Alaska Forms 6000 and 6020 (Formerly Forms 611 and 611SF) Alaska Corporation Net Income Tax Return Instructions

Forms 6000 and 6020 (Formerly Forms 611 and 611SF) Alaska Corporation Net Income Tax Return Instructions
Form 6000i
Instructions for Form 6000
2022 Alaska Corporation Net Income Tax Return
Tax Rate Table.............................................................................1
What’s New.................................................................................1
If You Need Help.........................................................................2
Avoid Common Mistakes.............................................................2
GENERAL INSTRUCTIONS
Who Must File.............................................................................2
Sub-Chapter S Corporation (S Corporation)............................... 3
Small Corporation Exemption......................................................3
Partnership..................................................................................3
Limited Liability Company (LLC).................................................4
Exempt Organization...................................................................4
Return Due Dates........................................................................4
Extension of Time to File.............................................................4
Payment Due Dates....................................................................4
Where to Send Return.................................................................4
Who Must Sign............................................................................4
Paid Preparer Authorization........................................................4
Estimated Tax Payments.............................................................5
Quick Refund...............................................................................5
Filing a Consolidated Return.......................................................5
Adoption of the Internal Revenue Code (IRC)............................. 5
Attachment of Federal Return.....................................................5
Combined Report........................................................................6
Unitary Group or Unitary Business..............................................6
Allocation and Apportionment of Income.....................................6
Combined Affiliates Having Different Accounting Periods........... 6
Real Estate Investment Trusts (REITs).......................................7
Public Law (P.L.) 86-272..............................................................7
Insurance Companies.................................................................7
Payment of Tax............................................................................7
Alaska Interest Rates..................................................................7
Amended Returns.......................................................................7
Adjustments to Federal Income Tax Liability............................... 7
Protective Claim..........................................................................7
Late Filing of Return....................................................................8
Late Payment of Tax....................................................................8
Failure to Electronically File........................................................8
Voluntary Disclosure Program.....................................................8
Disclaimers..................................................................................8
SPECIFIC INSTRUCTIONS
Taxpayer Identification.................................................................8
Contact Person............................................................................8
Return Information.......................................................................8
Schedule A – Net Income Tax Summary.....................................9
Schedule B – Taxpayer Information........................................... 9
Schedule C – Tax Payment Record........................................... 9
Schedule D – Alaska Tax Computation.....................................10
Schedule E – Other Taxes.........................................................10
Schedule H – Computation of Alaska Income........................... 10
Schedule I – Apportionment Factor...........................................11
Schedule J – Alaska Capital and Sec.1231 Gains and Losses.12
Schedule K – Alaska Charitable Contribution Deduction.......... 12
Schedule L – Alaska Dividends-Received Deduction (DRD)..... 13

APPENDICES
Appendix A – Worksheet for Charitable Contribution
Deduction..................................................................................14
Appendix B – Worksheet for Dividends-Received
Deduction..................................................................................14

HELPFUL TIP: Many tax return errors can be avoided by
filing your corporate tax return using Revenue Online at:
https://online-tax.alaska.gov
You can also use Revenue Online to make payments!

TAX RATE TABLE

(1)
At Least

(tax years beginning on or after 8/26/13)

-0-

(2)
But Less
Than
25,000

25,000

49,000

-0-

2%

25,000

49,000

74,000

480

3%

49,000

74,000

99,000

1230

4%

74,000

(4)
Plus

-0-

-0-

(5)
Of The
Amount Over
-0-

99,000

124,000

2230

5%

99,000

124,000

148,000

3480

6%

124,000

148,000

173,000

4920

7%

148,000

173,000

198,000

6670

8%

173,000

198,000

222,000

8670

9%

198,000

10830

9.4%

222,000

222,000 or more

 

(3)
Your Tax is

WHAT’S NEW

Charitable Contributions Deduction: The limit on the deduction for
qualified charitable contributions made in 2022 is 10% of taxable
income.

Electronic Filing Requirement of Alaska Return
Effective July 1, 2016, a taxpayer is required to electronically file
any return or report, unless a waiver is granted by the Department
of Revenue (DOR). Amended returns for tax periods ending after
July 1, 2016 are required to be electronically filed and fall under
the definition of a “return”. Failure to file electronically may result
in a penalty. The penalty is (the greater of) $25 or 1% of the total
tax due before application of payments. (See AS 43.05.045 and AS
43.05.220(f).)
A taxpayer may apply for a waiver if the taxpayer does not have
the capability to file electronically. A waiver may be requested by
filing Form 773 Electronic Filing Waiver Application, at least 30
days before the due date of the tax return and before the return
is filed. Do not submit the waiver request with the return. It is not
necessary to request a waiver for any tax return for which the DOR
does not provide an electronic filing methodology, such as Form
6230 Application for Quick Refund of Overpayment of Estimated
0405-6000i Rev 01/23/23 - page 1

•	 Remember to attach a pdf to your submission for the
following:
o Form 7004 to support your extension.
o Required statement for other additions/subtractions.
o Required statement for any nonbusiness items.

Tax, or Form 6750 Application for Voluntary Disclosure. Effective
February 10, 2018, the DOR requires Form 6900 Partnership
Information Return to be filed electronically.
Note: The DOR will not grant a waiver if a corporation is subject
to federal electronic filing requirements. The DOR will not grant a
waiver for use of tax software that does not support electronic filing
of Alaska returns.

2)

File with the correct taxpayer name. If the Alaska taxpayer is
a member of a federal consolidated group, then the name on
the Alaska return will often be different than the name on the
federal return. See specific instructions on page 8 regarding
taxpayer identification. Unless the corporation changed its
name, enter the name as it appeared in the prior return. If the
name on this return is different from the name reported on the
prior return, then complete question 4 of Schedule B.

3)

The water’s edge combined reporting method is mandatory in
Alaska for all corporations except oil and gas corporations. A
separate-company tax return is not permitted. (See “Combined
Report” and “Unitary Group or Unitary Business” on page 6.)

4)

Provide the name, email address, and phone number of a
contact person who can answer any question that the DOR
may have regarding the tax return. This must be an officer or
employee who is authorized to answer any such questions.
Generally, the DOR cannot discuss taxpayer information with
an outside party unless there is a Power of Attorney. (See
“Paid Preparer Authorization” on page 4.)

There are two ways to file an Alaska corporate income tax return:

• MeF Modernized E-File allows you to file your state return

in conjunction with your federal tax return processing.
This method requires the use of approved tax preparation
software. The state can also accept unlinked (state-only)
submissions through MeF for return types that the IRS has
not produced schema. E.g., 1120-H, 1120-PC, 1120-REIT,
990-T. Remember to attach a pdf copy of the federal return to
the state submission.

•

Revenue Online (ROL) is the state portal for electronic filing.
ROL provides for Standard Filing as well as Expedited Filing.
Expedited Filing means that you will have a limited number
of fields to enter, similar to the reporting requirements of
the old short form. To use Expedited Filing, you must log on
to your Revenue Online account and answer a short list of
questions. If the corporation does not qualify for Expedited
Filing, Revenue Online will lead you through a complete Form
6000 Alaska Corporation Net Income Tax Return.

If You Need Help
If you have questions, need additional information or require other
assistance, please call:
Juneau: 907-465-2320
Anchorage: 907-269-6620

5) If this is a consolidated Alaska return, then you must complete
Schedule B, listing all members of the Alaska consolidated
group, except the taxpayer listed on page 1. Do not list all
members of the federal consolidated group, unless all of
those corporations have nexus in Alaska. The requirement for
Schedule B is not fulfilled by attaching federal Form 851 data.
Your return could be rejected and result in potential penalties
if Schedule B is not filed correctly.
6)

If this taxpayer and one or more other Alaska taxpayers
are included in a consolidated federal return, these same
taxpayers must file a consolidated Alaska return, if they are
part of the same unitary group.

7)

Attach a schedule as required by the forms. Schedules
providing detail, by company, are required as explained in the
instructions. Attaching complete schedules will ensure a valid
filing and prevent unnecessary correspondence with the DOR.
Be sure that attached schedules are properly referenced and
agree to the totals reported on the form.

8)

Attach a copy of the signed federal income tax return of the
taxpayer as filed with the IRS. Do not attach a pro-forma
return. Send only the portions of the federal return specified
in the instructions on page 5 if the federal return exceeds 50
pages.

9)

To avoid interest and penalties, pay any tax when due (see
Payment Due Dates on page 4). File the return within 30 days
of the due date for the federal return. Note that the thirty days
may or may not correspond to the 15th day of the following
month.

Current tax forms and instructions are available online at:
www.tax.alaska.gov.

Avoid Common Mistakes
To facilitate the processing of your return, be sure to do the
following:
1)

MeF Filers. If you are filing a return using Modernized E-File,
avoid common errors:
•

If the corporation is claiming any carryover items (net
operating losses, capital losses, etc.), make sure your
tax software supports Form 6385. Failure to fill out and
transmit Form 6385 may result in denial of associated tax
attributes.

• If the corporation is claiming any federal credits or state
incentive credits, make sure your tax software supports
the relevant forms (such as Forms 6310, 6327, 6390,
6395). Failure to fill out and transmit required forms may
result in denial of associated credits.
• Make sure that Schedule I shows factor numerators by
corporation, net of eliminations. Do not list an “elimination
company.”

GENERAL INSTRUCTIONS
Who Must File
Every corporation having nexus with the state must file an Alaska
0405-6000i Rev 01/23/23 - page 2

Corporation Net Income Tax Return. Nexus, sometimes referred
to as “doing business” within the state, is the act of conducting
business activity within the state and may exist as a result of a
corporation’s direct activity, the activity of its employees or agents,
or through its interest in a partnership or limited liability company.

any other business where the principal asset of the business is
the reputation or skill of one or more of its employees;
•

Banking, insurance, financing, leasing, investing, or similar
business;

Nexus-creating activities may include, but are not limited to:

•

Farming, including timber;

1) owning or using property in the state, including leased or
mobile property;

•

Business involving production or extraction for which a
depletion allowance could be claimed;

2) presence of employees in the state for business purposes;
including telework;

•

Hotel, motel, restaurant, or similar business; or,

•

Construction, transportation, utility, or fisheries business.

3) making sales into the state; or
4) the generation of income from sources within the state without
regard to whether there is a physical presence in the state.
Registration with the Alaska Department of Commerce and
Community Development does not, by itself, trigger a requirement
to file.

Sub-Chapter S Corporation (S Corporation)
An S Corporation doing business in Alaska is required to file
an Alaska return, but Alaska does not impose a tax on the S
Corporation for pass-through items of income. Generally, an S
Corporation will satisfy its filing requirement by filing Form 6000,
page 1 only, checking the “S Corporation” box on page 1. Do not
report amounts on Schedule A (or any other pages), unless a
corporate-level tax is applicable. Attach a copy of pages 1 through
5 of the federal Form 1120S.
Alaska imposes both the federal excess net passive income tax
and the corporate-level tax on built-in gains. These taxes are
calculated at the highest Alaska marginal tax rate of 9.4%. If
corporate-level taxes are imposed, attach copies of the schedules
and forms calculating the federal tax and the Alaska tax. Enter the
corporate-level taxes on Form 6000, Schedule E, line 6.

Important Note: All corporations which are members of the
same parent-subsidiary controlled group are treated as a single
corporation when determining whether a corporation is exempt
as a Small Corporation. The controlled group includes any
corporation connected through stock ownership with a common
parent corporation if more than 50 percent of the total combined
voting power of all classes of stock is owned by the parent or one
or more of the corporations within the group.

How to Claim Exemption as a Small Corporation
A corporation that claims exemption under AS 43.20.012(a)
(3) must still file a complete Alaska corporate income tax return
reporting all income and expenses, on Form 6000, except that no
tax is calculated. The following is required to claim the exemption:
1) On page 1, in the “Return Information” section, check
the “Small corporation exemption” box. You must attach a copy
of pages 1–5 of the corporation’s federal income tax return
(Form 1120, 1120-F, etc.), as actually filed with the IRS. If the
Form 1120 was not filed electronically, the copy must be of the
signed original return. If the Form 1120 was filed electronically,
you must include a copy of the appropriate Form 8453 or Form
8879 to show that the return was filed electronically.

Small Corporation Exemption

2) You must attach a copy of federal Form 851 if the corporation
was a member of a federal consolidated group.

Certain small corporations are exempt from Alaska corporate
income tax. To qualify for the exemption, a corporation and
its affiliates must be a qualified small business meeting the
requirements below:

3) If the corporation is part of a foreign-based parent-subsidiary
controlled group, then you must attach a copy of (SEC)
Form 20-F, or other audited financial statements that readily
discloses gross assets and the nature of business operations.

A C Corporation must be engaged in an active business as
described in Internal Revenue Code (IRC) Section 1202(e) as that
sub-section read on January 1, 2012. This includes certain startup operations.

Partnership

The corporation’s total assets, including assets of all affiliates, may
not exceed $50 million. This is measured at the beginning of each
tax year to determine if the corporation is eligible for the exemption
for that tax year.
Eighty percent (determined by value) of the corporation’s assets,
including assets of all affiliates, must be used in the active conduct
of one or more qualified trades or businesses.
A “qualified trade or business” is any business except the following:
•

Performance of services in health, law, engineering,
architecture, accounting, actuarial science, performing arts,
consulting, athletics, financial services, brokerage services, or

A partnership doing business in the state, having one or more
corporations in the ownership chain, must file Form 6900 Alaska
Partnership Information Return along with supporting schedules
and a copy of the signed federal Form 1065, pages 1–5.
The partnership return is due 30 days after the federal due date of
the Form 1065. See separate instructions for Form 6900.
Note that partnership income and factors are attributed to, and
combined with, the income and factors of the corporate partner.
Please see Alaska Regulation 15 AAC 20.320 for further
information.
Caution: A Publicly Traded Partnership (PTP) is generally taxed
as a corporation, and so must file Form 6000. A PTP does not file
0405-6000i Rev 01/23/23 - page 3

Form 6900, unless it files as a partnership for federal tax purposes
Limited Liability Company (LLC).

Limited Liability Company (LLC)
An LLC doing business in the state must file an Alaska tax return
consistent with its federal tax status. If the LLC is characterized
as a corporation for federal income tax purposes, the LLC must
file a tax return in accordance with the instructions applicable to
corporations. An LLC with corporate member(s) characterized as
a partnership for federal income tax purposes, must follow the
instructions applicable to partnerships, above.

Exempt Organization
Generally, an exempt organization is subject to the Alaska
Corporation Net Income Tax if it is subject to tax under the Internal
Revenue Code. If the organization files federal Form 990-T, to
report Unrelated Business Taxable Income (UBTI) with the IRS,
the organization must complete Form 6000 reporting the taxable
income or loss and calculate any applicable Alaska tax. Attach a
signed copy of Form 990-T. An exempt organization does not
file an Alaska return, if it is not required to file Form 990-T.
Certain income received by a regional aquaculture association or
a salmon hatchery permit holder is exempt from tax under Alaska
law. Trusts taxable at trust rates, e.g. 501(c) or 401(a) trusts, are
exempt from tax and need not file.

Return Due Dates
The Alaska return must be filed within 30 days of the date on which
the corporation’s federal income tax return is required to be filed.
Thus, the due date is not necessarily the 15th day of the month
following the federal due date.
Federal law bases the due date on whether the taxpayer is
a C Corporation, an S Corporation, or a special entity such as
an Exempt Organization or Cooperative. There are also special
rules for tax years that end in June. In addition, the time period
for (federal) extensions of time to file has also changed, for some
returns. (See Extension of Time to File below.)
The due dates for filing Alaska corporate income tax returns
(months after the end of the tax year) are as follows:
• C Corporations, generally
	
Filing due date: 15th of the fifth month
	
Extended due date: 15th of the eleventh month
• C Corporations, tax year ending in June, 20x1
	
Filing due date: October 15, 20x1
	
Extended due date: May 15, 20x2
• S Corporations (all tax years)
	
Filing due date: 15th day of the fourth month
	
Extended due date: 15th day of the tenth month
• Exempt Organizations (all tax years)
	
Filing due date: 15th day of the sixth month
	
Extended due date: 15th day of the twelfth month
• Cooperatives (all tax years)
	
Filing due date: 15th day of the tenth month
	
Extended due date: 15th day of the sixteenth month

Extension of Time to File
A federal extension automatically extends the Alaska filing due
date to 30 days after the federal extended due date. This is also
true if the IRS extends a due date because of an event such as a
natural disaster. You must check the applicable box on Form 6000,
page 1 to report that a federal extension is in effect. An extension
of time to file is not an extension of time to pay.

Payment Due Dates
As with filing due dates, the payment due dates depend on whether
the taxpayer is a C Corporation, an S Corporation, or a special
entity such as an Exempt Organization or Cooperative. There are
also special rules for tax years that end in June.
Payment due dates (months after the end of the tax year) are as
follows:
• C Corporations, generally:
o 15th of the fourth month
• C Corporations, tax year ending in June, 20x1:
o September 15, 20x1
• S Corporations (all tax year-ends):
o 15th of the third month
• Exempt Organizations (all tax year-ends):
o 15th day of the fifth month
• Cooperatives (all tax year-ends):
o 15th day of the ninth month
See instructions for “Estimated Tax Payments” on page 5, and
“Payment of Tax” on page 7.

Where to Send Return
Mail the return with attachments to:
TAX DIVISION
ALASKA DEPARTMENT OF REVENUE
PO BOX 110420
JUNEAU AK 99811-0420
Note: filing a paper return may result in assessment of penalties
for failure to file electronically. See electronic filing requirement
above.

Who Must Sign
The return must be signed by an authorized officer of the
corporation.

Paid Preparer Authorization
If the corporation wants to allow the DOR to discuss its tax return
with the paid preparer who signed it, check the applicable box in
the signature area of the return. This authorization applies only to
the preparer whose signature appears at the bottom of the return.
It does not apply to the firm.
If the applicable box is checked, the corporation is authorizing
the DOR to call the paid preparer to answer any questions that
arise during the processing of the return. The corporation is also
authorizing the paid preparer to:
0405-6000i Rev 01/23/23 - page 4

1) Call the DOR for information about the processing of the return
or the status of any related refund or payment, and

The taxable incomes of all taxpayers are then consolidated to
comprise the consolidated Alaska return.

2) Respond to certain DOR notices about math errors, offsets,
and return preparation.

Adoption of the Internal Revenue Code (IRC)

The corporation is not authorizing the paid preparer to receive
any refund check, bind the corporation to anything (including any
additional tax liability), or otherwise represent the corporation
before the DOR.
If the corporation wants to revoke the authorization, it must file a
Form 774 Power of Attorney.

Estimated Tax Payments
Payment of estimated tax is required as provided under IRC
Section 6655. A corporation that fails to pay the proper estimated
tax when due will be subject to an underpayment penalty for the
period of underpayment. Form 6220 Underpayment of Estimated
Tax by Corporations must be completed and attached to the
return, only if the corporation is relying on the Adjusted Seasonal
Installment Method or the Annualized Income Installment Method.
Otherwise, Form 6220 is not required. See separate instructions
for Form 6220.

Quick Refund
A corporation that has overpaid its estimated tax for the tax year
may apply for quick refund if the overpayment is:
• At least 10% of the expected tax liability and

Under AS 43.20.021, Alaska adopts IRC Sections 1–1399
and 6001–7872, with full force and effect, unless excepted to
or modified by other provisions of Alaska law. In addition, AS
43.20.160 and AS 43.20.300 require the DOR to apply, as far as
practicable, the administrative and judicial interpretations of the
federal income tax law.
Note that Alaska law does not adopt IRC Sections 1400–1400U,
which grant tax benefits for activities in certain geographic zones,
including those in “Enterprise Zones” and “Gulf Opportunity
Zones.” If the taxpayer qualifies for special federal treatment under
these code sections, this may require that the taxpayer recompute
some federal-based credits or deductions for Alaska purposes.

Attachment of Federal Return
The corporation filing the Alaska tax return must provide a
complete copy of its signed federal income tax return (Form 1120,
1120S, 990-T, etc.). The copy must be of the return actually filed
with the IRS for the same tax year. If the Alaska return is based on
a combined report, then a copy of the federal return filed by any of
the members of the combined group must be attached.
A pro-forma return will not fulfill this requirement. Failure to
provide the required federal return(s) will result in the Alaska
return being deemed incomplete, and penalties may apply.

• At least $500

If Form 1120 is electronically filed, attach a copy of the appropriate
Form 8453 or Form 8879, which must show the signature.

The corporation applies for the refund by completing Form 6230
Alaska Corporation Application for Quick Refund of Estimated Tax.
Filing Form 6230 does not fulfill a corporation’s filing obligation.

Note: If the federal return exceeds 50 pages, a corporation may
submit the following portions of the required federal return in lieu
of the entire federal return:

Filing a Consolidated Return

1) A copy of pages 1 through 5 of federal Form 1120, pages
1 through 5 of Form 1120S, pages 1 through 7 of the Form
1120F, etc. for the tax year.

Two or more Alaska taxpayers included in the same federal
consolidated return, who are in the same unitary business, must file
a consolidated Alaska return. Additionally, two or more taxpayers
may elect to file a consolidated return if they qualify to join in a
consolidated federal return, and are in the same unitary business.
Foreign corporations are treated as domestic corporations for
purposes of determining eligibility to file a consolidated Alaska
return. If any two taxpayers join in filing a consolidated Alaska
return, all eligible taxpayers must be included in the consolidated
return.
Alaska consolidated returns resemble, but do not mirror, the
federal consolidated return. In an Alaska consolidated return, the
federal consolidation rules are applied to construct the Alaska
consolidated items; namely capital gain net income, charitable
contributions, the dividends-received deduction, income tax,
credits, and other taxes. If a taxpayer is a member of an affiliated
group, then the taxpayer is required to determine its taxable
income using the water’s edge combined method of reporting.
(See “Combined Report” below.) An affiliated group is a group of
corporations in which 50% or more of the voting stock of each
member of the group is owned, directly or indirectly, by one or
more corporate or non-corporate common owner(s), or by one or
more of the members of the group.

2) If Form 1120 is electronically filed, attach a copy of the
appropriate Form 8453 or Form 8879 (signed), as filed with
the IRS.
3) If a consolidated federal return is filed, attach copies of the
schedules prepared for the computation of consolidated
taxable income. The schedules must show the separate
taxable incomes for each member of the federal consolidated
group with the consolidating eliminations and adjustments
made to arrive at consolidated taxable income.
4)	 Schedules M-3 and supporting schedules.
5)	 Schedule D and supporting schedules.
6)	 Form 4797 and supporting schedules.
7)	 Credits: If claimed on the Alaska return, include copies of Form
3800 with applicable supporting federal forms, and copies of
federal forms supporting any credits not reported on Form
3800.
8)	 Extension: Form 7004, if applicable.
0405-6000i Rev 01/23/23 - page 5

Electronic Filing of Federal Return Information
Federal tax return information must be filed in digital file format
(see pages 1-2). In limited circumstances, digital documents are
accepted in .pdf or .tif format, only on the following media: CDs,
DVDs, or thumb drives. All media must be physically labeled with
Taxpayer Name, EIN and tax year. If multiple discs or thumb drives
are used, they must be sequentially numbered. Contact DOR for
additional guidance. The federal tax return information should
start with pages 1 through 6 of the federal tax return filed with the
IRS. The DOR does not accept pro-forma returns.

Combined Report
Whenever two or more corporations are engaged in a unitary
business conducted within and outside Alaska, the members of
the unitary group that are Alaska taxpayers must apportion the
combined income of the group to measure their Alaska taxable
income. For all corporations except oil and gas corporations, the
water’s edge combined reporting method is required; it is not
elective.
A water’s edge report generally combines only those members of
the worldwide unitary group that: 1) have a significant connection
to, or presence in, the U.S.; 2) are tax haven corporations as
defined in AS 43.20.145(a)(5); or 3) foreign corporations that
have nexus with Alaska. In general, a corporation has a significant
connection to the U.S. if it has an average overall U.S. factor of
at least 20%. To construct the water’s edge combined group, start
with the taxpayer’s worldwide affiliated group, remove non-unitary
affiliates, then remove unitary affiliates that have less than 20%
average U.S. factors, except that tax haven corporations remain
part of the combined group.
The 20% U.S. factor threshold must be determined on a companyby-company basis and, unlike the apportionment factor, includes
intercompany sales.
A corporation with nexus in Alaska, but which does not have 20%
or greater average U.S. factors, must file a return using the water’s
edge method of reporting in which it is combined with all members
of the unitary group with 20% or greater U.S. factors.
Please refer to Alaska Regulation 15 AAC 20.300 to correctly report
the income of any unitary foreign corporation that does business
in Alaska, or that meets the 20% U.S. factor threshold test. Note
that the income of a foreign corporation is reported on the basis of
the entire corporation, which may not equal the income reported
on the Form 1120-F.

Unitary Group or Unitary Business
A business is unitary if the entities involved are under common
direction (formal or informal) and activities within and without
the state are contributory and complementary in nature, such
that profits of the group are inextricably related. Tests of
unitary determination include functional integration, centralized
management, and economies of scale.
Determination of whether the activities constitute a unitary trade or
business depends on the facts of each case. The following factors
are considered to be indications of a unitary trade or business, and
the presence of any of these factors creates a presumption that
the activities constitute a single trade or business.

1) Same type of business. Corporations are generally engaged
in a unitary trade or business when the activities are in the
same general line of business. For example, corporations
that operate a chain of retail grocery stores are almost always
engaged in a unitary business.
2) Steps in a vertical process. Corporations are engaged in
a unitary trade or business when engaged in different steps
in a vertically structured enterprise. For example, corporations
that explore for and mine copper ores, concentrate, smelt and
refine the copper ores, and fabricate the refined copper into
consumer products are engaged in a unitary trade or business
regardless of the fact that the various steps in the process are
operated substantially independently of each other and with
only general supervision from the executive offices.
3) Strong centralized management. Corporations that might
otherwise be considered as engaged in more than one trade or
business are engaged in one unitary trade or business when
there is strong centralized management. Some indications of
strong centralized management are:
(a) the existence of centralized departments that perform the
normal functions that a truly independent business would
perform for itself, such as accounting, personnel, insurance,
legal, purchasing, advertising or financing; or
(b) centralized executive officers who are involved in planning
operations or coordination.

Allocation and Apportionment of Income
A taxpayer with business income attributable to sources within
and outside Alaska must apportion such income. To calculate the
apportionment factor, use Schedule I – Apportionment Factor.
Apportionment refers to the division of business income among
states by the use of an apportionment formula.
Allocation refers to the assignment of non-business income to a
particular state.
Alaska applies both the transactional and functional tests of
business income. Income resulting from transactions or activities
that are within the regular course of the taxpayer’s trade or
business are business income. Income from tangible or intangible
property is business income, if the acquisition, management,
and disposition of the property constitute integral parts of the
taxpayer’s regular trade or business. Income meeting either the
functional or the transactional test is business income. Income
from transactions or activity that is unusual or infrequent is not
considered non-business income solely because of the unusual or
infrequent nature of the income, activity, or transaction.
Non-business income is all income other than business income.

Combined Affiliates Having Different Accounting
Periods
The income of all affiliates included in a combined report must be
determined on the basis of the same accounting period. Generally,
the accounting period used in the return should be that of the
common parent. Where no common parent exists, the income of
the combined affiliates should be determined on the basis of the
taxpayer’s annual accounting period.
0405-6000i Rev 01/23/23 - page 6

Generally, when it is necessary to convert an affiliate to the
annual accounting period of the taxpayer, an interim closing of the
books should be made for the members whose accounting period
differs from the common parent and/or taxpayer. If no substantial
misstatement of income results, a pro-rata conversion may be
used.

A taxpayer making a payment by wire transfer is required to notify
the State of Alaska, Treasury Division by 2:00 p.m. the business
day prior to the wire transfer settlement date. Prepare the payment
voucher using Revenue Online and email to dor.trs.cashmgmt@
alaska.gov. If the payment covers multiple tax years, prepare a
separate voucher for each year.

Real Estate Investment Trusts (REITs)

A check must be submitted with the appropriate tax return or
payment voucher. Payment vouchers can be found on Revenue
Online, or you may use Form 6240.

A REIT that meets the 50% ownership test is required to be
included in the combined group. The taxpayer may not claim
an Alaska dividends-received deduction for the REIT dividends
received, if the REIT income is included in the combined report net
of the dividends-paid deduction.

Public Law (P.L.) 86-272
If a corporation claiming P.L. 86-272 protection is a member of an
Alaska consolidated group, then that corporation must be listed
on Schedule B, line 1, and check the appropriate box on that line.
The corporation will still be a member of the Alaska combined
group. That corporation will report no numerator values for
property, payroll, or sales on Schedule I, but will be included in the
denominator. The corporation must be correctly listed on Schedule
B, to be considered as having made a protective Alaska filing. The
checkbox on page 1 under “Return Information” applies only to the
corporation named on page 1.

Insurance Companies
Alaska includes insurance companies in the combined group,
with apportionment factors calculated under Alaska Regulation 15
AAC 20.610. If an insurance company pays Alaska premium tax
under AS 21.09.210, then that company is exempt from corporate
income tax. This is accomplished by excluding that company’s
numerator values from the numerators of the combined group.

Payment of Tax
Payments can be conveniently made electronically using DOR’s
Revenue Online system. You may access this system at https://
online-tax.alaska.gov. If you are a first-time taxpayer, the system
will require you to register.
When an estimated tax payment is $100,000 or greater, or a
payment with a return is $150,000 or greater, payment must be
made through Revenue Online, Modernized E-file, or by wire
transfer; see Alaska Regulation 15 AAC 05.310. Failure to remit
electronically, when required to do so, is subject to penalty under
IRC Sec. 6656.
You can also use Revenue Online to print a payment voucher, if
you choose to pay by check or wire transfer.
Revenue Online accommodates Automated Clearing House
(ACH) debit payments. Revenue Online does not accept ACH
credit or credit card transactions. The taxpayer will register directly
with Revenue Online.
If a bank account has a debit block, any online payment request
will be rejected by the bank. Rejected payments may result in late
payment penalties and interest. If a bank account has a debit block,
the taxpayer is encouraged to contact its bank before making an
online payment to register the State of Alaska as an authorized
ACH debit originator. The company ID for the Alaska Department
of Revenue is 0000902050.

Mail check with return or payment voucher to:
TAX DIVISION
ALASKA DEPARTMENT OF REVENUE
PO BOX 110420
JUNEAU AK 99811-0420

Alaska Interest Rates
Alaska charges interest on taxes due, at a rate which fluctuates
each quarter. For current rates, refer to our website at www.tax.
alaska.gov.

Amended Returns
An amended return must be filed as a complete return. If you are
amending a return for 2013 or later year, the form has a checkbox
on page 1 to indicate “amended return.” If you are amending a
return for 2012, or an earlier tax year, you must file a complete
return, and write “Amended Return,” preferably in red, across the
top of the amended return. If you are amending your return to
claim a carryover of tax attributes such as a net operating loss
(NOL), capital losses, or excess charitable contributions, then you
must attach Form 6385 Tax Attribute Carryovers. This form may
also be used to claim a carryback of NOL or capital losses.
If the federal return was also amended, a complete copy must be
attached. If the Alaska amended return claims a refund based on
an amended federal return or federal Form 1139, then you must
attach documentation that the IRS accepted the amended federal
return or Form 1139. An amended Alaska return is also required if
the federal return is adjusted by the IRS.
The DOR does not accept amended returns on Forms 611X or
611N. Amended returns for periods ending after July 1, 2016 must
be filed electronically. See electronic filing requirement above.

Adjustments to Federal Income Tax Liability
A corporation is required to file an amended Alaska return to report
any amendment of the taxpayer’s federal income tax return, or recomputation of tax by the IRS. The Alaska amended return must be
filed with full payment of any additional tax within 60 days after the
final determination of the federal adjustment to avoid assessment
of a penalty for failure to file. If the date that the adjustment is
finalized is later than the date on federal Form 4549 or 4549A, the
reason must be satisfactorily explained to avoid assessment of
a penalty for failure to file. An alteration to the taxpayer’s federal
income tax return includes any alteration to the return of any
member of the combined group of the taxpayer.

Protective Claim
A protective refund claim is filed to preserve the taxpayer’s
right to claim a refund when the taxpayer’s right to the refund is
0405-6000i Rev 01/23/23 - page 7

contingent on future events and may not be determinable until
after the statute of limitations expires. A protective refund claim
is made by submitting an amended return, checking the box for
a protective claim, and including a written statement that clearly
identifies the basis for the claim, as well as the contingency
affecting the claim. Any claimed overpayment is not refunded until
the matter is resolved. The DOR will treat the amended return as
an “information return.”
If it is necessary to amend your return while a protective claim
is pending, do not take into account changes reported on the
protective claim.
Once the relevant matter is resolved, the claim is perfected by
filing a follow-up amended return which reports the Alaska tax
liability, as finally resolved.

Late Filing of Return
A corporation that does not file its complete return by the due date,
including extension, is subject to a failure to file penalty of 5% of
the unpaid tax for each 30-day period or portion of a period the
return is late, up to a maximum of 25% of the unpaid tax.

Late Payment of Tax
A corporation that does not pay the full amount of tax when due is
subject to a failure to pay penalty of 5% of the unpaid tax for each
30 day period or portion of a period the payment is late, up to a
maximum of 25% of the unpaid tax. If during any period or portion
of a period, both the failure to file and failure to pay penalties are
applicable, only the failure to file penalty is imposed.

Failure to Electronically File
A corporation that does not file its return or amended return
electronically, and does not have a waiver, is subject to a penalty
of the greater of $25 or 1% of the tax due before application of
payments.

Voluntary Disclosure Program
Alaska provides a Voluntary Disclosure Program to qualified
taxpayers. The taxpayer must voluntarily come forward, have
never filed an Alaska corporate tax return, have not been the
subject of an inquiry from the DOR, and meet other requirements.
Certain penalties are waived, but tax and interest must be fully
paid. For additional information, please see Form 6750 and the
associated instructions.

Disclaimers
When this form was drafted, the current year federal tax forms
were not finalized. Therefore, references to lines and schedules on
federal forms may not be accurate. Nothing in these instructions
or associated forms should be read to conflict with Alaska statutes
or regulations.
These instructions are presented to assist the taxpayer in preparing
a corporate return for Alaska. Every effort is made to ensure that
the instructions are accurate and helpful. The instructions are not
intended to address every legal situation. The taxpayer is advised
to consult Alaska Statutes Title 43, Chapters 05, 19, and 20 and
related regulations, and to consult a legal advisor.

SPECIFIC INSTRUCTIONS
Taxpayer Identification
Enter the name and federal Employer Identification Number (EIN)
of the taxpayer. If this is a consolidated Alaska return, enter the
name and EIN of one taxpayer included in the consolidated filing.
Do not use the name of the federal consolidated group (“XXX
Corporation and Subs”). All other Alaska taxpayers are listed on
Schedule B, line 1.
If the common parent of the federal consolidated group is an Alaska
taxpayer, use its name and EIN on page 1. Otherwise, select the
taxpayer with the largest Alaska presence. Continue to use that
name and EIN for subsequent tax periods until the taxpayer leaves
the Alaska consolidated group or the common parent becomes
an Alaska taxpayer. If this taxpayer or consolidated group has
previously filed under the name and EIN of a common parent not
having nexus in Alaska, change the designated taxpayer according
to these instructions and complete Schedule B, question 4.

Contact Person
Provide the name, email address, and telephone number of an
individual to whom correspondence regarding this return should
be directed. This must be an officer or employee authorized to
receive confidential tax information. Generally, the DOR cannot
discuss tax matters with an outside party unless there is a Power
of Attorney (see “Paid Preparer Authorization” on page 4).

Return Information
Check all boxes that apply.
□ Final Alaska return: Check this box if you do not expect to have
nexus in Alaska after this tax year. Note: If you intend to check
“Final” due to a corporate reorganization, please contact the
DOR at (907) 269-6632 for technical assistance.
□ Consolidated Alaska return: Check this box if this tax return is
being filed by two or more Alaska taxpayers. “Consolidated”
applies to the Alaska taxpayers, not their federal return status.
Note that a consolidated return is required in some cases. See
“Filing a Consolidated Return” on page 5 for more information.
□

Amended return: Check this box if this return is an amended
return. You must file a complete return to amend, including all
schedules. Do not mark schedules “As originally reported.”
Be sure to attach a statement explaining the changes being
reported. (See instructions for related checkboxes below.)

□ Filing extension: A federal extension automatically extends the
Alaska filing due date. You must check this box to report that
an extension is in effect.
□ Public Law 86-272 applies (P.L. 86-272): Check this box if the
corporation named on page 1 is claiming protection under P.L.
86-272. If this is a consolidated return, and another Alaska
corporation claims protection under P.L.86-272, then that
corporation checks the appropriate box on Schedule B, line 1.
See “Public Law (P.L.) 86-272” discussion on page 7.
□ HOA filing Form 1120H: If the corporation is a Homeowners
Association (HOA) filing federal Form 1120H, then check this
box. If the HOA is filing federal Form 1120, then do not check
this box.
0405-6000i Rev 01/23/23 - page 8

□ Small Corporation exemption: Check this box if the corporation
is claiming exemption from tax under AS 43.20.012(a)(3).
To be exempt, the corporation must meet certain asset limit
requirements, and its principal business must not be in certain
industries. The corporation must file a complete Alaska tax
return reporting all income and expense items, but does not
calculate Alaska income tax on Schedule D, and does not
report Other Taxes on Schedule E. If the corporation is
a
member of a federal consolidated group, you must attach
federal Form 851 to the Alaska return. See “Small Corporation
Exemption” on page 3 for further details.

The application of an Alaska net operating loss is governed by
applicable Internal Revenue Code provisions.

□ Exempt organization with UBTI: If the corporation is an exempt
organization that is filing federal Form 990-T to report Unrelated
Business Taxable Income (UBTI), then check this box. If the
organization does not report any UBTI, then the organization
should not file an Alaska corporate income tax return.

If this is an amended return filed to report an additional overpayment
(in excess of the overpayment reported on the original return), then
you can make the election to carry the additional overpayment to
the next succeeding year, only if the amended return is filed before
the payment due date for the succeeding tax year. This is also
true if the original return did not report an overpayment, but the
amended return shows an overpayment.

□ S Corporation: Check this box if the corporation is an S
Corporation under federal law.
□ Personal Holding Company: Check this box if the corporation
is a “Personal Holding Company” as defined in IRC Section
542.
□ Cooperative Association: Check this box if the corporation is a
“Cooperative Association.”
□ Amended return to report IRS audit or Form 1120X: Check this
box if this is an amended return to report audit changes by
the IRS, or the filing of an amended federal tax return (Form
1120X). You must attach a complete copy of the federal audit
report “RAR” showing federal changes by company, along with
federal documentation showing that the changes are “final.” If
this is a refund claim based on an amended federal tax return,
attach documentation that the federal amendment has been
accepted by the IRS.
□ Protective claim: If this is an amended return filed to make
a protective claim, check the additional box, and attach a
statement explaining the protective claim. See additional
instructions for “Protective Claim” on page 7. Note that a
protective claim is made on an amended return. An original tax
return is never considered a protective claim.

Schedule A – Net Income Tax Summary
Line 2, Alaska net operating loss (NOL) deduction: If there is
Alaska taxable income reported on line 1, then enter the amount of
NOL to be utilized in the current year in the space provided on line
2. Form 6385 Tax Attribute Carryovers must be attached to claim
NOLs being carried forward from previous years.
If this is an amended tax return filed to claim a carryback from a
year after 2020, enter the amount of carryback to be utilized in the
space on line 2. Use Form 6385 to identify the loss years.
Do not enter the federal net operating loss deduction. The Alaska
net operating loss deduction may differ from the federal net
operating loss as a result of state adjustments to federal taxable
income, differences between the federal consolidated group and
the water’s edge combined group, and the amount of income or
loss apportioned to other states.

Line 7, Alaska incentive credits: Enter amount from Form 6300,
line 49 to report Alaska incentive credits that are not refundable
credits. This includes the Income Tax Education Credit.
Line 16, Overpayment credited to estimated tax: This is a
binding election and the overpayment cannot be re-applied
or reduced at a later date. See IRC 6513(d) and Treas. Reg.
301.6402-3(a) and (d).

Schedule B – Taxpayer Information
Line 1, Alaska taxpayer information: This schedule must be
completed if the Alaska return is a consolidated return. List each
member of the Alaska consolidated group on Schedule B, line 1,
except the taxpayer shown on page 1. If the corporation is claiming
protection under P.L. 86-272, or is exempt as an Alaska insurance
company (pays Alaska premium tax under AS 21.09.210), then
check the appropriate box next to that corporation’s name on line
1. Otherwise, check the boxes indicating which activities
(property, payroll, sales) that corporation has in Alaska. The list
of corporations on Schedule B must agree to the corporations
reporting Alaska factors on Schedule I, except those corporations
claiming exemption under P.L. 86-272 or Alaska insurance
companies.
If a corporation is protected under P.L. 86-272, and the corporation
is joining in filing an Alaska consolidated return as a protective
measure, then that corporation must be properly listed on Schedule
B to effect a protective filing.
Caution: If Schedule B is not properly completed, then the DOR
may determine that a particular corporation, doing business in
Alaska, has not filed a tax return, and may subject the corporation
to a penalty for failure to file.
Do not list affiliated corporations that are not Alaska
taxpayers. Replicating the federal Form 851 information does not
constitute a properly completed Schedule B. If Alaska activity is
conducted by a Disregarded Entity, then its activity is attributed to
its corporate owner. List that corporate owner on Schedule B, not
the Disregarded Entity. Do not list a partnership on Schedule B;
report the corporation holding that partnership interest.

Schedule C – Tax Payment Record
Enter the dates and amounts of estimated tax payments made
for the tax year. If a payment was made under a name and EIN
different from the taxpayer shown on page 1, identify the payer by
notation in the area below the “Estimated Payments” section. Total
payments must equal Schedule A, line 10.
If this is an amended tax return, use the section “Amended return
only” to account for payments made, and refunds received, based
on the original return, or as last amended, or adjusted by the DOR.
0405-6000i Rev 01/23/23 - page 9

Schedule D – Alaska Tax Computation

2a–2g and enter the amount from line 1 on line 3.

If you are claiming exemption as a Small Corporation (see page
3), do not complete Schedule D.

Lines 2a–2g: Taxpayers using the combined method of reporting
(water’s edge taxpayers) must complete lines 2a–2g. These lines
of Schedule H report the income of the corporations that are
added to or removed from those included in line 1 to arrive at the
net income before modifications of the water’s edge group. Skip
directly to line 3 if the taxpayer is not required to use the combined
method of reporting.

Line 2, Tax: Use the Tax Rate Table to compute the tax on line 2.
The tax rate table is on page 1 of these instructions.
If the corporation is a Personal Holding Company (PHC), the
corporation must calculate its tax on Schedule D using the
graduated rates, in addition to the 12.6% add-on tax that is
reported on Schedule E, line 4.

Schedule E – Other Taxes
If you are claiming exemption as a Small Corporation (see page
3), do not complete Schedule E.

Line 2a: Enter the FTI reported on the federal tax return(s) of all
domestic unitary corporations not included in line 1 with 20% or
greater U.S. factors. Attach a schedule, by company.
Line 2b: Enter the income of unitary foreign corporations of the
water’s edge group. Include any foreign corporation with 20% or
greater U.S. factors. Attach a schedule, by company.

Line 4, Personal Holding Company (PHC) tax: Report the PHC
tax of 12.6%, apportioned if appropriate. This tax is assessed in
addition to tax calculated at ordinary tax rates on Schedule D.

The income of a foreign corporation is the taxable income before
net operating loss determined under the Internal Revenue Code,
subject to modification under Alaska law, as if the corporation were
a domestic corporation. Alternatively, the taxpayer may elect to
report the book income of the foreign corporation, or its Earnings
and Profits, as reported on federal Form 5471. Please refer to 15
AAC 20.300(e) and (f) for further information.

Line 5, Increase in tax liability due to cessation of commercial
operations of a liquefied natural gas storage facility under
AS 43.20.047(h): Use Form 6323 to calculate the increase in tax
liability, and attach to the tax return.

Note that the income of the foreign corporation must be reported
for the entire corporation. The corporation may not report federal
taxable income shown on federal Form 1120-F, unless the Form
1120-F includes all income of the corporation.

Line 6, Other taxes: Report on line 6 any other federal taxes, or
additions to tax liability, applicable through Alaska’s adoption of the
Internal Revenue Code under AS 43.20.021(a). In addition, use
this line to report other taxes, and additions to tax liability, required
under other Alaska tax statutes. Such taxes include, but are not
limited to:

Line 2c: Enter income reported by tax haven corporations.
Also use this line to report the foreign sales corporation’s profit,
including federally exempt foreign trade income and allowing for
deductions attributable to exempt foreign trade income.

Line 1, Base Erosion and Anti-Abuse Tax (BEAT): Report the
amount of the federal BEAT that is applicable to the combined
group from federal Form 8991.

□	 “Look-back interest” is based on federal interest rates, and
apportioned to Alaska (18% does not apply). Attach a copy of
federal Form 8866 or 8697, as applicable.
□	 Recapture of (federal) low-income housing credit must be
multiplied by 18% and apportioned, if applicable. Attach a copy
of federal Form 8611.
□	 Recapture of Alaska investment tax credit is subject to federal
recapture rules, to the extent that the investment originally
generated an Alaska investment tax credit. The subject amount
is then multiplied by 18%, but is not apportioned.
□	 S corporations use line 6 to report built-in gains or excess net
passive income taxes. Attach a statement showing the tax
calculation and apportionment, if applicable.

Schedule H – Computation of Alaska Income
Line 1: Enter the federal taxable income or (loss), before
deductions for federal net operating loss and federal dividendsreceived deduction (“FTI”). Generally, this will be line 28 of the
federal income tax return of the taxpayer. This should agree to
the federal return required to be attached to the Alaska return.
Taxpayers included in a consolidated federal return should enter
the FTI of the federal consolidated return on line 1 of Schedule H.
If the taxpayer is not affiliated with another corporation, skip lines

Line 2d: Remove the income or loss of companies included in line
1 that are not included in the unitary business of the taxpayer(s).
Attach a schedule, by company.
Line 2e: Remove the income or loss of companies included in line
1 that are part of the taxpayer’s unitary business but whose U. S.
factors average less than 20%. Attach a schedule, by company.
Line 2f: Enter the adjustment for intercompany transactions that
are necessary to reflect the combined income of the water’s edge
combined group. The incomes of the companies represented
in lines 1 through 2e may or may not include adjustments to, or
the elimination of, intercompany profits as required under the
combined method of reporting. An intercompany	 transaction
of a federal consolidated group may not be an intercompany
transaction of the water’s edge group. This may include the
reversal of a consolidating elimination or adjustment from the
consolidated federal return, the initiation of an elimination, or
adjustment for inter-group transactions that are not reflected in the
income reported on lines 1 or 2a–2e, or a combination of the two.
Alaska regulations provide that intercompany transactions
between any two members of the combined group, if those two
members join in a consolidated federal return, must be accounted
for in the combined report in the same manner as the transaction
is accounted for in the consolidated federal return. Refer to Alaska
Regulation 15 AAC 20.300(m).
The most common adjustment is for intercompany profits
residing in beginning and ending inventory. Reverse end-of-year
0405-6000i Rev 01/23/23 - page 10

intercompany profit eliminations between corporations within and
outside of the water’s edge group to the extent they are included
in the measure of income reported on lines 1 through 2e. Reverse
beginning-of-year intercompany profits on transactions between
corporations within the water’s edge combined group to the extent
they were not reversed in the measure of income reported on lines
1 through 2e.
Line 4e: Enter the amount of expenditures that are being claimed
for the Qualified Oil and Gas Service Industry Expenditure Credit,
from Form 6327, line 2.
Line 4g: Enter other adjustments.
Line 6b: Enter the dividends paid by members of the water’s
edge combined group to other members of the combined group
(intercompany dividends). Do not enter dividends between
members of a federal consolidated group that were eliminated in
the federal consolidated return. (Also see instructions for Schedule
L on page 13.)
Line 6d: AS 43.20.145(b)(1) permits an exclusion of 80% of
dividends received from foreign corporations. The IRC §965
inclusion and Global Intangible Low-Taxed Income (GILTI)
amounts are deemed foreign dividends. The 80% exclusion is an
exception to any DRD or Sec. 250 deduction allowable under the
IRC.
Line 6f: Enter any non-business income or loss claimed and
attach schedule by category of income. Enter on line 4b expenses
incurred to produce non-business income. You must attach a
schedule of all non-business income claimed by type of income
and by company name.
Line 6g: Enter amount of capital gain income from federal Form
1120, line 8 reported by members of the combined group. Do not
include any capital gain income excluded as non-business income
on line 6f.
Line 6h: Enter amount of federal Section 1231 gains that are
taxable as ordinary income, from federal Form 4797, line 12. Do
not enter federal accumulated nonrecaptured net Section 1231
losses from prior years (Form 4797, line 8).
Line 8: Enter apportionment factor from Schedule I, line 14.
Line 9: Multiply line 7 times line 8 to calculate apportioned income.
Line 10: Enter non-business income or loss allocated to Alaska
and attach schedule by category of income.
Line 11a: Enter the taxpayer’s Alaska capital and Section 1231
gains and losses from Schedule J, line 20.
Line 11b: Enter the taxpayer’s Alaska charitable contribution
deduction from Schedule K, line 10.
Line 11c: Enter the taxpayer’s Alaska dividends-received
deduction as limited under IRC Section 246. Use the worksheet
in Appendix B to calculate the allowable deduction, and enter the
amount on line 11c.

Schedule I – Apportionment Factor
The corporations listed on lines 1, 5, and 9 must comprise the
entire group of corporations with nexus in Alaska. Do not list

corporations on lines 1, 5, and 9 that do not have nexus. Do not
list all corporations included in the federal consolidated group.
If Schedule I is not properly completed, this may delay the
processing of the return and a delay in a refund. Additionally, the
DOR may deny interest on a refund claimed on a return that was
not processible.
The numerator values on lines 1, 5, and 9 must be listed by
corporation, net of intercompany eliminations. Do not list an
“elimination company.” If lines 1, 5, and 9 are improperly completed
regarding eliminations, this may result in a tax adjustment.
If the taxpayer does business only in Alaska, enter “1.000000” on
line 14. If the taxpayer has business activity both within and outside
of Alaska, then Schedule I must be fully completed. Note that the
list of taxpayers listed on lines 1, 5, or 9 must match the list of
taxpayers listed on Schedule B, plus the taxpayer named on page
1 of the tax return. The only exceptions are corporations claiming
exemption under P.L. 86-272, or Alaska insurance companies.
If the taxpayer is a “disregarded entity” under federal law, then that
entity is disregarded for Alaska purposes. On Schedule I, list the
name and EIN of the owner of that disregarded entity.
If a corporation owns an interest in a partnership that conducts
business in Alaska, then the partnership’s apportionment factors
(property, sales, and payroll) are attributed to that corporate
partner. On Schedule I, report the corporation’s property, payroll,
and sales, including its share of partnership factors. Do not list the
name or EIN of the partnership on lines 1, 5, or 9.
Taxpayers using the combined method of reporting are required to
include a schedule of the calculation of the apportionment formula
in columnar format disclosing for each corporation the total
property, payroll, and sales and the amount of Alaska property,
payroll, and sales.
All factor calculations (lines 4, 8, 12, and 14) must be rounded to
the sixth decimal place. If both the numerator and denominator (for
a particular factor) are zero, disregard that factor and divide line 13
by the remaining number of factors and enter the result on line 14.

Property Factor: See 15 AAC 19.141 – 202.

The property factor is a fraction, the numerator of which is the value
of real and tangible personal property owned or rented and used
within Alaska during the tax year to produce business income. The
denominator is the value of all real and tangible personal property
owned or rented and used to generate business income. Rents do
not include royalties or amounts paid for services or supplies in
connection with rented property.
Property used in the production of non-business income is not
included in the factor. Construction in progress is not included in
the factor.
Owned property is valued at its original cost averaged over the
tax year. In general, original cost is the unadjusted basis for
federal income tax purposes at the time of acquisition adjusted by
subsequent additions, improvements, or partial dispositions. The
average value of owned property is computed by averaging the
property values at the beginning and end of the tax year. Rented
property is valued at eight times the annual rents paid.

Payroll Factor: See 15 AAC 19.211 – 241.

The payroll factor is a fraction, the numerator of which is the
compensation paid within Alaska during the tax year to produce
0405-6000i Rev 01/23/23 - page 11

business income. The denominator is the total compensation paid
during the tax year to produce business income.

the allowable capital loss carryback. In this situation, you would
prepare the return with the following steps:

The term “compensation” means