The Kentucky 720X form is an amended tax return used by corporations to report changes to previously filed Kentucky Corporation Income and License Tax Returns. This form allows businesses to correct errors or adjust figures due to federal audit changes. Completing the 720X ensures that the corporation's tax obligations are accurately reflected and reconciled with state requirements.
The Kentucky 720X form plays a crucial role for corporations seeking to amend their previously filed Kentucky Corporation Income and License Tax Return, known as Form 720. This form is designed specifically for reporting changes, including those resulting from federal audits. It allows corporations to correct various aspects of their income tax and license tax calculations. The 720X form requires corporations to provide details about their net income, nonbusiness income, and the apportionment factor. Additionally, it includes sections for calculating taxable net income after accounting for net operating loss deductions, as well as adjustments related to capital employed and tax credits. By completing the 720X, corporations ensure that their tax obligations are accurately reflected, allowing for adjustments to be made if necessary. This process not only helps maintain compliance with state tax laws but also provides an opportunity for corporations to clarify their financial standing with the Kentucky Revenue Cabinet.
720X
AM ENDED
Taxable Year Ended
41A720X
KENTUCKY CORPORATION INCOM E TAX
__ __ / __ __
(11-02)
AND CORPORATION LICENSE TAX RETURN
M o.
Yr.
Revenue Cabinet
Nam e of Corporation or Affiliated Group
Kentucky Account No.
_ _ _ _ _ _
ο Check if
Num ber and Street
Federal Identification No.
reporting
federal audit
City
State
ZIP Code
Telephone Num ber
_ _ — _ _ _ _ _ _ _
adjustm ents.
Federal Business Code No.
State and Date of Incorporation
Principal Business Activity in Kentucky
Kentucky Business Code No.
➤Fill in applicable items and use Part III to explain any changes.
NOTE: Use Form 720X to correct Form 720. A corporation taxable both w ithin and w ithout Kentucky m ust com plete lines 1 through 9. A 100% Kentucky corporation m ust com plete line 1 and enter the am ount on line 1 on line 7, om itting lines 2 through 6.
A. As Previously
B. Net Change—
PART I—INCOM E TAX
Increase or (Decrease)
C. Corrected Am ount
Reported
(explain in Part III)
1.
Net incom e before NOL deduction (NOLD)
1
2.
..............................................................Nonbusiness incom e (net)
2
3.
......................................Total business incom e (line 1 less line 2)
4.
.....................................................................Apportionm ent factor
4
5.
...............Kentucky business incom e (line 3 m ultiplied by line 4)
5
6.
Kentucky nonbusiness incom e (net)
..............................................
6
7.
..Taxable net incom e before NOLD (line 5 plus line 6, or line 1)
7
8.
.................................................Kentucky NOLD (attach schedule)
8
9.
......................Taxable net incom e after NOLD (line 7 less line 8)
9
10.
................................................Total incom e tax (see instructions)
10
11.
.......................................................Enter credits (see instructions)
11
12.
Amended income tax liability. Subtract line 11 from line 10. (If line 11 exceeds line 10, enter 0)
12
13.
Incom e tax previously paid
13
14.
Income tax due (If line 12, colum n C, exceeds line 13, enter difference as INCOM E TAX DUE)
14
15.
Income tax refund (If line 13 exceeds line 12, colum n C, enter difference as INCOM E TAX REFUND)
............... 15
PART II—LICENSE TAX
Total capital em ployed
.............Apportionm ent factor (w holly KY corporations enter 100%)
..................Capital subject to license tax (line 1 m ultiplied by line 2)
3
...............................................................Total license tax before credit
.......................License tax credit (m axim um $490) (see instructions)
....................................License tax (line 4 less line 5) (m inim um $30)
....................................................Enter other credits (see instructions)
Amended license tax liability. Subtract line 7 from line 6. (If line 7 exceeds line 6, enter 0)
License tax previously paid
License tax due (If line 8 exceeds line 9, enter difference as LICENSE TAX DUE)
License tax refund (If line 9 exceeds line 8, enter difference as LICENSE TAX REFUND)
TAX PAYM ENT SUM M ARY
Incom e Tax
License Tax
Interest
TOTAL
I, the undersigned, declare under the penalties of perjury, that I have exam ined this return, including all accom panying schedules and statem ents, and to the best of m y know ledge and belief, they are true, correct and com plete.
✍
Signature of principal officer or chief accounting officer
Date
41A720X0013
Nam e and Social Security or federal identification num ber of person or firm preparing return
− M ake check payable to Kentucky State Treasurer.
M ail return w ith payment to Kentucky Revenue Cabinet, Frankfort, Kentucky 40620.
Form 720X
Page 2
PART III— Explanation of Changes to Net Income, Nonbusiness Income, Apportionment Factor, Capital Employed, Credits, etc.
Enter the line reference from page 1 for w hich a change is reported, and give the reason for each change. Show any com putation in detail. Attach supporting schedules.
GENERAL INSTRUCTIONS
Purpose of Form—Use Form 720X to report changes, including federal audit changes, to Form 720, Kentucky Corporation Incom e and License Tax Return, as previously reported.
Information on Income, Deductions, Tax Computation, etc.—Refer to the instructions for Form 720, Kentucky Corporation Incom e and License Tax Return, related schedules and form s, for the year being am ended to determ ine the taxability of certain types of incom e, the allow ability of certain expenses as deductions from incom e, com putation of tax, etc.
Where to File—M ail this form to Kentucky Revenue Cabinet, Frankfort, Kentucky 40620.
SPECIFIC INSTRUCTIONS
Line 1, Column A—Enter the am ount previously reported.
Column B—Enter the increase or decrease being m ade. Explain the increase or decrease in Part III. If the change involves an item of incom e or deduction that is supported by a schedule, statem ent or form , attach the appropriate schedule, statem ent or form . If the change involves a federal audit adjustm ent, attach the "final determ ination of the federal audit." Do not include changes to net operating loss deduction here (see line 8 instructions below ).
Column C—Enter the result of adding the increase in colum n B to the am ount in colum n A or subtracting the colum n B decrease from colum n A. If there is no change entered in colum n B, enter the am ount from colum n A.
Lines 2 Through 6
Note: These lines are applicable only to corporations taxable both w ithin and w ithout Kentucky. Corporations taxable only in Kentucky om it these lines and enter am ount from line 1 on line 7.
Column A—On each line, 2 through 6, enter am ount from appropriate line of Schedule A, Form 720 as previously reported.
Column B—On lines 2, 4 and 6, enter any increases or decreases being m ade, explain in Part III and attach a corrected Schedule A, Form 720.
Column C—On lines 2, 4 and 6, enter the result of adding the increase in colum n B to the am ount in colum n A or subtracting the colum n B decrease from colum n A. If there is no change entered in colum n B, enter the am ount from colum n A.
Line 8, Column C—Enter the am ount of net operating loss deduction (NOLD). The am ount of NOL to be carried back or forw ard for Kentucky incom e tax purposes is the am ount of loss determ ined on the Kentucky return; in the case of a corporation taxable both w ithin and w ithout Kentucky, it is the am ount determ ined after apportionm ent and allocation (attach schedule show ing com putation of the am ount claim ed).
Line 10, Column C—Determ ine corrected incom e tax by using tax rates reflected on Tax Com putation Schedule of Form 720 used for filing original return for the year.
41A720X0023
Line 11, Column A—Enter total am ount of credit from appropriate lines of Tax Com putation Schedule or Incom e Tax Com putation of Form 720 as previously reported.
Column B—Enter any increase or decrease being m ade. If an entry is m ade on this line, attach a schedule reflecting com putations (see Tax Com putation Schedule of Form 720 for year originally filed for lim itations). Also attach applicable tax credit schedules or form s.
Column C—Enter the result of adding the increase in colum n B to the am ount in colum n A or subtracting the colum n B decrease from colum n A. If there is no change entered in colum n B, enter am ount from colum n A.
Line 13—Enter total incom e tax previously paid for taxable year less any refund previously received for taxable year.
A corporation may only amend its license tax return to reflect changes in the apportionment factor or to correct errors or omissions of capital.
Lines 1 and 2—Enter in colum n A the am ount from appropriate line of Form 720, Part III, as previously reported. Enter in colum n B any increases or decreases being m ade and explain in Part III. Enter the result of adding the increase in colum n B to the am ount in colum n A or subtracting the colum n B decrease from colum n A. If there is no change entered in colum n B, enter the am ount from colum n A.
Line 4—Determ ine corrected tax due on am ount reflected on line 3. The tax rate is $2.10 on each $1,000 of capital em ployed or a m inim um of $30.
Line 5—A corporation w ith gross incom e of $500,000 or less is allow ed a credit of $1.40 per thousand of the first $350,000 of capital em ployed against the license tax. For the purpose of this credit, gross incom e m eans total taxable and nontaxable receipts before reduction for cost of goods sold, cost of assets sold or any other deduction.
Line 6—Subtract the am ount on line 5, if applicable, from the am ount on line 4, and enter the result or $30, w hichever is greater.
Line 7, Column A—Enter total am ount of other credits (KIFA tax credit, KIRA tax credit, or coal incentive tax credit) from appropriate lines of the Form 720 as previously reported.
Column B—Enter any increase or decrease being m ade. If an entry is m ade on this line, attach a schedule reflecting com putations. Also, attach applicable tax credit schedules.
Column C—Enter the result of adding the colum n B increase to the am ount in colum n A or subtracting the colum n B decrease from colum n A. If there is no change entered in colum n B, enter am ount from colum n A.
Line 9—Enter total license tax previously paid for the taxable year less any refund previously received for the taxable year.
TAX PAYM ENT SUM M ARY—If am ounts of additional tax due are reflected on either Part I, line 14, or Part II, line 10, enter am ounts due in proper place in this section. Com pute interest from the original due date of the return to the date of paym ent. For years ending prior to July 1, 1982, the rate is 8 percent per annum until paid. For tax years ending after June 30, 1982, variable rates apply to the periods during w hich the tax w as unpaid as follow s: July through Decem ber 1982, 16 percent; calendar 1983, 13 percent; calendar 1984, 11 percent; calendar 1985, 13 percent; calendar 1986, 10 percent; calendar 1987, 8 percent; calendar 1988, 9 percent; calendar 1989, 10 percent; calendar 1990, 11 percent; calendar 1991, 10 percent; calendar 1992, 8 percent; calendar 1993, 7 percent; calendar 1994, 7 percent; calendar 1995, 8 percent; calendar 1996, 9 percent; calendar 1997, 8 percent; calendar 1998, 9 percent; calendar 1999, 8 percent; calendar 2000, 8 percent; calendar 2001, 10 percent; calendar 2002, 6 percent; and calendar 2003, 5 percent.
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