reglab/statecodes huggingface dataset:
Rhode Island Code of Regulations › Title 280 - Department of Revenue › Chapter 20 - Division of Taxation › Subchapter 25 - Business Corporation Tax › Part 10 - Combined Reporting (280-RICR-20-25-10) › Section 280-RICR-20-25-10.24 - Appendix II - Further Examples

Current through June 14, 2024
A. The following
				 examples serve to illustrate the impact of mandatory unitary combined
				 reporting, which is effective for tax years beginning on or after January 1,
				 2015.
1. Example:
a. J Corp. and K. Corp. are both C
				 corporations that comprise a combined group engaged in a unitary business. (The
				 corporations may have a parent-subsidiary or brother-sister relationship.) Both
				 are based entirely in Rhode Island with all sales in Rhode Island. J Corp. has
				 $400,000 of Rhode Island net income in 2015; K Corp. has a current year net
				 loss in 2015 of $500,000.
b. If
				 separate entity reporting were in effect for tax year 2015, J Corp. would pay
				 $28,000 in Rhode Island corporate income tax, while K Corp. would pay the $500
				 corporate minimum tax (with a net loss carryforward).
c. But because mandatory unitary combined
				 reporting applies for tax year 2015, the combined group pays a total of $1,000
				 in tax - which is the annual corporate minimum tax. The group determines that
				 the two corporations have Rhode Island nexus, and multiplies that number by the
				 minimum tax of $500, for a total of $1,000. Because the group has no tax due
				 under the standard formula (given the current-year net loss), the group owes
				 $1,000 in Rhode Island tax.
d. (K
				 Corp.'s current-year net loss is shared with J Corp., wiping out J Corp.'s
				 $400,000 of net income for the year; the remaining $100,000 of K Corp. NOL is
				 carried forward.)
K Corp
J Corp
Combined Group
Net income (loss) for 2015
$400,000
($500,000)
($100,000)
Rhode Island Tax Due
$1,000
Note: Because the combined group has a net loss, it
								must pay the $500 annual corporate minimum tax for tax year 2015, multiplied by
								the number of group members with Rhode Island nexus.
Rhode Island Code of Regulations › Title 280 - Department of Revenue › Chapter 20 - Division of Taxation › Subchapter 25 - Business Corporation Tax › Part 10 - Combined Reporting (280-RICR-20-25-10) › Section 280-RICR-20-25-10.25 - Appendix III - Comprehensive Example

Current through June 14, 2024
A. Victor Corp.
				 is a Rhode Island business treated as a C corporation for federal income tax
				 purposes. It is a manufacturer of jewelry, chiefly under the "Zulu" brand. It
				 has nexus only in Rhode Island.
B.
				 Whiskey Corp. is a Connecticut business treated as a C corporation for federal
				 income tax purposes. It is a manufacturer of specialty packaging. Its packaging
				 is used chiefly for "Zulu" brand jewelry. It has nexus only in
				 Connecticut.
C. X-ray Corp. is a
				 Nevada business treated as a C corporation for federal income tax purposes. It
				 provides management, accounting, and related services to Victor Corp. and
				 Whiskey Corp. X-ray Corp. has nexus only in Nevada.
D. Romeo is a limited liability company (LLC)
				 based in Delaware that is treated as a pass-through entity for federal income
				 tax purposes. It owns X-ray Corp.'s land and buildings. Romeo's income and
				 expenses flow through to X-ray Corp. of Nevada.
E. Victor Corp., Whiskey Corp., and X-ray
				 Corp. are under common ownership - more than fifty percent (50%) of the voting
				 control of each member of the group is directly or indirectly owned by a common
				 owner or owners.
F. The activities
				 of the group are sufficiently interdependent, integrated or interrelated
				 through their activities so as to provide mutual benefit and produce a
				 significant sharing or exchange of value among them or a significant flow of
				 value among the separate parts.
G.
				 Thus, the combined group is deemed to be engaged in a common business
				 enterprise, a unitary business, for purposes of Rhode Island's mandatory
				 unitary combined reporting regime.
H. Tax Year 2014
1. For tax year 2014, when Rhode Island had
				 separate entity reporting for corporate income tax purposes, only Victor Corp.
				 was required to file a Rhode Island corporate income tax return, and only
				 Victor Corp. had a Rhode Island corporate income tax liability.
2. Due chiefly to the expenses Victor Corp.
				 incurred through payments it made to its Nevada affiliate for management,
				 accounting, and related services, Victor Corp. suffered a $5,000 current-year
				 net loss.
3. As a result, Victor
				 Corp.'s Rhode Island corporate income tax liability for tax year 2014 was the
				 minimum required, $500. (Please see table below.)
Tax Year 2014
Victor Corp
(Separate)
Whiskey Corp
(Separate)
X-Ray Corp
(Separate)
Combined Return
Federal taxable income
$100,000
$1,000,000
$180,000,000
n/a
- deductions
(110,000)
(750,000)
(90,000,000)
n/a
+ additions
5,000
50,000
10,000,000
n/a
Adjusted taxable income
(5,000)
300,000
100,000,000
n/a
Rhode Island tax
500
0
0
n/a
Rhode Island Code of Regulations › Title 280 - Department of Revenue › Chapter 20 - Division of Taxation › Subchapter 25 - Business Corporation Tax › Part 11 - Ability to Apportion Net Income (280-RICR-20-25-11) › Section 280-RICR-20-25-11.1 - Ability to Apportion Net Income

Current through June 14, 2024
A. In accordance
				 with R.I. Gen. Laws §
										44-11-13,
				 the following types of corporate activity will require that a corporation
				 apportion 100% of its net income to Rhode Island:
1. Deriving all its income sources within
				 Rhode Island; or
2. Engaging in
				 activities or transactions wholly within Rhode Island for the purpose of profit
				 or gain; or
3. Not maintaining a
				 regular place of business outside Rhode Island other than a statutory
				 office.
Rhode Island Code of Regulations › Title 280 - Department of Revenue › Chapter 20 - Division of Taxation › Subchapter 25 - Business Corporation Tax › Part 11 - Ability to Apportion Net Income (280-RICR-20-25-11) › Section 280-RICR-20-25-11.2 - Definitions

Current through June 14, 2024
The term "place of business" means a regular place of
					 business, which, in turn, means any bona fide office (other than a statutory
					 office), factory, warehouse, or other space which is regularly used by the
					 taxpayer in carrying on its business. Where, as a regular course of business,
					 property of the taxpayer is stored by it in a public warehouse until it is
					 shipped to customers, such warehouse is considered a regular place of business
					 of the taxpayer and where, as a regular course of business, raw material or
					 partially finished goods of a taxpayer are delivered to an independent
					 contractor to be converted, processed, finished or improved, and the finished
					 goods remain in the possession of the independent contractor until shipped to
					 customers, the plant of such independent contractor is considered a regular
					 place of business of the taxpayer. The mere consignment of goods by the
					 taxpayer to an independent factor outside this state for sale at the
					 consignee's discretion does not constitute the taxpayer as having a regular
					 place of business outside this state.
Rhode Island Code of Regulations › Title 280 - Department of Revenue › Chapter 20 - Division of Taxation › Subchapter 25 - Business Corporation Tax › Part 12 - Consolidated Returns (280-RICR-20-25-12) › Section 280-RICR-20-25-12.1 - Conditions for Filing

Current through June 14, 2024
A. An affiliated
				 group of corporations may file a consolidated return for the taxable year
				 provided that each member corporation:
1. is
				 not a Foreign Sales Corporation (FSC), Domestic International Sales Corporation
				 (DISC), a Subchapter S corporation, or is not a corporation as described in
				 R.I. Gen. Laws §§
											44-11-2(2)(a) 
				 or
				  44-11-2(2)(b),
				 and
2. is subject to taxation under
				 R.I. Gen. Laws Chapter 44-11, and
3. has the same fiscal period, and
4. was affiliated at any time during the
				 taxable year, and
5. consents to
				 such filing and gives written notice thereof to the Tax Administrator no later
				 than the 15th day of the third month following the close of the fiscal year,
				 and joins in the filing of such consolidated return.
Rhode Island Code of Regulations › Title 280 - Department of Revenue › Chapter 20 - Division of Taxation › Subchapter 25 - Business Corporation Tax › Part 12 - Consolidated Returns (280-RICR-20-25-12) › Section 280-RICR-20-25-12.2 - Definitions

Current through June 14, 2024
A. "Affiliated group" mean two or more
				 corporations connected through stock ownership with a common parent
				 corporation, if
1. at least ninety-five
				 percent of the stock of each of the corporations (except the common parent
				 corporation) is owned directly by one or more of the other corporations;
				 and
2. the common parent
				 corporation owns directly at least ninety-five percent of the stock of at least
				 one of the other corporations. The term "stock" does not include nonvoting
				 stock which is limited and preferred as to dividends.
Rhode Island Code of Regulations › Title 280 - Department of Revenue › Chapter 20 - Division of Taxation › Subchapter 25 - Business Corporation Tax › Part 12 - Consolidated Returns (280-RICR-20-25-12) › Section 280-RICR-20-25-12.3 - Liability for Tax

Current through June 14, 2024
A. Several
				 liability of members of affiliated group: Except as provided in §
										12.3(B)     of
				 this Part each member of the affiliated group during any part of a consolidated
				 return period, shall be severally liable for the tax (including any deficiency
				 in respect thereof) computed on the basis of a consolidated return of the
				 group.
B. Liability of subsidiary
				 after withdrawal: If a subsidiary by reason of a bona fide sale of stock for
				 fair value has ceased to be a member of the affiliated group its liability
				 under §
										12.3(A)     of
				 this Part shall remain unchanged. However, if such cessation occurred prior to
				 the date on which the deficiency is assessed, the former subsidiary's
				 deficiency shall be reduced to an amount equal to the part allocable to the
				 former subsidiary on the basis of the consolidated net income properly
				 allocated to it.
C. Effect of
				 intercompany agreements: Any agreement entered into by one or more members of
				 the affiliated group with any other members of the group or with any other
				 person shall in no case, reduce the liability prescribed under §§
										12.3(A) and
				 (B)     of this Part.
Rhode Island Code of Regulations › Title 280 - Department of Revenue › Chapter 20 - Division of Taxation › Subchapter 25 - Business Corporation Tax › Part 12 - Consolidated Returns (280-RICR-20-25-12) › Section 280-RICR-20-25-12.4 - Parent-Agent for Subsidiaries

Current through June 14, 2024
A. The parent
				 corporation shall be for all purposes, in respect of the tax for the taxable
				 year for which a consolidated return is made, the agent of each corporation
				 which during any part of the year was a member of the affiliated group, duly
				 authorized in the name of the parent to act for and represent each such
				 corporation in all matters relating to such tax; the parent corporation shall
				 be the sole agent for such corporations in such matters; and such corporations
				 shall not have authority to act for or to represent themselves in any such
				 matter. As examples but not limited to:
1.
				 All correspondence will be carried on directly with the parent corporation and
				 deficiency notices will be mailed only to the parent corporation in the
				 affiliated group.
2. The parent
				 corporation will file petitions and conduct proceedings before the Tax
				 Administrator, and any such petitions shall be considered as also having been
				 filed by each other member of the group.
3. The parent corporation will file claims
				 for refund or credit; the refunds will be made directly to and in the name of
				 the parent corporation and will discharge any liability of the state in respect
				 thereof to any other member.
4. The
				 parent corporation will, in its name, execute agreements and all other
				 documents. Any agreement or other documents so executed, shall be considered as
				 having been also executed by each other member of the group. However,
				 notwithstanding other provisions under §§
											12.4(A)(1), (2) and
				 (3)     of this Part, any matter of deficiency of
				 tax for a consolidated return will name each corporation which was a member of
				 the affiliated group during any part of such period, and any assessment
				 (whether of the original tax or of the deficiency) will be made in the name of
				 each such corporation. A failure to include the name of any such corporation
				 will not affect the validity of the deficiency notice or the assessments as to
				 the other corporations. After the assessment has been made, any notice or
				 demand for payment or any proceeding to collect the amount of any assessment,
				 will name the corporation from which such collection is to be made. The
				 provisions under §§
											12.4(A)(1), (2) and
				 (3)     of this Part shall apply whether or not
				 one or more members have become or have ceased to be members of the group at
				 any time.
Rhode Island Code of Regulations › Title 280 - Department of Revenue › Chapter 20 - Division of Taxation › Subchapter 25 - Business Corporation Tax › Part 12 - Consolidated Returns (280-RICR-20-25-12) › Section 280-RICR-20-25-12.5 - Failure to Include Income of Subsidiary

Current through June 14, 2024
If the income of any subsidiary liable for tax under R.I.
					 Gen. Laws Chapter 44-11 has not been included in the consolidated return,
					 notice may be given by the Tax Administrator to the parent corporation at the
					 Tax Administrator's discretion. The tax liability may be determined on the
					 basis of separate returns for all members of the affiliation: or on a separate
					 return for the subsidiary whose income is omitted from the consolidated return,
					 or on the inclusion of the income of such subsidiary in the consolidated
					 return.
Rhode Island Code of Regulations › Title 280 - Department of Revenue › Chapter 20 - Division of Taxation › Subchapter 25 - Business Corporation Tax › Part 12 - Consolidated Returns (280-RICR-20-25-12) › Section 280-RICR-20-25-12.6 - Consolidated Net Income and Net Worth

Current through June 14, 2024
A. Consolidated net
				 income: The consolidated net income of the affiliated group making a
				 consolidated return for any taxable year, shall be the aggregate of the taxable
				 income or loss apportioned to this state of each of the members of such group,
				 without eliminations for any kinds of transactions between members or
				 nonmembers of the group. This computation is as follows: each member's taxable
				 income or loss is separately apportioned to this state and then these
				 apportioned income or loss amounts are aggregated.
B. Consolidated net worth: The consolidated
				 net worth of the affiliated group making a consolidated return for any taxable
				 year, shall be the aggregate of the net worth apportioned to this state of each
				 of the members of such group, computed without eliminations of any kind between
				 members or nonmembers of the group. This computation is as follows: Each
				 member's net worth is separately apportioned to this state and then their
				 apportioned net worth amounts are aggregated.
C. Separate statements of income and separate
				 balance sheets for each corporation must accompany the return. The minimum tax
				 for the group is the aggregate of the franchise tax for each member joining in
				 the consolidated filing.
Rhode Island Code of Regulations › Title 280 - Department of Revenue › Chapter 20 - Division of Taxation › Subchapter 25 - Business Corporation Tax › Part 12 - Consolidated Returns (280-RICR-20-25-12) › Section 280-RICR-20-25-12.7 - Bad Debts

Current through June 14, 2024
A. Resulting from
				 transactions during consolidated return period: Intercompany accounts
				 receivable shall not be deducted as bad debts during a consolidated return
				 period.
B. Resulting from
				 transactions prior to the consolidated return period: No deduction shall be
				 allowed during a consolidated return period for intercompany accounts
				 receivable or other obligations resulting from intercompany transactions during
				 the period of filing separate returns.
Rhode Island Code of Regulations › Title 280 - Department of Revenue › Chapter 20 - Division of Taxation › Subchapter 25 - Business Corporation Tax › Part 12 - Consolidated Returns (280-RICR-20-25-12) › Section 280-RICR-20-25-12.8 - Net Operating Loss

Current through June 14, 2024
See Net Operating Loss Deduction Regulation (Part 13 of
					 this Subchapter)
Rhode Island Code of Regulations › Title 280 - Department of Revenue › Chapter 20 - Division of Taxation › Subchapter 25 - Business Corporation Tax › Part 12 - Consolidated Returns (280-RICR-20-25-12) › Section 280-RICR-20-25-12.9 - Existence and Termination of Affiliated Group

Current through June 14, 2024
A.
				 When an affiliated group remains in existence: For the purpose of these
				 regulations, an affiliated group is considered as remaining in existence if the
				 common parent corporation remains as a common parent and at least one
				 subsidiary remains affiliated with it, whether or not that subsidiary was a
				 member of the group at the time the group was formed and whether or not one or
				 more corporations have become subsidiaries or have ceased to be subsidiaries at
				 any time after the group was formed.
B. When an affiliated group terminates: For
				 the purpose of these regulations, an affiliated group shall be considered as
				 terminated if the common parent corporation ceases to be the common parent or
				 if there is no subsidiary affiliated with it.
Rhode Island Code of Regulations › Title 280 - Department of Revenue › Chapter 20 - Division of Taxation › Subchapter 25 - Business Corporation Tax › Part 12 - Consolidated Returns (280-RICR-20-25-12) › Section 280-RICR-20-25-12.10 - Sunset Provision

Current through June 14, 2024
For tax years beginning after December 31, 2014,
					 C-corporations will no longer file on a consolidated return basis; rather, they
					 will file on a "Combined Report" basis. See Combined Reporting Regulation
					 (§
										10.6     of
					 this Subchapter).
Rhode Island Code of Regulations › Title 280 - Department of Revenue › Chapter 20 - Division of Taxation › Subchapter 25 - Business Corporation Tax › Part 13 - Net Operating Loss Deductions (280-RICR-20-25-13) › Section 280-RICR-20-25-13.1 - Purpose

Current through June 14, 2024
These rules and regulations implement R.I. Gen. Laws §
										44-11-11(b) 
					 which provide a Net Operating Loss Deduction.
Rhode Island Code of Regulations › Title 280 - Department of Revenue › Chapter 20 - Division of Taxation › Subchapter 25 - Business Corporation Tax › Part 13 - Net Operating Loss Deductions (280-RICR-20-25-13) › Section 280-RICR-20-25-13.2 - Authority

Current through June 14, 2024
These rules and regulations are promulgated pursuant to
					 R.I. Gen. Laws §§
										44-1-4 and
					  44-11-9.
					 The rules and regulations have been prepared in accordance with the
					 requirements of R.I. Gen. Laws §§
										42-35-1 et. seq. of the Rhode Island Administrative Procedures Act.
Rhode Island Code of Regulations › Title 280 - Department of Revenue › Chapter 20 - Division of Taxation › Subchapter 25 - Business Corporation Tax › Part 13 - Net Operating Loss Deductions (280-RICR-20-25-13) › Section 280-RICR-20-25-13.3 - Application

Current through June 14, 2024
These rules and regulations shall be liberally construed to
					 permit the Division of Taxation to administrator R.I. Gen. Laws §
										44-11-11(b) 
					 regarding Net Operating Losses.
Rhode Island Code of Regulations › Title 280 - Department of Revenue › Chapter 20 - Division of Taxation › Subchapter 25 - Business Corporation Tax › Part 13 - Net Operating Loss Deductions (280-RICR-20-25-13) › Section 280-RICR-20-25-13.4 - Severability

Current through June 14, 2024
If any provision of these rules and regulations, or the
					 application thereof to any person or circumstance, is held invalid by a court
					 of competent jurisdiction, the validity of the remainder of the rules and
					 regulations shall not be affected.
Rhode Island Code of Regulations › Title 280 - Department of Revenue › Chapter 20 - Division of Taxation › Subchapter 25 - Business Corporation Tax › Part 13 - Net Operating Loss Deductions (280-RICR-20-25-13) › Section 280-RICR-20-25-13.5 - Net Operating Loss Deduction Allowed

Current through June 14, 2024
A. A
				 deduction similar to that allowed under
				  26 U.S.C. §
											172, except as provided in §§
										13.5(A)(1), (2) and
				 (3)     of this Part, may be allowable in
				 computing entire net income for the purposes of R.I. Gen. Laws §
										44-11-11.
				 The Rhode Island net operating loss deduction is the same as that allowed for
				 federal tax purposes subject to limitations:
1. One of these limitations is that any net
				 operating loss which may be carried forward for federal tax purposes must be
				 adjusted to reflect the inclusions and exclusions from entire net income
				 required by R.I. Gen. Laws §§
											44-11-11(a) 
				 and
				  44-11-11.1.
a. Example 1 - For the calendar year 2013, a
				 taxpayer has federal gross income of $400,000, including $100,000 dividends
				 from corporations qualifying for the 85% dividend exclusion and has deductible
				 operating expenses of $400,000, including $5,000 Rhode Island corporation tax.
				 Its federal net operating loss is $85,000 and its Rhode Island net operating
				 loss is $80,000, computed as follows:
(1)
				 Federal Filing
Gross Income
$400,000
Less Operating Expense
($400,000)
Taxable Income Before Special Deduction
0
Less Special Dividend Received Deduction
($85,000)
Net Operating Loss
($85,000)
(2) Rhode Island Filing
Federal Taxable Income
($85,000)
Add: Amount of Federal Deduction for Rhode Island
								Business Corporation Tax
$5,000
Rhode Island Net Operating Loss
($80,000)
Rhode Island Code of Regulations › Title 280 - Department of Revenue › Chapter 20 - Division of Taxation › Subchapter 25 - Business Corporation Tax › Part 14 - Qualified Sub Chapter S Subsidiary Corporations (280-RICR-20-25-14) › Section 280-RICR-20-25-14.1 - Purpose

Current through June 14, 2024
The purpose of this regulation is to implement R.I. Gen.
					 Laws Chapter 44-11. This amendment requires a Sub Chapter S Corporation parent
					 and its Qualified Sub Chapter S Subsidiaries to each obtain a federal employer
					 identification number.
Rhode Island Code of Regulations › Title 280 - Department of Revenue › Chapter 20 - Division of Taxation › Subchapter 25 - Business Corporation Tax › Part 14 - Qualified Sub Chapter S Subsidiary Corporations (280-RICR-20-25-14) › Section 280-RICR-20-25-14.2 - Authority

Current through June 14, 2024
This regulation is promulgated pursuant to R.I. Gen. Laws
					 §
										44-1-4. The
					 rules and regulations have been prepared in accordance with the requirements of
					 R.I. Gen. Laws §§
										42-35-1 et. seq. of the Rhode Island Administrative Procedures Act.
Rhode Island Code of Regulations › Title 280 - Department of Revenue › Chapter 20 - Division of Taxation › Subchapter 25 - Business Corporation Tax › Part 14 - Qualified Sub Chapter S Subsidiary Corporations (280-RICR-20-25-14) › Section 280-RICR-20-25-14.3 - Application

Current through June 14, 2024
These rules and regulations shall be liberally construed so
					 as to permit the Division of Taxation to effectuate the purpose of R.I. Gen.
					 Laws Chapter 44-11 and other applicable state laws and
					 regulations.
Rhode Island Code of Regulations › Title 280 - Department of Revenue › Chapter 20 - Division of Taxation › Subchapter 25 - Business Corporation Tax › Part 14 - Qualified Sub Chapter S Subsidiary Corporations (280-RICR-20-25-14) › Section 280-RICR-20-25-14.4 - Severability

Current through June 14, 2024
If any provision of these rules and regulations, or the
					 application thereof to any person or circumstances, is held invalid by a court
					 of competent jurisdiction, the validity of the remainder of the rules and
					 regulations shall not be affected thereby.
Rhode Island Code of Regulations › Title 280 - Department of Revenue › Chapter 20 - Division of Taxation › Subchapter 25 - Business Corporation Tax › Part 14 - Qualified Sub Chapter S Subsidiary Corporations (280-RICR-20-25-14) › Section 280-RICR-20-25-14.5 - Filing of Returns

Current through June 14, 2024
A. Combined Returns
1. A Sub Chapter S Corporation parent and its
				 Qualified Sub Chapter S Subsidiaries ("QSSS") may file a combined return for
				 the taxable year provided that such corporations:
a. Meet the requirements as set forth in
				  26 U.S.C. §
													1361(b)  and files on a
				 combined basis for federal purposes, and
b. Apportion one hundred percent (100%) of
				 their business activity and income to Rhode Island and are included in the
				 combined return for federal purposes, and
c. Submit a copy of the federal election to
				 be a Qualified Sub Chapter S Subsidiary, and
d. Make a separate Rhode Island election to
				 file on a combined basis by the original due date of the return by either
				 attaching a letter of intent to a valid extension request or by checking the
				 "Q-Sub included" check box onthe tax return if it is filed by the original due
				 date.
Rhode Island Code of Regulations › Title 280 - Department of Revenue › Chapter 20 - Division of Taxation › Subchapter 25 - Business Corporation Tax › Part 15 - Treatment of Repatriated Income 2017 (280-RICR-20-25-15) › Section 280-RICR-20-25-15.1 - Purpose

Current through June 14, 2024
These rules and regulations implement various provisions of
					 R.I. Gen. Laws Title 44 as they relate to the treatment of accumulated foreign
					 income deemed repatriated under the federal law commonly known as the Tax Cuts
					 and Jobs Act (Pub. Laws 115-97) and as implemented in new
					  26 U.S.C. §
											965. These sections outline the
					 inclusion of 965 Income for Rhode Island purposes, the apportionment of 965
					 Income, and the application of certain deductions for purposes of the Rhode
					 Island Business Corporation Tax.
Rhode Island Code of Regulations › Title 280 - Department of Revenue › Chapter 20 - Division of Taxation › Subchapter 25 - Business Corporation Tax › Part 15 - Treatment of Repatriated Income 2017 (280-RICR-20-25-15) › Section 280-RICR-20-25-15.2 - Authority

Current through June 14, 2024
These rules and regulations are promulgated pursuant to
					 R.I. Gen. Laws §§
										44-11-9 and
					  44-1-4.
					 These rules and regulations have been prepared in accordance with the
					 requirements of R.I. Gen. Laws §
										42-35-1 et
					 seq. of the Rhode Island Administrative Procedures Act.
Rhode Island Code of Regulations › Title 280 - Department of Revenue › Chapter 20 - Division of Taxation › Subchapter 25 - Business Corporation Tax › Part 15 - Treatment of Repatriated Income 2017 (280-RICR-20-25-15) › Section 280-RICR-20-25-15.3 - Application

Current through June 14, 2024
These rules and regulations shall be liberally construed to
					 permit the Division of Taxation the authority to effectuate the purpose of R.I.
					 Gen. Laws §
										44-11-1 et
					 seq. and other applicable state laws and regulations.
Rhode Island Code of Regulations › Title 280 - Department of Revenue › Chapter 20 - Division of Taxation › Subchapter 25 - Business Corporation Tax › Part 15 - Treatment of Repatriated Income 2017 (280-RICR-20-25-15) › Section 280-RICR-20-25-15.4 - Severability

Current through June 14, 2024
If any provision of these rules and regulations, or the
					 application thereof to any person or circumstances, is held invalid by a court
					 of competent jurisdiction, the validity of the remainder of the rules and
					 regulations shall not be affected hereby.
Rhode Island Code of Regulations › Title 280 - Department of Revenue › Chapter 20 - Division of Taxation › Subchapter 25 - Business Corporation Tax › Part 15 - Treatment of Repatriated Income 2017 (280-RICR-20-25-15) › Section 280-RICR-20-25-15.8 - Apportionment

Current through June 14, 2024
A. Apportionment shall be governed by the
				 Division's Combined Reporting (Part 10 of this Subchapter) and Apportionment of
				 Net Income (Part 9 of this Subchapter) regulations, which shall treat the Net
				 965 Income like dividend income and apply as follows:
1. A taxpayer that recognizes Net 965 Income
				 and uses a single sales factor to apportion income shall include in receipts
				 for apportionment purposes the Net 965 Income amount, as reduced by any DRD
				 granted under this regulation. The taxpayer shall treat the entirety of such
				 amount as receipts from the taxpayer's activities or transactions outside of
				 Rhode Island and therefore shall include such amount in the denominator but not
				 numerator of the single sales factor.
a.
				 Example: Mike Corp and November Corp are C corporation members of a Rhode
				 Island combined group. Oscar Corp is a foreign corporation that is not a member
				 of the combined group, is owned 70% by Mike Corp, and is not engaged in a
				 unitary business with Mike Corp and November Corp. In tax year 2017 Mike Corp
				 recognizes for federal tax purposes $200,000 in 965 Income and $50,000 in
				  26 U.S.C. §
													965(c) deductions attributable to Oscar Corp, resulting in Net 965 Income of $150,000.
				 For Rhode Island tax purposes, the $150,000 of 965 Net Income is included in
				 the combined return of Mike Corp and November Corp which the combined group
				 properly offsets with an 80% DRD of 80% x $150,000 = $120,000, such that the
				 income attributable to
				  26 U.S.C. §
													965  included in the Rhode
				 Island apportioned tax base is $150,000 - $120,000 = $30,000. Mike Corp, and
				 thus the combined group, include in the single sales factor $30,000 as a
				 non-Rhode Island receipt, included in the denominator but not the numerator of
				 the factor.
Rhode Island Code of Regulations › Title 280 - Department of Revenue › Chapter 20 - Division of Taxation › Subchapter 25 - Business Corporation Tax › Part 15 - Treatment of Repatriated Income 2017 (280-RICR-20-25-15) › Section 280-RICR-20-25-15.9 - Deferral of Tax Payment

Current through June 14, 2024
A taxpayer shall not be allowed to defer any payment of the
					 Transition Tax. However, a taxpayer may request a payment plan that would be
					 based on the taxpayer's ability to pay the liability.
Rhode Island Code of Regulations › Title 280 - Department of Revenue › Chapter 20 - Division of Taxation › Subchapter 25 - Business Corporation Tax › Part 15 - Treatment of Repatriated Income 2017 (280-RICR-20-25-15) › Section 280-RICR-20-25-15.10 - Filing Procedures

Current through June 14, 2024
Taxpayers must file a RI Schedule 965 with their 2017 Rhode
					 Island return if the return has not yet been filed. If a 2017 Rhode Island
					 return has already been filed, an amended return must be filed that includes RI
					 Schedule 965. The federal "IRC 965 Transition Tax Statement" must be included
					 with the RI Schedule 965. Upon request, the taxpayer must provide additional
					 documentation to verify 965 Income and other relevant information. Please see
					 the RI Schedule 965's instructions for additional information related to filing
					 the schedule.
Rhode Island Code of Regulations › Title 280 - Department of Revenue › Chapter 20 - Division of Taxation › Subchapter 25 - Business Corporation Tax › Part 15 - Treatment of Repatriated Income 2017 (280-RICR-20-25-15) › Section 280-RICR-20-25-15.11 - Penalty Relief

Current through June 14, 2024
The Tax Administrator will consider requests to waive tax
					 penalties to the extent they are attributable to 965 Income. To request penalty
					 relief, taxpayers must submit a written penalty waiver request to the Tax
					 Administrator.
Rhode Island Code of Regulations › Title 280 - Department of Revenue › Chapter 20 - Division of Taxation › Subchapter 30 - Filing › Part 1 - Filing of Tax Returns and Remittance of Taxes by Electronic Transmission › Section 280-RICR-20-30-1.1 - Purpose

Current through June 14, 2024
This Regulation implements R.I. Gen. Laws §§
										44-1-31.2,
					  44-19-10.3,
					  44-30-71, and  44-30-85.1. These Sections require
					 certain taxpayers file returns electronically and/or to make payments by
					 Electronic Funds Transfer with the Division of Taxation.
Rhode Island Code of Regulations › Title 280 - Department of Revenue › Chapter 20 - Division of Taxation › Subchapter 30 - Filing › Part 1 - Filing of Tax Returns and Remittance of Taxes by Electronic Transmission › Section 280-RICR-20-30-1.2 - Authority

Current through June 14, 2024
This Regulation is promulgated pursuant to R.I. Gen. Laws
					 §§
										44-1-4,
					  44-1-31,
					  44-1-31.2,
					  44-19-33, and
					  44-30-95(a), as
					 amended. These Rules have been prepared in accordance with the requirements of
					 R.I. Gen. Laws §
										42-35-1
et seq.
of the Rhode Island Administrative Procedures Act.
Rhode Island Code of Regulations › Title 280 - Department of Revenue › Chapter 20 - Division of Taxation › Subchapter 30 - Filing › Part 1 - Filing of Tax Returns and Remittance of Taxes by Electronic Transmission › Section 280-RICR-20-30-1.3 - Application

Current through June 14, 2024
The terms and provisions of these Rules and Regulations
					 shall be liberally construed to permit the Division of Taxation to effectuate
					 the purposes of R.I. Gen. Laws §§
										44-1-31,
					  44-1-31.2,
					  44-19-33, and
					  44-30-95(a)  and
					 other applicable State laws and Regulations.
Rhode Island Code of Regulations › Title 280 - Department of Revenue › Chapter 20 - Division of Taxation › Subchapter 30 - Filing › Part 1 - Filing of Tax Returns and Remittance of Taxes by Electronic Transmission › Section 280-RICR-20-30-1.4 - Severability

Current through June 14, 2024
If any provision of this Regulation, or the application
					 thereof to any person or circumstances, is held invalid by a court of competent
					 jurisdiction, the validity of the remainder of this Regulation shall not be
					 affected thereby.
Rhode Island Code of Regulations › Title 280 - Department of Revenue › Chapter 20 - Division of Taxation › Subchapter 30 - Filing › Part 1 - Filing of Tax Returns and Remittance of Taxes by Electronic Transmission › Section 280-RICR-20-30-1.5 - Definitions

Current through June 14, 2024
A. "ACH" or "Automated clearing house" means
				 a central distribution and settlement point for the electronic clearing of
				 debits and credits between financial institutions. An automated clearing house
				 may be a Federal Reserve Bank or any organization with an operating agreement
				 with Nacha that operates as a processing agent for ACH transactions between
				 financial institutions.
B. "ACH
				 credit" means an electronic transfer of funds using the ACH network that is
				 originated by a taxpayer through its financial institution to credit (deposit)
				 funds to a designated State of Rhode Island bank account and debit (withdraw)
				 funds from the taxpayer's bank account for a specified payment
				 amount.
C. "ACH debit" means an
				 electronic transfer of funds initiated by Rhode Island Division of Taxation,
				 upon taxpayer instruction, to debit a taxpayer's designated bank account and
				 credit funds to a designated State of Rhode Island bank account.
1. Note: Any payment initiated through the
				 Division of Taxation taxpayer portal, Modernized Electronic Filing (MEF)
				 system, or remitted in bulk through a preauthorized method is deemed to be
				 filed by an electronic method.
Rhode Island Code of Regulations › Title 280 - Department of Revenue › Chapter 20 - Division of Taxation › Subchapter 30 - Filing › Part 1 - Filing of Tax Returns and Remittance of Taxes by Electronic Transmission › Section 280-RICR-20-30-1.6 - Electronic Transmission Mandate

Current through June 14, 2024
A. Electronic
				 Payment Requirements.
1. Effective January 1,
				 2010, any person with an average monthly sales and use tax liability of two
				 hundred dollars ($200.00) or more per month for the look back period must
				 submit electronic payment in accordance with R.I. Gen. Laws §
											44-19-10.3.
2. Any person with ten (10) or more employees
				 required to withhold and remit tax must submit electronic payment in accordance
				 with R.I. Gen. Laws §
											44-30-71.
3. Effective January 1, 2020, any employer
				 that withheld two hundred dollars ($200.00) or more per month on average for
				 the look back period must submit by electronic payment in accordance with R.I.
				 Gen. Laws §44-3085.1.
4. Any person who has a liability of ten
				 thousand dollars ($10,000.00) or more in connection with the filing of any
				 return, report or other document with the Division of Taxation is required to
				 submit electronic payment in accordance with R.I. Gen. Laws §
											44-1-31. Provided, however,
				 payment of personal income taxes by individuals shall not be subject to the
				 requirement for electronic payment except that employer's withholding of taxes
				 shall be subject to electronic payment.
5. Beginning on January 1, 2023, any larger
				 business registrant must submit electronic payment in accordance with R.I. Gen.
				 Laws §
											44-1-31.2. Individuals and trusts
				 filing personal or fiduciary income tax returns are not larger business
				 registrants for the purposes of R.I. Gen. Laws §
											44-1-31.2.
Rhode Island Code of Regulations › Title 280 - Department of Revenue › Chapter 20 - Division of Taxation › Subchapter 30 - Filing › Part 1 - Filing of Tax Returns and Remittance of Taxes by Electronic Transmission › Section 280-RICR-20-30-1.7 - ACH Credit Details

Current through June 14, 2024
A. An ACH credit
				 submission is required to meet the following criteria:
1. The addenda record must include all
				 information and be in the format as provided in the Authorization Agreement
				 form (RI-EFT-1).
2. Arrangements
				 must be made through the taxpayer's bank to set up the process for submitting
				 the ACH credit payments.
3. For a
				 payment to be timely, the effective date must be on or before the due date for
				 the liability. That is, payment must be completed by the taxpayer's bank in
				 time to be received by the payment due date. All payments received after the
				 due date are late payments and will accrue interest and penalty as
				 applicable.
4. Submission of an ACH
				 credit payment does not constitute the filing of a tax return. All tax returns
				 subject to the electronic filing mandate must be filed electronically. Failure
				 to file such returns electronically will result in the assessment of a
				 penalty.
Rhode Island Code of Regulations › Title 280 - Department of Revenue › Chapter 20 - Division of Taxation › Subchapter 30 - Filing › Part 1 - Filing of Tax Returns and Remittance of Taxes by Electronic Transmission › Section 280-RICR-20-30-1.8 - Penalty for Non-compliance

Current through June 14, 2024
A. Insufficient
				 Funds and Other Bank Reversals
Payments towards tax liability made by electronic funds
					 transfer are subject to the interest and penalty provisions if the payment is
					 deemed late. EFT deposits to a designated State of Rhode Island bank account
					 that are reversed by the State's depository bank due to insufficient funds in
					 the originator's account, or for other reasons, are subject to the late filing
					 and late payment penalties in accordance with the applicable
					 statutes.
B. Failure to Pay
				 Electronically.
1. R.I. Gen. Laws §§
											44-1-31.2(c),
				  44-19-10.3,
				  44-30-71, and
				  44-30-85.1 provide that if any
				 person fails to remit said taxes by electronic funds transfer or other
				 electronic means defined by the tax administrator as required hereunder, the
				 amount of tax required to have been electronically transferred shall be
				 increased by the lesser of:
a. Five percent
				 (5%) of the amount that was not so transferred, or;
b. Five hundred dollars ($500.00), whichever
				 is less, unless there was reasonable cause for the failure and such failure was
				 not due to negligence or willful neglect.
Rhode Island Code of Regulations › Title 280 - Department of Revenue › Chapter 20 - Division of Taxation › Subchapter 30 - Filing › Part 1 - Filing of Tax Returns and Remittance of Taxes by Electronic Transmission › Section 280-RICR-20-30-1.9 - Authority to Waive the Electronic Transmission Mandate

Current through June 14, 2024
A. A taxpayer may make a written request to
				 the Division of Taxation for waiver from mandatory electronic transmission
				 requirements for good cause. Good cause determinations will be made on a
				 case-by-case basis. The following will generally be considered by the Tax
				 Administrator to constitute good cause:
1. The
				 taxpayer's current tax liability and reporting trend shows a decline in the
				 amount of reported tax liability. If projected into the future, the tax
				 liability will not meet or exceed the applicable mandatory threshold
				 amount.
2. The taxpayer's tax
				 liability or gross income amount during the look back period no longer meets or
				 exceeds the applicable mandatory threshold amount.
3. The taxpayer's tax liability or gross
				 income amount meets or exceeds the applicable mandatory threshold amount only
				 because of uncharacteristically high tax amounts or income amounts reported in
				 three (3) or fewer months of the look back period. However, good cause does not
				 exist under this paragraph in the case of a person reporting withholding tax on
				 a quarterly basis.
4. The taxpayer
				 is under the payroll administration of the federal government.
5. The imposition of the electronic
				 transmission mandate causes an undue hardship on the person.
Rhode Island Code of Regulations › Title 280 - Department of Revenue › Chapter 20 - Division of Taxation › Subchapter 30 - Filing › Part 2 - Electronic Filing for Paid Preparers (280-RICR-20-30-2) › Section 280-RICR-20-30-2.1 - Purpose

Current through June 14, 2024
This regulation implements R.I. Gen. Laws §
										44-1-31.1.
					 This Chapter grants the Tax Administrator the authority to require paid
					 preparers to file personal and business tax returns electronically with the
					 Division of Taxation.
Rhode Island Code of Regulations › Title 280 - Department of Revenue › Chapter 20 - Division of Taxation › Subchapter 30 - Filing › Part 2 - Electronic Filing for Paid Preparers (280-RICR-20-30-2) › Section 280-RICR-20-30-2.2 - Authority

Current through June 14, 2024
This regulation is promulgated pursuant to R.I. Gen. Laws
					 Chapter 44-1 as amended. These rules have been prepared in accordance with the
					 requirements of R.I. Gen. Laws Chapter 44-1 and §44-1-31.1.
Rhode Island Code of Regulations › Title 280 - Department of Revenue › Chapter 20 - Division of Taxation › Subchapter 30 - Filing › Part 2 - Electronic Filing for Paid Preparers (280-RICR-20-30-2) › Section 280-RICR-20-30-2.3 - Application

Current through June 14, 2024
The terms and provisions of these rules and regulations
					 shall be liberally construed to permit the Division of Taxation to effectuate
					 the purposes of R.I. Gen. Laws §
										44-1-31.1 and other applicable state laws and regulations.
Rhode Island Code of Regulations › Title 280 - Department of Revenue › Chapter 20 - Division of Taxation › Subchapter 30 - Filing › Part 2 - Electronic Filing for Paid Preparers (280-RICR-20-30-2) › Section 280-RICR-20-30-2.4 - Severability

Current through June 14, 2024
If any provision of this regulation or the application
					 thereof to any person or circumstances, is held invalid by a court of competent
					 jurisdiction, the validity of the remainder of this regulation shall not be
					 affected thereby.
Rhode Island Code of Regulations › Title 280 - Department of Revenue › Chapter 20 - Division of Taxation › Subchapter 30 - Filing › Part 2 - Electronic Filing for Paid Preparers (280-RICR-20-30-2) › Section 280-RICR-20-30-2.5 - Definitions

Current through June 14, 2024
A. "Electronically" means, with respect to a
				 Rhode Island Tax Return, filing that return by computer transmission or by
				 employing other technology specified by the Tax Division.
B. "Eligible tax return" means any Rhode
				 Island Tax Return outlined in the most recent version of Publication
				 RI-1345.
C. "Paid preparer" means
				 any person who prepares for compensation, or who employs one or more persons to
				 prepare for compensation, any Rhode Island Tax Return required by R.I. Gen.
				 Laws Title 44 or any claim for refund of tax imposed by R.I. Gen. Laws Title
				 44.
D. "Rhode Island tax return"
				 means any tax return (and any application for extension of time to file such
				 return) required under the Rhode Island General Laws to be filed with the Tax
				 Division.
E. "Tax division" means
				 the Rhode Island Division of Taxation.
Rhode Island Code of Regulations › Title 280 - Department of Revenue › Chapter 20 - Division of Taxation › Subchapter 30 - Filing › Part 2 - Electronic Filing for Paid Preparers (280-RICR-20-30-2) › Section 280-RICR-20-30-2.6 - Electronic Filing Mandate

Current through June 14, 2024
A. Effective
				 January 1, 2009 any Paid Preparer who filed more than one hundred (100) Rhode
				 Island Tax Returns during the previous calendar year must file all eligible Tax
				 Returns electronically.
B. If a
				 person employed by a Paid Preparer or a single office of a Paid Preparer files
				 one hundred (100) returns or less, but the total of all tax returns filed from
				 multiple offices is more than one hundred (100), all eligible Tax Returns
				 prepared by that Paid Preparer are required to be filed
				 electronically.
Rhode Island Code of Regulations › Title 280 - Department of Revenue › Chapter 20 - Division of Taxation › Subchapter 30 - Filing › Part 2 - Electronic Filing for Paid Preparers (280-RICR-20-30-2) › Section 280-RICR-20-30-2.7 - Preparer Penalty

Current through June 14, 2024
If a Paid Preparer fails to abide by the Electronic Filing
					 Mandate in accordance with R.I. Gen. Laws in accordance with §
										2.6     of this Part, or
					 otherwise causes clients Rhode Island Tax Returns to be filed falsely or
					 improperly, the Tax Administrator may, after a hearing to show cause, preclude
					 such preparer from preparing and filing Rhode Island Tax Returns with the Tax
					 Division.
Rhode Island Code of Regulations › Title 280 - Department of Revenue › Chapter 20 - Division of Taxation › Subchapter 30 - Filing › Part 2 - Electronic Filing for Paid Preparers (280-RICR-20-30-2) › Section 280-RICR-20-30-2.8 - Authority to Waive the Electronic filing Mandate

Current through June 14, 2024
A.
				 The Tax Administrator is authorized to waive the electronic filing mandate in
				 §
										2.6     of
				 this Part, in a given year, for a Paid Preparer who can show that filing
				 electronically will cause undue hardship. Waiver requests should be sent to the
				 following address:
Rhode Island Division of Taxation
Tax Administrator
One Capitol Hill
Providence, RI 02908
B.
				 The waiver request must include the name of the paid preparer and a detailed
				 explanation why filing electronically will cause undue hardship. The waiver
				 shall be valid for a single tax year.