The Kentucky 720S form is a tax document used by S corporations to report their income and calculate their tax liabilities in the Commonwealth of Kentucky. This form encompasses various sections that address both the Limited Liability Entity Tax (LLET) and the income tax obligations of the corporation. Understanding the details of the 720S form is essential for compliance with state tax regulations.
The Kentucky 720S form serves as a crucial document for S corporations operating within the Commonwealth of Kentucky. It is primarily used to report income, calculate taxes, and fulfill compliance requirements for both the Limited Liability Entity Tax (LLET) and income tax. This form must be completed for each taxable period, which is specified at the beginning of the document. It requires detailed information such as the corporation's federal identification number, Kentucky corporation number, and the number of shareholders, alongside their respective K-1 forms. Additionally, the form includes sections to report various tax credits, income computations, and any applicable exemptions. Notably, it also accommodates special circumstances, such as final returns or changes in accounting periods. By accurately completing the 720S form, S corporations can ensure they meet their tax obligations while taking advantage of available credits and exemptions, ultimately supporting their financial health and compliance with state regulations.
720S
Commonwealth of Kentucky
Department of Revenue
*1900030256*
KENTUCKY S CORPORATION
INCOME TAX AND LLET RETURN
2019
See instructions.
Taxable period beginning _______________ , 20 ____ , and ending _______________ , 20 ____ .
ALLET
Exemption Code Enter Code
_____ _____
BIncome Tax Exemption Code Enter Code
CNumber of Shareholders (Attach K-1s)
_____________
Number of QSSSs Included in This Return (Attach Schedule)
D Federal Identification
E
Kentucky Corporation/LLET
Number
__ __ – __ __ __ __ __ __ __
Account Number (Required)
__ __ __ __ __ __
Name of S Corporation
Change of Name
Taxable Year Ending
M M
Y Y
Number and Street
State and Date of Incorporation
Principal Business Activity in KY
City
State
ZIP Code
Telephone Number
NAICS Code Number in KY
(See www.census.gov)
F Check if applicable: Qualified investment partnership
Final return (Complete Part IV)
G Provider 3-Factor
Initial return
Short-period return (Complete Part IV)
Apportionment Code
LLC
Change of accounting period
Amended return (Complete Part V)
PART I—LLET COMPUTATION
PART II—INCOME TAX COMPUTATION
1
Schedule L, Section D, line 1 (Page 6)
...
00
Excess net passive income tax
2
...............................Tax credit recapture
Built-in gains tax
3
Total (add lines 1 and 2)
Tax installment on LIFO recapture
4
Nonrefundable LLET credit from
.....................Kentucky Schedule(s) K-1
Total (add lines 1 through 3)
5
Nonrefundable tax credits
Estimated tax payments
(attach Schedule TCS)
6
Extension payment
LLET liability (greater of line 3 less
..........lines 4 and 5 or $175 minimum)
7
Prior year’s tax credit
8
LLET overpayment from Part I,
Certified rehabilitation tax credit
9
Film industry tax credit
line 17
10
Income tax paid on original return
11
Income tax overpayment on original
12
Income tax overpayment from
Part II, line 13
........................................
return
13
LLET paid on original return
Income tax due (lines 4 and 10 less
14
LLET overpayment on original
lines 5 through 9)
15
LLET due (lines 6 and 14 less lines 7
Income tax overpayment (lines 5
through 13)
16
LLET overpayment (lines 7
................through 9 less lines 4 and 10)
.............through 13 less lines 6 and 14)
Credited to 2019 LLET
17
Credited to 2019 income tax
Credited to 2019 interest
18
19
Credited to 2019 penalty
20
...........................Credited to 2020 LLET
Credited to 2020 corporation income tax..
21
Amount to be refunded
TAX PAYMENT SUMMARY
OFFICIAL USE ONLY
LLET
INCOME
P
1 LLET due
1 Income tax due
W
(Part I, Line 15)
$
.
(Part II, Line 11)
0
Interest
Penalty
V
___________________
A
Subtotal
4 Subtotal
L
TOTAL PAYMENT (Add Subtotals)
$
#
41A720S (10-19)
Page 1 of 6
FORM 720S (2019)
*1900030257*
Page 2 of 6
PART III—ORDINARY INCOME (LOSS) COMPUTATION
Federal ordinary income (loss) (see instructions)
ADDITIONS
State taxes based on net/gross income
Federal depreciation (do not include IRC §179 expense deduction)
Related party expenses (attach Schedule RPC)
Other (attach Schedule O-PTE)
Total (add lines 1 through 5)
SUBTRACTIONS
Federal work opportunity credit
Kentucky depreciation (do not include IRC §179 expense deduction)
Kentucky ordinary income (loss) (line 6 less lines 7 through 9)
PART IV—EXPLANATION OF FINAL RETURN AND/OR SHORT–PERIOD RETURN
¨ Ceased operations in Kentucky
¨ Change in filing status
¨
Change of ownership
Merger
Successor to previous business
Other _________________________________________________
PART V—EXPLANATION OF AMENDED RETURN CHANGES
OFFICER INFORMATION
Attach a schedule listing the name, home address, and Social Security number of the vice president, secretary, and treasurer.
Has the attached officer information changed from the last return filed?
Yes
No
President’s Name
President’s Home Address
President’s Social Security Number
Date Became President
/
Under penalties of perjury, I declare that I have examined this return, including accompanying schedules and statements, and to the best of my knowledge and belief, it is true, correct, and complete. Declaration of preparer (other than taxpayer) is based on all information of which preparer has any knowledge.
Sign
Signature of Officer
Date
Here
Name of Officer
Title
Signature of Preparer
Paid
Name of Preparer or Firm
ID Number
Preparer
Use
Email and/or Telephone No.
May the DOR discuss this return with this preparer?
¨ Yes ¨ No
Include federal Form 1120S with all supporting
Refund
Kentucky Department of Revenue
Enclose
or No
P. O. Box 856905
schedules and statements.
Payment
Louisville, KY 40285-6905
Check Payable: Kentucky State Treasurer
With
P. O. Box 856910
E-Pay Options: www.revenue.ky.gov
Louisville, KY 40285-6910
*1900030341*
Page 3 of 6
SCHEDULE Q— KENTUCKY S CORPORATION QUESTIONNAIRE
IMPORTANT: Questions 3—12 must be completed by all S corporations. If this is the S corporation’s initial return or if the S corporation did not file a return under the same name and same federal I.D. number for the preceding year, questions 1 and 2 must be answered. Failure to do so may result in a request
for a delinquent return.
1Indicate whether: (a) new business; (b) successor to previously existing business which was organized as:
(1) corporation; (2) partnership; (3) sole proprietorship; or (4) other __________________________________________
If successor to previously existing business, give name, address, and federal I.D. number of the previous business organization.
______________________________________________________
2If a foreign S corporation, enter the date qualified to do business in Kentucky. __ __ / __ __ / __ __
3List the following Kentucky account numbers. Enter N/A for any number not applicable.
KY Secretary of State Organization______________________
Nonresident Income Tax Withholding____________________
Employer Withholding ________________________________
Sales and Use Tax Permit ______________________________
Consumer Use Tax ____________________________________
Unemployment Insurance _____________________________
Coal Severance and/or Processing Tax __________________
4The S corporation’s books are in care of: (name and address)
5Are disregarded entities included in this return? Yes No. If yes, list name, address, and federal I.D. number of each entity.
6(a) Was the S corporation a partner or member in a pass-through entity doing business in Kentucky? Yes No. If yes, list name and federal I.D. number of each pass-through entity.
6(b) Was the S corporation doing business in Kentucky other than through its interest held in a pass-through entity doing business in Kentucky? Yes No
7Are related party costs per KRS 141.205(1)(l) included in this return ? Yes No. If yes, attach Schedule RPC, Related Party Costs Disclosure Statement, and enter any related party cost additions on Form 720S, Part III, Line 4.
8Is the entity filing this Kentucky tax return organized as a limited cooperative association per KRS Chapter 272A? Yes No
9Is the entity filing this Kentucky tax return organized as a statutory trust or a series statutory trust per KRS Chapter 386A? Yes No
If yes, is the entity filing this Kentucky tax return a series within a statutory trust? Yes No
If yes, enter the name, address, and federal I.D. number of the statutory trust registered with the Kentucky Secretary of State:
10Was this return prepared on: (a) cash basis, (b) accrual basis, (c) other _____________________________________
11Did the S corporation file a Kentucky tangible personal
property tax return for January 1, 2020? Yes No
If yes, list the name and federal I.D. number of entity(ies) filing return(s):______________________________________________
12Is the S corporation currently under audit by the Internal Revenue Service? Yes No
If yes, enter years under audit ________________________
If the Internal Revenue Service has made final and unappealable adjustments to the corporation’s taxable income which have not been reported to the department, check here and file an amended Form 720S for each year adjusted. Attach a copy of the final determination to each amended return.
*1900030258*
Page 4 of 6
SCHEDULE K—SHAREHOLDERS’ SHARES OF INCOME, CREDITS, DEDUCTIONS, ETC.
SECTION A
Pro Rata Share Items
Total Amount
Income (Loss) and Deductions
Kentucky ordinary income (loss) from trade or business activities
(page 2, Part III, line 10)
Net income (loss) from rental real estate activities (attach federal Form 8825)
(a)
Gross income from other rental activities
3(a)
(b)
Less expenses from other rental activities
(attach schedule)
(c)
Net income (loss) from other rental activities (line 3(a) less line 3(b))
3(c)
Portfolio income (loss):
Interest income
4(a)
Dividend income
Royalty income
(d)
Net short-term capital gain (loss) (attach federal Schedule D and Kentucky
Schedule D, if applicable)
(e)
Net long-term capital gain (loss) (attach federal Schedule D and Kentucky
(f)
Other portfolio income (loss) (attach schedule)
IRC §1231 net gain (loss) (other than due to casualty or theft) (attach federal
Form 4797 and Kentucky Form 4797)
Other income (loss) (attach schedule)
Charitable contributions (attach schedule)
IRC §179 expense deduction (attach federal Form 4562 and Kentucky
Form 4562)
Deductions related to portfolio income (loss) (attach schedule)
...............................................................................Other deductions (attach schedule)
Investment Interest
Interest expense on investment debts
11(a)
(1) Investment income included on lines 4(a), 4(b), 4(c), and 4(f) above
(b)(1)
(2) Investment expenses included on line 9 above
(b)(2)
Tax Credits (see instructions)
Enter the applicable tax credit
...................................................... _______________________________________
12(a)
*1900030259*
Page 5 of 6
SECTION A—continued
Other Items
(a) Type of IRC §59(e)(2) expenditures >
13(a)
(b) Amount of IRC §59(e)(2) expenditures
Tax-exempt interest income
Other tax-exempt income
Nondeductible expenses
Total property distributions (including cash) other than dividends reported on
line 19 below
Other items and amounts required to be reported separately to shareholders
Total dividend distributions paid from accumulated earnings and profits
SECTION B—LLET Pass-through Items (Required)
Kentucky gross receipts from Schedule L, Section A, Column A, line 2
Total gross receipts from Schedule L, Section A, Column B, line 2
Kentucky gross profits from Schedule L, Section A, Column A, line 5
Total gross profits from Schedule L, Section A, Column B, line 5
Limited liability entity tax (LLET) nonrefundable credit from page 1, Part I, the
total of lines 4 and 6, less $175
SECTION C—Apportionment Pass-through Items
Kentucky receipts from Schedule A, Part I, line 1
Total receipts from Schedule A, Part I, line 2
SECTION D—Apportionment for Providers (KRS 141.121 (1)(e))
Kentucky property from Schedule A, Part I, line 5
Total property from Schedule A, Part I, line 6
Kentucky payroll from Schedule A, Part I, line 8
Total payroll from Schedule A, Part I, line 9
*1900030277*
Page 6 of 6
SCHEDULE L—LIMITED LIABILITY ENTITY TAX COMPUTATION
Check this box and complete Schedule L-C, Limited Liability Entity Tax—Continuation Sheet, if the corporation or limited liability pass-through entity filing this tax return is a partner or member of a limited liability pass-through entity or general partnership doing business in Kentucky. Enter the total amounts from Schedule L-C in Section A of this schedule.
SECTION A—Computation of Gross Receipts and Gross Profits
Column A
Column B
Kentucky
Total
1(a)
Gross receipts less returns and allowances
Kentucky statutory gross receipts reductions (see instructions)
Adjusted gross receipts (line 1(a) less line 1(b))
Cost of goods sold (attach Schedule COGS)
Kentucky statutory cost of goods sold reductions (see instructions) ....
Adjusted cost of goods sold (line 3(a) less line 3(b))
Gross profits (line 2 less line 4)
If Section A, Column B, Line 2 or 5 is $3,000,000 or less,
STOP and enter $175 in Section D, line 1 below.
SECTION B—Computation of Gross Receipts LLET
1 If gross receipts from all sources (Column B, line 2) are greater than
$3,000,000, but less than $6,000,000, enter the following:
(Column A, line 2 x 0.00095) –
[
$2,850 x ($6,000,000 – Column A, line 2)
]
$3,000,000
but in no case shall the result be less than zero
2 If gross receipts from all sources (Column B, line 2) are $6,000,000
or greater, enter the following: Column A, line 2 x 0.00095
3 Enter the amount from line 1 or line 2
SECTION C—Computation of Gross Profits LLET
1 If gross profits from all sources (Column B, line 5) are greater than
(Column A, line 5 x 0.0075) –
$22,500 x ($6,000,000 – Column A, line 5)
2 If gross profits from all sources (Column B, line 5) are $6,000,000
or greater, enter the following: Column A, line 5 x 0.0075
SECTION D—Computation of LLET
1Enter the lesser of Section B, line 3 or Section C, line 3 here and on Page 1, Part I, Line 1. If less than $175, enter the minimum of $175 here and on
Page 1, Part I, line 1
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