Connecticut Corporation Business Tax Return Apportionment Computation of Income Credit Card Activities

Corporation Business Tax Return Apportionment Computation of Income Credit Card Activities
CT-1120A-CCA,  2016 Corporation Business Tax Return Apportionment Computation of Income From Credit Card Activities
Department of Revenue Services
State of Connecticut
(Rev. 12/16)

Form CT-1120A-CCA

Corporation Business Tax Return
Apportionment Computation of Income From Credit Card Activities

Enter Income Year Beginning ________________________ , ___________ , and Ending ________________________ , ___________
Corporation Name

Connecticut Tax Registration Number

Complete this form in blue or black ink only.

See instructions on reverse.

Schedule R-CCA — Connecticut Receipts
1. Total interest and fees or penalties in the nature of interest from credit card receivables, and
receipts from fees charged to card holders, including, but not limited to annual fees, where the
billing address of a card holder is located in Connecticut.

1.

2. Total amount of interest and fees or penalties in the nature of interest from credit card
receivables and receipts from fees charged to card holders, including, but not limited to
annual fees, irrespective of the billing address of the card holder.

2.

3. Receipts fraction: Divide Line 1 by Line 2. Carry to six places.

3.

4. The sum of net gains from the sale of credit card receivables and all credit card issuers’
reimbursement fees.

4.

5. Connecticut net gains: Multiply Line 4 by Line 3.

5.

6. Connecticut receipts: Add Line 1 and Line 5.

6.

0.

Schedule A-1 — Computation of Connecticut Apportionment Fraction
7. Total Connecticut receipts from credit card activities (Schedule R-CCA, Line 6).

7.

8. Total receipts from credit card activities (Total of Schedule R-CCA, Line 2 and Line 4).

8.

9. Connecticut apportionment fraction: Divide Line 7 by Line 8.
Enter here and on Form CT-1120, Schedule A, Line 2. Carry to six places.

9.

0.

Enter the apportionment fraction from Line 9 above on Form CT-1120, Schedule A, Line 2, if the entire net income is attributable to income
from credit card activities. Complete Schedule A-2 if the corporation’s net income is derived in part from sources other than credit card
activities.
Form CT-1120CU filers: Combined group members that are subject to credit card activities apportionment should complete Schedule
A-2, Column A. Do not complete Column B. Enter the amount from Line 12, Column A in the appropriate column on Form CT-1120CUNI, Tax on Combined Group Net Income, Part III, Line 6.

Schedule A-2 — Computation of Connecticut Net Income

10. Enter net income from Form CT-1120, Schedule A, Line 1.
Form CT-1120CU filers only: Enter the net income derived from
credit card activities in Column A. Do not complete Column B.

Column B
Net income derived from sources
other than credit card activities

10.

11a. Apportionment fraction from Schedule A-1, Line 9. Carry to six places. 11a.
11b. Apportionment fraction from Form CT-1120A, Schedule Q, or
Form CT-1120A-FS, Line 15, or other applicable apportionment
form. Carry to six places.

Column A
Net income derived from credit
card activities

11b.

12. Balance after apportionment: Multiply Line 10, Column A, by Line 11a,
Column A. Multiply Line 10, Column B, by Line 11b, Column B.
Form CT-1120CU filers only: Enter the amount in Column A in the
appropriate column on Form CT-1120CU-NI, Tax on Combined Group
Net Income, Part III, Line 6.

12.

13. Connecticut net income:
Add Line 12, Column A, and Line 12, Column B.
Enter total here and on Form CT-1120, Schedule A, Line 3.
Make no entries on Form CT-1120, Schedule A, Line 1 or Line 2.

13.

0.

0.

Form CT-1120A-CCA
Instructions
Complete this form in blue or black ink only.
Use Form CT-1120A-CCA, Corporation Business Tax
Return Apportionment Computation of Income From
Credit Card Activities, to apportion net income from
credit card activities.
According to Conn. Gen. Stat. §12-218b(k), a corporation
must apportion income from credit card activities
separately using Form CT-1120A-CCA (see Conn.
Gen. Stat. §12-218(i)). If the corporation qualifies as
a financial service company, all other income will be
apportioned using Form CT-1120A-FS, Corporation
Business Tax Return Apportionment Computation of
Income From Financial Service Company Activities (see
Conn. Gen. Stat. §12-218b). If the company does not
qualify as a financial service company, all other income
must be apportioned in accordance with the appropriate
schedule.

Schedule R-CCA — Connecticut Receipts
Complete this schedule to calculate Connecticut
receipts derived from credit card activities.

Schedule A-1 — Computation of Connecticut
Apportionment Fraction
Complete this schedule to calculate an apportionment
fraction derived from credit card activities. Enter the
apportionment fraction from Line 9 on Form CT-1120,
Corporation Business Tax Return, Schedule A, Line 2,
if the corporation’s entire net income is attributable to
income from credit card activities. Complete Schedule A-1
and Schedule A-2 if the corporation’s net income is
derived in part from sources other than credit card
activities.
Form CT-1120CU filers: Combined group members
that are subject to apportionment of income from
credit card activities should complete Schedule A-2,
Column A. Do not complete Column B. Enter the
amount from Line 12, Column A in the appropriate
column on Form CT-1120CU-NI, Tax on Combined
Group Net Income, Part III, Line 6.
Receipts derived from financial services, other
than credit card activities, should be included in
the combined group’s apportionment calculation on
Form CT-1120A-CU, Apportionment Computation
for Combined Unitary Filers.

Form CT-1120A-CCA Back (Rev. 12/16)

Schedule A-2 — Computation of Connecticut
Net Income
Complete this schedule only if income is derived in part
from sources other than credit card activities. Separate
apportionment formulas are used for net income derived
from credit card activities (Schedule A-1, Line 9) and
net income derived from sources other than credit
card activities (Form CT-1120A, Corporation Business
Tax Return Apportionment Computation, Schedule Q,
or Form CT-1120A-FS, Line 15, or other applicable
apportionment form). Connecticut net income is
computed on Schedule A-2, Line 13, and entered on
Form CT-1120, Schedule A, Line 3.
Form CT-1120CU filers, enter the income from credit
card activities in Column A. Do not complete Column
B. Enter the amount from Line 12, Column A in the
appropriate column on Form CT-1120CU-NI, Part III,
Line 6.

Definitions
Credit card means a credit, travel, or entertainment
card.
Receipts means receipts computed according to the
method of accounting used by the taxpayer in the
computation of net income.
Credit card issuer’s reimbursement fee means the
fee that a taxpayer receives from a merchant’s bank
because one of the persons to whom the taxpayer
has issued a credit card has charged merchandise or
services to the credit card.
Net income derived from credit card activities
means interest and fees or penalties in the nature of
interest from credit card receivables, and receipts from
fees charged to card holders, including, but not limited
to annual fees, net gains from the sale of credit card
receivables, credit card issuer’s reimbursement fees,
and credit card receivables servicing fees received in
connection with credit cards issued by the taxpayer, less
expenses related to that income, to the extent deductible
under Conn. Gen. Stat. §§12-213 through 12-242z.
Billing address shall be presumed to be the location
indicated in the books and records of the taxpayer as the
address where any notice, statement, or bill relating to
the card holder is to be mailed, as of the date of mailing.
Credit card activities means those activities involving
the underwriting and approval of credit card relationships
or other business activities generally associated with the
conduct of business by an issuer of credit cards from
which it derives income.