The Kentucky 720S form is the official document used by S corporations to report income tax and limited liability entity tax (LLET) in the Commonwealth of Kentucky. This form is essential for ensuring compliance with state tax laws and must be filed annually. For accurate and timely submission, click the button below to fill out the form.
The Kentucky 720S form is a crucial document for S corporations operating within the state. It serves as the income tax and limited liability entity tax (LLET) return. This form is designed to capture essential information about the corporation’s financial activities during a specified taxable period. Key sections include computations for LLET and income tax, where corporations report their taxable income, applicable credits, and any tax liabilities. The form also requires details such as the number of shareholders, the federal identification number, and the corporation's principal business activity in Kentucky. Additionally, it accommodates various scenarios, including changes in filing status, final returns, and amendments. Each part of the form must be completed accurately to ensure compliance with Kentucky tax laws. By providing a comprehensive overview of the corporation's financial standing, the 720S form helps facilitate proper tax assessment and reporting.
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)
Completing the Kentucky 720S form requires careful attention to detail and accurate information. This form is essential for S corporations to report their income, deductions, and tax liabilities. Once you have gathered all necessary information, including financial records and identification numbers, you can begin filling out the form. Here’s a straightforward guide to help you navigate the process.
The Kentucky 720S form is a tax return specifically for S corporations operating in Kentucky. It is used to report the corporation's income, deductions, and tax credits, as well as to calculate the Limited Liability Entity Tax (LLET) and the corporation income tax.
Any S corporation that is doing business in Kentucky must file the Kentucky 720S form. This includes corporations that have elected S corporation status with the IRS and are subject to Kentucky taxation. Additionally, corporations that are part of a qualified investment partnership or are filing a final return must also complete this form.
To complete the Kentucky 720S form, the following information is typically required:
The Kentucky 720S form is typically due on the 15th day of the fourth month following the end of the corporation's taxable year. For corporations operating on a calendar year, this means the form is due on April 15. Extensions may be available, but they must be requested in advance.
The LLET is calculated based on the corporation's gross receipts. The form requires the corporation to report total gross receipts and then apply the appropriate tax rates. The minimum LLET due is $175, and any overpayments can be credited towards future tax liabilities.
Yes, the Kentucky 720S form can be amended. If there are changes to the original return, an amended return must be filed, which includes completing Part V of the form. It is important to provide explanations for the changes made and attach any necessary documentation.
If the S corporation ceases operations, it must indicate this on the Kentucky 720S form by checking the appropriate box in Part IV. The final return must be filed to report any income or losses up to the date of cessation.
The completed Kentucky 720S form should be mailed to the Kentucky Department of Revenue at the designated P.O. Box for tax returns. If a payment is included, it should be sent to the specified address for payments. It is advisable to check the latest instructions for any updates regarding submission addresses.
Incomplete Information: Many people forget to fill in all required fields. Missing information can lead to delays or rejections.
Incorrect Codes: Using the wrong exemption codes for LLET or income tax can cause significant issues. Double-check these codes against the instructions.
Wrong Tax Period: Failing to accurately indicate the taxable period can result in complications. Ensure that the beginning and ending dates are correct.
Missing Attachments: Not attaching required schedules, such as K-1s or other supporting documents, can lead to a rejection of the return.
Signature Issues: The return must be signed by an authorized officer. An unsigned return will not be processed.
Failure to Review: Not reviewing the completed form for accuracy before submission can lead to mistakes. A final check can catch errors that may have been overlooked.
When filing the Kentucky 720S form, several other documents may be required to ensure compliance with state tax regulations. Each of these documents serves a specific purpose and helps to provide a complete picture of your S Corporation's financial activities. Below is a list of commonly used forms and documents that accompany the Kentucky 720S form.
Gathering and submitting these documents alongside the Kentucky 720S form is essential for a smooth tax filing process. Ensure that all information is accurate and complete to minimize the risk of delays or issues with the Kentucky Department of Revenue.
The Kentucky 720S form is similar to the IRS Form 1120S, which is used by S corporations to report income, deductions, and credits. Both forms require detailed financial information regarding the corporation's income and expenses. Like the 720S, the 1120S includes sections for shareholders' shares of income, deductions, and credits. Each form necessitates the attachment of supporting schedules, such as K-1 forms, to report the individual income distributions to shareholders accurately.
Another comparable document is the IRS Form 1065, which is used by partnerships to report their income and expenses. Similar to the 720S, the 1065 requires a detailed account of the entity's financial activities over the taxable period. Both forms also require the distribution of income among partners or shareholders, necessitating the inclusion of K-1 schedules. The focus on pass-through taxation is a commonality, as both forms ensure that income is reported on the individual tax returns of the owners.
The California Form 100S is another similar document, specifically for S corporations operating in California. Like the Kentucky 720S, it requires detailed financial reporting, including income, deductions, and credits. Both forms mandate the completion of schedules that detail the distribution of income to shareholders. Additionally, both forms provide a section for reporting tax credits and other adjustments, ensuring compliance with state tax regulations.
The New York State Form CT-3-S serves a similar purpose for S corporations in New York. It requires comprehensive financial information, including income, deductions, and credits, mirroring the structure of the 720S. Both forms require the inclusion of shareholder K-1s to report individual income distributions. Each form also includes sections for calculating tax credits and determining the overall tax liability for the corporation.
The IRS Form 1120, which is used by C corporations, also shares similarities with the Kentucky 720S. While the 1120 is for C corporations, both forms require detailed financial reporting, including income and expenses. Both forms also require the calculation of tax liabilities based on the reported income. However, the key difference lies in the taxation structure, as S corporations are pass-through entities, while C corporations are taxed at the corporate level.
The IRS Form 990 is relevant for non-profit organizations but shares a focus on detailed financial reporting similar to the Kentucky 720S. Both forms require a comprehensive overview of income, expenses, and distributions. While the 720S is focused on S corporations, the 990 provides insights into how non-profits allocate their resources and report their financial activities, emphasizing transparency and accountability.
The Florida Corporate Income Tax Return (Form F-1120) is another document that resembles the Kentucky 720S. Both forms require corporations to report income, deductions, and credits to determine tax liability. Each form includes sections for calculating tax credits and ensuring compliance with state tax regulations. Additionally, both forms require detailed financial information to accurately assess the corporation's overall tax obligations.
The Texas Franchise Tax Report is similar in that it requires businesses operating in Texas to report their income and expenses. While the Kentucky 720S focuses on S corporations, the Texas report applies to various business entities. Both documents require detailed financial disclosures and the calculation of tax liabilities based on reported income. Each form also emphasizes compliance with state tax laws and regulations.
Finally, the Ohio IT 1140 is another comparable document for S corporations in Ohio. Like the Kentucky 720S, it requires detailed financial reporting, including income, deductions, and credits. Both forms necessitate the inclusion of K-1 schedules to report income distributions to shareholders. Each form also includes sections for calculating tax credits and determining the overall tax liability, ensuring compliance with state tax requirements.
When filling out the Kentucky 720S form, attention to detail is crucial. Below is a list of five dos and don'ts to guide you through the process.
This form is applicable to all S corporations operating in Kentucky, regardless of their size. Small businesses also need to file this return.
All S corporations that conduct business in Kentucky are required to file the 720S form. Failure to do so may result in penalties.
While the 720S form includes sections for income tax, it also covers the Limited Liability Entity Tax (LLET). Both taxes must be reported on this form.
Supporting documents, such as federal Form 1120S and K-1s, must accompany the 720S form. Omitting these can delay processing.
The Kentucky 720S form has its own due date, which may differ from the federal return. It is important to check the specific deadlines.
While the president typically signs, other authorized officers can also sign the form. Ensure that the signature is from someone with the authority to do so.
The 720S form can be complex, requiring detailed information about income, deductions, and shareholders. Careful attention is necessary to ensure accuracy.
Filing the Kentucky 720S form can be a straightforward process if you keep a few key points in mind. Here are some essential takeaways to help you navigate this important tax form:
By following these takeaways, you can simplify the process of completing and submitting the Kentucky 720S form. Staying organized and informed will help ensure compliance and accuracy.