Pennsylvania Dividend Deduction Schedule/Schedule X

Dividend Deduction Schedule/Schedule X
2019 PA Corporate Net Income Tax - CT-1 Instructions (REV-1200)
2
2019
019
CT-1 INSTRUCTIONS
REV-1200 Booklet (SU) 10-19

FOR CALENDAR YEAR 2019 AND FISCAL YEARS BEGINNING IN 2019
PLEASE CAREFULLY REVIEW HIGHLIGHTS BEFORE COMPLETING
ANY TAX REPORTS OR SCHEDULES.
HIGHLIGHTS
1.
IMPORTANT: The RCT-101, PA Corporate Net Income Tax
Report MUST include a Revenue ID number. Failure to
provide a Revenue ID number may result in a delay or inability to
process and post your return and applying your tax payments. To
obtain a Revenue ID all corporations must first register with the
Pennsylvania Department of State. When registering with the
Department of State, you must include your Federal Employer
Identification Number (FEIN). This information is then forwarded to
the Pennsylvania Department of Revenue, who will then issue a
Revenue ID number. Failure to provide the FEIN when registering
with the Department of State will result in a delay or inability to
process your information for a Revenue ID.
Information on how to register a corporation with the PA Department
of State can be found on their website at www.dos.pa.gov.
2.

CAUTION: Qualified 168(k) property placed in service after
Sept. 27, 2017, is subject to 100 percent add-back. See
Corporation Tax Bulletin 2018-03. REV-799 is no longer required to
be completed. Complete REV-1834, Schedules C-8 and C-9.

3. Act 52 of 2013 requires the add-back of intangible expenses to
income for interest, royalties, patents, trademarks, etc., between
affiliated entities in certain instances. Taxpayers reporting such addbacks must include schedules REV-802 and REV-803 when filing
the report.
4.
IMPORTANT: Failure to submit a properly completed and
signed tax report, which includes a copy of the federal form
and supporting schedules, may result in the delay of processing and
the imposition of late filing penalties and/or estimated assessments.
5. Corporations participating in a consolidated federal tax filing must
provide consolidating income statements and balance sheets
including separate company schedules and all consolidations and
eliminations.
6. Prior to the Tax Cuts and Jobs Act, dividends received by a
corporation from another corporation were 70% excluded from
income for less than 20% owned domestic corporations and 80%
excluded from income for more than 20%, but less than 80%, owned
domestic corporations. As amended by the Tax Cuts and Jobs Act,
for tax years beginning after December 31, 2017, the 70-percent
dividends-received deduction is reduced to 50 percent and the 80percent dividends-received deduction is reduced to 65 percent

(Code Secs. 243(a)(1) and (c)(1). There was no change made to the
100% dividends-received deduction for dividend income received
from 80% or more owned domestic corporations.
7.

IMPORTANT: The Tax Cuts and Jobs Act of 2017 amended
Section 163(j) of the Internal Revenue Code (the “Code”). For
Federal income tax purposes, Section 163(j) limits the deductibility
of interest expense in the current tax year of certain U.S. taxpayers
for tax years beginning on or after January 1, 2018. Pennsylvania
Corporation Tax Bulletin 2019-03 provides guidance on how the
federal limitations imposed by the amended Section 163(j) are
treated for Pennsylvania Corporate Net Income Tax (“CNIT”)
purposes.

8. The Pennsylvania Department of Revenue has set forth a new
$500,000 economic nexus threshold for purposes of imposing the
corporate net income tax on out-of-state companies. Corporation
Tax Bulletin 2019-04 cites the U.S. Supreme Court’s South Dakota
v. Wayfair Inc. decision as authority underlying the new nexus
threshold and provides that remote corporations satisfying the
minimum thresholds for nexus under the U.S. Constitution should
file a state corporate net income tax report.
Taxpayers that meet the minimum constitutional nexus thresholds
must begin filing corporate tax reports for periods starting on or after
January 1, 2020.
Page 1 of RCT-101 contains a checkbox labeled Section 381/382/
Merger NOLS/Alternate Apportionment. This box must be checked
for any of the conditions listed below.
Examples of reports include those filed by:
• Corporations having net operating loss (NOL) limitations under
IRC Section 381 and IRC Section 382;
• Corporations claiming losses or Bonus Depreciation carryforward from a merger;
• UDITPA Section 18 taxpayers claiming alternate apportionment
method or separate accounting;
• Corporations requesting extra-statutory treatment beyond that
provided by law; and
• Corporations with two distinct activities like warehousing/
trucking & distribution/trucking or persons/transportation &
property/transportation.

TABLE OF CONTENTS
GENERAL INSTRUCTIONS
What Must be Included with the PA Corporate Net
Income Tax Report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5
Assembly of the Completed PA Corporate Net Income Tax Report,
RCT-101 Package . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .6
Federal S Corporations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .7
Inactive Corporations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .7
Copy of Federal Form 1120, 1120C, 1120F or 1120S . . . . . . . . . . . .7
Confirmation of “Deposits on Account” for a Non-Filed Tax Year . . . .7
How to Pay . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .7
Electronic Payment Requirement . . . . . . . . . . . . . . . . . . . . . . . . . . . . .8
Due Date of Report and Payment . . . . . . . . . . . . . . . . . . . . . . . . . . . .8
Filing Requirements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .8
Out of Existence/Withdrawal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .8
Bulk Sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .8
Reinstatement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .8
Recording Dollar Amounts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .9
Filing Period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .9
Extension of Time to File . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .9
Penalties Imposed for Failure to File Reports When Due . . . . . . . . . .9
Interest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .9
Transfers/Refunds of Corporate Taxes . . . . . . . . . . . . . . . . . . . . . . . .9
Assignment of Tax Credit (Overpayment) . . . . . . . . . . . . . . . . . . . . . .9
Department Notices . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .10
Amended Reports . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .10
RCT-128C – Changes In Federal Taxable Income/
Reports of Change . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .11
LINE INSTRUCTIONS
LINE BY LINE INSTRUCTIONS FOR RCT-101,
PA CORPORATE NET INCOME TAX REPORT
RCT-101 – PAGE 1
IRS Filing Type . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .12
STEP A Tax Period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .12
STEP B Check Special Filing Status . . . . . . . . . . . . . . . . . . . . . . . . .12
STEP C Name, Address, Federal EIN Business Activity Code,
Revenue ID & Parent Corporation EIN . . . . . . . . . . . . . . . . . . .13
STEP D Tax Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .13
STEP E Payment Due/Overpayment . . . . . . . . . . . . . . . . . . . . . . . . .13
STEP F Transfer/Refund Methods . . . . . . . . . . . . . . . . . . . . . . . . . . .13
E-File Opt Out . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .13
STEP G Signature . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .13
RCT-101 – PAGE 2
SECTION A: BONUS DEPRECIATION . . . . . . . . . . . . . . . . . . .14
DO NOT COMPLETE SECTION A for tax year 2018 and forward.
SECTION B: PA CORPORATE NET INCOME TAX . . . . . . . . .14
Taxable Built-in Gains . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .14

2

REV-1200

Deductions from and Additions to Income . . . . . . . . . . . . . . . . .14
Apportionment and Allocation . . . . . . . . . . . . . . . . . . . . . . . . . .15
Net Operating Loss Deduction . . . . . . . . . . . . . . . . . . . . . . . . . .15
Determination of Tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .15
SCHEDULE C-1: APPORTIONMENT . . . . . . . . . . . . . . . . . . . .16
RCT-101 – PAGE 3
SECTION C: CORPORATE STATUS CHANGES . . . . . . . . . . .16
SECTION D: GENERAL INFORMATION QUESTIONNAIRE . .17
RCT-101 – PAGE 4
SCHEDULE OF REAL PROPERTY IN PA . . . . . . . . . . . . . . . .17
CORPORATE OFFICERS . . . . . . . . . . . . . . . . . . . . . . . . . . . . .17
PREPARER’S INFORMATION . . . . . . . . . . . . . . . . . . . . . . . . .17
SUPPLEMENTAL SCHEDULES
REV-802 – Schedule C-6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .17
REV-803 – Schedule C-7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .17
RCT-106 – Insert Sheet . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .17
REV-798 – Schedule C-2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .17
REV-798 – Schedule X . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .18
RCT-103 – Net Operating Loss Schedule . . . . . . . . . . . . . . . . . . . . .18
REV-860 – Schedule C-5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .19
REV-860 – Schedule OA, Schedule OD . . . . . . . . . . . . . . . . . . . . . .19
REV-860A – Qualified Manufacturing Innovation and
Reinvestment Deduction Worksheet . . . . . . . . . . . . . . . . . . . . .19
REV-861 – Schedule DA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .19
REV-934 – Schedule of Nonbusiness Income . . . . . . . . . . . . . . . . . .19
REV-986 – Claim of Exemption from CNIT . . . . . . . . . . . . . . . . . . . .19
RCT-101D – De Minimis Activity . . . . . . . . . . . . . . . . . . . . . . . . . . . .20
REV-1834 – Schedule C-8 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .20
REV-1834 – Schedule C-9 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .21
REV-1175 – Schedule AR . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .21
APPORTIONMENT, EXEMPTIONS
AND ALLOCATION
Apportionment of Taxable Income . . . . . . . . . . . . . . . . . . . . . . . . . . .22
Sales Factor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .22
Special Apportionment Fractions . . . . . . . . . . . . . . . . . . . . . . . . . . . .22
Railroad, Truck, Bus or Airline Companies . . . . . . . . . . . . . . . .22
Pipeline or Natural Gas Companies . . . . . . . . . . . . . . . . . . . . . .22
Water Transportation Companies Operating on High Seas . . . .22
Water Transportation Companies Operating on Inland Waters .23
Apportionment & Investments in Unincorporated Entities . . . . . . . . .23
Nonbusiness Income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .23
TAX CREDITS
Restricted Tax Credits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .24

www.revenue.pa.gov

WHO MUST FILE

WHERE TO FILE

All business entities that have elected to file as a corporation with the IRS:

MAILING ADDRESSES

•
•
•
•
•

Corporation
Business Trust
Limited Liability Company
S Corporations that have Built-in Gains
Any other entity electing to file as a corporation under federal Check
the Box rule

• Any corporation whose activity exceeds P.L. 86-272 Solicitation Only

TAXPAYER SERVICES AND ASSISTANCE
CONTACT NUMBERS
Estimated Payments . . . . . . . . . . .1-888-PATAXES (1-888-728-2937)
General Business Tax Questions . . . . . . . . . . . . . . . . . .717-787-1064
Extension to File Annual Report . . . . . . . . . . . . . . . . . . . .717-787-3653
Transfer/Refund of Overpayments . . . . . . . . . . . . . . . . . .717-705-6225
E-filed Reports . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .717-346-1987
Bureau of Registration and Taxpayer Management . . . . .717-787-3653
FORMS ORDERING SERVICES
To obtain tax instructions, single copies of PA corporation tax forms,
coupons or brochures, use one of these services:
INTERNET: www.revenue.pa.gov
TOLL-FREE PHONE SERVICES: 1-888-PATAXES (1-888-728-2937)
Touch-tone service is required for this automated 24-hour toll-free line.
Call to order forms or check the status of a corporate tax account.
AUTOMATED 24-HOUR FORMS ORDERING MESSAGE SERVICE:
1-800-362-2050
Serves taxpayers without touch-tone phone service.
SERVICES FOR TAXPAYERS WITH SPECIAL HEARING AND/OR
SPEAKING NEEDS: 1-800-447-3020 (TTY only)
WRITTEN REQUESTS:
PA DEPARTMENT OF REVENUE
TAX FORMS SERVICE UNIT
1854 BROOKWOOD ST
HARRISBURG PA 17104-2244
ONLINE SERVICES

RCT-101 – PA CORPORATE NET INCOME TAX REPORT,
RCT-101-I – INACTIVE PA CORPORATE NET INCOME TAX
REPORT, RCT-101D – DECLARATION OF DE MINIMIS ACTIVITY
AND RCT-128C – REPORTS OF CHANGE IN CORPORATE NET
INCOME TAX
If you are including payment, please use the following address:
PA DEPARTMENT OF REVENUE
PAYMENT ENCLOSED
PO BOX 280427
HARRISBURG PA 17128-0427
If you are requesting a transfer or refund of credit, please use the
following address:
PA DEPARTMENT OF REVENUE
TRANSFER/REFUND REQUESTED
PO BOX 280706
HARRISBURG PA 17128-0706
If you are neither including payment nor requesting a refund or transfer
of credit, please use the following address. This includes reports when
payment was made electronically.
PA DEPARTMENT OF REVENUE
NO PAYMENT, NO TRANSFER/REFUND
PO BOX 280708
HARRISBURG PA 17128-0708
REV-857 – ESTIMATED TAX PAYMENTS
PA DEPARTMENT OF REVENUE
327 WALNUT ST FL 12
PO BOX 280422
HARRISBURG PA 17128-0422
CT-V – FED/STATE PAYMENT VOUCHER
PA DEPARTMENT OF REVENUE
327 WALNUT ST FL 12
PO BOX 280427
HARRISBURG PA 17128-0427
REV-853 – ANNUAL EXTENSION
PA DEPARTMENT OF REVENUE
327 WALNUT ST FL 12
PO BOX 280425
HARRISBURG PA 17128-0425
REV-854 – EIN/FILING PERIOD/ADDRESS CHANGE

ONLINE CUSTOMER SERVICE CENTER
Find the answer to your question using the department’s Online Customer
Service Center at www.revenue.pa.gov.

Fax or Email to:

PENNSYLVANIA TAX UPDATE
Stay up-to-date on Department of Revenue news with the PA Tax Update,
a free, bi-monthly e-newsletter. Visit www.revenue.pa.gov to sign up for
a PA Tax Update e-alert.

REV-1605 – SCHEDULE CO-NAME OF CORPORATE OFFICERS

www.revenue.pa.gov

Fax: 717-787-3708
Email: [email protected]
Fax or Email to:
Fax: 717-787-3708
Email: [email protected]
REV-1200

3

REV-976 – ELECTION NOT TO BE TAXED AS A PENNSYLVANIA
S CORPORATION
Fax or Email to:
Fax: 717-787-3708
Email: [email protected]
PA-20S/PA-65 – PA S CORPORATION/ PARTNERSHIP
INFORMATION RETURN
PA DEPARTMENT OF REVENUE
BUREAU OF INDIVIDUAL TAXES
PO BOX 280509
HARRISBURG PA 17128-0509
OVERNIGHT MAILING
PA DEPARTMENT OF REVENUE
BUREAU OF IMAGING AND DOCUMENT MANAGEMENT
1854 BROOKWOOD ST
HARRISBURG PA 17104-2244

SPECIAL HANDLING
PA DEPARTMENT OF REVENUE
PO BOX 280704
HARRISBURG PA 17128-0704
EMAIL ADDRESSES
NOTICE OF ADJUSTMENT LETTER
If you believe the adjustments are in error, please contact the department
via email at: [email protected]
REV-986 – SCHEDULE TO SUPPORT CLAIM OF EXEMPTION
FROM CORPORATE NET INCOME TAX
If you answered NO to all questions on REV-986, you are not required
to file RCT-101 but you must submit REV-986 via email to:
[email protected].

REMINDERS
The Capital Stock/Foreign Franchise tax has been phased out for tax
years beginning on or after Jan. 1, 2016. This means that many business
types such as S corporations, LLC’s taxed as pass-through entities and
business trusts that are not federally taxed as a C corporation will need
to file their final RCT-101 corporation tax report for the 2015 reporting
period. These reports must be marked as final reports.

beginning prior to Jan. 1, 2016, MUST be filed on the non-year-specific,
six page RCT-101. You must check the Amended Report checkbox on
Page 1, Step B, and include REV-1175 with the report.

Corporations not subject to the PA corporate net income tax for the years
mentioned above include, single member LLC’s, Multi Member LLC’s
taxed as a partnership or S corporation, Business Trusts and PA S
corporations (except PA S corporations that have Built-In-Gains).
Solicitation only corporations would also no longer be required to file a
RCT-101, PA Corporate Net Income Tax Report, unless activity exceeds
solicitation only.

Taxpayers claiming Add-Back on RCT-101, PA Corporate Net Income Tax
Report, must provide schedules REV-802 and REV-803 by submitting
them with RCT-101.

Corporations subject to the PA corporate net income tax (including PA S
corporations that have Built-In-Gains) must continue to file RCT-101, PA
Corporate Net Income Tax Report.
RCT-101 is a revised, year specific, four page form and includes a
revised Page 1, eliminating CS-FF and LOANS from Step D. It also
includes a revised Page 2, Bonus Depreciation, Corporate Net Income
Tax, and Sales Factor Apportionment (Schedule C-1). Use ONLY this
year-specific, four page RCT-101 for filing all tax years beginning on or
after Jan. 1, 2016. All reports for tax years beginning prior to Jan. 1, 2016
MUST be filed on the non-year-specific, six page RCT-101. These
forms can be found on the department’s website at
www.revenue.pa.gov.
RCT-101-I, Inactive PA Corporate Net Income Tax Report, is a revised,
year-specific form. It includes a revised Page 1, eliminating CS-FF and
LOANS Tax. This form MUST be used for filing all tax years beginning
on or after Jan. 1, 2016. All reports for tax years beginning prior to Jan.
1, 2016 MUST be filed on the non-year-specific RCT-101-I. These forms
can be found on the department’s website at www.revenue.pa.gov.
Amended reports filed for tax years beginning on or after Jan. 1, 2016,
MUST be filed on the revised, year-specific, four page RCT-101. You
must check the Amended Report checkbox on Page 1, Step B, and
include REV-1175 with the report. Amended reports filed for tax years

4

REV-1200

Act 52 of 2013 requires the add-back of intangible expenses to income
for interest, royalties, patents, trademarks, etc., between affiliated entities
in certain circumstances.

Completing the sales factor as 0/0, leaving the sales factor field blank or
typing “none” in this field will result in apportionment being changed to
100 percent in Pennsylvania, automatically changing the reported tax
liabilities. A corporation with no sales both inside and outside
Pennsylvania should complete SCHEDULE C-1 on Page 2 of RCT-101,
using “0” as the numerator and “1” as the denominator.
Failure to submit a properly completed and signed tax report may result
in the delay of processing and the imposition of late filing penalties and/or
estimated assessments.
The penalty imposed for failure to file reports when due is a minimum of
$500, regardless of the determined tax liability, plus an additional 1
percent of any determined tax liability over $25,000.
Taxpayers filing a full year report and disclosing a bulk sale should not
fill in the bulk sale checkbox on Page 3 of RCT-101, PA Corporate Net
Income Tax Report. Rather, you must complete REV-181, Application for
Tax Clearance Certificate and mail separately to the Bureau of
Compliance. DO NOT send with RCT-101.
If a taxpayer is filing a short period, ESTIMATED tax return to fulfill its
Bulk Sale reporting requirement, you must fill in the bulk sale checkbox
on Page 3 of RCT-101. You must also complete REV-181, Application
for Tax Clearance Certificate and mail separately to the Bureau of
Compliance. You may also include a copy with the RCT-101. However,
if the report is for a full 12 month tax period, DO NOT check the bulk sale
box but you must still file the REV-181.
For further guidance, refer to Tax Bulletin 53D.

www.revenue.pa.gov

WHAT MUST BE INCLUDED WITH THE PA CORPORATE NET INCOME TAX REPORT
When filing an RCT-101, PA Corporate Net Income Tax Report, all corporate taxpayers are required to include forms and schedules to support the
calculation of the tax liability. The type of information required depends on how the entity reports income to the IRS. The following chart lists the forms
and schedules the taxpayer must include with the RCT-101 each year. This list is not meant to be all-inclusive. Explanation of forms appears on Pages
16-19.
IF TAXPAYER
IS ORGANIZED AS

TAXPAYER FILES
WITH THE IRS

TAXPAYER MUST PROVIDE THE FOLLOWING WITH RCT-101

Corporation
Business Trust
Limited Liability Company or
S Corporations that have
Built-In-Gains
Any other entity electing to
file as a corporation under
federal Check the Box rules

Federal Form 1120,
Federal Form 1120C,
Federal Form 1120S,
(Taxpayer elected to
not be taxed as a
Pennsylvania
S Corporation)
Federal Form 1120F, or
Any other Corporate
Income Tax Return

1. Complete copy of federal income tax return, on separate company basis, with all supporting
schedules. Corporations participating in a consolidated federal income tax filing must provide
consolidating income statements and balance sheets to the department, including separate
company schedules and all consolidations and eliminations.
2. Completed federal Schedules L, M-1 & M-2 regardless of federal requirements.*
3. Consolidated balance sheet (Corporation owns more than 50 percent of another corporation).
See Page 18 of these instructions.
4. RCT-103 to support net operating loss carry-forward, if applicable.
5. REV-1834, Schedules C-8 and C-9 to support adjustments for bonus depreciation, if applicable.
6. REV-934, Schedule of Nonbusiness Income, if applicable.
7. Other supporting statements if necessary, with references to supporting statements on the
applicable form.
8. REV-798, Schedule C-2, Dividend Deduction, if applicable and Schedule X, if applicable.
9. REV-860, Schedule C-5, OA and OD
10. RCT-106, Insert Sheet

*Taxpayers required to file federal Schedule M-3 may submit such in lieu of federal Schedule M-1.

In certain situations corporate taxpayers are also required to provide additional information when filing RCT-101. Examples of these are as follows.
IF THE CORPORATE TAXPAYER IS

TAXPAYER MUST ALSO PROVIDE

Apportioning income for the first time.

A copy of a tax return from another state.

Filing the final PA Corporate Net Income Tax Report.

A complete REV-861, Schedule DA, Disposition of Assets Schedule.

Claiming the Keystone Opportunity Zone/Keystone
Opportunity Expansion Zone or Strategic Development
Area Credit.
Claiming an Employment Incentive Payment Credit.

1. A completed RCT-101 KOZ, showing the calculation of the credit.
2. A copy of the Keystone Opportunity Zone approval letter issued by the Department of
Community and Economic Development for the current year.
Schedule W – Certifications for New Employees.

WHEN IS A FORM OR SCHEDULE REQUIRED?
FORM

USED FOR

REQUIRED WHEN CORPORATE TAXPAYER

RCT-106

Support of Sales Factor
Apportionment or Special
Apportionment

Has taxable activity in at least one other state and is apportioning income to the other state based on
sales. RCT-106 is also required by taxpayers who are required to utilize special apportionment methods
(revenue miles, etc.).

RCT-103

Support of Net Operating
Loss Deduction

Is deducting a net operating loss carry-forward in the calculation of corporate net income tax.

Schedule C-2
REV-798

Support of Dividend
Deduction

Is claiming a Dividend Received Deduction in the calculation of corporate net income tax.

Schedule C-8
REV-1834

Bonus Depreciation
Adjustment

Is claiming a deduction to recover disallowed federal bonus depreciation in the calculation of corporate
net income tax for property purchased prior to Sept. 28, 2017.

Schedule C-9
REV-1834

Adjustment for Sale of
Sec. 168(k) Property

Is claiming a deduction to recover remaining federal bonus depreciation in the calculation of corporate
net income tax in the year the property is fully depreciated, sold or otherwise disposed.

Schedule C-5
REV-860

Schedule of Tax Expense

Is subject to corporate net income tax and reports taxes paid as an expense on the federal income
tax return.

Schedule OA
REV-860

Other Additions

Is reporting an "Other Addition" on RCT-101, Section B, Line 3E.

Schedule OD
REV-860

Other Deductions

Is reporting an "Other Deduction" on RCT-101, Section B, Line 2D.

www.revenue.pa.gov

REV-1200

5

WHEN IS A FORM OR SCHEDULE REQUIRED? (CONTINUED)
FORM

USED FOR

REQUIRED WHEN CORPORATE TAXPAYER

Schedule QMIRD
REV-860A

Other Deductions

Claims a Qualified Manufacturing Innovation and Reinvestment Deduction

Schedule X
REV-798

Parent and Subsidiary
Corporations

Has more than 50 percent of its stock owned by another corporation, individual or other business entity
or owns more than 50 percent of another corporation.

REV-934

Schedule of Non-Business
Income

Is claiming non-business income.

REV-986

Schedule to Determine
Corporate Net Income Tax
Filing Requirement

Activity does not exceed Solicitation Only - P.L. 86-272

Schedule AR
REV-1175

Schedule to Provide Reason
for Filing an Amended Report
and Summary of Change in
Tax Liability for Amended
Report

Is amending a PA Corporate Net Income Tax Report.

REV-802

Add-Back for Intangible
Expense or Related Interest
Expense

Is adding back intangible expense or related interest expense.

REV-803

Claiming a Credit for Tax
Paid by Affiliated Entities

Is claiming a credit for tax paid by affiliated entities.

ASSEMBLY OF THE COMPLETED
PA CORPORATE NET INCOME TAX REPORT RCT-101 PACKAGE
Assemble the completed PA Corporate Net Income Tax Report in the
following order. Failure to submit a properly completed and signed
report may result in the delay of processing and the imposition of
late filing penalties and/or estimated assessments.
1. RCT-101, PA Corporate Net Income Tax Report, Pages 1 through 4
completed and assembled in order
2. RCT-103, Net Operating Loss Schedule, if applicable
3. Federal Form 7004, if applicable
4. Pennsylvania Extension Approval Letter, if applicable
5. Pennsylvania schedules and forms, as required and in the following
order:
• REV-1175, Schedule AR - If filing an amended PA Corporate Net
Income Tax Report.
• REV-798, Schedule C-2, Dividend Deduction
• REV-798, Schedule X

6

REV-1200

• REV-1834, Schedule C-8, Adjustment for Bonus Depreciation
• REV-1834, Schedule C-9, Adjusted for 168k property fully
depreciated sold or otherwise disposed
• REV-860, Schedules C-5, OA and OD
• REV-860A, QMIRD Worksheet
• RCT-106, Insert Sheet
• REV-934, Schedule of Nonbusiness Income
6. All other documentation to support the RCT-101, PA Corporate Net
Income Tax Report
7. Complete federal tax return and supporting schedules, as required:
• Federal Form 1120
• Federal Form 1120C
• Federal Form 1120F
• Federal Form 1120S
8. Consolidating schedules, when applicable

www.revenue.pa.gov

PENNSYLVANIA CORPORATE NET INCOME TAX REPORT
INSTRUCTIONS FOR FORM RCT-101
GENERAL INSTRUCTIONS

RCT-101, PA Corporate Net Income Tax Report. A copy of federal Form
1120 must be included and apportionment fractions must be reported.

FEDERAL S CORPORATIONS
The Capital Stock/Foreign Franchise tax has been phased out for tax
years beginning on or after Jan. 1, 2016. However, PA S Corporations
that have built-in-gains are required to file RCT-101.

CAUTION: Prior period forms are not acceptable. Do not use
forms for other years when filing an RCT-101, PA Corporate Net
Income Tax Report, or an RCT-101-I, Inactive PA Corporate Net Income
Tax Report.

Any federal subchapter S corporation that does not desire to be a
Pennsylvania S corporation must file the REV-976, Election Not to be
Taxed as a Pennsylvania S Corporation, on or before the due date or
extended due date of the report for the first year in which the election is
to be in effect. This election must be signed by all of the shareholders
and once made cannot be revoked for five years. The completed
REV-976 must be submitted via fax or email to:
Fax: 717-787-3708
Email: [email protected]
To revoke an election not to be taxed as a PA S Corporation, the
corporation must send a letter signed by shareholders holding more than
one-half of the shares of stock of the corporation on the day on which the
revocation is made. This letter must contain the name of the corporation,
federal EIN, Revenue ID number and the effective date of the revocation.
If no effective date is provided, the revocation will be effective for the first
tax period for which the revocation was timely submitted. In the case of
a corporation with qualified subchapter S subsidiaries, the letter must also
include the names and Revenue ID numbers of all qualified subchapter
S subsidiaries doing business in Pennsylvania.
Qualified subchapter S subsidiaries may not be Pennsylvania S
corporations, or elect not to be Pennsylvania S corporations, separate
from the parent corporation. Federal subchapter S corporations doing
business in Pennsylvania that do not make this election are required to
file both RCT-101 and PA-20S/PA-65, and the shareholders of these
corporations must report the income from these corporations on their PA
personal income tax returns.
IMPORTANT: This election must be filed by all federal subchapter
S corporations that do not want to be taxed as Pennsylvania S
corporations, regardless of any prior actions taken by a corporation on
this issue.
If a corporation has elected to be taxed as an S corporation for federal
tax purposes, but has elected not to be taxed as a PA S corporation, it
must: (1) complete Section B of RCT-101, (2) include a copy of federal
Form 1120S with the PA Corporate Net Income Tax Report, and (3)
include a schedule reflecting adjustments to Line 21 of federal Form
1120S for the pass-through items on Schedule K, Shareholders’ Share
of Income, Credits, Deductions, etc. These adjustments should produce
taxable income similar to that for a C corporation and must be reported
in Section B, Line 1 of the RCT-101.
INACTIVE CORPORATIONS
Inactive corporations must complete and file form RCT-101-I. Only
skeleton corporations - those performing no business activity and owning
no assets anywhere - may use the RCT-101-I. Corporations that have
business activity outside Pennsylvania must complete and file the
www.revenue.pa.gov

COPY OF FEDERAL FORM 1120, 1120C, 1120F OR 1120S
IMPORTANT: A copy of the federal income tax return - Form 1120,
1120C, 1120F, 1120S, or other applicable federal form must be
included with the PA Corporate Net Income Tax Report. This is in addition
to any requirement to supply a copy of the federal tax return with any
other filing.
Pennsylvania does not allow consolidated filing of corporate tax reports.
A corporation filing a consolidated return to the federal government must
include the following:
1. Separate company income statement reflecting taxable income that
would have been returned to and ascertained by the federal
government, if a separate return had been made to the federal
government.
2. Separate company balance sheet reflecting financial position of the
taxpayer at the beginning and end of the taxable period, if separate
return had been made to the federal government. A corporation with
subsidiaries also must include a consolidated balance sheet.
3. Schedules reflected on the federal Form 1120, 1120C, 1120F or
1120S on a separate company basis, including a schedule of taxes
expensed.
4. Corporations participating in a consolidated federal income tax filing
must provide consolidating income statements and balance sheets
to the department, including separate company schedules and all
consolidations and eliminations.
CAUTION: Failure to submit a properly completed and signed
report may result in the delay of processing and imposition of late
filing penalties and/or estimated assessments.
CONFIRMATION OF “DEPOSITS ON ACCOUNT” FOR A
NON-FILED TAX YEAR
Prior to filing a PA Corporate Net Income Tax Report, taxpayers can
confirm the total amount of deposits on account by calling
1-888-PATAXES (1-888-728-2937). You will be asked to enter your
Revenue ID number and a specific tax year. Once confirmed, the system
will provide:
1. Total deposits by tax type for a specific tax year; or
2. A detailed response for each cash deposit and credit by tax type for
a specific tax year. (Note: “restricted credits” are NOT uniquely
identified by name of program) The system will provide details on
up to 20 transactions.
HOW TO PAY
If the total taxes owed are less than $1,000, you may send a check made
payable to the PA Dept. of Revenue, enclosed with the tax report, to the
address listed on Page 3.
REV-1200

7

ELECTRONIC PAYMENT REQUIREMENT
The PA Departments of Treasury and Revenue have implemented
programs that enable taxpayers to pay certain taxes electronically. All
payments of $1,000 or more must be remitted electronically or by certified
or cashier’s check remitted in person or by express mail courier. Failure
to make a payment by an approved method will result in the imposition
of a 3 percent penalty of the tax due, up to $500. For information on
electronic filing options, visit the Online Services Center at
www.revenue.pa.gov.
IMPORTANT: If paying by certified or cashier’s check, mail check
and coupon to:
PA DEPARTMENT OF REVENUE
1854 BROOKWOOD ST
HARRISBURG PA 17104-0947
DUE DATE OF REPORT AND PAYMENT
The RCT-101, PA Corporate Net Income Tax Report, is due 30 days after
the federal due date for both calendar and fiscal year filers. Domestic
International Sales Companies (DISC) must file on or before the 15th day
of the 10th month following the close of the fiscal year. If the due date
falls on a Saturday, Sunday or holiday, the report is due the next business
day.
FILING REQUIREMENTS
First reports of domestic corporations must begin with the date of
incorporation. All domestic corporations are required to file annual reports
even if no business activity was conducted during the taxable period.
First reports of foreign corporations must begin with the beginning date
of the fiscal period in which the Certificate of Authority was issued or the
date Pennsylvania activity began, whichever date is earlier.
IMPORTANT: All corporations are required to file annual reports
even if no business activity was conducted within the
commonwealth during the tax period. PA Corporate Net Income Tax
Reports are due 30 days after the original due date of the federal tax
return.

To qualify for out-of-existence or withdrawn status, the corporation must:
1. File all corporate tax reports and pay all taxes due the
commonwealth up to and including the date of cessation of activities
and divestiture of assets. Where capital assets have been sold prior
to liquidation, complete in detail a schedule reflecting the gain or
loss realized as a result of the sale.
2. Include with the corporate tax reports a REV-861, Schedule DA,
Disposition of Assets, which must reflect the date or dates of
divestiture of all assets. Where a distribution of assets is made
directly by the corporation to its shareholders in return for their stock,
include with the “Distribution of Assets,” a copy of federal Form 1099DIV.
CAUTION: Failure to submit the “Distribution of Assets” could
delay the acceptance of the return as a final report resulting
in continued corporate tax reporting requirements. Corporate
taxpayers reporting the disposition of PA real estate must provide
evidence that the transfer of title has been filed with the Recorder of
Deeds of the respective county. This information must be provided
in order to be removed from the active records of the Department of
Revenue.
PA corporations that never transacted business or held title to assets, or
foreign corporations that never transacted business in Pennsylvania, are
required to file annual tax reports until they file final returns and qualify
for out-of-existence or withdrawn status. Such inactive corporations
should mail the executed REV-238, Out-of-Existence/Withdrawal Affidavit
directly to:
PA DEPARTMENT OF REVENUE
BUREAU OF COMPLIANCE
PO BOX 280947
HARRISBURG PA 17128-0947
BULK SALES
Taxpayers filing a full year report and disclosing a bulk sale, should not
fill in the bulk sale checkbox on Page 3 of the PA Corporate Net Income
Tax Report. Rather, you must complete REV-181, Application for Tax
Clearance Certificate and mail separately to the Bureau of Compliance.
DO NOT send with the PA Corporate Net Income Tax Report.

OUT-OF-EXISTENCE/WITHDRAWAL
A PA corporation that has ceased doing business and completely or totally
divested itself of ALL assets, or a foreign corporation that has ceased to
do business in Pennsylvania and liquidated ALL PA assets may be
relieved of the responsibility of filing corporate tax reports by indicating
Final Report in Section C: Corporate Status Change, found on Page 3 of
RCT-101.

If a taxpayer is filing a short period, ESTIMATED tax return to fulfill its
Bulk Sale reporting requirement, you must fill in the bulk sale checkbox
on Page 3 of RCT-101. You must also complete REV-181, Application
for Tax Clearance Certificate and mail separately to the Bureau of
Compliance. You may also include a copy with the RCT-101.

NOTE: Entities formed under the laws of the Commonwealth of
Pennsylvania must answer the questions under “PA Corporations”
in this section. Entities formed under the laws of another jurisdiction are
required to answer the questions under “Foreign Corporations”.

REINSTATEMENT
A corporation considered out-of-existence through the acceptance of an
affidavit may reinstate with the PA Department of Revenue by confirming
with the PA Department of State, that the corporation name is available
for use by calling 717-787-1057. A corporation considered out-ofexistence/withdrawn, must be reinstated on Department of Revenue
records before its corporate franchise can again be utilized. This can be
effected by filing PA Corporate Net Income Tax Reports from the date of
out-of-existence status through the end of the last calendar or fiscal period
of no activity. Taxpayer’s filing RCT-101-I for this purpose must check the
reinstatement box found in Step J: Corporate Status Changes, and enter

By completing this section of RCT-101, a corporate taxpayer wishing to
be removed from the active records of the PA Department of Revenue
will no longer be required to file the Out of Existence/Withdrawal Affidavit.
However, taxpayers desiring to dissolve or formally withdraw with the
Department of State are still required to file a REV-181, Application for
Tax Clearance Certificate.

8

REV-1200

For further guidance, refer to Tax Bulletin 53D.

www.revenue.pa.gov

the beginning date of the first tax period in which business resumed
(effective date).
RECORDING DOLLAR AMOUNTS
All RCT-101 forms and schedules must show money amounts in whole
dollars. Eliminate any amount less than $0.50 and increase any amount
that is $0.50 or more to the next highest dollar.
Negative amounts should be written as follows: -3,456.
FILING PERIOD
Reports must be filed on the same filing basis as reported to the federal
government. Where a change in filing period has occurred, the taxpayer
must provide the new month, day and year by electronically filing
REV-854 using the Online Services Center at www.revenue.pa.gov or
by submitting REV-854 via fax to 717-787-3708 or email to
[email protected]. Indicate a permanent change in filing period on
the RCT-101 (Page 1, Step B).
EXTENSION OF TIME TO FILE
A request for an extension of time to file must be submitted on or before
the due date of the PA Corporate Net Income Tax Report.
Taxpayers granted an extension to file the federal income tax return will
automatically be granted an extension to file RCT-101, PA Corporate Net
Income Tax Report. Corporate taxpayers granted a federal extension
must indicate this on Page 1 of RCT-101 and include a copy of the federal
extension request with the report.
Corporations that do not request an extension to file the federal income
tax return may still request a 60-day extension to file the PA Corporate
Net Income Tax Report. The extension must be filed on or before the due
date of the report. To apply for an annual extension, complete the REV853, Annual Extension Request, electronically using the Online Services
Center at www.revenue.pa.gov. After review by the PA Department of
Revenue, you will receive written notification as to whether your extension
was approved or denied.
You may also use REV-853 to make an annual tax payment with the
extension request. If the taxes total more than $1,000, you must make
the required payment by an electronic payment method. (Refer to Page
8, Electronic Payment Requirement.)
All payments of $1,000 or more must be made electronically or by certified
or cashier’s check remitted in person or by express mail courier.

department will forecast interest on unpaid tax balances and provide a
notice to the taxpayer. Taxpayers may request a payoff of unpaid
balances (that includes interest on unpaid tax and collection agency fees,
if applicable) by calling 717-705-6225.
TRANSFERS/REFUNDS OF CORPORATE TAXES
After completing Step D on Page 1 of the RCT-101 Annual Report, if an
overpayment exists taxpayers must instruct the department to either
transfer any available credit to the next tax year or consider any available
credit for refund, or both, under Step F. If no option is selected, the
department will automatically transfer any overpayment to the next tax
year for estimated tax purposes after offsetting current period liabilities
and other unpaid liabilities within the account. A tax period overpayment
summary will be mailed to the taxpayer confirming the disposition of the
credit.
ASSIGNMENT OF TAX CREDIT (OVERPAYMENT)
Department regulation (61 Pa. Code 151.21-151.22) provides
authorization for taxpayers to assign a credit to another taxpayer. To
accomplish the assignment, the Department of Revenue requires both
assignor and assignee to complete REV-774, Assignment of Tax Credit.
Only credits that meet the following conditions can be assigned:
• All taxes (corporate, sales/use, employer withholding, liquid fuels,
etc), interest, penalties, fees and additions to tax owed by the
taxpayer (assignor) must be paid in full.
• Restricted credits (credits originating from special credit programs)
may be sold or assigned. These credits include the Research and
Development Tax Credit (R&D), Film Production Tax Credit (FPT),
Neighborhood Assistance Tax Credit (NAT), Resource Enhancement
and Protection Tax Credit (REAP), Keystone Innovation Zone Tax
Credit (KIZ), Keystone Special Development Zone Credit (KSDZ),
Historic Preservation Tax Credit (HPTC), and Coal Refuse Energy
and Reclamation Tax Credit (CRER).
• For information regarding the sale or assignment of R&D, KIZ, NAT,
FPT, HPTC and KSDZ credits, call the Department of Community
and Economic Development at 717-787-7120 or visit
www.dced.pa.gov.
• For information regarding the sale or assignment of REAP tax
credits, call the State Conservation Commission at 717-705-4032 or
visit www.agriculture.pa.gov.

PENALTIES IMPOSED FOR FAILURE TO FILE REPORTS WHEN DUE
If a report is filed late, the taxpayer should wait until assessed by the
department to remit the penalty amount. Interest does not accrue on
penalties. Do not include penalty with tax amounts reported on form
RCT-101.

Additional information regarding the sale or assignment of tax credits can
be obtained from Corporation Tax Bulletin 2014-04 found on the
Department of Revenue website at www.revenue.pa.gov.

The penalty imposed for failure to file reports when due is now a minimum
of $500, regardless of the determined tax liability, plus an additional one
percent of any determined tax liability over $25,000.

Call 717-705-6225 if you have questions regarding credit assignment or
restricted credits limitations or to request the REV-774 Assignment of Tax
Credit Form. The form can also be found at www.revenue.pa.gov.

INTEREST
Interest is charged on late payments received after the due date of a tax
report. Taxpayers should not precalculate interest or include interest with
the tax amount reported on the RCT-101 (Step D, Column A). The

Send REV-774 directly to:

www.revenue.pa.gov

PA DEPARTMENT OF REVENUE
PO BOX 280701
HARRISBURG PA 17128-0701
REV-1200

9

The notice also provides instructions for amending if taxpayers believe
they submitted incorrect data on the original report, and instructions of
what taxpayers should do if they believe the department’s adjustments
are in error.

• Summary of Active (filed) tax periods – Tax periods displayed
include the three most recently filed periods and those with open,
unpaid balances.
• Summary of Non-filed tax periods (includes estimated tax and
estimated prepayments) – Tax periods displayed include the
current non-filed tax period estimated prepayments and restricted
credits.
• Summary of Restricted Credits – This section includes a summary
of restricted tax credits available for future periods.
• Business taxpayers and tax practitioners have the ability to
electronically request and receive a more detailed version of the
Statement of Account (e-SOA) in PDF format through the new
Document Center section in e-TIDES. The e-SOA can be requested
at any time and is made available in PDF format in the Document
Center to print or download on the next business day. The online
delivery saves time and money and provides more up-to-date
information. You can access the e-SOA by visiting
www.revenue.pa.gov and selecting Online Services then select
e-TIDES.
The exact steps needed to access the new functionality in the
e-TIDES Document Center varies slightly based on your current
access. To learn more, visit the Get Assistance section in e-TIDES
for step-by-step instructions on getting setup to electronically request
an e-SOA.

Assessment Notice – This notice is provided to taxpayers as official
notification of an unpaid or underpaid balance due the commonwealth.
Balances include tax, interest, penalty, other fees and forecasted interest.
The elements of the notice are unique to a specific tax type and tax
period. The date of the notice establishes a lien with the commonwealth
and initiates the window to petition for reassessment. Taxpayers must file
petitions for reassessment on or before the due dates specified on
notices. For additional information visit the Board of Appeals website at
www.boardofappeals.state.pa.us.

Audit Assessment Notice – This notice is provided to taxpayers as
official notification of an unpaid or underpaid balance due the
commonwealth as the result of a field audit. Balances include tax, interest,
penalty, other fees and forecasted interest. The elements of the notice
are unique to a specific tax type and tax period. The date of the notice
establishes a lien with the commonwealth and initiates the window to
petition for reassessment. Taxpayers must file petitions for reassessment
on or before the due dates specified on notices. For additional information
visit the Board of Appeals website at www.boardofappeals.state.pa.us.

Basis of Assessment – Attached to every Assessment Notice is a Basis
of Assessment, which explains the adjustments made by the department
in the determination of the liability. This is in addition to other detailed
worksheets that may have been prepared and provided to the taxpayer.

AMENDED REPORTS
Amended reports must be filed when requesting the Department of
Revenue to adjust the corporate net income taxes for a particular year.
Phone calls and/or letters submitted to the department are not acceptable
and will not be considered an amended report.

DEPARTMENT NOTICES
IMPORTANT: Business taxpayers and practitioners have the
ability to receive and view department issued correspondence
electronically. Once you enroll for this feature, correspondence will be
delivered to you securely through the e-TIDES Document Center in PDF
format, eliminating the need for mailed correspondence. For information
on how to opt-in and receive electronic correspondences, visit
www.etides.state.pa.us.
TAX PROFESSIONALS E-SERVICES CENTER
Tax professionals are encouraged to use the department’s Tax
Professionals e-Services Center for easy access to client’s tax
information. Visit the department’s Online Customer Service Center or
call 717-787-1392.
Notice of Adjustment – This notice provides a copy of the changes if
the department made one or more adjustment that resulted in a
recalculation of tax. The accompanying worksheet details the amounts
originally reported and the adjustments made by the department.

Estimated Assessment Notice – This notice identifies estimated
liabilities that have been imposed for a specific tax type and tax period.
Estimated liabilities are imposed for failure to file a complete PA Corporate
Net Income Tax Report. The assessment includes tax, interest and
penalties that represent a first lien upon the entity’s franchise and
property, both real and personal. These liabilities are not subject to
appeal. To resolve the estimate, taxpayers must file a complete PA
Corporate Net Income Tax Report. The Department of Revenue is
required to remove estimated assessments 90 days following receipt of
a complete PA Corporate Net Income Tax Report.
Tax Period Overpayment Summary – This notice confirms the
disposition of a tax overpayment. Tax credits may develop from the filing
of tax reports, adjustments to a tax liability by the Department of Revenue
and the Department of the Auditor General, tax relief granted from various
levels of appeal or from account maintenance initiated by the department.
Statement of Account – This notice provides a summary of a taxpayer’s
account. Three categories of information are contained on the notice:

10

REV-1200

CAUTION: Amended reports filed for tax years beginning on or
after Jan. 1, 2016, MUST be filed on the revised, year-specific,
four page RCT-101. Taxpayers must complete all sections of the report;
this includes those sections originally filed and those sections being
amended. The apportionment must be completed with the factors as
originally filed or being amended. This must be numeric with a numerator
and a denominator present. If no activity anywhere, the numerator must
be “0” and the denominator must be “1”. The amended report check box
under Step B, Page 1 of RCT-101 must be checked and REV-1175 must
be included with the report.
CAUTION: Amended reports filed for tax years beginning prior to
Jan. 1, 2016 MUST be filed on the non-year specific, six page
RCT-101. Taxpayers must complete all sections of the report; this
includes those sections originally filed and those sections being amended.
The apportionment must be completed with the factors as originally filed
or being amended. This must be numeric with a numerator and a
denominator present. If no activity anywhere, the numerator must be “0”

www.revenue.pa.gov

and the denominator must be “1”. The amended report check box under
Step B, Page 1 of RCT-101 must be checked and REV-1175 must be
included with the report.
A taxpayer may file an amended report anytime within three years of the
filing of the original report. When filing the amended report the taxpayer
must consent to an assessment period of three years from the filing of
the original report or one year from the filing of the amended report,
whichever expires last. If you fail to provide such consent the department
might not consider the amended report. This consent to extend the
assessment period is included as part of the affirmation statement at the
bottom of Page 1 of RCT-101. Per Act 84 of 2016, the department will
have one year from the date the amended report is filed to notify the
taxpayer if the changes are accepted. If the taxpayer is not notified within
one year, the report is deemed accepted. If, after reviewing the amended
report, the department determines the tax liability reflected on the
taxpayer’s PA corporate tax account is incorrect, an adjustment will be
made to the liability. The department will then generate a credit for the
amount of any overpayment, strike all or part of any previous assessment
or issue an assessment for any additional tax liability.
An amended report should only be filed if an original RCT-101, PA
Corporate Net Income Tax Report, was previously filed for the same tax
period. An amended report must contain documentation to support the
adjustment(s).
All amended tax reports must include REV-1175, Schedule AR, which
includes a detailed explanation of the reason for filing the amended report
and a summary of the change to the tax liability. In completing the
Summary of Tax Change, enter the corporate net income tax; the tax
liability currently reflected on the taxpayer’s account; the amended tax
liability; and the amount of change in the tax.
When filing an amended RCT-101, the tax liability in Column A of Step D
should reflect the amended liability. Column B, Estimated Payments and
Credits on Deposit, must reflect the payments and credits on the account
at the time the amended report is filed. Column C, Restricted Credits,
must report the restricted credits the taxpayer is entitled to based on the
filing of the amended report.
Amended reports cannot be filed for the following:
1. To challenge PA statute or regulations.
2. To challenge department policy or interpretation of statutes or
regulations.
3. For the sole purpose of claiming the report is a final report.
IMPORTANT: REV-238 or REV-181 must also be filed.

commonwealth is not an appealable action and will not change any
existing appeal rights of the taxpayer.
RCT-128C – CHANGES IN FEDERAL TAXABLE INCOME/REPORTS
OF CHANGE
Changes in federal taxable income must be reported to the department
within the statutory period to report the change. This includes changes in
federal taxable income resulting from the taxpayer filing an amended
federal income tax return and changes initiated by the federal government
due to an audit or examination of the federal return. For tax years
beginning prior to Jan. 1, 2013, changes in federal taxable income must
be reported to the department within 30 days of the change. This has
been extended to six months for tax years beginning after Dec. 31, 2012.
If a taxpayer files an amended federal income tax return for a period for
which the department did or did not issue an Official Notice of Settlement,
the taxpayer must report the change on RCT-128C.
Changes to federal taxable income initiated by the federal government
as part of an audit or examination of the federal income tax return MUST
be reported on RCT-128C and MUST include the federal audit date or
date filed with the IRS, regardless of whether the PA corporate net
income tax for that period was settled by the department.
CAUTION: If this date is not provided, interest plus a $5 a day
penalty, will be imposed from the original due date.

PREVENTING RCT-101
PROCESSING ERRORS
CAUTION: The business tax system enables a more robust and
analytical review of the RCT-101, PA Corporate Net Income Tax
Report data. To prevent a report from suspending, taxpayers are
encouraged to provide a complete and accurate report that will process
smoothly, following the below tips.
1. The Revenue ID must be present for processing of the report, along
with all other applicable fields in Step C.
2. NEVER input the word “none” in numeric fields.
3. Checkbox indicators – Pay close attention to all checkboxes within
the report such as IRS Type (Page 1), Step B (Page 1), Sections C
and D (Page 3) and Schedule of Real Property (Page 4).
4. Taxpayer’s claiming Add-Back on Page 2 of RCT-101, Section B,
Line 3E, must provide schedules REV-802 and REV-803 by
submitting them with RCT-101.

4. To change or correct taxpayer information electronically such as the
Revenue ID or EIN. Use REV-854 found at www.revenue.pa.gov
and select Online Services, then e-Tides.
5. To change the end of the tax year. (A new original report must be
filed including an explanation why the original tax year end was
incorrect).

IMPORTANT: RCT-101 is a revised, year specific, four page
form. Use ONLY this year-specific, four page RCT-101 for filing
all tax years beginning on or after Jan. 1, 2016. All reports for tax years
beginning prior to Jan. 1, 2016 MUST be filed on the non-year specific,
six page RCT-101. These forms can be found on the department’s
website at www.revenue.pa.gov.

IMPORTANT: The filing of an amended PA Corporate Net Income
Tax Report does not replace the filing of a petition, nor does it
extend a corporate taxpayer’s time to file an appeal.

AMENDED REPORTS
Amended reports filed for tax years beginning on or after Jan. 1, 2016,
MUST be filed on the revised, year-specific, four page RCT-101. You
must check the amended report checkbox on Page 1, Step B, and include
REV-1175 with the report.

The department is not obligated to revise tax due the commonwealth
upon review of an amended report. Its failure to revise tax due the
www.revenue.pa.gov

REV-1200

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Amended reports filed for tax years beginning prior to Jan. 1, 2016, MUST
be filed on the non-year-specific, six page RCT-101. You must check
the amended report checkbox on Page 1, Step B, and include REV-1175
with the report.
CAUTION: Taxpayers must complete ALL sections of the
amended report; this includes those sections originally filed and
those sections being amended. The apportionment must be completed
with the factors as originally filed or being amended. This must be numeric
with a numerator and a denominator present. If no activity anywhere, the
numerator must be “0” and denominator must be “1”. REV-1175 must be
included with the report.
APPORTIONMENT
a) Completing the sales factor as 0/0, leaving the sales factor field
blank or typing “none” in this field will result in apportionment being
changed to 100 percent in Pennsylvania, automatically changing the
reported tax liabilities. Partnerships’ factors also must be provided
per a corporation’s ownership percentage and not entered as zeros.
b) Eligible corporations claiming sales factor apportionment must
complete RCT-106 and carry to RCT-101, Page 2, Section B, Line
7 and Schedule C-1.
c) Amounts differing from information on federal Forms 1120, 1120C
or 1120S must be reconciled.
d) If a corporation owns underlying partnerships, the partnerships’ sales
must be passed through to the corporate owner, in relation to the
ownership percentage. A corporation’s ownership interest in a
partnership or other unincorporated entity (hereinafter referred to as
a partnership) must be included in the apportionment fraction as a
direct interest of the corporation in the assets of the partnership.
The portion of the partnership’s gross receipts, net of returns and
allowances, are included in the numerator and denominator of the
corporation’s sales factor to the extent of the taxpayer’s interest in
the partnerships for that period, as appropriate. Sales of tangible
personal property are considered in-state if the property is delivered
or shipped to a purchaser within Pennsylvania. This sales calculation
should be reflected on the Partner’s Share of Sales from
Partnerships line on RCT-106.
NOTE: For tax periods beginning on or after Jan. 1, 2013, all
business income must be apportioned to PA by multiplying income
by the sales factor ONLY.
IMPORTANT: A corporation with no sales both inside and outside
Pennsylvania MUST complete RCT-106, using “0” as the
numerator and “1” as the denominator.
BULK SALES
a) Taxpayers filing a full year report and disclosing a bulk sale should
not fill in the bulk sale checkbox on Page 3 of the RCT-101, PA
Corporate Net Income Tax Report. Rather, you must complete REV181, Application for Tax Clearance Certificate and mail separately
to the Bureau of Compliance. DO NOT send with RCT-101.
b) If a taxpayer is filing a short period, ESTIMATED tax return to fulfill
its Bulk Sale reporting requirement, you must fill in the bulk sale
checkbox on Page 3 of RCT-101. You must also complete REV-181,
Application for Tax Clearance Certificate and mail separately to the
Bureau of Compliance. You may also include a copy with the
RCT-101.

12

REV-1200

For further guidance, refer to Tax Bulletin 53D.
Reports where the taxpayer is calculating a liability using a method other
than the standard calculation, including any position granted as the result
of an appeal in a prior year cannot be filed electronically. In such cases,
the RCT-101, PA Corporate Net Income Tax Report and all required
schedules, including the reason the report cannot be e-filed, MUST be
mailed to:
PA DEPARTMENT OF REVENUE
PO BOX 280704
HARRISBURG PA 17128-0704
LINE INSTRUCTIONS
LINE BY LINE INSTRUCTIONS FOR THE RCT-101, PA CORPORATE
NET INCOME TAX REPORT
PAGE 1
Indicate the type of return filed with the IRS. If the activity is included in
the federal tax return of another company, either as part of a consolidated
group or as a disregarded entity, indicate the type of return filed by the
entity reporting the activity.
STEP A
TAX PERIOD (REQUIRED)
Taxpayers must enter the month, day and year for the tax period
beginning and ending dates using the MMDDYYYY format.
STEP B
CHECK SPECIAL FILING STATUS
Amended Report – Check box if the corporation is amending a PA
Corporate Net Income Tax Report previously filed with the department.
CAUTION: Federal Extension Granted – Check box if the
corporation was granted an extension of time to file its federal
income tax return. If not checked a penalty will be imposed. A copy of the
extension request, federal Form 7004, must be included.
52-53 Week Filer – Check box if the corporation is a 52-53 week filer.
Address Change – Check box if the address reported in Step C is a
change from prior tax periods. If changing the address after filing the
report, file REV-854 electronically using the Online Services Center at
www.revenue.pa.gov.
Change Fed Group – Check box if the corporate taxpayer is filing a PA
Corporate Net Income Tax Report for less than a full year due to a change
in federal consolidated group. This must be indicated on the last report
prior to the change.
First Report – Check box if this is the corporation’s first PA Corporate
Net Income Tax Report filing.
KOZ/EIP/SDA Credit – Check box if the corporate taxpayer is claiming
the Keystone Opportunity Zone Credit, Employer Incentive Payment
Credit or the Strategic Development Area Credit.
Add-Back – Act 52 of 2013 requires the add-back of intangible expenses
to income for interest, royalties, patents, trademarks, etc. between
affiliated entities in certain instances.

www.revenue.pa.gov

File Period Change – Check box if the filing period (tax period ending)
is a permanent change. Be sure to file REV-854 electronically using the
Online Services Center at www.revenue.pa.gov. This must be indicated
on the first report filed with the new tax year end.

All RCT-101 forms and schedules must show money amounts in whole
dollars. Eliminate any amount less than $0.50 and increase any amount
that is $0.50 or more to the next highest dollar. Do not carry a value less
than zero to Step D, Page 1, Column A.

S Corp Taxable Built-in Gains – PA S corporations and QSSS are
subject to PA corporate net income tax. Their taxable income is their net
recognized built-in gains as determined for federal income tax purposes
pursuant to IRC Section 1374(d) (2). To report taxable built-in gains,
check the box and complete Line 1 of Section B.

Column B. Estimated Payments & Credits on Deposit. See
Confirmation of Deposits on Account, Page 7. Enter the total of estimated
payments and transferred credits applied to the current tax period.

SECTION 381/382/MERGER NOLS/ALTERNATE APPORTIONMENT
Mergers – Corporations having net operating loss (NOL) limitations under
IRC Section 381 and IRC Section 382 or claiming losses or Bonus
Depreciation from a merger. Provide the Merger documents including
Company Name, EIN and Revenue ID of merged company. Provide a
schedule with NOL’S by tax periods and the balance of the Bonus
Depreciation carry-forward from the merged company.
Alternate Apportionment – If the taxpayer is requesting an alternate
apportionment method, extra-statutory treatment, separate accounting or
unrelated asset treatment, check this box and provide a written, detailed
explanation of the methodology being used as well as fully detailed
supporting schedules, worksheets and documentation to review the
methodology being employed.
STEP C
NAME, ADDRESS, FEDERAL EIN, BUSINESS ACTIVITY CODE,
REVENUE ID AND PARENT CORPORATION EIN
Print or type the corporation name, complete address, 10-digit Revenue
ID and nine-digit Federal ID (EIN).

Column C. Restricted Credits. Enter the amount of restricted credit to
be applied to the current tax year. Restricted credits may include those
originating from special tax credit programs administere