Iowa Administrative Code › Agency 701 - Revenue Department › Title VI - Corporation Income Tax › Chapter 501 - Filing Returns, Payment of Tax, Penalty and Interest, and Tax Credits › Rule 701-501.3 - Form for Filing

Current through Register Vol. 47, No. 3, July 24, 2024
(1)
Use
				and completeness of prescribed forms.
Returns shall be made by
				corporations on forms supplied by the department. Taxpayers not supplied with
				the proper forms shall make application for same to the department in ample
				time to have their returns made, verified and filed on or before the due date.
				Each taxpayer shall carefully prepare the taxpayer's return so as to fully and
				clearly set forth the data required. For lack of a prescribed form, a statement
				made by a taxpayer disclosing the taxpayer's gross income and the deductions
				therefrom may be accepted as a tentative return, and if verified and filed
				within the prescribed time, will relieve the taxpayer from liability to
				penalties, provided that without unnecessary delay such a tentative return is
				replaced by a return made on the proper form. Each question shall be answered
				and each direction complied with in the same manner as if the forms and
				instructions were embodied in these rules.
Failure to receive the proper forms does not relieve the
				  taxpayer from the obligation of making any return required by the
				  statute.
Returns received which are not completed, but merely state
				  "see schedule attached" are not considered to be a properly filed return and
				  may be returned to the taxpayer for proper completion. This may result in the
				  imposition of penalties and interest due to the return being filed after the
				  due date.
(2)
Form
				for filing-domestic corporations.
A domestic corporation, as defined
				by Iowa Code section 422.32(5), is
				required to file a complete Iowa return for each year of its existence
				regardless of whether the corporation has income, loss, or inactivity. For tax
				periods beginning on or after January 1, 1999, domestic corporations are
				required to file a complete Iowa return only if they are doing business in
				Iowa, or deriving income from sources within Iowa. For tax periods beginning on
				or after July 1, 2012, domestic corporations must also include a true and
				accurate copy of their federal corporation income tax return as filed with the
				Internal Revenue Service with the filing of their Iowa return. At a minimum
				this return includes the following federal schedules: income statement, balance
				sheet, reconciliation of income per books with income per return, analysis of
				unappropriated retained earnings per books, dividend income and special
				deductions, cost of goods sold, capital gains, tax computation and tax
				deposits, alternative minimum tax computation, and statements detailing other
				income and other deductions.
When a domestic corporation is included in the filing of a
				  consolidated federal income tax return, the Iowa corporation income tax return
				  shall include a schedule of the consolidating income statements as properly
				  computed for federal income tax purposes showing the income and expenses of
				  each member of the consolidated group, and a schedule of capital gains on a
				  separate basis.
If a domestic corporation claims a foreign tax credit,
				  research activities credit, alcohol fuel credit, employer social security
				  credit, or work opportunity credit on its federal income tax return, a detailed
				  computation of the credits claimed shall be included with the Iowa return upon
				  filing. In those instances where the domestic corporation is involved in the
				  filing of a consolidated federal income tax return, the credit computations
				  shall be reported on a separate entity basis.
Similarly, where a domestic corporation is charged with a
				  holding company tax or an alternative minimum tax, the details of the taxes
				  levied shall be put forth in a schedule to be included with the Iowa return.
				  Furthermore, these taxes shall be identified on a separate company basis where
				  the domestic corporation files as a member of a consolidated group for federal
				  purposes.
(3)
Form
				for filing-foreign corporations.
Foreign corporations, as defined by
				Iowa Code section 422.32(6), must
				include a true and accurate copy of their federal corporation income tax return
				as filed with the Internal Revenue Service with the filing of their Iowa
				return. At a minimum this return includes the following federal schedules:
				income statement, balance sheet, reconciliation of income per books with income
				per return, analysis of unappropriated retained earnings per books, dividend
				income and special deductions, cost of goods sold, capital gains, tax
				computation and tax deposits, research activities credit computation, work
				opportunity credit computation, foreign tax credit computation, alcohol fuel
				credit computation, employer social security credit computation, alternative
				minimum tax computation, and statements detailing other income and other
				deductions.
When a foreign corporation whose income is included in a
				  consolidated federal income tax return files an Iowa return, federal
				  consolidating income statements as properly computed for federal income tax
				  purposes showing the income and expenses of each member of the consolidated
				  group shall be required together with the following additional schedules on a
				  separate basis:
a. Capital
				gains.
b. Dividend income and
				special deductions.
c. Research
				activities credit, alcohol fuel credit and employer social security credit
				computations.
d. Work opportunity
				credit computation.
e. Foreign tax
				credit computation.
f. Holding
				company tax computation.
g.
				Alternative minimum tax computation.
h. Schedules detailing other income and other
				deductions.