Connecticut Corporation Business Tax Return Approtionment Computation of Income From Services to Regulated Investment Companies

Corporation Business Tax Return Approtionment Computation of Income From Services to Regulated Investment Companies
CT-1120A-IRIC, 2016 Corporation Business Tax Return Apportionment Computation of Income From Services to Regulated Investment Companies
Department of Revenue Services
State of Connecticut

Form CT-1120A-IRIC

Corporation Business Tax Return Apportionment Computation
of Income From Services to Regulated Investment Companies

(Rev. 12/16)

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.
Enter the name and Federal Employer Identification Number (FEIN) of the Regulated Investment Company (RIC) from which receipts
for services were received. If receipts for services were received from more than one RIC, complete a separate Form CT-1120A-IRIC,
Schedule R-IRIC, for the receipts from each RIC.
RIC name

RIC Federal Employer ID Number (FEIN)

Schedule R-IRIC — Connecticut Receipts
1. Total receipts from services provided to or on behalf of the RIC named above

1.

2. Total number of shares owned by RIC shareholders domiciled in Connecticut on the first day
of the RIC’s federal taxable year

2.

3. Total number of shares owned by RIC shareholders domiciled in Connecticut on the last day
of the RIC’s federal taxable year

3.

4. Average number of shares owned by RIC shareholders domiciled in Connecticut during the
RIC’s federal taxable year: Line 2 plus Line 3, divided by 2.

4.

5. Total number of shares owned by all RIC shareholders on the first day of the RIC’s federal
taxable year

5.

6. Total number of shares owned by all RIC shareholders on the last day of the RIC’s federal
taxable year

6.

7. Average number of shares owned by all RIC shareholders during the RIC’s federal
taxable year: Line 5 plus Line 6, divided by 2.

7.

8. Connecticut shareholder fraction: Divide Line 4 by Line 7. Carry to six places.

8.

9. Connecticut receipts from the above named RIC: Multiply Line 1 by Line 8.

9.

0.

Schedule A-1 — Computation of Connecticut Apportionment Fraction
10. Total Connecticut receipts from services provided to or on behalf of all RICs, combined total
of all Forms CT-1120A-IRIC, Schedule R-IRIC, Line 9

10.

11. Total receipts from services provided to or on behalf of all RICs, combined total of all
Forms CT-1120A-IRIC, Schedule R-IRIC, Line 1

11.

12. Connecticut apportionment fraction: Divide Line 10 by Line 11. See instructions.
Carry to six places.

12.

0.

Complete Schedule A-2 — Computation of Connecticut Net Income, on Page 2.

Schedule A-2 — Computation of Connecticut Net Income
Column A

Column B

Column C

Net income derived from
services to or on behalf
of regulated investment
companies

Net income derived from
financial services other
than services to or on
behalf of regulated
investment companies

Net income derived from
sources other than
services to or on behalf
of regulated investment
companies or
financial services

13. Net income from Form CT-1120, Schedule A, Line 1.
Form CT-1120CU filers only: Enter in Column A the net
income derived from services to or on behalf of
regulated investment companies. Do not complete
Column B and Column C.
13.
14a. Apportionment fraction from Schedule A-1, Line 12:
Carry to six places.

14a.

14b. Apportionment fraction from Form CT-1120A-FS,
Line 15: Carry to six places.

14b.

14c. Apportionment fraction from the applicable
apportionment form: Carry to six places.

14c.

15. Balances after apportionment: Multiply Line 13,
Column A, by Line 14a. Multiply Line 13, Column B, by
Line 14b. Multiply Line 13, Column C, by Line 14c.
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.
16. Connecticut net income: Add Line 15, Columns A
through C. Enter total here and on Form CT-1120,
Schedule A, Line 3. Make no entries on Form CT-1120,
Schedule A, Line 2.

Form CT-1120A-IRIC Page 2 of 3 (Rev. 12/16)

15.

16.

0.
0.
0.

Form CT-1120A-IRIC - Instructions
Complete this form in blue or black ink only.
Use Form CT-1120A-IRIC, Corporation Business Tax Return
Apportionment Computation of Income From Services to
Regulated Investment Companies, to apportion net income
from services to or on behalf of regulated investment
companies (RICs).
Complete a separate Form CT-1120A-IRIC, Schedule R-IRIC,
for each RIC from which gross receipts are received from
services to or on behalf of RICs.
A corporation must apportion income from services to RICs
separately using Form CT-1120A-IRIC. 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 Companies Activities. If the
company does not qualify as a financial service company,
all other income must be apportioned in accordance with the
appropriate schedule.

Definitions
Regulated Investment Company (RIC) means a regulated
investment company as defined in IRC §851.
Receipts means receipts computed according to the method
of accounting used by the taxpayer in the computation of net
income from providing the following services:
• Management services include but are not limited to
the rendering of investment advice directly or indirectly
to a RIC, making determinations as to when sales and
purchases of securities are to be made on behalf of the
RIC, or the selling or purchasing of securities constituting
assets of a RIC, and related activities, but only where
such activity or activities are performed: (i) according
to a contract with the RIC entered into under 15 USC
§80a-15(a), as from time to time amended, (ii) for a person
that has entered into such contract with the RIC, or (iii) for
a person that is affiliated with a person that has entered
into such contract with a RIC.
• Distribution services include but are not limited to the
services of advertising, servicing, marketing, or selling
shares of a RIC, but, in the case of advertising, servicing or
marketing shares, only where such service is performed by
a person that is, or, in the case of a closed-end company,
was, either engaged in the service of selling such shares
or affiliated with a person that is engaged in the service of
selling such shares. In the case of an open-end company,
such service of selling shares shall be performed according
to a contract entered into under 15 USC §80a-15(b), as
from time to time amended.
• Administrative services include but are not limited to
clerical, fund, or shareholder accounting, participant
record keeping, transfer agency, bookkeeping, data
processing, custodial, internal auditing, legal, and tax
services performed for a RIC, but only if the provider of
such service or services during the income year in which
such service or services are provided also provides, or
is affiliated with a person that provides, management or
distribution services to such RIC.
Form CT-1120A-IRIC Page 3 of 3 (Rev. 12/16)

Affiliates - A person is affiliated with another person if each
person is a member of the same affiliated group, as defined
under section 1504 of the Internal Revenue Code without
regard to subsection (b) of said section.
Domicile - A shareholder’s domicile is presumed to be the
shareholder’s mailing address as shown in the records of the
RIC. If the shareholder of record is an insurance company
that holds the shares of the RIC as depositor for the benefit
of a separate account, then the corporation may elect to treat
as the shareholders, the contract owners, or policyholders of
the contracts or policies supported by such separate account.
If this election is made, the domicile shall be presumed to be
the mailing address of the contract owner or policyholder as
shown in the records of the insurance company.

Schedule R-IRIC — Connecticut Receipts
Complete this schedule to calculate Connecticut receipts
received from services provided to or on behalf of a RIC. If
there are such receipts from more than one RIC, a separate
Form CT-1120A-IRIC, Schedule R-IRIC, must be completed to
arrive at the total Connecticut receipts from services provided
to or on behalf of all RICs. The federal taxable year of the RIC
must end within or at the same time as the federal taxable
year of the taxpayer.

Schedule A-1 — Computation of Connecticut
Apportionment Fraction
Enter the combined total of Connecticut receipts from all
Forms CT-1120A-IRIC, Schedule R-IRIC, Line 9, on Form
CT-1120A-IRIC, Schedule A-1, Line 10. Enter the combined
total from all Forms CT-1120A-IRIC, Schedule R-IRIC, Line 1,
on Form CT-1120A-IRIC, Schedule A-1, Line 11. Divide Line
10 by Line 11, and enter the resulting apportionment fraction
on Schedule A-1, Line 12.
Enter the Connecticut apportionment fraction from Line 12 on
Form CT-1120, Corporation Business Tax Return, Schedule A,
Line 2, only if the entire net income is attributable to services
provided to or on behalf of RICs. If the corporation’s net income
is derived in part from sources other than services to or on
behalf of a RIC, complete Schedule A-1 and Schedule A-2.

Schedule A-2 — Computation of Connecticut
Net Income
Complete this schedule only if income is derived in part
from sources other than management, distribution, or
administrative services to or on behalf of RICs.
Form CT-1120CU filers: Combined group members that
derive receipts from services to regulated investment
companies should complete Schedule A-2, Column A.
Make no entries in Column B and Column C. Enter the
amount on Line 15 in 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
services to regulated investment companies, should
be included in the combined group’s apportionment
calculation on Form CT-1120A-CU, Apportionment
Computation for Combined Unitary Filers.