The Louisiana CIFT-620 form serves as both the Corporation Income Tax and Franchise Tax Return for entities within the state, detailing essential financial information for the fiscal year. It encompasses various segments including income, deductions, tax computation, and credits, tailored specifically for corporate entities operating in Louisiana. For entities aiming to comply with Louisiana's tax statutes, timely and accurate completion of this form is crucial. Click the button below to start filling out your Louisiana CIFT-620 form.
Understanding the intricacies of Louisiana's corporate tax obligations can be daunting, but the Louisiana Cift 620 form plays a crucial role in this process. It serves as both the Louisiana Corporation Income Tax and the Franchise Tax Return, detailing a company's income, assets, and the due taxes for a specific fiscal year. Designed to capture a wide range of financial information, this document asks for details like the legal and trade names of the corporation, changes in address or legal status, and specifics about income, losses, and tax credits. The Cift 620 is comprehensive, including sections for computing both income and franchise taxes, alongside schedules for apportionment and allocation, balance sheets, and detailed listings of nonrefundable and refundable tax credits. By collecting data on federal taxable income, apportionment percentages, and even the NAICS code, Louisiana aims to ensure that corporations contribute their fair share to the state's revenue. Additionally, the form provides options for addressing overpayments, allowing businesses to donate to the Military Family Assistance Fund, credit the overpayment to future tax liabilities, or request refunds. This mechanism underscores the state's efforts to maintain a balance between firm taxation and support for corporate entities operating within its boundaries.
CIFT-620 (1/10)
Print your LA Revenue Account
u
Louisiana Department
Number here (NOT FEIN):
of Revenue
For office use only.
Post Office Box 91011
Baton Rouge, LA 70821-9011
uO
For name change, mark circle.
Legal Name
Trade Name
Louisiana
Corporation
Income Tax
Return for 2009
or Fiscal Year
Begun _______, 2009
Ended _______, 2010
Franchise Tax Return for 2010 or Fiscal Year
Begun _______, 2010
Ended _______, 2011
For address change, mark circle.
For amended return, mark circle.
Entity is not required to ile franchise tax
Address
City
State
ZIP
Calendar year returns are due April 15. See instructions for iscal years.
OFinal return
Mark the appropriate circle for
O Short period return
Short period or Final return.
Print the corporation’s name and complete mailing address above.
A.
Federal Employer Identiication Number
A. u
B.
Federal taxable income
B. u
00
C.
Federal income tax
C. u
D.
Income tax apportionment percentage (two decimal places)
D. u
.
%
E.
Gross revenues
E. u
F.
Total assets
F. u
G.
NAICS code
G. u
H.
Was the income of this corporation included in a consolidated federal income tax return?
H. u
o Yes
o No
I.
Is CIFT-620A, Apportionment and Allocation Schedules included with this return?
I. u
J.
Do the books of the corporation contain intercompany debt?
J. u
K.
Is borrowed capital computed on a calendar or iscal year closing immediately prior to August 28, 2005?
K. u
Computation of Income Tax
1A.
Louisiana net income before loss adjustments and federal income tax deduction –
From either CIFT-620 Schedule D, Line 13 OR from CIFT-620A Schedule P, Line 31
1B.
Subchapter S corporation exclusion – See instructions, page 16. Attach schedule.
1C.
Loss carryforward [$
.00] less federal tax refund applicable to loss [$
.00] Attach schedule.
1D.
Loss carryback [$
1E.
Federal income tax deduction – See instructions, page 16.
1E1.
Federal Disaster Relief Credits – See instructions, page 17.
1F.
Louisiana taxable income – Subtract Lines 1B, 1C, 1D, and 1E from Line 1A.
2.
Louisiana income tax – From CIFT-620 Schedule E, Line 4
3.
Total nonrefundable income tax credits – From CIFT-620 Schedule NRC, Line 10
4.
Income tax after nonrefundable credits – Subtract Line 3 from Line 2.
5.
Estimated tax payments – From CIFT-620 Schedule I, Line 7
6.
Amount of income tax due or overpayment – Subtract Line 5 from Line 4.
*Complete the following page, sign and date return and remit
any amount due shown on Line 25. Do not send cash.
WEB
FOR OFFICE USE ONLY.
Field lag
SPEC
CODE
www.revenue.louisiana.gov2052
2052924
Print your LA Revenue Account Number here. u _____________________________
Computation of Franchise Tax
7A.
Total capital stock, surplus, undivided proits, & borrowed capital – From CIFT-620 Schedule A-1, Line 25, Column 3)
7B.
Franchise tax apportionment percentage – From CIFT-620A Schedule N, either Line1D OR Line 4 –
Percentage must be carried out to 2 decimal places. Do not exceed 100.00%.
7C.
Franchise taxable base – Multiply Line 7A by Line 7B.
8.
Amount of assessed value of real and personal property in Louisiana in 2009
9.
Louisiana franchise tax – From CIFT-620 Schedule F, Line 6
10.
Total nonrefundable franchise tax credits – From CIFT-620 Schedule NRC, Line 11
11.
Franchise tax after nonrefundable credits – Subtract Line 10 from Line 9.
12.
Previous payments
12. u
13.
Amount of franchise tax due or overpayment – Subtract Line 12 from Line 11.
Net Amount Due
14.
Total income and franchise tax due or overpayment – Add Lines 6 and 13.
14. u
15.
Louisiana Citizens Insurance Credit – See instructions, page 17.
15A. Other refundable credits – From CIFT-620 Schedule RC, Line 6
15A. u
15B. Subtotal – Add Lines 15 and 15A and print the result.
15B.
16.
Net income and franchise taxes overpayment. If Line 14 is equal to Line 15B, print zero on
Lines 16 through 23 and go to Line 24. If Line 14 is less than Line 15B, subtract Line 14 from
Line 15B and print the result here. If Line 14 is greater than Line 15B, print zero on Lines 16
through 19 and go to Line 20. – See instructions, page 17.
17.
Amount of overpayment you want to donate to The Military Family Assistance Fund
18.
Amount of overpayment you want Refunded
18. u
19.
Amount of overpayment you want Credited to 2010
19. u
20.
Amount due – If Line14 is greater than Line 15B, subtract Line 15B from Line 14 and print the result.
21.
Delinquent iling penalty – See instructions, page 17.
22.
Delinquent payment penalty – See instructions, page 17.
23.
Interest – See instructions, page 17.
24.
Additional donation to The Military Family Assistance Fund
25.
Total amount due – Add Lines 20 through 24.
Make payment to Louisiana Department of Revenue. DO NOT SEND CASH.
Under the penalties of perjury, I declare that I have examined this return, including all accompanying documents, 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 he has any knowledge.
Print name of officer
Signature of oficer
Signature of preparer
Firm name
(
)
Title of oficer
Telephone
Date
()
2053
Schedule NRC – Nonrefundable Tax Credits, Exemptions, and Rebates
Description
Code
Franchise Tax (B)
Income Tax (A)
1.
7.
Total Income Tax Credits: Add credit amounts in Column A. Print here and on CIFT-620, Line 3.u
Total Franchise Tax Credits: Add credit amounts in Column B. Print here and on CIFT-620, Line 10. u
For further information about these credits, please see instructions beginning on page 18.
Premium Tax
100
Bone Marrow
120
Nonviolent Offenders
140
Qualiied Playgrounds
150
Debt Issuance
155
Contributions to
160
Educational Institutions
Donations to
170
Public Schools
Donations of Materials,
Equipment, Advisors,
175
Instructors
Other
199
Atchafalaya Trace
200
Previously Unemployed
208
Recycling Credit
210
Basic Skills Training
212
Dedicated Research
220
New Jobs Credit
224
Refunds by Utilities
226
Eligible Re-entrants
228
Neighborhood Assistance
230
Cane River Heritage Area
232
La Community Economic Dev
234
Apprenticeship
236
Ports of Louisiana Investor
238
Ports of Louisiana Import
240
Export Cargo
Motion Picture Investment
251
Research and Development
252
Historic Structures
253
Digital Interactive Media
254
Motion Picture Resident
256
Capital Company
257
LCDFI Credit
258
New Markets
259
Brownields Investor
260
Motion Picture Infrastructure
261
299
Biomed/University Research
300
Tax Equalization
305
Manufacturing Establishments
310
Enterprise Zone
315
399
Schedule RC – Refundable Tax Credits and Rebates
Amount of Credit Claimed
F
Total: Add lines 1 through 5. Print the result here and on Line 15A.
For further information about these credits, please see instructions beginning on page 20.
Inventory Tax
50F
Ad Valorem Natural Gas
51F
Ad Valorem Offshore Vessels
52F
Telephone Company
54F
Property
Prison Industry Enhancement
55F
Urban Revitalization
56F
Mentor-Protégé
57F
Milk Producers
58F
Technology
59F
Commercialization
Angel Investor
61F
Musical and Theatrical
62F
Production
Wind and Solar Energy
64F
Systems
School Readiness Child
65F
Care Provider
School Readiness Business
67F
- Supported Child Care
School Readiness Fees
and Grants to Resource
68F
and Referral Agencies
Sugarcane Trailer Conversion
69F
Retention and Modernization
70F
Conversion of Vehicle to
71F
Alternative Fuel
72F
Other Refundable
80F
WEB2054
All applicable schedules must be completed.
Schedule A – Balance Sheet
ASSETS
1. Beginning of year
2. End of year
1.Cash
2.Trade notes and accounts receivable
Reserve for bad debts
Inventories
Investment in United States government obligations
Other current assets – Attach schedule.
Loans to stockholders
Stock and obligations of subsidiaries
Other investments – Attach schedule.
10. Buildings and other ixed depreciable assets
11. Accumulated amortization and depreciation
12. Depletable assets
13. Accumulated depletion
14. Land
15. Intangible assets
16. Accumulated amortization
17. Other assets – Attach schedule.
18. Excessive reserves or undervalued assets – Attach schedule.
19. Totals – Add Lines 1 through 18.
Liabilities and Capital
20. Accounts payable
21. Mortgages, notes, and bonds payable one year old or less at balance sheet date and having a maturity of one year or less from original date incurred
22. Other current liabilities – Attach schedule.
23. Loans from stockholders – Attach schedule.
24. Due to subsidiaries and affiliates
25. Mortgages, notes, and bonds payable more than one year old at balance sheet date or having a maturity of more than one year from original date incurred
26. Other liabilities – Attach schedule.
27. Capital stock: a. Preferred stock
b. Common stock
28. Paid-in or capital surplus
29. Surplus reserves – Attach schedule.
30. Earned surplus and undivided proits
31. Excessive reserves or undervalued assets
32. Totals – Add Lines 20 through 31.
2055
For Schedule A-1 see Revenue Information Bulletins (RIB) 05-026 and (RIB) 06-026. Also see Revenue Ruling (RR) 06-010.
All applicable schedules must be completed. Complete lines 1 through 11 only if there is an end of year balance in the “Due to Subsidiaries and Affiliates” account or an equivalent account on the books of the corporation.
Schedule A-1 Computation of Franchise Tax Base
1. Capital Stock:
Common Stock – Include paid-in or Capital Surplus
Preferred Stock – Include paid-in or Capital Surplus
2. Total Capital stock – Add Lines 1A and 1B.
3. Surplus and undivided proits
4. Surplus reserves – Include any excessive reserves or undervalued assets.
5. Total – Add Lines 2, 3, and 4.
6. Due to subsidiaries and affiliates
7. Deposit liabilities to affiliates – Included in the amount on Line 6
8. Accounts payable less than 180 days old – Included in the amount on Line 6
9. Adjusted debt to affiliates – Subtract Lines 7 and 8 from Line 6.
10A. If Line 9 above is greater than zero, AND Line 5 above is greater than or equal to zero, subtract Line 5
from line 9. If both conditions of this line do not apply, skip to Line 10B.
10A1. If Line 10A is less than zero, print zero on Line 11 and Line 24, column 3. If Line 10A is greater than zero,
multiply Line 10A by 50% and print this amount on Line 11 and Line 24, column 3.
10B. If Line 9 is greater than zero, AND Line 5 is less than or equal to zero, subtract Line 5 from Line 9.
Multiply the difference by 50% and print the result here.
10B1. Print the lesser of Line 9 or Line 10B on Line 11 and Line 24, column 3. If Line 9 equals Line 10B, print that
amount on Line 11 and on Line 24, column 3.
11. Print the amount from either Line 10A1 or 10B1.
1
2
3
End of year
70% reduction
Total
for items of debt
(See note below.)
12.Accounts payable
13.Mortgages, notes and bonds payable one year old or less at balance sheet date and having a maturity of one year or less from original date incurred. – Complete Schedule B. Do Not include indebtedness from the Louisiana Infrastructure Bank.
14.Other current liabilities – Attach Schedule.
Do Not include items of surplus. See RIB 06-026.
15.Loans from stockholders – Attach Schedule.
16.End of year balance due to subsidiaries and affiliates, less amount on Line 11. If less than zero, print zero.
17.Mortgages, notes and bonds payable more than one year old at balance sheet date or having a maturity of more than one year from original date incurred. – Do Not include indebtedness from the Louisiana Infrastructure Bank.
18.Other liabilities – Attach schedule.
19.Capital Stock: Common Stock
Preferred Stock
Paid-in or capital surplus – Include items of paid-in capital in excess
of par value.
Surplus reserves – Attach schedule.
Earned surplus and undivided proits
Excess reserves or undervalued assets
Additional surplus and undivided proits – From Line 11 above
25. Total – Add the amounts in Column 3, Lines 12 through 24. Print the total in
Column 3 and on CIFT-620 Page 2, Line 7A . Round to the nearest dollar.
Note: Print in Column 1 those items that are included in the franchise taxable base. Multiply Lines 12 through 18 by the percentage
of reduction in Column 2. Subtract the result from Column 1 and print the amount in Column 3.
2056
Schedule B – Analysis of Schedule A1, Column 1, Lines 13, 15, and 18
Original date of inception
Due date
Payee
Installment amount
Balance due
Taxable amount
Schedule C – Analysis of Schedule A, Line 30, Column 2 – Earned surplus and undivided profits per books
Balance at beginning of year
5. Distributions:
a. Cash
Net income per books
b. Stock
Other increases – Itemize.
c. Property
6. Other decreases – Itemize.
7. Total – Add Lines 5 and 6.
Total – Add Lines 1, 2, and 3.
8. Balance at end of year – Subtract Line 7 from Line 4.
Schedule D – Computation of Louisiana Taxable Income
Schedule D need not be completed if Form CIFT-620A, Schedule P is iled with this return.
Additions to Federal Taxable Income
Net operating loss deduction claimed on federal return
Dividends received deduction claimed on federal return
Louisiana income tax deducted on federal return
Other additions to federal taxable income – Attach schedule.
Total additions – Add Lines 2 through 5.
Subtractions from Federal Taxable Income
Refunds of Louisiana income tax reported on federal return
Louisiana depletion in excess of federal depletion – Attach schedule.
Expenses not deducted on the federal return due to Internal Revenue Code Section 280(C)
Road Home – The amount included in federal taxable income.
Other subtractions – Attach schedule.
Total subtractions – Add Lines 7 through 11.
Louisiana net income before S corporation exclusion, loss adjustments, and federal income tax deduction –
Add the amount on Line 1 to the amount on Line 6, and subtract the amount on Line 12. Round to the
nearest dollar. Print here and on CIFT-620, Page 1, Line 1A.
2057
Schedule E – Calculation of Income Tax
1. Print the amount of net taxable income from CIFT-620, Page 1, Line 1F.
Column 1
Column 2
2. Calculation of tax
Net income
RATE
TAX
in each bracket
a. First $25,000 of net income
x 4% =
b. Next $25,000
x 5% =
c. Next $50,000
x 6% =
d. Next $100,000
x 7% =
e. Over $200,000
x 8% =
3.Add the amounts in Column 1, Lines 2a through 2e and print the result.
4.Add the amounts in Column 2, Lines 2a through 2e. Round to the nearest dollar. Print in Column 2 and on CIFT-620, Page 1, Line 2.
Schedule F – Calculation of Franchise Tax
1.Print the amount from CIFT-620, Page 2, Line 7 or Line 8, whichever is greater.
2.Print the amount of Line 1 or $300,000, whichever is less.
3.Multiply the amount on Line 2 by $1.50 for each $1,000 or major fraction and print the result.
4.Subtract Line 2 from Line 1 and print the result.
5.Multiply the amount on Line 4 by $3.00 for each $1,000 or major fraction and print the result.
6.Add Lines 3 and 5. Round to the nearest dollar. Print the result here and on CIFT-620, Page 2, Line 9.
Schedule G – Reconciliation of Federal and Louisiana Net Income
Schedule G is required if Form CIFT-620A, Apportionment and Allocation Schedules are iled with this return.
Important! See R.S. 47:287.71 and R.S. 47:287.73 for information.
1.Print the total net income calculated under federal law before special deductions.
2.Additions to federal net income: a. Louisiana income tax
b.
c.
d.
e.
f.
Subtractions from federal net income:
a.Dividends
b.Interest
c.Road Home – The amount included in federal taxable income
3.Louisiana net income from all sources – The amount should agree with Form CIFT-620A, Schedule P, Line 26.
2058
Schedule H – Reconciliation of Income Per Books with Income Per Return
1. Net income per books
7. Income recorded on books this year, but not
included in this return – Itemize.
2. Louisiana income tax
3. Excess of capital loss over capital gains
4. Taxable income not recorded on books this
year – Itemize.
8. Deductions in this tax return not charged
against book income this year:
a. Depreciation
b. Depletion
5. Expenses recorded on books this year, but not
c. Other
deducted in this return:
9. Total – Add Lines 7 and 8.
10. Net income from all sources per return –
6. Total – Add Lines 1 through 5.
Subtract Line 9 from Line 6.
Schedule I – Summary of Estimated Tax Payments
Check number
Amount
1.Credit from prior year return
2.First quarter estimated payment
3.Second quarter estimated payment
4.Third quarter estimated payment
5.Fourth quarter estimated payment
6.Payment made with extension request
7. Total
Additional Information Required
1.Indicate principal place of business. ___________________________
2.Describe the nature of your business activity and specify your principal product or service, both in Louisiana and elsewhere.
Louisiana:
Elsewhere:
3.Indicate the date and state of incorporation. ____________________
4.Indicate parishes in which property is located.
5.At the end of the tax year, did you directly or indirectly own 50% or more of the voting stock of any corporation or an interest of any part- nership, including any entity treated as a corporation or partnership?
o Yes o No
If “yes,” show name, address, and percentage owned.
6.At the end of the tax year, did any corporation, individual, partnership, trust, or association directly or indirectly own 50% or more of your vot-
ing stock? o Yes o No
2059
Corporation Apportionment and Allocation Schedules
COMPLETE ALL APPLICABLE SCHEDULES.
CIFT-620A (1/10)
Print your LA Revenue Account Number here. u ___________________________________
Name as shown on CIFT-620
Income taxable period covered
Schedule M - Computation of Corporate Franchise Tax and Income Tax Property Ratios
Located in Louisiana
Located everywhere
Franchise tax
Income tax property factor
property factor
1. Items
2. Beginning of year
3. End of year
4. End of year
5. Beginning of year
6. End of year
Intangible assets
1.Cash.........................................................
2.Notes and accounts receivable................
3. Reserve for bad debts
) (
4.Investment in U.S. govt. obligations.........
5.Stock and obligations of subsidiaries.......
6.Other investments – Attach schedule. .....
7.Loans to stockholders ..............................
8.Other intangible assets – Attach schedule.
9. Accumulated depreciation
10. Total intangible assets – Add Lines 1-9...
Real and tangible assets
Bldgs. and other depreciable assets
Accumulated depreciation
Depletable assets
Accumulated depletion
Land
Other real & tangible assets – Attach sch.
Excessive reserves, assets not relected
on books, or undervalued assets
Total real and tangible assets –
Add Lines 11 through 18
Total assets – Add Lines 10 and 19
Print the amount from Line 19 above
Less real and tangible assets not used
in production of net apportionable income
– Attach schedule
Balance
Beginning of year balance
Total – Add Lines 23 and 24
26. Franchise tax property ratio (Line 20, Column 4 ÷ Line 20, Column 3)
............................
__ __ __ . __ __ %
27. Income tax property ratio (Line 25, Column 6 ÷ Line 25, Column 3) ..........................................................................................................
Schedule N - Computation of Corporate Franchise Tax Apportionment Percentage
1. Description of items used as ratios
2. Total amount 3. Louisiana amount 4. Percent (Col. 3 ÷ Col. 2)
1. Net sales of merchandise, charges for services, and other revenues
A. Sales – See instructions, page 24
B. Charges for services – See instructions, page 24
C. Other Revenues – See instructions, page 24.
(i)
Rents and royalties
For Manufacturers
This is your apportionment ratio. Print
(ii)
Dividends and interest from subsidiaries
here and on Page 2, Line 7B of CIFT-620.
(iii)
Other dividends and interest
Do NOT proceed further.
▼
(iv) All other revenues
D. Total – Add the amounts in Columns 2 and 3. Calculate the ratio and
print the result in Column 4. For taxpayers whose primary business is
. ..manufacturing, use this apportionment ratio. See instructions, page 24
2. Franchise tax property ratio – Print in Column 4 the percentage from Schedule M, Line 26
...........................................................................................................................3. Total of applicable percents in Column 4
4. Average of percents – Divide Line 3 by applicable number of ratios. Print here and on CIFT-620, Page 2, Line 7B
2060
Schedule P - Computation of Louisiana Net Income
Column 3 must be completed. Column 2 must also be completed if the separate accounting method is used.
Those corporations employing the separate accounting method should review R.S. 47:287.94H for guidance.
2. LA amounts
3. Totals
(Lines 1 through 25)
1.Gross receipts ______________________ Less returns and allowances _______________
2.Less: Cost of goods sold and/or operations – Attach schedules. ........................................................................
3.Gross proit ...........................................................................................................................................................
4.Gross rents ...........................................................................................................................................................
5.Gross royalties ......................................................................................................................................................
6.Income from estates, trusts, partnerships.............................................................................................................
7.Income from construction, repair, etc. ..................................................................................................................
8.Other income – Attach schedule. .........................................................................................................................
9.Total income – Add Lines 3 through 8.............................................................................................................................................
10. Compensation of officers .....................................................................................................................................
11. Salaries and wages (not deducted elsewhere).....................................................................................................
12. Repairs – Do not include cost of improvements or capital expenditures. ............................................................
13. Bad debts..............................................................................................................................................................
14. Rent ......................................................................................................................................................................
15. Taxes – Attach schedule. .....................................................................................................................................
16. Interest ..................................................................................................................................................................
17. Contributions.........................................................................................................................................................
18.Depreciation – Attach schedule. ...........................................................................................................................
19.Depletion – Attach schedule. ................................................................................................................................
20.Advertising ............................................................................................................................................................
21.Pension, proit sharing, stock bonus, and annuity plans ......................................................................................
22.Other employee beneit plans...............................................................................................................................
23.Other deductions – Attach schedule.....................................................................................................................
24.Total deductions – Add Lines 10 through 23........................................................................................................
25.Net income from Louisiana sources – If separate (direct) method of reporting is used, print here and on Line 31.
26.Net income from all sources – Subtract Column 3, Line 24 from Column 3, Line 9. ..........................................
27.Allocable income from all sources – See instructions, page 25. Attach schedule supporting each amount.
A.Net rents and royalties from immovable or corporeal movable property .........................................................
B.Royalties from the use of patents, trademarks, etc. – See instructions, page 25............................................
C.Income from estates, trusts, and partnerships .................................................................................................
D.Income from construction, repair, etc. – See instructions, page 25.................................................................
E.Other allocable income.......................................................................................................................................
28.Net income subject to apportionment – Subtract Lines 27A through 27E from Line 26, Column 3. ...................
29.Net income apportioned to Louisiana – See instructions, page 25. .....................................................................
30.Allocable income from Louisiana sources – See instructions, page 26. Attach schedule supporting each amount.
B.Royalties from the use of patents, trademarks, etc. – See instructions, page 26............................................
D.Income from construction, repair, etc. – See instructions, page 26.................................................................
E.Other allocable income.....................................................................................................................................
31.Louisiana net income before loss adjustments and federal income tax deduction –
Add Column 3, Line 29 to Column 2, Lines 30A through 30E. Print the result or the amount on Line 25,
whichever is applicable, here and on Form CIFT-620, Page 1, Line 1A. Round to the nearest dollar. .....................................................
Schedule Q - Computation of Income Tax Apportionment Percentage
2. Total amount 3. Louisiana amount
4. Percent (Col. 3 ÷ Col. 2)
1. Net sales of merchandise and/or charges for services
For Manufacturers or Merchandisers.
A. Sales – See instructions, page 26
This is your apportionment ratio. Use this
result in determining income apportioned
B. Charges for services – See instructions, page 26
to Louisiana on Line 29, Sch. P above. Do
C. Other gross apportionable income
NOT proceed further.
D.Total – Add the amounts in Columns 2 and 3. Calculate the ratio and print the result in Column 4. For taxpayers whose primary business is manufacturing
or merchandising, use this apportionment ratio. See instructions, page 26
2.Wages, salaries, and other personal service compensation paid
during the year – Print the amounts in Column 2 and Column 3.
Calculate the ratio and print the result in Column 4
Income tax property ratio – Print percentage from Schedule M, Line 27
Total of percents in Column 4
5. Average of percents – Multiply this result by the amount on Schedule P, Line 29 to determine the amount of Louisiana apportionable income.
2061
Completing the Louisiana CIFT-620 form is an essential process for corporations filing their income and franchise tax returns in the state. This form facilitates accurate reporting of a business's earnings, deductions, and taxes due, ensuring compliance with Louisiana's tax regulations. To avoid common mistakes and ensure your filing is processed efficiently, follow each step carefully, providing accurate and comprehensive information. Remember, while the process may seem daunting at first, breaking it down into manageable steps can simplify it.
By carefully following these steps, you can ensure that your CIFT-620 form is properly filled out and submitted, meeting Louisiana's tax filing requirements for your corporation.
The Louisiana CIFT-620 form is utilized for filing both the Corporation Income Tax and the Corporation Franchise Tax returns for entities operating in Louisiana. This form is mandatory for corporations to accurately report their income and franchise taxes owed to the state based on their earnings and capital held during the taxable period.
Any corporation that is registered or doing business in Louisiana and is subject to state taxes must file the CIFT-620 form. This includes corporations that have generated income in Louisiana or have capital, surplus, and undivided profits in the state.
For calendar year filers, the deadline is April 15th of the following year. For fiscal year filers, the return is due on the 15th day of the fourth month following the close of their fiscal year.
To amend a previously filed CIFT-620 return, corporations must mark the "amended return" circle on the form and include an explanation of the changes. Additionally, any supporting documentation that justifies the adjustments should be attached.
The franchise tax is calculated by taking the total of the capital stock, surplus, undivided profits, and borrowed capital from CIFT-620 Schedule A-1, Line 25, and applying the franchise tax apportionment percentage from CIFT-620A Schedule N.
Yes, Louisiana encourages corporations to file the CIFT-620 form electronically through the Louisiana Department of Revenue's official website. Electronic filing is faster and more secure, offering an efficient way to process tax returns and payments.
Corporations that file their CIFT-620 form late are subject to a delinquent filing penalty, a delinquent payment penalty, and interest on the unpaid tax. Specific penalty rates and interest are outlined in the instructions for the form.
To report a change of address or legal/trade name, corporations must mark the appropriate circle at the top of the CIFT-620 form. It is important to update this information to ensure that all correspondence and tax documents are received.
The North American Industry Classification System (NAICS) code is used to classify the business activities of the corporation. Including the NAICS code on the CIFT-620 form helps in identifying the primary business activity and assists in statistical analysis and tax compliance monitoring.
Corporations can claim various nonrefundable and refundable tax credits on the CIFT-620 form by completing the Schedule NRC for nonrefundable credits and Schedule RC for refundable credits. Detailed information on eligible credits and the respective codes is provided in the instructions.
When filling out the Louisiana CIFT-620 form, individuals often encounter several pitfalls that can lead to inaccuracies or delays in processing. Awareness and avoidance of these common mistakes are crucial for a smooth submission process. Below are seven common errors:
Failing to provide the LA Revenue Account Number at the beginning of the document, which is a critical piece of information for identifying the filing entity.
Omitting to mark the appropriate circle for name changes, address changes, or if the return is amended. This oversight can lead to processing issues and incorrect records.
Incorrectly reporting the Federal Employer Identification Number (FEIN), leading to a mismatch with federal records and potential filing discrepancies.
Not accurately calculating or misunderstanding the income tax apportionment percentage, which can result in an incorrect tax obligation.
Forgetting to attach required schedules, such as CIFT-620A, Apportionment and Allocation Schedules, which are necessary for a complete return.
Misinterpreting the computation of franchise tax, particularly the total capital stock and borrowed capital, which affects the calculation of the franchise tax base.
Overlooking the need to sign the return and thereby neglecting the declaration that the information provided is true, correct, and complete under the penalties of perjury.
To prevent these and other errors, it is imperative to review each section of the CIFT-620 form carefully, consult the accompanying instructions, and verify all provided information for accuracy before submission.
Accompanying the Louisiana CIFT-620 form, several other forms and documents are often utilized to provide a comprehensive understanding of a corporation's financial and tax situation. These materials support the main form in detailing the corporation's income, deductions, credits, and payments relevant to their Louisiana Corporation Income and Franchise Tax obligations.
Each of these documents plays a pivotal role in fulfilling tax obligations accurately. They allow for detailed reporting and compliance with Louisiana tax laws, ensuring that businesses disclose their financial activities appropriately and take advantage of relevant credits and deductions.
The Louisiana CIFT-620 form, a document utilized for both corporation income and franchise tax returns within the state, encompasses various aspects that align it with other tax documents. This form is designed to capture essential financial details from corporations operating in Louisiana, ensuring compliance with state tax regulations. Key components of the form include identification of the legal entity, an accounting of federal taxable income, and calculations pertaining to both income and franchise taxes. Understanding how the CIFT-120 form parallels other tax documents sheds light on its broader role within tax administration.
One document the CIFT-620 form resembles is the IRS Form 1120, which is the U.S. Corporation Income Tax Return. Both forms request detailed financial information from corporations to calculate the taxes due based on the income generated. Specifically, they gather data on gross receipts, total income, and the deductions allowable under the tax code. Further, both forms serve as a means for corporations to report their income tax liability to a governmental authority, albeit one at the federal level and the other at the state level. The similarity lies in the structure and purpose of these forms, designed to ensure that corporations contribute their fair share to public coffers.
Another comparable document is the State Franchise Tax Report used by states that levy a franchise tax, such as Texas's Franchise Tax Report. Like the CIFT-620, these reports calculate a corporation's tax obligation based on various factors, including total revenue and asset values. However, while the Louisiana form combines income and franchise tax computations into one document, in some states, separate filings might be required for franchise taxes. The primary similarity is their function of measuring the economic activity of corporations within a state to determine tax liabilities, thereby ensuring that companies contribute to state revenues in proportion to their operations.
In summary, the Louisiana CIFT-620 form serves a dual role similar to both the IRS Form 1120 and state-specific franchise tax reports. It illustrates the intersection of income and franchise tax responsibilities for corporations, embodying the administrative process of tax collection at the state level. By examining its parallels with these forms, one can appreciate the CIFT-620's comprehensive approach to taxing corporate entities within Louisiana.
When approaching the task of filling out the Louisiana CIFT-620 form, it's important to follow guidelines that ensure the process is completed accurately and efficiently. Below, find essential dos and don’ts to assist you:
Do:
Don’t:
Many people have misconceptions about the Louisiana CIFT-620 form, which can create confusion and errors when businesses attempt to comply with state tax obligations. Below are some common misconceptions, explained to help clarify their inaccuracies:
Only required for corporations with physical presence in Louisiana: This misconception overlooks that the CIFT-620 form applies not just to corporations physically located in Louisiana but also to those that have a tax liability to the state, which can include out-of-state corporations with certain levels of economic activity or nexus in Louisiana.
It's identical to the federal income tax return: While the CIFT-620 does require information related to federal taxable income and federal income tax, it is specifically designed to calculate the Louisiana corporation income and franchise tax liabilities, incorporating state-specific modifications and tax credits.
Franchise tax and income tax are the same: Some might think the form covers only one type of tax, but the CIFT-620 is used to report both corporation income tax and franchise tax, which are distinct. The franchise tax is based on capital held, while income tax is based on net income.
Only annual returns are allowed: The form allows for different types of returns, not just for the usual annual filing. Corporations can file amended returns, final returns, and short-period returns depending on specific circumstances such as name changes, merger or dissolution events.
The due date is the same for all corporations: Calendar year corporations indeed have a due date of April 15, but corporations with a fiscal year different than the calendar year have due dates that align with their fiscal year-end, which requires careful attention.
No need to include schedules for apportionment or credits: The form instructions specify when additional schedules for apportionment (CIFT-620A) and nonrefundable tax credits (Schedule NRC) need to be attached, which is crucial for accurately calculating taxes owed.
All businesses must file: Not all entities are required to file the CIFT-620. The requirement applies to corporations but not to other types of businesses like sole proprietorships, partnerships, and certain types of S corporations, depending on their activity in Louisiana.
Submission of paper forms is mandatory: While the form can be submitted in paper format, Louisiana encourages electronic filing, which can be more efficient and provide quicker processing times.
No penalties for late filing if no tax is due: Even if no tax is owed, late filing of the CIFT-620 can result in penalties. It is important to file on time to avoid these penalties, regardless of the corporation's tax liability status.
Understanding these points can help businesses properly fulfill their tax obligations in Louisiana, ensuring compliance and preventing unnecessary penalties.
It's important to correctly identify and use your Louisiana Revenue Account Number rather than your Federal Employer Identification Number (FEIN) when filling out the CIFT-620 form.
Keep track of changes to your legal name or address. Remember to indicate such changes on the form as instructed, ensuring accurate and up-to-date records with the Louisiana Department of Revenue.
The CIFT-620 form is versatile, accommodating both the Louisiana Corporation Income Tax Return and the Louisiana Corporation Franchise Tax Return, each covering specific fiscal periods.
Be sure to accurately calculate and report your gross revenues, total assets, and the NAICS code, as these figures play crucial roles in determining tax obligations.
Clarify whether your corporation's income was included in a consolidated federal income tax return as this affects the completion of the form.
Understanding and applying the correct apportionment percentage is crucial for accurately determining your tax liability on the form.
Providing accurate information about any intercompany debt, borrowed capital timing, and the inclusion of the CIFT-620A schedules is essential for the computation of both income and franchise taxes.
Explore the opportunities for nonrefundable and refundable credits applicable to your tax situation, which can significantly reduce the amount of tax due.
Ensure that all payments or credits from overpayments are correctly applied, whether you want them refunded, credited to the next tax period, or donated, as options are available on the CIFT-620 form.
Always verify the total computed income and franchise taxes, including any adjustments for donations or additional taxes owed due to late filing or payments, per the instructions provided within the form or the accompanying guidelines.
Reseller Permit Louisiana - R-1042 exempts eligible Louisiana businesses from paying sales tax on goods purchased for resale.
Solar Incentives in Louisiana - For leased solar systems, the form calculates the credit as 38 percent of the first $20,000 of eligible costs.