Florida Administrative Code › 12 - DEPARTMENT OF REVENUE › 12C - Corporate, Estate and Intangible Tax › Chapter 12C-1 - CORPORATE INCOME TAX › Section 12C-1.022 - Returns; Filing Requirement

Current through Reg. 50, No. 138; July 16, 2024
(1) In
				general, every corporation as defined in section
				220.03(1)(e),
				F.S., subject to tax under chapter 220, part II, F.S., and every bank and
				savings association subject to tax under chapter 220, Part VII, F.S., must make
				a return of income for each taxable year in which such entity either is liable
				for tax under the Florida Income Tax Code, or is required to make a federal
				income tax return, whether or not such taxpayer is liable for tax under the
				Florida Income Tax Code.
(a) The Florida
				Income Tax Code does not specifically provide for an exception from the filing
				requirements for any organization, association, or legal entity. Therefore,
				every corporation, as defined in section
				220.03(1)(e),
				F.S., and every bank or savings association, as defined in section
				220.62, F.S., will be required
				to file a return absent a specific provision within the Internal Revenue Code
				or the Treasury Regulations exempting the entity from filing a federal tax
				return or a letter of determination from the Internal Revenue Service providing
				that the entity does not have a federal filing requirement. It is the burden of
				a corporation that is existing in Florida or incorporated under the Laws of
				Florida to establish that it is not required to file a federal corporate income
				tax return and, therefore, does not have a Florida filing requirement. This
				section shall not be deemed to be an inclusive listing of the entities required
				to file a Florida corporate income/franchise tax return.
(b)
1. "S"
				corporations are not subject to the tax, except for taxable years when they are
				liable for the federal tax under the Internal Revenue Code. An "S" corporation
				must file a Florida Corporate Income/Franchise and Emergency Excise Tax Return
				(Form F-1120, incorporated by reference in rule
				12C-1.051, F.A.C.) for taxable
				years when it is liable for federal tax under the Internal Revenue
				Code.
2. A single member limited
				liability company or qualified subchapter S corporation that is disregarded for
				Florida and Federal tax purposes is not required to file a separate Florida
				corporate income tax return. However, the income of the company is not exempt
				from tax. If it is owned by a corporation, whether directly or indirectly, the
				corporation is required to file Form F-1120 reporting its own income, together
				with the income of the single member limited liability
				company.
(c)
1. Homeowners associations, including
				corporations or associations organized to operate condominiums pursuant to the
				Condominium Act, that are required to file federal returns on Form 1120, or
				that elect to file federal returns on Form 1120, must file a Florida Form
				F-1120 annually, regardless of whether any tax may be due.
2. Homeowners associations that elect to be
				taxed under s. 528, I.R.C., and file federal Form 1120-H, are not required to
				file Form F-1120 with the Department.
(d) Political organizations subject to
				Internal Revenue Code Section 527 who are required to file Federal Form
				1120-POL must file a Florida Form F-1120 when the political organization
				reports federal taxable income on Federal Form 1120-POL or any other Federal
				Income Tax form.
(e) Any nonprofit
				or other tax-exempt organization, including a private foundation, which is
				exempt from Federal Income Tax under I.R.C. s. 501(a), and is described in
				I.R.C. s. 501(c), is required to file a Form F-1120 only when such organization
				has "unrelated trade or business taxable income, " as determined under I.R.C.
				s. 512, or is filing a Form 990T with the Internal Revenue Service. An
				organization that is required to apply for a "determination letter" in order to
				be exempt under I.R.C. s. 501(a), which has not timely filed such application
				on or before its due date as required by I.R.C. Reg. s. 1.508-1 or which has
				received an adverse determination, shall not be considered to be a tax-exempt
				organization. Such organization is subject to the Florida corporate income tax
				and is required to file a Form F-1120 unless the organization receives a
				retroactively effective determination letter. If an organization does not file
				Florida corporate income tax returns in reliance on this rule, and the Internal
				Revenue Service determines that the organization was not exempt from federal
				income tax for any such period, then the organization will be required to file
				Form F-1120 or Form F-1120X pursuant to section
				220.23, F.S.
(f)
1.
				Insurance companies conducting business, deriving income, or existing within
				this state are required to file a Florida corporate income/franchise tax
				return.
2. Insurance companies
				whose only business activity within Florida is providing reinsurance are
				earning income within the state and, therefore, are required to file a Florida
				corporate income/franchise tax return.
(g) Credit unions without capital stock
				organized and operated for mutual purposes and without profit that are exempt
				under s. 501(c)(14), I.R.C., are not subject to the Florida tax, except for
				taxable years when they are liable for Federal tax under the Internal Revenue
				Code.
(h) Benefit plans qualifying
				under s. 401(a), I.R.C., and health and dental plans qualifying under s. 125,
				I.R.C., are only required for federal tax purposes to file information returns.
				A qualified pension, health, or dental plan that is totally exempt from Federal
				Income Tax will not be required to file Form F-1120 with the Department, as
				long as the plan remains totally exempt for Federal purposes.
(i)
1. A
				real estate investment trust (REIT) must file a Florida income/franchise tax
				return for every year that it is conducting business, earning income, or
				existing within the state.
2. A
				totally owned subsidiary of a taxpayer which is treated as a qualified REIT
				subsidiary for federal tax purposes will be treated in the same manner for
				Florida tax purposes. That is, the qualified REIT subsidiary will not be
				treated as a separate corporation, and all assets, liabilities, and items of
				income, deductions, and credit of the qualified REIT subsidiary would be
				included in the taxpayer's Florida income tax return. The qualified REIT
				subsidiary would not be required to file a separate return for the Florida
				corporate income tax.
(j)
				Entities that have elected to be treated as a U.S. real estate mortgage
				investment conduit (REMIC) for Federal purposes are not subject to the tax,
				except for taxable years when they are liable for the Federal tax on income
				from foreclosure property pursuant to s. 860G(c), I.R.C. Such entities are
				required to file Form F-1120 for taxable years when they are liable for Federal
				tax on income from foreclosure property pursuant to s. 860G(c),
				I.R.C.
(k) Any professional service
				corporation organized pursuant to chapter 621, F.S., or any similar
				professional service corporation or professional association created as an
				artificial entity pursuant to the statutes of the United States or any other
				state, territory, possession, or jurisdiction is required to file a corporate
				income tax return for every year that it is conducting business, earning
				income, or existing within the state.