support net operating loss carry-forward, if applicable.
5. Schedules C-3 and C-4 to support adjustments for bonus depreciation, if applicable.
6. REV-934, Schedule of Non-Business Income, if applicable.
7. Other supporting statements if necessary, with references to supporting statements on the applicable form.
8. REV-798, Schedule C-2, Dividend Deduction, if applicable and Schedule X, if applicable.
9. REV-860, Schedule C-5, OA and OD
10. RCT-106, Insert Sheet
*Taxpayers required to file federal Schedule M-3 may submit such in lieu of federal Schedule M-1.
REMINDERS
WHEN IS A FORM OR SCHEDULE REQUIRED?
Schedule C-4REV-799
RCT-103
Schedule C-2REV-798
Schedule C-3REV-799
Schedule C-5REV-860
Schedule OAREV-860
Schedule ODREV-860
Support of Net OperatingLoss Deduction
Support of DividendDeduction
Bonus DepreciationAdjustment
Adjustment for Sale ofSec. 168(k) Property
Schedule of Tax Expense
Other Additions
Other Deductions
Is deducting a net operating loss carry-forward in the calculation of corporate net income tax.
Is claiming a Dividend Received Deduction in the calculation of corporate net income tax.
Is claiming a deduction to recover disallowed federal bonus depreciation in the calculation ofcorporate net income tax.
Is claiming a deduction to recover remaining federal bonus depreciation in the calculation ofcorporate net income tax in the year an asset is sold.
Is subject to corporate net income tax and reports taxes paid as an expense on the federalincome tax return.
Is reporting an "Other Addition" on RCT-101, Section C, Line 3E.
Is reporting an "Other Deduction" on RCT-101, Section C, Line 2D.
RCT-106 Support of Sales FactorApportionment or SpecialApportionment
Has taxable activity in at least one other state and is apportioning income to the other statebased on sales. RCT-106 is also required by taxpayers who are required to utilize specialapportionment methods (revenue miles, etc.).
Has more than 50 percent of its stock owned by another corporation, individual or other busi-ness entity or owns more than 50 percent of another corporation.
Schedule XREV-798
Parent and SubsidiaryCorporations
REV-986 Schedule to DetermineCorporate Net Income TaxFiling Requirement
Activity exceeds Solicitation Only - P.L. 86-272
REV-934 Schedule of Non-BusinessIncome
Is claiming non-business income.
Schedule ARREV-1175
Schedule to ProvideReason for Filing anAmended Report andSummary of Change in TaxLiability for AmendedReport
Is amending a PA Corporate Net Income Tax Report.
FORM USED FOR REQUIRED WHEN CORPORATE TAXPAYER
REV-802 Add-Back for IntangibleExpense or RelatedInterest Expense
Is adding back intangible expense or related interest expense.
REV-803 Claiming a Credit for TaxPaid by Affiliated Entities
Is claiming a credit for tax paid by affiliated entities.
6 REV-1200 www.revenue.pa.gov
1. A completed RCT-101 KOZ, showing the calculation of the credit. 2. A copy of the Keystone Opportunity Zone approval letter issued by the Department of Community and
Economic Development for the current year.
Claiming the Keystone Opportunity Zone/KeystoneOpportunity Expansion Zone or Strategic DevelopmentArea Credit.
Schedule W – Certifications for New Employees.Claiming an Employment Incentive Payment Credit.
Apportioning income for the first time.
Filing the final PA Corporate Net Income Tax Report.
In certain situations corporate taxpayers are also required to provide additional information when filing RCT-101. Examples of these are as follows.
IF THE CORPORATE TAXPAYER IS TAXPAYER MUST ALSO PROVIDEA copy of a tax return from another state.
A complete Schedule DA - Disposition of Assets Schedule (REV-861).
Assemble the completed PA Corporate Net Income Tax Reportin the following order. Failure to submit a properly completedand signed report may result in the delay of processing andthe imposition of late filing penalties and/or estimatedassessments.1. RCT-101, PA Corporate Net Income Tax Report, Pages 1
through 4 completed and assembled in order.2. RCT-103, Net Operating Loss Schedule, if applicable.3. Federal Form 7004, if applicable4. Pennsylvania Extension Approval Letter, if applicable5. Pennsylvania schedules and forms, as required and in the
following order: • REV-1175, Schedule AR - If filing an amended PA
Corporate Net Income Tax Report. • REV-798, Schedule C-2, Dividend Deduction • REV-798, Schedule X
• REV-799, Schedule C-3, Adjustment for BonusDepreciation
• REV-799, Schedule C-4, Adjustment for Disposition ofSection 168(k) Property & Recapture of Depreciation onListed Property
• REV-860, Schedules C-5, OA and OD • RCT-106, Insert Sheet • REV-934, Schedule of Nonbusiness Income6. All other documentation to support the RCT-101, PA
Corporate Net Income Tax Report7. Complete federal tax return and supporting schedules, as
required: • Federal Form 1120 • Federal Form 1120C • Federal Form 1120S8. Consolidating schedules, when applicable
ASSEMBLY OF THE COMpLETEDpA CORpORATE TAx REpORT RCT-101 pACKAGE
FEDERAL S CORPORATIONS The Capital Stock/Foreign Franchise tax has been phased outfor tax years beginning on or after Jan. 1, 2016. However, PA SCorporations that have built-in gains are required to file RCT-101.
Any federal subchapter S corporation that does not desire to bea Pennsylvania S corporation must file the Election Not to beTaxed as a Pennsylvania S Corporation, REV-976, on or beforethe due date or extended due date of the report for the first yearin which the election is to be in effect. This election must besigned by all of the shareholders and once made cannot berevoked for five years. The completed REV-976 should bemailed to the following address:
BUREAU OF CORPORATION TAXES PA “S” UNIT PO BOX 280701 HARRISBURG PA 17128-0701
To revoke an election not to be taxed as a PA S Corporation, thecorporation must send a letter signed by shareholders holdingmore than one-half of the shares of stock of the corporation onthe day on which the revocation is made. This letter must con-tain the name of the corporation, federal EIN, Revenue ID num-ber and the effective date of the revocation. If no effective dateis provided, the revocation will be effective for the first tax periodfor which the revocation was timely submitted. In the case of acorporation with qualified subchapter S subsidiaries, the lettermust also include the names and Revenue ID numbers of allqualified subchapter S subsidiaries doing business in Pennsyl-vania.
Qualified subchapter S subsidiaries may not be Pennsylvania Scorporations, or elect not to be Pennsylvania S corporations,separate from the parent corporation. Federal subchapter S cor-
porations doing business in Pennsylvania that do not make thiselection are required to file both RCT-101 and PA-20S/PA-65,and the shareholders of these corporations must report theincome from these corporations on their PA personal income taxreturns.
IMPORTANT: This election must be filed by all federal subchap-ter S corporations that do not want to be taxed as PennsylvaniaS corporations, regardless of any prior actions taken by a corpo-ration on this issue.
If a corporation has elected to be taxed as an S corporation forfederal tax purposes, but has elected not to be taxed as a PA Scorporation, it must: (1) complete Section B of RCT-101, (2)include a copy of federal Form 1120S with the PA Corporate NetIncome Tax Report, and (3) include a schedule reflecting adjust-ments to Line 21 of federal Form 1120S for the pass-throughitems on Schedule K, Shareholders’ Share of Income, Credits,Deductions, etc. These adjustments should produce taxableincome similar to that for a C corporation and must be reportedin Section B, Line 1 of the RCT-101.
INACTIVE CORPORATIONSInactive corporations must complete and file form RCT-101-I.Only skeleton corporations - those performing no business activ-ity and owning no assets anywhere - may use the RCT-101-I.Corporations that have business activity outside Pennsylvaniamust complete and file the PA Corporate Net Income TaxReport, RCT-101. A copy of federal Form 1120 must be includedand apportionment fractions must be reported.
CAUTION: Prior period forms are not acceptable. Do not useforms for other years when filing a PA Corporate Net Income TaxReport, RCT-101, or an Inactive PA Corporate Net Income TaxReport, RCT-101-I.
GENERAL INSTRUCTIONS
pENNSYLVANIA CORpORATE TAx REpORTINSTRUCTIONS FOR FORM RCT-101
REV-1200 7www.revenue.pa.gov
COPY OF FEDERAL FORM 1120, 1120C OR 1120SIMPORTANT: A copy of the federal income tax return - Form1120, 1120C, 1120S, or other applicable federal form must beincluded with the PA Corporate Net Income Tax Report. This isin addition to any requirement to supply a copy of the federal taxreturn with any other filing.
Pennsylvania does not allow consolidated filing of corporate taxreports. A corporation filing a consolidated return to the federal government must include the following:
1. Separate company income statement reflecting taxableincome that would have been returned to and ascertainedby the federal government, if a separate return had beenmade to the federal government.
2. Separate company balance sheet reflecting financial posi-tion of the taxpayer at the beginning and end of the taxableperiod, if separate return had been made to the federal gov-ernment. A corporation with subsidiaries also must includea consolidated balance sheet.
3. Schedules reflected on the federal Form 1120, 1120C or1120S on a separate company basis, including a scheduleof taxes expensed.
4. Corporations participating in a consolidated federal incometax filing must provide consolidating income statements andbalance sheets to the department, including separate com-pany schedules and all consolidations and eliminations.
CAUTION: Failure to submit a properly completed and signedreport may result in the delay of processing and imposition oflate filing penalties and/or estimated assessments.
CONFIRMATION OF “DEPOSITS ON ACCOUNT”FOR A NON-FILED TAX YEAR.Prior to filing a PA Corporate Net Income Tax Report, taxpayerscan confirm the total amount of deposits on account by calling1-888-PATAXES (728-2937). You will be asked to enter yourRevenue ID number and a specific tax year. Once confirmed,the system will provide:
1. Total deposits by tax type for a specific tax year; or
2. A detailed response for each cash deposit and credit by taxtype for a specific tax year. (Note: “restricted credits” areNOT uniquely identified by name of program) The systemwill provide details on up to 20 transactions.
HOW TO PAYIf the total taxes owed are less than $1,000, you may send acheck, made payable to the PA Dept. of Revenue, enclosed withthe tax report, to the address listed on Page 3.
ELECTRONIC PAYMENT REQUIREMENTThe PA Departments of Treasury and Revenue have implement-ed programs that enable taxpayers to pay certain taxes elec-tronically. All payments of $1,000 or more must be remittedelectronically or by certified or cashier’s check remitted in per-son or by express mail courier. Failure to make a payment by anapproved method may result in the imposition of a 3 percentpenalty of the tax due, up to $500. For information on electronicfiling options, visit the Online Services Center atwww.revenue.pa.gov.
DUE DATE OF REPORT AND PAYMENTThe PA Corporate Net Income Tax Report, RCT-101, is due 30days after the federal due date for both calendar and fiscal yearfilers. Domestic International Sales Companies (DISC) must fileon or before the 15th day of the 10th month following the closeof the fiscal year. If the due date falls on a Saturday, Sunday orholiday, the report is due the next business day.
FILING REQUIREMENTSFirst reports of domestic corporations must begin with the dateof incorporation. All domestic corporations are required to fileannual reports even if no business activity was conducted dur-ing the taxable period.
First reports of foreign corporations must begin with the begin-ning date of the fiscal period in which the Certificate of Authoritywas issued or the date Pennsylvania activity began, whicheverdate is earlier.
IMPORTANT: All corporations are required to file annual reportseven if no business activity was conducted within the common-wealth during the tax period. In general, PA Corporate NetIncome Tax Reports are due 30 days after the original due dateof the federal tax return.
OUT-OF-EXISTENCE/WITHDRAWALA PA corporation that has ceased doing business and complete-ly or totally divested itself of ALL assets, or a foreign corporationthat has ceased to do business in Pennsylvania and liquidatedALL PA assets may be relieved of the responsibility of filing cor-porate tax reports by indicating Final Report in Section C, Cor-porate Status Change, found on Page 3 of RCT-101.
NOTE: Entities formed under the laws of the Commonwealth ofPennsylvania must answer the questions under “PA Corporations” in this section. Entities formed under the laws ofanother jurisdiction are required to answer the questions under“Foreign Corporations”.
By completing this section of RCT-101, a corporate taxpayerwishing to be removed from the active records of the PADepartment of Revenue will no longer be required to file the Outof Existence/Withdrawal Affidavit. However, taxpayers desiringto dissolve or formally withdraw with the Department of State arestill required to file an Application for Corporate Clearance, REV-181.
To qualify for out-of-existence or withdrawn status, the corpora-tion must:
1. File all corporate tax reports and pay all taxes due the commonwealth up to and including the date of cessation ofactivities and divestiture of assets. Where capital assetshave been sold prior to liquidation, complete in detail aschedule reflecting the gain or loss realized as a result ofthe sale.
2. Include with the corporate tax reports a “Disposition ofAssets,” Schedule DA, REV-861, which must reflect thedate or dates of divestiture of all assets. Where a distribu-tion of assets is made directly by the corporation to itsshareholders in return for their stock, include with the“Distribution of Assets,” a copy of federal Form 1099-DIV.
CAUTION: Failure to submit the “Distribution of Assets”could delay the acceptance of the return as a final reportresulting in continued corporate tax reporting requirements.Corporate taxpayers reporting the disposition of PA realestate must provide evidence that the transfer of title has
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been filed with the Recorder of Deeds of the respectivecounty. This information must be provided in order to beremoved from the active records of the Bureau ofCorporation Taxes.
PA corporations that never transacted business or held title toassets, or foreign corporations that never transacted business inPennsylvania, are required to file annual tax reports until theyfile final returns and qualify for out-of-existence or withdrawnstatus. Such inactive corporations should mail the executedOut-of-Existence/ Withdrawal Affidavit, REV-238, directly to:
PA DEPARTMENT OF REVENUEBUREAU OF COMPLIANCEPO BOX 280947HARRISBURG PA 17128-0947
BULk SALESTaxpayers filing a full year report and disclosing a bulk sale,should not fill in the bulk sale checkbox on Page 3 of the PA Cor-porate Net Income Tax Report. Rather, you must complete REV-181, Application for Tax Clearance Certificate and mailseparately to the Bureau of Compliance. DO NOT send with thePA Corporate Net Income Tax Report.
If a taxpayer is filing a short period report and has a bulk sale,fill in the bulk sale checkbox on Page 3 of the PA Corporate NetIncome Tax Report. You must also complete REV-181, Applica-tion for Tax Clearance Certificate, and mail separately to theBureau of Compliance. DO NOT send with the PA Corporate NetIncome Tax Report.
REINSTATEMENTA corporation considered out-of-existence through the accept-ance of an affidavit may reinstate with the PA Department ofRevenue by confirming with the PA Department of State, that thecorporation name is available for use by calling 717-787-1057.A corporation considered out-of-existence/withdrawn, must bereinstated on Department of Revenue records before its corpo-rate franchise can again be utilized. This can be effected by fil-ing PA Corporate Net Income Tax Reports from the date ofout-of-existence status through the end of the last calendar orfiscal period of no activity. Taxpayer’s filing RCT-101-I for thispurpose must check the reinstatement box found in Step J, Cor-porate Status Changes, and enter the beginning date of the firsttax period in which business resumed (effective date).
RECORDING DOLLAR AMOUNTSAll RCT-101 forms and schedules must show money amounts inwhole-dollars. Eliminate any amount less than $0.50 andincrease any amount that is $0.50 or more to the next highestdollar.
Negative amounts should be written as follows: -3,456.
FILING PERIODReports must be filed on the same filing basis as reported to thefederal government. Where a change in filing period hasoccurred, the taxpayer must provide the new month, day andyear by electronically filing REV-854 using the Online ServicesCenter at www.revenue.pa.gov. Indicate a permanent changein filing period on the RCT-101 (Page 1, Step B).
EXTENSION OF TIME TO FILEA request for an extension of time to file must be submitted onor before the due date of the PA Corporate Net Income TaxReport.
Taxpayers granted an extension to file the federal income taxreturn will automatically be granted an extension to file PA Cor-porate Net Income Tax Report, RCT-101. Corporate taxpayersgranted a federal extension must indicate this on Page 1 ofRCT-101 and include a copy of the federal extension requestwith the report.
Corporations that do not request an extension to file the federalincome tax return may still request a 60-day extension to file thePA Corporate Net Income Tax Report. To apply for an annualextension, complete the Annual Extension Request, REV-853,electronically using the Online Services Center atwww.revenue.pa.gov. After review by the PA Department ofRevenue, you will receive written notification as to whether yourextension was approved or denied.
You may also use REV-853 to make an annual tax payment withthe extension request. If the taxes total more than $1,000, youmust make the required payment by an electronic paymentmethod. (Refer to Page 8, Electronic Payment Requirement.)
All payments of $1,000 or more must be made electronically orby certified or cashier’s check remitted in person or by expressmail courier.
PENALTIES IMPOSED FOR FAILURE TO FILEREPORTS WHEN DUEIf a report is filed late, the taxpayer should wait until assessedby the department to remit the penalty amount. Interest does notaccrue on penalties. Do not include penalty with tax amountsreported on form RCT-101.
The penalty imposed for failure to file reports when due is nowa minimum of $500, regardless of the determined tax liability,plus an additional one percent of any determined tax liabilityover $25,000.
INTERESTInterest is charged on late payments received after the due dateof a tax report. Taxpayers should not precalculate interest orinclude interest with the tax amount reported on the RCT-101(Step D, Column A). The department will forecast interest onunpaid tax balances and provide a notice to the taxpayer.Taxpayers may request a payoff of unpaid balances (thatincludes interest on unpaid tax and collection agency fees, ifapplicable) by contacting the Bureau of Corporation TaxesAccounting Division at 717-705-6225.
TRANSFERS/REFUNDS OF CORPORATE TAXESAfter completing Step D on Page 1 of the RCT-101 AnnualReport, if an overpayment exists taxpayers must instruct thedepartment to either transfer any available credit to the next taxyear or consider any available credit for refund, or both, underStep F. If no option is selected, the department will automaticallytransfer any overpayment to the next tax year for estimated taxpurposes after offsetting current period liabilities and otherunpaid liabilities within the account. A tax period overpaymentsummary will be mailed to the taxpayer confirming the disposi-tion of the credit.
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ASSIGNMENT OF TAX CREDIT (OVERPAYMENT)Department regulation (61 Pa. Code 151.21-151.22) providesauthorization for taxpayers to assign a credit to another taxpay-er. To accomplish the assignment, the Department of Revenuerequires both assignor and assignee to complete REV-774,Assignment of Tax Credit.
Only credits that meet the following conditions can be assigned:
• All taxes (corporate, sales/use, employer withholding, liquidfuels, etc), interest, penalties, fees and additions to taxowed by the taxpayer (assignor) must be paid in full.
• Restricted credits (credits originating from special creditprograms) may be sold or assigned. These credits includethe Research and Development Tax Credit (R&D), FilmProduction Tax Credit (FPT), Neighborhood Assistance TaxCredit (NAT), Resource Enhancement and Protection TaxCredit (REAP), Keystone Innovation Zone Tax Credit (KIZ),Keystone Special Development Zone Credit (KSDZ),Historic Preservation Tax Credit (HPTC), and Coal RefuseEnergy and Reclamation Tax Credit (CRER).
• For information regarding the sale or assignment of R&D,KIZ, NAT, FPT, HPTC and KSDZ credits, call theDepartment of Community and Economic Development at717-787-7120 or visit www.NewPa.com.
• For information regarding the sale or assignment of REAPtax credits, call the State Conservation Commission at 717-705-4032 or visit http://www.agriculture.pa.gov/Protect/StateConservationCommission/REAP/Pages/default.aspx
Additional information regarding the sale or assignment of taxcredits can be obtained from Corporation Tax Bulletin 2014-04found on the Department of Revenue website atwww.revenue.pa.gov.
Call the Bureau of Corporation Taxes Accounting Division at 717-705-6225 if you have questions regarding credit assign-ment or restricted credits limitations or to request the REV-774Assignment of Tax Credit Form. The form can also be found atwww.revenue.pa.gov.
Send REV-774 directly to:
PA DEPARTMENT OF REVENUEBUREAU OF CORPORATION TAXESACCOUNTING DIVISIONPO BOX 280701HARRISBURG PA 17128-0701
DEPARTMENT NOTICESNotice of Adjustment – This notice provides a copy of thechanges if the department made one or more adjustment thatresulted in a recalculation of tax. The accompanying worksheetdetails the amounts originally reported and the adjustmentsmade by the department.
The notice also provides instructions for amending if taxpayersbelieve they submitted incorrect data on the original report, andinstructions of what taxpayers should do if they believe thedepartment’s adjustments are in error.
Assessment Notice – This notice is provided to taxpayers asofficial notification of an unpaid or underpaid balance due thecommonwealth. Balances include tax, interest, penalty, otherfees and forecasted interest. The elements of the notice areunique to a specific tax type and tax period. The date of the
notice establishes a lien with the commonwealth and initiatesthe window to petition for reassessment. Taxpayers must filepetitions for reassessment on or before the due dates specifiedon notices. For additional information visit the Board of Appealswebsite at www.boardofappeals.state.pa.us.
Basis of Assessment – Attached to every Assessment Noticeis a Basis of Assessment, which explains the adjustments madeby the department in the determination of the liability. This is inaddition to other detailed worksheets that may have been pre-pared and provided to the taxpayer.
Estimated Assessment Notice – This notice identifies estimat-ed liabilities that have been imposed for a specific tax type andtax period. Estimated liabilities are imposed for failure to file acomplete PA Corporate Net Income Tax Report. The assess-ment includes tax, interest and penalties that represent a firstlien upon the entity’s franchise and property, both real and per-sonal. These liabilities are not subject to appeal. To resolve theestimate, taxpayers must file a complete PA Corporate NetIncome Tax Report. The Department of Revenue is required toremove estimated assessments 90 days following receipt of acomplete PA Corporate Net Income Tax Report.
Tax Period Overpayment Summary – This notice confirms thedisposition of a tax overpayment. Tax credits may develop fromthe filing of tax reports, adjustments to a tax liability by theDepartment of Revenue and the Department of the AuditorGeneral, tax relief granted from various levels of appeal or fromaccount maintenance initiated by the department.
Statement of Account – This notice provides a summary of ataxpayer’s account. Three categories of information are con-tained on the notice:
• Summary of Active (filed) tax periods – Tax periods dis-played include the three most recently filed periods andthose with open, unpaid balances.
• Summary of Non-filed tax periods (includes estimatedtax and estimated prepayments) – Tax periods displayedinclude the current non-filed tax period estimated prepay-ments and restricted credits.
• Summary of Restricted Credits – This section includes asummary of restricted tax credits available for futureperiods.
• Business taxpayers and tax practitioners now have the abil-ity to electronically request and receive a more detailed ver-sion of the Statement of Account (e-SOA) in PDF formatthrough the new Document Center section in e-TIDES. Thee-SOA can be requested at any time and is made availablein PDF format in the Document Center to print or downloadon the next business day. The new online delivery savestime and money and provides more up-to-date information.You can access the e-SOA by visiting www.revenue.pa.govand selecting Online Services then select e-TIDES.
The exact steps needed to access the new functionality inthe e-TIDES Document Center varies slightly based onyour current access. To learn more, visit the GetAssistance section in e-TIDES for step-by-step instruc-tions on getting setup to electronically request an e-SOA.
Audit Assessment Notice – This notice is provided to taxpay-ers as official notification of an unpaid or underpaid balance duethe commonwealth as the result of a field audit. Balancesinclude tax, interest, penalty, other fees and forecasted interest.The elements of the notice are unique to a specific tax type andtax period. The date of the notice establishes a lien with thecommonwealth and initiates the window to petition for
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reassessment. Taxpayers must file petitions for reassessmenton or before the due dates specified on notices. For additionalinformation visit the Board of Appeals website atwww.boardofappeals.state.pa.us.
AMENDED REPORTSAmended reports must be filed when requesting the Bureau ofCorporation Taxes to adjust the corporate net income taxes fora particular year. Phone calls and/or letters submitted to thedepartment are not acceptable and will not be considered anamended report.
CAUTION: Amended reports filed for tax years beginning on orafter Jan. 1, 2016, MUST be filed on the revised, year-specificRCT-101. Taxpayers must complete all sections of the report;this includes those sections originally filed and those sectionsbeing amended. The apportionment must be completed with thefactors as originally filed or being amended. This must benumeric with a numerator and a denominator present. If noactivity anywhere, the numerator must be “0” and the denomina-tor must be “1”. The amended report check box under Step B,Page 1 of RCT-101 must be checked and REV-1175 must beincluded with the report.
CAUTION: Amended reports filed for tax years beginning priorto Jan. 1, 2016 MUST be filed on the non-year specific RCT-101. Taxpayers must complete all sections of the report; thisincludes those sections originally filed and those sections beingamended. The apportionment must be completed with the fac-tors as originally filed or being amended. This must be numericwith a numerator and a denominator present. If no activity any-where, the numerator must be “0” and the denominator must be“1”. The amended report check box under Step B, Page 1 ofRCT-101 must be checked and REV-1175 must be included withthe report.
A taxpayer may file an amended report anytime within threeyears of the filing of the original report. When filing the amendedreport the taxpayer must consent to an assessment period ofthree years from the filing of the original report or one year fromthe filing of the amended report, whichever expires last. If youfail to provide such consent the department might not considerthe amended report. This consent to extend the assessmentperiod is included as part of the affirmation statement at the bot-tom of Page 1 of RCT-101. If, after reviewing the amendedreport, the department determines the tax liability reflected onthe taxpayer’s PA corporate tax account is incorrect, an adjust-ment will be made to the liability. The department will then gen-erate a credit for the amount of any overpayment, strike all orpart of any previous assessment or issue an assessment for anyadditional tax liability.
An amended report should only be filed if an original PACorporate Net Income Tax Report, RCT-101, was previouslyfiled for the same tax period. An amended report must containdocumentation to support the adjustment(s).
All amended tax reports must include Schedule AR, REV-1175,which includes a detailed explanation of the reason for filing theamended report and a summary of the change to the tax liability.In completing the Summary of Tax Change, enter the corporatenet income tax; the tax liability currently reflected on the taxpay-er’s account; the amended tax liability; and the amount ofchange in the tax.
When filing an amended RCT-101, the tax liability in Column Aof Step D should reflect the amended liability. Column B, Esti-mated Payments and Credits on Deposit, must reflect the pay-ments and credits on the account at the time the amendedreport is filed. Column C, Restricted Credits, must report the
restricted credits the taxpayer is entitled to based on the filing ofthe amended report.
Amended reports cannot be filed for the following:
1. To challenge PA statute or regulations.
2. To challenge department policy or interpretation of statutesor regulations.
3. For the sole purpose of claiming the report is a final report.IMPORTANT: REV-238 or REV-181 must be filed instead.
4. To change or correct taxpayer information electronicallysuch as the Revenue ID or EIN. Use REV-854 found atwww.revenue.pa.gov and select Online Services, thene-Tides.
5. To change the end of the tax year. (A new original reportmust be filed including an explanation why the original taxyear end was incorrect).
See the following section concerning changes in federal taxableincome. IMPORTANT:
• The filing of an amended PA Corporate Net Income TaxReport does not replace the filing of a petition, nor does itextend a corporate taxpayer’s time to file an appeal.
• The department is not obligated to revise tax due the com-monwealth upon review of an amended report. Its failure torevise tax due the commonwealth is not an appealableaction and will not change any existing appeal rights of thetaxpayer.
CHANGES IN FEDERAL TAXABLEINCOME/REPORTS OF CHANGEChanges in federal taxable income must be reported to thedepartment within the statutory period to report the change. Thisincludes changes in federal taxable income resulting from thetaxpayer filing an amended federal income tax return andchanges initiated by the federal government due to an audit orexamination of the federal return. For tax years beginning priorto Jan. 1, 2013, changes in federal taxable income must bereported to the department within 30 days of the change. Thishas been extended to six months for tax years beginning afterDec. 31, 2012.
If a taxpayer files an amended federal income tax return for aperiod for which the department issued an Official Notice ofSettlement, the taxpayer must report the change on an amend-ed PA Corporate Net Income Tax Report. When completing anamended report, the taxpayer must indicate that the report isbeing filed due to the filing of an amended federal income taxreturn and enter the date on Page 1 that the amended federalreturn was filed.
If a taxpayer files an amended federal return for a period forwhich the department did not issue an Official Notice ofSettlement, the taxpayer must report the change on RCT-128C,Report of Change in Corporate Net Income Tax.
Changes to federal taxable income initiated by the federal gov-ernment as part of an audit or examination of the federal incometax return must be reported on RCT-128C and include the fed-eral audit date or date filed with the IRS, regardless of whetherthe PA corporate net income tax for that period was settled bythe department.
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CAUTIONThe business tax system enables a more robust and analyticalreview of the RCT-101, PA Corporate Net Income Tax Reportdata. To prevent a report from suspending, taxpayers areencouraged to provide a complete and accurate report that willprocess smoothly, following the below tips.
1. The Revenue ID must be present for processing of thereport, along with all other applicable fields in STEP C.
2. NEVER input the word “none” in numeric fields.
3. Checkbox indicators-Pay close attention to all checkboxeswithin the report such as IRS Type (Page 1), STEP B (Page1), SECTIONS C AND D (Page 3) and Schedule of RealProperty (Page 4).
4. Taxpayer’s claiming Add-Back on Page 2 of RCT-101,SECTION B, Line 3E, must provide schedules REV-802and REV-803 by submitting them with RCT-101.
5. If taking a deduction for bonus depreciation, Section A1.,Current Year Federal Depreciation of 168K Property,must be completed on Page 2. Also, REV-799, ScheduleC-3, must be completed and included with the report.
IMPORTANT:RCT-101 is a revised, year specific, four page form and includesa revised Page 1, eliminating CS-FF and LOANS from Step D.It also includes a revised Page 2, Bonus Depreciation,Corporate Net Income Tax, and Sales Factor Apportionment(Schedule C-1). Use ONLY this year-specific RCT-101 for filingall tax years beginning on or after Jan. 1, 2016. All reports for taxyears beginning prior to Jan. 1, 2016 MUST be filed on the non-year specific RCT-101. These forms can be found on the depart-ment’s website at www.revenue.pa.gov.
Amended ReportsAmended reports filed for tax years beginning on or after Jan. 1,2016, MUST be filed on the revised, year-specific RCT-101.You must check the amended report checkbox on Page 1, StepB, and include REV-1175 with the report.
Amended reports filed for tax years beginning prior to Jan. 1,2016, MUST be filed on the non-year-specific RCT-101. Youmust check the amended report checkbox on Page 1, Step B,and include REV-1175 with the report.
Taxpayers must complete all sections of the amended report;this includes those sections originally filed and those sectionsbeing amended. The apportionment must be completed with thefactors as originally filed or being amended. This must benumeric with a numerator and a denominator present. If noactivity anywhere, the numerator must be “0” and denominatormust be “1”. REV-1175 must be included with the report.
Apportionment a) Completing the sales factor as 0/0, leaving the sales factor
field blank or typing “none” in this field will result in appor-tionment being changed to 100 percent in Pennsylvania,automatically changing the reported tax liabilities.Partnerships’ factors also must be provided per a corpora-tion’s ownership percentage and not entered as zeros.
b) Eligible corporations claiming sales factor apportionmentmust complete RCT-106 and carry to RCT-101, Page 2,Section B, Line 7 and Schedule C-1.
c) Amounts differing from information on federal forms 1120,1120C or 1120S must be reconciled.
d) If a corporation owns underlying partnerships, the partner-ships’ sales must be passed through to the corporateowner, in relation to the ownership percentage. A corpora-tion’s ownership interest in a partnership or other unincor-porated entity (hereinafter referred to as a partnership)must be included in the apportionment fraction as a directinterest of the corporation in the assets of the partnership.
The portion of the partnership’s gross receipts, net ofreturns and allowances, are included in the numerator anddenominator of the corporation’s sales factor to the extentof the taxpayer’s interest in the partnerships for that period,as appropriate. Sales of tangible personal property are con-sidered in-state if the property is delivered or shipped to apurchaser within Pennsylvania. This sales calculationshould be reflected on the Partner’s Share of Sales fromPartnerships line on RCT-106.
NOTE: For tax periods beginning on or after Jan. 1, 2013, allbusiness income must be apportioned to PA by multiplyingincome by the sales factor ONLY.
IMPORTANT: A corporation with no sales both inside and out-side Pennsylvania must complete RCT-106, using “0” as thenumerator and “1” as the denominator.
Bulk Sales a) Taxpayers filing a full year report and disclosing a bulk sale
should not fill in the bulk sale checkbox on Page 3 of theRCT-101, PA Corporate Net Income Tax Report. Rather,you must complete REV-181, Application for Tax ClearanceCertificate and mail separately to the Bureau ofCompliance. DO NOT send with RCT-101.
b) If a taxpayer is filing a short period report and has a bulksale, you must fill in the bulk sale checkbox on Page 3 ofRCT-101. You must also complete REV-181, Application forTax Clearance Certificate and mail separately to the Bureauof Compliance. DO NOT send with RCT-101.
Reports where the taxpayer is calculating a liability using amethod other than the standard calculation, including any posi-tion granted as the result of an appeal in a prior year cannot befiled electronically. In such cases, the RCT-101, PA CorporateNet Income Tax Report and all required schedules, including thereason the report cannot be e-filed, MUST be mailed to:
PA DEPARTMENT OF REVENUEBUREAU OF CORPORATION TAXESPO BOX 280704HARRISBURG PA 17128-0704
pREVENTING RCT-101 pROCESSING ERRORS
12 REV-1200 www.revenue.pa.gov
SPECIFIC INSTRUCTIONS
LINE BY LINE INSTRUCTIONS FOR THE RCT-101,PA CORPORATE NET INCOME TAX REPORT
RCT-101—PAGE 1Indicate the type of return filed with the IRS. If the activity isincluded in the federal tax return of another company, either aspart of a consolidated group or as a disregarded entity, indicatethe type of return filed by the entity reporting the activity.
Step A TAX PERIOD (REQUIRED)Taxpayers must enter the month, day and year for thetax period beginning and ending dates using theMMDDYYYY format.
Step B CHECk SPECIAL FILING STATUSAmended Report – Check box if the corporation isamending a PA Corporate Net Income Tax Report pre-viously filed with the department.
CAUTION: Federal Extension Granted – Check boxif the corporation was granted an extension of time tofile its federal income tax return. If not checked apenalty will be imposed. A copy of the extensionrequest, federal Form 7004, must be included.
52-53 Week Filer – Check box if the corporation is a52-53 week filer.
Address Change – Check box if the address reportedin Step C is a change from prior tax periods. Be sure tofile REV-854 electronically using the Online ServicesCenter at www.revenue.pa.gov.
Change Fed Group – Check box if the corporate tax-payer is filing a PA Corporate Net Income Tax Reportfor less than a full year due to a change in federal con-solidated group. This must be indicated on the lastreport prior to the change.
First Report – Check box if this is the corporation’sfirst PA Corporate Net Income Tax Report filing.
kOz/EIP/SDA Credit – Check box if the corporate tax-payer is claiming the Keystone Opportunity ZoneCredit, Employer Incentive Payment Credit or theStrategic Development Area Credit.
ADD-BACk – Act 52 of 2013 requires the add-back ofintangible expenses to income for interest, royalties,patents, trademarks, etc. between affiliated entities incertain instances.
File Period Change – Check box if the filing period(tax period ending) is a permanent change. Be sure tofile REV-854 electronically using the Online ServicesCenter at www.revenue.pa.gov. This must be indicat-ed on the first report filed with the new tax year end.
S Corp Taxable Built-in Gains – PA S corporationsand QSSS are subject to PA corporate net income tax.Their taxable income is their net recognized built-ingains as determined for federal income tax purposespursuant to IRC Section 1374(d) (2). To report taxablebuilt-in gains, check the box and complete Line 1 ofSection B.
Regulated Investment Company – Check box if thecorporation is a regulated investment company. Every domestic and foreign corporation that meets thefollowing four parameters will be taxed as a regulatedinvestment company for Pennsylvania purposes:
1. Is registered to do business in PA;
2. Maintains an office in PA;
3. Has timely filed an election to be taxed as a regu-lated investment company by the federal govern-ment; and
4. Duly qualifies to be taxed as a regulated invest-ment company under the provisions of the IRC.
Sub Paragraph 18 – See cover page for details.
Step C NAME, ADDRESS, FEDERAL EIN, BUSINESSACTIVITY CODE, REVENUE ID AND PARENTCORPORATION EIN.Print or type the corporation name, complete address,10-digit Revenue ID and nine-digit Federal ID (EIN).
You must provide the Revenue ID number on Page 1of RCT-101. DO NOT LEAVE BLANK. If you do notknow your Revenue ID number, please call717-705-6225.
Failure to submit a properly completed report mayresult in the delay of processing and the imposition oflate filing penalties and/or estimated assessments.
Be sure to use only address information for AddressLine 1 and Address Line 2 on Page 1 of RCT-101 andall other tax forms. IMPORTANT: Do not include indi-vidual’s names on these lines.
Foreign corporations filing from outside the UnitedStates must use Province, Country Code and ForeignPostal Code address fields, if applicable.
The six-digit Business Activity Code entered here is thesame Business Activity Code reported to the IRS onthe federal income tax return.
Parent Corporation EIN – Taxpayers that are includedin a consolidated federal income tax return must pro-vide the nine-digit EIN of the corporation that files theconsolidated federal income tax return. If you are notincluded in a consolidated federal return, leave blank.
Step D TAX SUMMARYColumn A. Tax Liability from Tax Report. Carry taxliability from Page 2, Section B, Line 15 to Page 1:
All RCT-101 forms and schedules must show moneyamounts in whole-dollars. Eliminate any amount lessthan $0.50 and increase any amount that is $0.50 ormore to the next highest dollar. Do not carry a valueless than zero to Step D, Page 1, Column A.
Calculate the tax liability amount and enter on the CNILine of Column A.
Column B. Estimated Payments & Credits onDeposit. See Confirmation of Deposits on Account,
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Page 8. Enter the total of estimated payments andtransferred credits applied to the current tax period.
Column C. Restricted Credits. Enter the amount ofrestricted credit to be applied to the current tax year.Restricted credits may include those originating fromspecial tax credit programs administered by variousstate agencies. See Page 22.
Step E PAYMENT DUE/OVERPAYMENTDetermine the total payment due or overpayment bysubtracting Column B and Column C from Column A.Negative amounts (identifying an overpayment) shouldbe written as -1,000. If a net total overpayment devel-ops, see instructions below for completing Step F.
Reminders:• You must enter a value in the space provided, even
if the amount is zero. Overpayments must beentered as a negative amount.
• See HOW TO PAY instructions on Page 8 for pay-ments due of less than $1,000 and payments due of$1,000 or more.
Step F TRANSFER/REFUND METHODSTransfer: Identify the amount to transfer from the current tax
period overpayment to the next tax period for estimat-ed tax purposes. Prior to any transfer, the departmentwill offset current period liabilities and other unpaid lia-bilities within the account.
Refund: Identify the amount to refund from the current tax peri-od overpayment. Prior to any refund, the departmentwill offset current period liabilities and other unpaid lia-bilities within the account.
NOTE: Taxpayers may divide an overpaymentbetween both options. If no option is selected, thedepartment will automatically transfer any overpay-ment to the next tax year for estimated tax purposesafter offsetting current period liabilities and otherunpaid liabilities within the account. A tax period over-payment summary will be mailed to the taxpayer con-firming the disposition of the credit.
E-File Opt Out – See cover page for details.
Step G SIGNATUREA corporate officer must sign the report. The signaturemust be original; photocopies or faxes will not beaccepted. Also provide telephone number, emailaddress and title of the officer along with the datesigned.
If a corporate officer and an electronic return originatorelect to use a federal self-select PIN to electronicallysign a corporation’s electronic tax report, they mustcomplete form PA-8879-C. Do not mail the form to thedepartment; however, you are required to keep thisform and attachments for three years.
RCT-101—PAGE 2SECTION A: BONUS DEPRECIATIONThis information is used by the Department of Revenue to helpcalculate the additional depreciation deduction and must becompleted if claiming this deduction. See instructions for Sched-ule C-3 and C-4 for additional details.
See Page 23 for an example of the correct completion of thissection.
SECTION B: PA CORPORATE NET INCOME TAXA copy of federal Form 1120 or other applicable form on a sep-arate company basis (federal income tax return) must accompa-ny the PA Corporate Net Income Tax Report, RCT-101.
Taxable Built-in Gains – PA S corporations and QSSS are sub-ject to PA corporate net income tax. Their taxable income is theirnet recognized built-in gains as determined for federal incometax purposes pursuant to IRC Section 1374(d) (2). To report tax-able built-in gains, check the box on Page 1 and complete Line1 of Section B.
DEDUCTIONS FROM AND ADDITIONSTO INCOME:Line 1. Income represents “taxable income as returned to and
ascertained by the federal government before the netoperating loss deduction and special deductions.”(Line 28 of federal Form 1120.)
Line 2A. Corporate dividends received. Dividends received fromU.S. corporations are deductible to the same extent asallowed to arrive at the federal dividend deduction asindicated on federal Schedule C, Column C. An addi-tional deduction will be allowed for dividends receivedfrom foreign corporations and reported on Lines 13and 14 of the federal Schedule C, plus a deduction willbe allowed for dividends received under Section 78(foreign dividend gross-up) of the Internal RevenueCode of 1986. Taxpayers must complete REV-798,Schedule C-2, PA Dividend Deduction Schedule. Spe-cific instructions for Schedule C-2 are shown on Page17 in these instructions.
Line 2B. Interest on U.S. Securities. Interest on U.S. securitiesis deductible, but must be reduced by:
• Any interest on indebtedness incurred to carry thesecurities;
• Any expenses incurred in the production of suchinterest income;
• Any other expenses deducted on the federal incometax return that would not have been allowed underSection 265 of the Internal Revenue Code of 1986,if the interest were exempt from federal income tax.
However, interest from repurchase agreements isnot considered interest from U.S. securities. There-fore, it is not deductible.
To calculate the net U.S. interest deduction on Line (2B):
• Provide a detailed schedule showing the calculationof net U.S. interest deduction and include a listing ofinvestments that generated the exempt interestincome.
Pennsylvania allows a pass-through exemption from corporatenet income for interest or dividend income received from a reg-ulated investment company to the extent such distribution or div-idend is derived from obligations free from state taxation. Suchobligations include those issued by the U.S. Government; theCommonwealth of Pennsylvania; any public authority, commis-sion, board or other agency created by the commonwealth; any
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political subdivision of the commonwealth; or any public author-ity created by any such subdivision.
To support any claim for a pass-through deduction for corporatenet income tax purposes, the taxpayer must submit evidencethat the income was received from a regulated investment com-pany. A schedule must be submitted indicating the percentage ofincome applicable to exempt obligations and the percentage ofincome applicable to nonexempt obligations, including repur-chase agreements, obligations of the Federal National MortgageAssociation, (Fannie Mae), the Government National MortgageAssociation (Ginnie Mae) and any other obligations that werenot actually issued by the U.S. Government.
All income claimed to be exempt must be reduced by anyexpenses incurred in the production of such income and thisinformation must be included to support all entries on Line 2B.
Line 2C. This is the amount of additional depreciation allowedunder Act 89 of 2002 for IRC Section 168(k) property.See instructions for Schedule C-3 for additional details.
Line 2D. Other allowable deductions. As an example, certaincharitable contributions may be deductible for a sub-sidiary corporation which has income on a separatecompany basis. Targeted jobs credit wages is anotherdeductible item. If issued prior to Feb. 4, 1994, netgains on the sale of U.S. or PA securities aredeductible. FICA tax obligation on employee tips, iftaken as a credit for federal purposes, are alsodeductible.
The 50 percent of travel and entertainment expensethat is disallowed on the federal form is not permittedas a deduction for Pennsylvania purposes.
All other deductions must be reported on REV-860,Schedule OD, Other Deductions. Attach schedule ifadditional space is needed.
Add Lines 2A, 2B, 2C and 2D and enter the result onLine 2, Total Deductions.
Line 3A. Enter the total amount of taxes imposed on or meas-ured by net income and deducted on the attached copyof the federal tax return. All taxpayers reportingexpenses for taxes on federal income tax returns mustcomplete REV-860, Schedule of Taxes, even if notaxes are imposed on or measured by net income. If astate’s tax is based on the higher of a tax on netincome or a tax on another item, such as grossreceipts or net worth value, the taxpayer is required toadd back the entire amount of the tax in periods wherethe liability is based on net income. If a state’s tax is acombination of a tax on net income and a tax on anoth-er item, such as gross receipts or net worth, theincome portion of the tax is added back.
NOTE: The portion of Philadelphia business tax meas-ured by net income must be included.
Line 3B. Employment incentive payment credit adjustment. Incalculating wages as a cost for tax purposes, employ-ment incentive payment credits shall be deducted,reducing the wages cost item by any employmentincentive payment credit taken by the corporation.Include PA Schedule W to the RCT-101.
Line 3C. This is the amount of bonus depreciation claimed bythe corporate taxpayer under IRC Section 168(k) in thecalculation of federal taxable income. See instructionsfor Schedule C-3 for additional details.
Line 3D. Act 52 of 2013 requires the add-back of intangibleexpense to income for interest, royalties, patents,trademarks, etc., between affiliated entities in certaininstances. In order to report the add-back for tax yearsbeginning in 2016, taxpayers must complete REV-802,Schedule C-6, Add-Back for Intangible Expense orRelated Interest Expense. The total amount of addi-tions from Schedule C-6, Line 11 should be carried toand included as a separate line item on RCT-101,Page 2, SECTION B, Line 3D. REV-802 can be foundon the department’s website at www.revenue.pa.gov.
IMPORTANT: REV-802, Schedule C-6, Add-back forIntangible Expenses or Cost and Related Interest,must be submitted with RCT-101.
Line 3E. The total of all additions from REV-860, Schedule OA,is carried to RCT-101, Page 2, Section B, Line 3E.
Add Lines 3A, 3B, 3C, 3D and 3E and enter the resulton Line 3, Total Additions.
Line 4. Line 1 minus Line 2 plus Line 3.
If all business is transacted in Pennsylvania, skip Lines5 through 9. Enter amount from Line 4 on Line 10.
APPORTIONMENT AND ALLOCATION:A taxpayer must have income from business activities taxableby Pennsylvania and at least one other state to allocate andapportion income. For purposes of allocation and apportionmentof income, a taxpayer is taxable in another state if, in that state,the corporation is subject to a net income tax, a franchise taxmeasured by net income, a franchise tax for the privilege ofdoing business or a corporate stock tax or if that state has juris-diction to subject the taxpayer to a net income tax regardless ofwhether the state does or does not.
Business income is income arising from transactions and activityin the regular course of the taxpayer’s trade or business andincludes income from tangible and intangible property if theacquisition, management or disposition of the property consti-tutes integral parts of the taxpayer’s regular trade or businessoperations. Business income includes all income that is appor-tionable under the U.S. Constitution. Nonbusiness income is allincome other than business income. The Schedule of Nonbusi-ness Income, REV-934, must be completed by all taxpayersallocating nonbusiness income and apportioning businessincome.
IMPORTANT: Refer to the “Apportionment, Exemptions andAllocation” on Page 20 for more detail.
Line 5. Enter the total amount of nonbusiness income or lossfrom REV-934, Column C Total. (Must be included withreport.)
Line 6. Enter the amount of income or loss to be apportionedby adding the loss or subtracting the income reflectedon Line 5 to or from Line 4.
Line 7. Enter the apportionment percentage from ScheduleC-1.
Line 8. Enter the income or loss apportioned to Pennsylvaniaby multiplying Line 6 by Line 7.
Line 9. Enter the total amount of nonbusiness income or loss allocated to Pennsylvania from REV-934, Column ATotal.
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Line 10. Add the income or deduct the loss reflected on Line 9to or from Line 8. If the entire business is transacted inPennsylvania, enter the amount from Line 4 on Line10. If a loss exists, add to RCT-103, Line 21.
NET OPERATING LOSS DEDUCTIONLine 11. Net Operating Loss Deduction. Enter the total of Col-
umn C from RCT-103. Complete RCT-103 and includeit with your RCT-101.
See instructions for RCT-103, found on Page 18 fordetails.
Short periods are considered to be one tax year for purposes of computing the carryforward.
DETERMINATION OF TAXLine 12. PA Taxable Income or Net Loss. Line 12 must equal
Line 10 minus Line 11.
Line 13. Calculate and enter the PA corporate net income tax bymultiplying the amount reflected on Line 12 by the cur-rent rate of 9.99 percent (0.0999). All taxes due shouldbe shown in whole dollar amounts.
Line 14. For taxpayers calculating a credit for tax paid by affili-ated entities, taxpayers must complete REV-803,Schedule C-7 Credit for Tax Paid by Affiliated Entities.
The credit is then carried to RCT-101, Page 2, Line 14.REV-803 can be found on the department’s website atwww.revenue.pa.gov.
IMPORTANT: REV-803, Schedule C-7, Credit for TaxPaid by Affiliated Entities, must be submitted with RCT-101.
Line 15. Tax Due (Line 13 minus Line 14.)
APPORTIONMENTFor tax years beginning on or after Jan.1, 2013, income isapportioned by a sales factor only.
SCHEDULE C-1Sales FactorLine 1A. Enter the total from RCT-106, Column A, Sales inside
Pennsylvania.
Line 1B. Enter the total from RCT-106, Column B, Sales insideand outside Pennsylvania.
Line 1C. Divide Line 1A by Line 1B, calculate to six decimalplaces. Enter here and SECTION B, Line 7.
IMPORTANT: Only corporations required to use special appor-tionment (such as railroad, truck, bus, airline, pipeline, naturalgas and water transportation companies) should complete Spe-cial Apportionment.
Special ApportionmentLine 2A. Enter PA revenue miles or other special factor.
(Numerator)
Line 2B. Enter total revenue miles or other special factor.(Denominator)
Line 2C. Divide Line 2A by Line 2B, calculate to six decimalplaces. Enter here and SECTION B, Line 7.
CAUTION: Complete either Sales or Special Appor-tionment. DO NOT combine the two methods.
For additional information on sales and special appor-tionment, see Page 20.
See Page 23 for examples of the correct completion ofthis section.
RCT-101—PAGE 3SECTION C: CORPORATE STATUS CHANGESCorporate taxpayers that ceased all business activity (domesticcorporations) or ceased business activity in Pennsylvania (for-eign corporations) and disposed of all assets or Pennsylvaniaassets may be removed from the active records of the Bureau ofCorporation Taxes by doing the following:
1. Indicate in this section that the current year report is thefinal report by checking the box to the right of “FinalReport”.
2. Entities formed under the laws of the Commonwealth ofPennsylvania must answer the questions under “PACorporations” in this section. If a PA corporation ever trans-acted business anywhere, the date business activityceased must be provided. If a PA corporation ever heldassets anywhere, it must provide the date of final disposi-tion of the assets.
3. Entities formed under the laws of another jurisdiction arerequired to answer the questions under “ForeignCorporations”. If a foreign corporation ever transacted busi-ness in Pennsylvania, the date Pennsylvania activityceased must be provided. If a foreign corporation ever heldassets in the commonwealth, it must disclose the date allPA assets were disposed of or moved outside ofPennsylvania.
Taxpayers who held any assets during the year must completeREV-861, Schedule DA, Disposition of Assets.
If a taxpayer sells 51 percent or more of any class of asset dur-ing the tax period, the taxpayer must check the box and providethe purchaser’s name and address. This includes any stock ofgoods, wares, merchandise of any kind, fixtures, machinery,equipment, buildings or real estate.
CAUTION: Taxpayers filing a full year report and disclosing abulk sale, should not fill in the bulk sale checkbox on Page 3 ofthe PA Corporate Net Income Tax Report. Rather, you mustcomplete REV-181, Application for Tax Clearance Certificateand mail separately to the Bureau of Compliance. DO NOT sendwith the PA Corporate Net Income Tax Report.
If a taxpayer is filing a short period report and has a bulk sale,fill in the bulk sale checkbox on Page 3 of the PA Corporate NetIncome Tax Report. You must also complete REV-181, Applica-tion for Tax Clearance Certificate, and mail separately to theBureau of Compliance. DO NOT send with the corporate taxreport.
A taxpayer who sells 51 percent or more of any class of asset isrequired to obtain a Bulk Sale Certificate by completing an Appli-cation for Corporate Clearance, REV-181, and filing RCT-101,PA Corporate Net Income Tax Report, up to the date of the sale.Include schedule if additional space is needed.
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SECTION D: GENERAL INFORMATIONQUESTIONNAIRETaxpayers are required to provide a brief description of business activities in Pennsylvania. Multistate corporations are requiredto provide a brief description of business activities outside of PAand indicate all other states where the taxpayer has businessactivity (use the two letter postal abbreviations). If taxpayer hasno activity in Pennsylvania, indicate so in this area.
Taxpayers should indicate in this section if they are incorporatedunder the laws of the Commonwealth of Pennsylvania. Taxpay-ers incorporated under the laws of another jurisdiction whoseonly activity in Pennsylvania is the solicitation of sales, mustindicate so in this section. Taxpayers are required to indicate bywhat means these sales are solicited.
The taxpayer must report the name of any corporation, individ-ual or other business entity which holds all or a majority of thestock of the taxpayer, and the name(s) of any corporation inwhich the taxpayer owns all or a majority of the stock. This isdone by checking the applicable box(es) and completing Sched-ule X.
If the federal government has changed the taxable income forany prior year, the taxpayer must indicate this on RCT-101 toinclude the first and last tax periods changed. The taxpayermust also file RCT-128C reporting the changes in income foreach tax year.
Indicate the method of accounting used for federal income taxreporting and financial accounting purposes.
RCT-101—PAGE 4SCHEDULE OF REAL PROPERTY IN PATaxpayers must report the location of any real property utilizedin the Commonwealth of Pennsylvania during the current tax
period. Include an indication if the property was rented or ownedby the taxpayer and if the property was located in a KeystoneOpportunity Zone/Keystone Opportunity Expansion Zone orStrategic Development Area.
CORPORATE OFFICERSIMPORTANT: Taxpayers annual affirmation of all corporate offi-cer’s information must be included on the RCT-101. When infor-mation is provided on RCT-101, REV-1605 is not required. REV-1605 should be filed electronically, using the Online ServicesCenter at www.revenue.pa.gov, to report changes in corporateofficers during the tax year.
When completing the affirmation of corporate officer section,LLCs, business trusts and other unincorporated entities requiredto file RCT-101 must enter the names and Social Security num-bers of individuals who are responsible for the tax and/or busi-ness matters of the entity (i.e. Tax Matter Partner, ManagingPartner, Trustee).
PREPARER’S INFORMATIONEnter “Y” or “N” in the box labeled “Mail to Preparer” to indicateif any notice resulting from the review of this tax report, orrequest for additional information is to be mailed to the prepar-er’s address. If “Y” is entered in this box, the notices and all cor-respondence will be sent to the name and address provided inthis section. If “N” is entered, all notices will be mailed to the cor-poration’s address.
Paid preparers must sign and date all tax returns. The pre-parer’s name, complete address, telephone number, emailaddress, federal PTIN and the date prepared must be typed orprinted in the appropriate boxes.
REV-802—SCHEDULE C-6Act 52 of 2013 requires the add-back of intangible expenses toincome for interest, royalties, patents, trademarks, etc., betweenaffiliated entities in certain instances. In order to report the add-back for tax years beginning in 2016, taxpayers must completeREV-802, Schedule C-6, Add-back for Intangible Expenses orCost and Related Interest. The form is located on the depart-ment’s website at www.revenue.pa.gov.
REV-803—SCHEDULE C-7For taxpayers calculating a credit for tax paid by affiliated enti-ties, taxpayers must complete REV-803, Schedule C-7, Creditfor Tax Paid by Affiliated Entities. The form is located on thedepartment’s website at www.revenue.pa.gov.
RCT-106—APPORTIONMENT SCHEDULE FOR PACORPORATE NET INCOME TAXFor tax years beginning on or after Jan. 1, 2013, income isapportioned by a sales factor only.
SALES FACTORAmount for interest, rents and royalties from RCT-106 should beadded and reflected on the appropriate line of Schedule C-1.
Gross sales price of assets sold, excluding securities (not gainsor losses) should be reflected on the appropriate line. All remain-ing income items should appear on the “Other Income” line. Donot list non-receipts such as discounts or receipts from sales ofsecurities, unless you are a securities dealer.
IMPORTANT: Only corporations required to use special appor-tionment (such as railroad, truck, bus, airline, pipeline, naturalgas and water transportation companies – refer to instructions)should complete Special Apportionment section.
REV-798, SCHEDULE C-2—PA DIVIDEND DEDUCTIONThis schedule must be completed by all taxpayers claiming aCorporate Dividend Deduction on RCT-101, Page 2, Section B,Line 2A.
Line 1. Enter from federal Schedule C, Line 20, total deduc-tions. S corporations must submit a schedule reflectingthis information if subject to PA corporate net incometax.
Line 2. Enter federal Schedule C, Line 15 Foreign DividendGross-Up (Section 78 total Column A).
Line 3. Enter dividends from less than 20 percent owned for-eign corporations listed on Lines 13 and 14 of federalSchedule C times 70 percent.
SUPPLEMENTAL SCHEDULES
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Line 4. Enter dividends from 20 percent or more owned for-eign corporations listed on Lines 13 and 14 of federalSchedule C times 80 percent.
Line 5. Enter dividends listed on Lines 13 and 14 of federalSchedule C from foreign corporations that meet the 80percent voting and value test of IRC Section I504(a)(2)and otherwise would qualify for 100 percent deductionunder IRC Section 243(a)(3), if they were from adomestic corporation.
Line 6. Enter the total PA dividend deduction by adding Lines1, 2, 3, 4 and 5. Enter On RCT-101, Page 2, Section B,Line 2A.
RCT-103, NET OPERATING LOSS SCHEDULEPART A—Calculation of Net Operating Loss LimitationAct 52 of 2013 increased the net operating loss limitation. Foryears beginning after Dec. 31, 2014, the net operating loss lim-itation is the greater of $5 million or 30 percent of the PA taxableincome before the net operating loss deduction. To support thenet operating loss carryforward allowed for the current tax peri-od, taxpayers are required to complete Part A of RCT-103 as fol-lows:
Line 1. Enter the taxable income from RCT-101, Section B,Line 10.
Line 2. Enter total net operating loss carryforward to currentperiod from RCT-103, Part B, Column C.
Line 3. Multiply Line 1 by 30 percent (0.30).
If Line 3 is less than $5 million, enter the lesser of Line1 or Line 2 on Line 4, not to exceed $5 million. If Line3 is greater than $5 million, enter the lesser of Line 2or Line 3 on Line 4.
Line 4. This is your net operating loss deduction for the currentperiod.
PART BComplete this schedule to calculate the amount of net loss carry-forward available to be deducted in the current period and the netloss carryforward to the next period. Enter all dates and amountsfrom periods with returns filed. If no net loss carryforward is avail-able, enter ‘‘0”. If short periods exist in calendar year or fiscal year,enter the month, day and year of the beginning and end of allshort periods and the net loss carryforward for all short periods inthe appropriate row of the table. Do not combine amounts.
Column A.Beginning with the first line, enter the month, dayand year (MMDDYYYY) corresponding to the begin-ning date of each tax period. Start with tax periodsbeginning in 1998 or with the entity’s very first taxperiod, whichever is more recent. Do not include thecurrent tax period.
Column B.Enter the month, day and year (MMDDYYYY) corre-sponding to the ending date of the tax period indicat-ed in Column A.
Column C.Enter the net loss carryforward corresponding toeach tax period end from Column E of the RCT-103,Net Operating Loss Schedule, for the prior year.
Column D.Enter the amount to be used as a net loss deductionto offset income in the current tax period. The totalamount of net loss carryforwards should not exceedthe amount reported on Part A, Line 4.
Column E.Subtract Column D from Column C and enter the dif-ference in this Column.
Net operating losses generated in tax periods beginning prior toJan. 1, 1998, have expired and are no longer available. Netoperating losses generated in tax periods beginning after Dec.31, 1996, and before tax periods beginning prior to Jan. 1, 1998,may be carried forward for 10 tax periods. Net operating lossesgenerated in tax periods beginning after Dec. 31, 1997, may becarried forward 20 periods. Short years are considered to beone tax period for purposes of calculating the carryforward.
REV-860, SCHEDULE C-5—SCHEDULE OF TAXESSection 401(3)1.(o) of the Tax Reform Code of 1971 requirestaxpayers to add-back taxes imposed on or measured by netincome, expensed on the federal income tax return, in calculat-ing PA corporate taxable income. Schedule of Taxes includesthe most common taxes expensed by corporate taxpayers onthe federal income tax return. This schedule must be completedand submitted by all corporate taxpayers who are subject to PAcorporate net income tax, and the total must equal the total taxexpense reported on the federal income tax return.
If a state’s tax is based on the higher of a tax on net income ora tax on another item, such as gross receipts or net worth value,the entire amount of the tax is entered on the line labeled“Income Taxes – Other States” in years where the liability isbased on net income. Otherwise the entire amount of the tax isincluded on the line labeled “Other Taxes–Not Based onIncome”.
If a state’s tax is a combination of a tax on net income and a taxon another item, such as gross receipts or net worth, the incomeportion of the tax is entered on line labeled “IncomeTaxes–Other States”. The remainder of tax is included on theline labeled “Other Taxes–Not Based on Income”.
Please refer to Corporation Tax Bulletin 2008-05 for a list oftaxes imposed on or measured by net income. Tax bulletins areavailable at www.revenue.pa.gov.
IMPORTANT: Not all corporations will have expensed every taxlisted on this schedule.
REV-860: OTHER ADDITIONSREV-860: OTHER DEDUCTIONSAll taxpayers reporting other additions on RCT-101, Section B,Line 3E, and other deductions on RCT-101, Section B, Line 2D,are required to complete Schedule OA and/or Schedule OD onREV-860.
REV-861, SCHEDULE DA—DISPOSITION OFASSETS SCHEDULE This schedule replaces Page 2 of the Out-of-Existence/Withdrawal Affidavit and must be completed and sub-mitted by all corporate taxpayers who have indicated they desireto be removed from the active records of the Bureau ofCorporation Taxes.
The Description of Assets column should give a brief descriptionof the assets sold, assigned or distributed in the final year of thecorporate taxpayer's existence. Similar assets may be includedon one line with a general description (i.e. automobiles) ratherthan listing each individual asset separately.
The Cost of Assets As Reported on Balance Sheets columnshould report the cost of the assets prior to depreciation, aswould have been reported on the balance sheet immediatelyprior to the sale or distribution of the assets.
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If the gain on the disposition of an asset is not reported onSchedule D or federal Form 4797, the taxpayer must provide anexplanation why the gain is not reported in the calculation of fed-eral taxable income.
REV-934—SCHEDULE OF NONBUSINESS INCOMETaxpayers reporting nonbusiness income must include REV-934when filing RCT-101.
REV-986, SCHEDULE TO DETERMINECORPORATE NET INCOME TAX FILINGREQUIREMENTTaxpayers answering “YES” to any of the questions on REV-986are subject to corporate net income tax and must complete andfile RCT-101.
If a taxpayer answers “NO” to ALL questions on REV-986, theyare not required to file REV-986 or RCT-101.
RCT-101D, DECLARATION OF DE MINIMIS PAACTIVITYIMPORTANT: RCT-101D is only for use by non-Pennsylvaniacorporations.
A non-Pennsylvania corporation whose Pennsylvania activityduring a tax period is considered de minimis as outlined in TaxBulletin 2004-01 is not required to file a complete PA CorporateTax Report, RCT-101, for that period. Instead, such a corpora-tion may file RCT-101D, affirming that PA activity during thatperiod is de minimis. In filing RCT-101D a corporation is remind-ed of the following:
1. RCT-101D is not a tax report. For this reason the statute oflimitations regarding the assessment of tax does not applyto RCT-101D.
2. For a taxpayer to realize any tax benefits from a year thetaxpayer filed RCT-101D, the taxpayer will be required tofile a complete RCT-101 for each year, beginning with theyear the benefit is generated through the year the benefit isto be used.
In cases where the taxpayer files RCT-101D and later filesRCT-101, the taxpayer will be liable for all taxes due forthese periods. Applicable interest will also be imposed fromthe original due date of the report to the date the taxes arepaid. The imposition of late filing penalties will be based onthe filing date of the RCT-101D.Tax Bulletin 2004-1 is avail-able on the PA Department of Revenue website atwww.revenue.pa.gov.
REV-799, SCHEDULE C-3—ADjUSTMENT FORBONUS DEPRECIATIONIMPORTANT: Taxpayers are not required to adjustPennsylvania taxable income for 100 percent bonus deprecia-tion of qualified property claimed and allowable for federal taxpurposes under Section 168(k) of the IRC. See Corporation TaxBulletin 2011-01.
Taxpayers who took advantage of the 100 percent bonus depre-ciation in calculating federal taxable income must enter theamount of the 100 percent bonus depreciation in the designatedbox at the bottom of Schedule C-3.
DECOUPLING FROM FEDERAL BONUSDEPRECIATIONAct 89 of 2002 requires corporate taxpayers who elect thebonus depreciation under IRC Section 168(k) to make the fol-lowing adjustments in arriving at Pennsylvania taxable income:
A. Add to federal taxable income the amount of bonus depre-ciation expensed on the federal income tax return.
B. Deduct from federal taxable income additional PA depreci-ation, calculated as follows: federal depreciation on Section168(k) property claimed in the current year X 3/7.
C. In the year of disposition of an asset, the taxpayer maydecrease taxable income by the amount of bonus depreci-ation on that asset disallowed in the year of acquisition andnot deducted as additional depreciation.
These provisions apply to tax periods beginning after Sept. 10,2001.
When filing PA Corporate Net Income Tax Reports, taxpayerswho expensed federal bonus depreciation in the calculation offederal taxable income are required to include Schedule C-3,Adjustment for Bonus Depreciation, showing the calculation ofthese adjustments and the amount of bonus depreciation to berecovered in subsequent years. If the taxpayer disposes ofSection 168(k) property during the tax period, the taxpayer mustalso include Schedule C-4 showing the calculation of theremaining recovered in the year of disposition.
IMPORTANT: This schedule must be updated each year andsubmitted with RCT-101 (i.e., Schedule C-3 for the current yearwill reflect the adjustments made for all prior years along withthe adjustments made for the current year). Enter information forprior years from Schedule C-3 as filed for the immediate prioryear.
Column A. End of Tax YearEnter the end date of each tax year in which the taxpayer adjust-ed taxable income for federal bonus depreciation.
Column B. Federal DepreciationThis is the amount of depreciation expense, including the bonusdepreciation, reported on the federal tax return for all propertythat qualified for the bonus depreciation and for which thetaxpayer claimed the bonus depreciation, either in the currentyear or in a prior year, in the calculation of federal taxableincome. Carry this amount to RCT-101, Section A, Line 1, cur-rent year federal depreciation of 168(k) property. This does notinclude Section 179 expenses related to this property.
Column C. Bonus DepreciationThis is the amount of bonus depreciation deducted in the currentyear. Carry this amount to RCT-101, Section B, Line 3C, CurrentYear Bonus Depreciation.
Column E. Additional PA DepreciationColumn D x 3/7.
Column F. Other AdjustmentIn some cases, the remaining bonus depreciation to be recov-ered is less than 3/7 of current year depreciation on that asset.In those cases, enter the excess of 3/7 of current year depreci-ation over the bonus depreciation to be recovered. Carry thisamount to RCT-101, Section A, Line 3, Other Adjustment.
Column G. Adjustment for Disposition of 168(k) PropertyThis is bonus depreciation disallowed for property disposed ofduring the tax period minus the additional PA depreciationdeducted while this property was held. Schedule C-4 must be
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included. Carry this amount to RCT-101, Section A, Line 2,Current Year Adjustment for Sale of 168(k) property.
Column H. Additional PA Depreciation plus Adjustment forDispositionColumn E minus Column F plus Column G. Carry this amount toRCT-101, Section B, Line 2C, Current Year Additional PADepreciation Plus Adjustment for Disposition.
Column I. BalancePrior balance plus Current-Year Column C minus Current-YearColumn H. This is a running total of federal depreciation disal-lowed less additional PA depreciation, other adjustments andadjustment for disposition of assets. This column may not beless than zero.
REV-799, SCHEDULE C-4—ADjUSTMENT FORDISPOSITION OF SECTION 168(k) PROPERTY &RECAPTURE OF DEPRECIATION ON LISTEDPROPERTYColumn A. Tax Year End of PurchaseEnter the end date of each tax year if any property disposed ofduring the tax year was not fully adjusted by the Adjustment forBonus Depreciation in a previous tax year on Schedule C-3.
Column B. Federal Accumulated DepreciationAccumulated depreciation of Section 168(k) property disposedof during the year plus accumulated depreciation used to calcu-late recapture when business use falls to 50 percent or less.
This amount should not include Section 179 expense. Do notinclude depreciation on property for which all disallowed bonusdepreciation has been recovered.
Column C. Disallowed Bonus DepreciationBonus depreciation disallowed in the calculation of PA corporatenet income in the year of purchase. Do not include bonus depre-ciation fully recovered in prior years.
Column E. Additional PA DepreciationAdditional depreciation allowed in the calculation of PA corpo-rate net income in the year of purchase and in subsequentyears. (Column D x 3/7)
Column F. Adjustment for DispositionAdjustment for the gain on sale of Section 168(k) property(Column C – Column E). Carry total to Column G of ScheduleC-3.
An example of properly completed Schedules C-3 and C-4 isavailable at www.revenue.pa.gov.
REV-1175, AMENDED REPORTS—SCHEDULE ARAll amended RCT-101s must include Schedule AR, REV-1175,which includes a detailed explanation of the reason for filing theamended report and a summary of the change to the tax liability.In completing the Summary of Tax Change, enter the PA corpo-rate net income tax; the tax liability currently reflected on the tax-payer’s account; the amended tax liability; and the amount ofchange in the tax.
AppORTIONMENT, ExEMpTIONS AND ALLOCATION
APPORTIONMENT OF TAXABLE INCOMECorporate taxpayers with activity in multiple states may be able toapportion taxable income. In order to apportion income, a corpo-ration must be subject to tax in another state.
For tax years beginning on or after Jan. 1, 2013, unless the tax-payer is required to use a special apportionment method, theapportionment factor used in the calculation of the PA taxableincome will consist only of sales attributable to PA divided by totalsales of the taxpayer.
Sales Factor – The numerator is the total gross receipts of thetaxpayer inside this state during the tax period, and the denomi-nator is the total gross receipts of the taxpayer everywhere duringthe taxable period. Gross receipts are net of returns andallowances. Sales of tangible personal property are inside thisstate if the property is delivered or shipped to a purchaser withinthis state. The partnership’s gross receipts shall be included in thedenominator of the taxpayer’s sales factor to the extent of the tax-payer’s ownership interest in the partnership. The amount of suchgross receipts attributable to Pennsylvania shall be included in thenumerator of the sales factor. These figures should be reflectedon the Partner’s Share of Sales from Partnerships line of RCT-106. Amounts applicable to an ownership interest in an LLC orbusiness trust that is a partnership or disregarded entity for feder-al income tax purposes must be included.
CAUTION: This must be numeric with a numerator and a denom-inator present. If no activity anywhere, the numerator must be “0”and the denominator must be “1”.
Act 52 of 2013 established the following criteria for determining ifreceipts from other than the sale of tangible personal property aresourced to PA:
• Sales from the sale, lease, rental or other use of real proper-ty, if the real property is located in this state. If a single parcelof real property is located both inside and outside this state,the sale is in this state based upon the percentage of originalcost of the real property located in this state.
• Sales from the rental, lease or licensing of tangible personalproperty, if the customer first obtained possession of the tan-gible personal property in this state. If the tangible personalproperty is subsequently taken out of this state, the taxpayermay use a reasonably determined estimate of usage in thisstate to determine the extent of sale in this state.
• Sales from the sale of service, if the service is delivered to a location in this state. If the service is delivered both to alocation inside and outside this state, the sale is in this statebased upon the percentage of total value of the service delivered to a location in this state.
If the state or states of assignment cannot be determined fora customer who is an individual who is not a sole proprietor,a service is deemed to be delivered at the customer's billingaddress.
• If the state or states of assignment cannot be determined fora customer who is a sole proprietor, a service is deemed tobe delivered at the location from which the services wereordered in the customer's regular course of operations. If thelocation from which the services were ordered in the cus-tomer's regular course of operations cannot be determined,a service is deemed to be delivered at the customer's billingaddress.
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Dividends and income from U.S. securities and receipts fromsales of securities (unless a securities dealer) must be excludedfrom both the numerator and denominator of the sales factor.
SPECIAL APPORTIONMENT FRACTIONSRailroad, Truck, Bus or Airline Companies – All businessincome of railroad, truck, bus or airline companies shall be appor-tioned to the Commonwealth of Pennsylvania by multiplying theincome by a fraction. The numerator is the taxpayer’s total rev-enue miles within the commonwealth during the taxable period.The denominator is the total revenue miles of the taxpayer every-where during the taxable period. A revenue mile means the aver-age receipts derived from the transportation by the taxpayer ofpersons or property one mile. Where revenue miles are derivedfrom the transportation of both persons and property, the revenuemile fractions attributable to each such class of transportation arecalculated separately. The average of the two fractions, weightedin accordance with the ratio of total receipts from each such classof transportation everywhere to total receipts from both suchclasses of transportation everywhere, is used in apportioningbusiness income to the commonwealth.
Pipeline or Natural Gas Companies – All business income ofpipeline companies is apportioned to the commonwealth by mul-tiplying the income by a fraction. The numerator is the revenue tonmiles, revenue barrel miles or revenue cubic feet miles of the tax-payer inside the commonwealth during the tax period. Thedenominator is the revenue ton miles, revenue barrel miles or rev-enue cubic feet miles of the taxpayer everywhere during the taxperiod. A revenue ton mile, revenue barrel mile or revenue cubicfeet mile means, respectively, the receipts derived from the trans-portation by the taxpayer of one ton of solid property, one barrelof liquid property or one cubic foot of gaseous property transport-ed one mile. All business income of natural gas companies sub-ject to regulation by the Federal Power Commission or by thePennsylvania Public Utility Commission is apportioned to theCommonwealth of Pennsylvania by multiplying the income by afraction. The numerator is the cubic foot capacity of the taxpayer’spipelines inside the commonwealth. The denominator is the cubicfoot capacity of the taxpayer’s pipelines everywhere, at the end ofthe taxable period. Determine the cubic foot capacity of a pipelineby multiplying the square of its radius by its length in feet.
Water Transportation Companies Operating on High Seas –All business income of water transportation companies operatingon high seas is apportioned to the Commonwealth ofPennsylvania by multiplying the business income by a fraction.The numerator is the number of port days spent inside the com-monwealth. The denominator is the total number of port daysspent inside and outside the commonwealth. Port days do notinclude periods when the ships are not in use because of strikesor withheld from service for repair or because of seasonal reduc-tion of services. Days in port are calculated by dividing the aggre-gate number of hours in all ports by 24.
Water Transportation Companies Operating on Inland Waters– All business income of water transportation companies operat-ing on inland waters is apportioned to the Commonwealth ofPennsylvania by multiplying the business income by a fraction.The numerator is the taxpayer’s total revenue miles inside thecommonwealth during the taxable period. The denominator is thetotal revenue miles of the taxpayer everywhere during the taxableperiod. In the determination of revenue miles, one-half of themileage of all navigable waterways bordering between the com-monwealth and another state shall be considered commonwealthmiles. A revenue mile means the revenue receipts derived fromthe transportation by the taxpayer of persons or property one mile.
IMPORTANT: Corporations with two distinct activities like ware-housing/trucking and distribution/trucking or personal transporta-tion and property transportation must file a paper report to ensuretimely processing. Mail the report to the “Special Handling”address found on Page 4.
APPORTIONMENT AND INVESTMENTS INUNINCORPORATED ENTITIESA corporate taxpayer’s investment in an unincorporated entity is considered a direct ownership in the corporation’s share of theassets of the unincorporated entity rather than an intangible inter-est. When determining the sales factor, the numerator and thedenominator of the factor must include the sales of the corporatetaxpayer plus the corporate taxpayer’s share of the sales of theunincorporated entity. In situations where the corporate taxpayerhas an investment in a business not subject to the corporate netincome tax (i.e. an LLC that files federal Form 1065 with the IRS),the apportionment factor used in the calculation of the PA corpo-rate net income tax will include only the sales of the LLC.
A corporate taxpayer with an investment in a LLC or businesstrust that files a federal partnership return or is disregarded forfederal income tax purposes, would include the activity of theinvestee LLC or business trust in the single sales factor apportion-ment used in the calculation of the corporate net income tax.
NONBUSINESS INCOMETRC § 401(3)2.(a)(1)(A) defines business income as income aris-ing from transactions and activity in the regular course of the tax-payer's trade or business and includes income from tangible andintangible property if either the acquisition, the management orthe disposition of the property is an integral part of the taxpayer'sregular trade or business operations. The term includes all incomeapportionable under the U.S Constitution. Nonbusiness incomemeans all income other than business income.
Rents and royalties from real or tangible personal property, gains,interest, patent or copyright royalties, to the extent that they con-stitute nonbusiness income, are allocated as reflected below:
1. Net rents and royalties from real property located in this stateare allocable to this state.
2. Net rents and royalties from tangible personal property areallocable to this state to the extent the property is used in thisstate. The extent of utilization of tangible personal property ina state is determined by multiplying the rents and royalties bya fraction, the numerator of which is the number of days ofphysical location of the property in the state during the rentalor royalty period in the taxable year and the denominator ofwhich is the number of days of physical location of the prop-erty everywhere during all rental or royalty periods in the tax-able year. If the physical location of the property during therental or royalty period is unknown or unascertainable by thetaxpayer, tangible personal property is utilized in the state inwhich the property was located at the time the rental or roy-alty payer obtained possession.
Net rents and royalties from tangible personal property arealso allocated to this state if the commercial domicile of thetaxpayer is in PA and the taxpayer is not organized or subjectto tax in the state where the property is utilized. “Commercialdomicile” means the principal place from which the trade orbusiness of the taxpayer is directed or managed
3. Interest is allocable to this state if the taxpayer’s commercialdomicile is in this state.
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RESTRICTED CREDITSDepending on the type of business, employers may be eligiblefor tax credits offered by the state.
For more information on the following tax credits, visit theDepartment of Revenue’s website at www.revenue.pa.gov:
• Research and Development Tax Credit • Employment Incentive Payment Credit • Organ and Bone Marrow Donor Tax Credit • Mobile Telecommunications Broadband Investment Tax
CreditFor more information and sale/assign procedures on the follow-ing tax credits, visit the Department of Community & EconomicDevelopment’s website at www.newpa.com:
• Historic Preservation Tax Credit • Coal Refuse Energy and Reclamation Tax Credit
• Community Based Services Tax Credit • Neighborhood Assistance Program Tax Credit • Keystone Opportunity Zone (KOZ) Credit • Keystone Innovation Zone Credit • Film Production Tax Credit • Educational Improvement/Opportunity Scholarship Tax
Credit • Jobs Creation Tax Credit • Keystone Special Development Zone Credit • Research and Development Tax Credit (Sale or assign only)
For more information on the following tax credit, visit theDepartment of Agriculture’s website at http://www.agriculture.pa.gov/Protect/StateConservationCommission/REAP/Pages/default.aspx:
• Resource Enhancement and Protection Tax Credit
MISCELLANEOUS
2016 Corporate Net Income Tax
TAX PERIODBEGINNING
2016 9.99% 100 30% $5,000,000
TAX RATEWEIGHTING OF FACTORS NET LOSS LIMITATION
SALES PERCENT OF INCOME AMOUNT
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4. Patents and copyright royalties are allocable to this state ifand to the extent that the patent or copyright is utilized by thepayer in this state, or if and to the extent that the patent orcopyright is utilized by the payer in a state in which the tax-payer is not taxable and the taxpayer’s commercial domicileis in this state. A patent is utilized in a state to the extent thatit is employed in production, fabrication, manufacturing orother processing in the state or to the extent that a patentedproduct is produced in the state. If the basis of receipts frompatent royalties does not permit allocation to states or if theaccounting procedures do not reflect states of utilization, thepatent is utilized in the state in which the taxpayer’s commer-cial domicile is located. A copyright is utilized in a state to the
extent that printing or other publication originates in the state.If the ba sis of receipts from copyright royalties does not per-mit allocation to states or if the accounting procedures do notreflect states of utilization, the copyright is utilized in the statein which the taxpayer’s commercial domicile is located.
IMPORTANT: T axpayers claiming non-business income mustinclude REV-934, Schedule of Non-Business Income, when filingRCT-101.
IMPORTANT: Nonbusiness income of railroad, truck, bus or air-line companies; pipeline or natural gas companies; and watertransportation companies operating on high seas or inland watersalso is allocated as noted above.
Section B-Bonus Depreciation Deduction
Business Solicitatio Single-M Multi-Mem PA S CorTaxable B
SECTION A: Bonus Depreciation1. Current year fed. deprec. of 168k prop. 12. Current year adj. for disp. of 168k prop. 23. Other adjustments 3(Attach REV-799, Schedule C-3,if claiming bonus depreciation.)
NAME
TAX YEAR END
RCT-101 (FI) PAGE 2 OF 4 PA CORPORATE TAX REPORT
Incorrect!
Correct!
Business Solicitatio Single-Me Multi-Mem PA S CorTaxable B
SECTION A: Bonus Depreciation1. Current year fed. deprec. of 168k prop. 12. Current year adj. for disp. of 168k prop. 23. Other adjustments 3(Attach REV-799, Schedule C-3,if claiming bonus depreciation.)
NAME
TAX YEAR END
RCT-101 (FI) PAGE 2 OF 4 PA CORPORATE TAX REPORT
000
120001001000
REV-1200 23www.revenue.pa.gov
SCHEDULE C-1: Apportionment Schedule For Corporate Net Income Tax (Include Form RCT-106.)
