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Kentucky Kentucky Corporation Income Tax and LLET Return
Extracted from PDF file 2023-kentucky-form-720.pdf, last modified June 2023Kentucky Corporation Income Tax and LLET Return
FORM 720 KENTUCKY CORPORATION INCOME TAX AND LLET RETURN Commonwealth of Kentucky Department of Revenue 2023 For calendar year 2023 or tax years beginning (MM-DD-YY) __ __ – __ __ – 20__ __ , and ending (MM-DD-YY) __ __ – __ __ – 20__ __ A LLET Exemption Code D FEIN E Kentucky Corporation/LLET __ __ – __ __ __ __ __ __ __ Name of Corporation B Number and Street Income Tax Exemption Code Account Number (Required) __ __ __ __ __ __ Change of Name Telephone Number State of Incorporation City Elective Consolidated Attach Form 722 State F Name of Common Parent Kentucky Corporation/LLET Account Number C 3-Factor Apportionment Code Date of Incorporation __ __ / __ __ __ __ ZIP Code G Check applicable boxes Amended return (Complete Part V) Initial return Change of accounting period Principal Business Activity in KY (If different than Item E) __ __ __ __ __ __ NAICS Code Number in KY Amended return—RAR (Complete Part V) Short-period return (Complete Part IV) Final return (Complete Part IV) __ __ __ __ __ __ PART I—TAXABLE INCOME COMPUTATION 1 0 0 2 Interest income (state and local obligations) 2 0 0 3 State taxes based on net/gross income 3 0 0 4 Depreciation adjustment 4 0 0 5 Deductions attributable to nontaxable income (see lines 22 and 23) 5 0 0 6 Related party expenses (attach Schedule RPC) 6 0 0 7 Dividend paid deduction (Captive REIT) 7 0 0 8 Revenue Agent Report (RAR) 8 0 0 9 Kentucky capital gain from Kentucky Schedule D, line 18 9 0 0 10 Loss from Form 4797 found on federal Form 1120, line 9 10 0 0 11 Gain from Kentucky Form 4797, Part II, line 17 11 0 0 12 Federal allowable depletion from Form 1120, line 21 12 0 0 1 Federal taxable income (Form 1120, line 28) ADDITIONS: OFFICIAL USE ONLY P W 2 0 4 V A L # 230200 41A720 (10-23) Page 1 of 9 FORM 720 (2023) Page 2 of 9 PART I—TAXABLE INCOME COMPUTATION—continued ADDITIONS—continued 13 Federal contribution deductions from Form 1120, line 19 13 0 0 14 Terminal Railroad Corporation adjustments 14 0 0 15 Federal allowable passive activity loss 15 0 0 16 Federal taxable loss of all exempt corporations 16 0 0 17 Reserved for future use 17 0 0 18 Enter additions to federal taxable income from Kentucky Schedule(s) K-1 18 0 0 19 Internal Revenue Code adjustments (see instructions) 19 0 0 20 Other additions (attach explanation) 20 0 0 21 Total (add lines 1 through 20) 21 0 0 22 Interest income (U.S. obligations) 22 0 0 23 Dividend income 23 0 0 24 Reserved for future use 24 0 0 25 Depreciation adjustment 25 0 0 26 Revenue Agent Report (RAR) 26 0 0 27 Capital gain from Form 1120, line 8 27 0 0 28 Gain from Form 4797 found on federal Form 1120, line 9 28 0 0 29 Loss from Kentucky Form 4797, Part II, line 17 29 0 0 30 50% of the gross royalty income derived from any disposal of coal with a retained economic interest defined by IRC §631(c) and all IRC §272 expenses if the corporation elects not to use percentage depletion 30 0 0 SUBTRACTIONS 230201 41A720 (10-23) FORM 720 (2023) Page 3 of 9 PART I—TAXABLE INCOME COMPUTATION—continued SUBTRACTIONS—continued 31 Terminal Railroad Corporation adjustments 31 0 0 32 Kentucky allowable passive activity loss 32 0 0 33 Kentucky allowable depletion 33 0 0 34 Kentucky contribution deductions 34 0 0 35 Reserved for future use 35 0 0 36 Federal taxable income of all exempt corporations 36 0 0 37 Enter subtractions from federal taxable income from Kentucky Schedule(s) K-1 37 0 0 38 Internal Revenue Code adjustments (see instructions) 38 0 0 39 Other subtractions (attach explanation) 39 0 0 40 Net income (line 21 less lines 22 through 39) 40 0 0 41 Taxable net income (see instructions) 41 0 0 42 Net operating loss deduction (NOLD) 42 0 0 43 Taxable net income after NOLD (line 41 less line 42) 43 0 0 230256 41A720 (10-23) FORM 720 (2023) Page 4 of 9 PART II—LLET COMPUTATION 1 Schedule L, Section E, line 1 (Page 9) 1 0 0 2 Tax credit recapture 2 0 0 3 Total (add lines 1 and 2) 3 0 0 4 Nonrefundable LLET credit from Kentucky Schedule(s) K-1 4 0 0 5 Nonrefundable tax credits (attach Schedule TCS) 5 0 0 6 LLET liability (greater of line 3 less lines 4 and 5 or $175 minimum) 6 0 0 7 Reserved for future use 7 0 0 8 Estimated tax payments 8 0 0 9 Refundable tax credits (attach Schedule TCS) 9 0 0 10 Reserved for future use 10 0 0 11 Extension payment 11 0 0 12 Prior year’s tax credit 12 0 0 13 Income tax overpayment from Part III, line 17 13 0 0 14 LLET paid on original return 14 0 0 15 LLET overpayment on original return 15 0 0 16 Estimated Tax Penalty (attach Form 2220-K) 16 0 0 17 0 0 18 18 LLET overpayment (lines 7 through 14 less lines 6, 15, and 16) 0 0 19 Credited to 2023 income tax 19 0 0 20 Credited to 2023 interest 20 21 Credited to 2023 penalty 21 22 Credited to 2024 LLET 22 17 LLET and Estimated Tax Penalty Due (lines, 6, 15, and 16 less lines 7 through 14). 23 Amount to be refunded (line 18 less lines 19 through 22) 230257 41A720 (10-23) TAX DUE REFUND 23 0 0 FORM 720 (2023) Page 5 of 9 PART III—INCOME TAX COMPUTATION 1 Income tax (see instructions) 1 0 0 2 Tax credit recapture 2 0 0 3 Tax installment on LIFO recapture (see instructions) 3 0 0 4 Total (add lines 1 through 3) 4 0 0 5 Nonrefundable LLET credit from the Corporation LLET Credit Worksheet(s) (see instructions) 5 0 0 6 Nonrefundable LLET credit (Part II, line 6 less $175) 6 0 0 7 Nonrefundable tax credits (attach Schedule TCS) 7 0 0 8 Net income tax liability (line 4 less lines 5 through 7, but not less than zero) 8 0 0 9 Estimated tax payments 9 0 0 10 Extension payment 10 0 0 11 Prior year’s tax credit 11 0 0 12 LLET overpayment from Part II, line 19 12 0 0 13 Corporation income tax paid on original return 13 0 0 14 Corporation income tax overpayment on original return 14 0 0 15 Income tax due (lines 8 and 14 less lines 9 through 13) 15 0 0 16 Income tax overpayment (lines 9 through 13 less lines 8 and 14) 16 0 0 17 Credited to 2023 LLET 17 0 0 18 Credited to 2023 interest 18 19 Credited to 2023 penalty 19 20 Credited to 2024 corporation income tax 20 21 Amount to be refunded (line 16 less lines 17 through 20) 230258 41A720 (10-23) TAX DUE REFUND 21 0 0 FORM 720 (2023) Page 6 of 9 PART IV—EXPLANATION OF FINAL RETURN AND/OR SHORT–PERIOD RETURN Ceased operations in Kentucky Change of ownership Successor to previous business Change in filing status Merger Other ____________________________________________ PART V—EXPLANATION OF AMENDED RETURN CHANGES OFFICER INFORMATION Attach a schedule listing the name, home address, and Social Security number of the vice president, secretary, and treasurer. Yes Has the attached officer information changed from the last return filed? President’s Name President’s Social Security Number Date Became President No President’s Home Address / / Under penalties of perjury, I declare that I have examined this return, including accompanying schedules and statements, and to the best of my knowledge and belief, it is true, correct, and complete. Declaration of preparer (other than taxpayer) is based on all information of which preparer has any knowledge. Signature of Officer Sign Here Paid Preparer Use Date __ __ /__ __ / __ __ __ __ Name of Officer (Please print) Title Signature of Preparer Date Name of Preparer or Firm (Please print) ID Number Email and/or Telephone No. May the DOR discuss this return with this preparer? Refund Enclose Include federal Form 1120 with all supporting schedules and or No statements. Payment Check Payable: Kentucky State Treasurer E-Pay Options: www.revenue.ky.gov Payment 230259 41A720 (10-23) __ __ /__ __ / __ __ __ __ With Payment YES Kentucky Department of Revenue Frankfort, KY 40618-0010 Kentucky Department of Revenue Frankfort, KY 40620-0021 NO FORM 720 (2023) Page 7 of 9 SCHEDULE Q—QUESTIONNAIRE IMPORTANT: Questions 1 and 2 must be answered if this is the corporation’s initial return or if a return was not filed under the same name and same federal I.D. number for the preceding year. Failure to do so may result in a request for a delinquent return. 1 Indicate whether: (a) new business, (b) successor to previously existing business which was organized as: (1) corporation (2) partnership (3) sole proprietorship (4) other_____________________________________ _______________________________________________ _______________________________________________ 6 Was the corporation doing business in Kentucky other than through its interest held in a pass-through entity doing business in Kentucky? Yes No 7 Did the corporation at any time during the taxable year own more than 50 percent (50%) of the voting stock of another corporation that is part of a unitary business per KRS 141.202(2)(f)? Yes No If yes, list name and federal I.D. number of the entity. Name FEIN If successor to previously existing business, give name, address, and federal I.D. number of the previous business organization. Name FEIN Address __ __ – __ __ __ __ __ __ __ __ __ / __ __ / __ __ __ __ Questions 3–10 must be completed by all corporations. 3 The corporation’s books are in care of: Name Address 4 Are disregarded entities included in this return? Yes No If yes, attach Schedule DE. 8 Was more than 50 percent (50%) of the corporation’s voting stock owned by any corporation that is part of a unitary business per KRS 141.202(2)(f)? Yes No 2 If a foreign corporation, enter the date qualified to do business in Kentucky. 5 Was the corporation a partner or member in a pass-through entity doing business in Kentucky? Yes No If yes, list the name(s) and federal I.D. number(s) of the pass-through entity(ies). Name A FEIN __ __ – __ __ __ __ __ __ __ Name B FEIN __ __ – __ __ __ __ __ __ __ 230322 41A720 (10-23) __ __ – __ __ __ __ __ __ __ If yes, list name and federal I.D. number of each entity. If more than 3 companies, attach a supporting statement. Name A FEIN __ __ – __ __ __ __ __ __ __ Name B FEIN __ __ – __ __ __ __ __ __ __ Name C FEIN __ __ – __ __ __ __ __ __ __ 9 The federal tax return attached to this Kentucky tax return is: a pro forma federal tax return a copy of the federal tax return filed with the Internal Revenue Service. 10 Was this return prepared on: (a) cash basis (b) accrual basis (c) other __________________________________________ ____________________________________________________ ____________________________________________________ ____________________________________________________ ____________________________________________________ FORM 720 (2023) Page 8 of 9 SCHEDULE L—LIMITED LIABILITY ENTITY TAX COMPUTATION Check the box and complete Schedule L-C, Limited Liability Entity Tax—Continuation Sheet, if the corporation filing this tax return is a partner or member of a limited liability pass-through entity or general partnership doing business in Kentucky. Enter the total amounts from Schedule L-C in Section A of this schedule. SECTION A—Computation of Kentucky Gross Receipts and Gross Profits 1(a) Gross receipts less returns and allowances 1(a) 0 0 (b) Kentucky statutory gross receipts reductions (b) 0 0 2 2 0 0 3(a) Cost of goods sold (attach Schedule COGS) 3(a) 0 0 (b) Kentucky statutory cost of goods sold reductions (b) 0 0 4 Adjusted cost of goods sold (line 3(a) less line 3(b)) 4 0 0 5 Gross profits (line 2 less line 4) 5 0 0 Adjusted gross receipts (line 1(a) less line 1(b)) SECTION B—Computation of TOTAL Gross Receipts and Gross Profits 1 Adjusted gross receipts 1 0 0 2 Cost of goods sold (attach Schedule COGS) 2 0 0 3 Gross profits (line 1 less line 2) 3 0 0 If Section B, Line 1 or 3 is $3,000,000 or less, SKIP Sections C and D and enter $175 in Section E, Line 1 and then enter $175 on page 4, Part II, Line 1. Otherwise, continue to Section C on the next page. 230260 41A720 (10-23) FORM 720 (2023) Page 9 of 9 SCHEDULE L—LIMITED LIABILITY ENTITY TAX COMPUTATION—continued SECTION C—Computation of Gross Receipts LLET 1 If gross receipts from all sources (Section B, line 1) are greater than $3,000,000, but less than $6,000,000, enter the following: (Section A, line 2 x 0.00095) – [ $2,850 x ($6,000,000 – Section A, line 2) $3,000,000 ] but in no case shall the result be less than zero. 1 0 0 2 If gross receipts from all sources (Section B, line 1) are $6,000,000 or greater, enter the following: Section A, line 2 x 0.00095. 2 0 0 3 Enter the amount from line 1 or line 2. 3 0 0 SECTION D—Computation of Gross Profits LLET 1 If gross profits from all sources (Section B, line 3) are greater than $3,000,000, but less than $6,000,000, enter the following: [ (Section A, line 5 x 0.0075) – $22,500 x ($6,000,000 – Section A, line 5) $3,000,000 ] but in no case shall the result be less than zero. 1 0 0 2 If gross profits from all sources (Section B, line 3) are $6,000,000 or greater, enter the following: Section A, line 5 x 0.0075. 2 0 0 3 Enter the amount from line 1 or line 2. 3 0 0 1 0 0 SECTION E—Computation of LLET 1 Enter the lesser of Section C, line 3 or Section D, line 3 here and on Page 4, Part II, line 1. If less than $175, enter the minimum of $175 here and on Page 4, Part II, line 1. 230279 41A720 (10-23)
Form 720
More about the Kentucky Form 720 Corporate Income Tax Tax Return TY 2023
We last updated the Kentucky Corporation Income Tax and LLET Return in January 2024, so this is the latest version of Form 720, fully updated for tax year 2023. You can download or print current or past-year PDFs of Form 720 directly from TaxFormFinder. You can print other Kentucky tax forms here.
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TaxFormFinder has an additional 129 Kentucky income tax forms that you may need, plus all federal income tax forms. These related forms may also be needed with the Kentucky Form 720.
| Form Code | Form Name |
|---|---|
| Form 720S | Kentucky S Corporation Income Tax and LLET Return |
| 720S - Schedule K | Kentucky Schedule K for S Corporations with Economic Development Project(s) |
| Form 720-ES | Kentucky Estimated Tax Voucher - Corporation Income/Limited Liability Entity Tax - Form 41A720ES |
| 720-ES | Corporation Income/ Limited Liability Entity Tax Estimated Tax Voucher |
| Form 720S Instructions | Kentucky S Corporation Income Tax and LLET Return Instructions |
| 720S - Schedule K-1 | Shareholders Share of Income, Credits, Deductions, Etc |
| Schedule CR Form 720 | Pro Forma Federal Consolidated Return Schedule |
| Schedule O-720 | Other Additions and Subtractions to/from Federal Taxable Income |
| Form 41A720-S85 | Application for Preliminary Authorization of the ENDOW Kentucky Tax Credit KRS 141.438 |
| Schedule CR-C Form 720 | Pro Forma Federal Consolidated Return Schedule Continuation Sheet (DISCONTINUED) |
View all 130 Kentucky Income Tax Forms
Form Sources:
Kentucky usually releases forms for the current tax year between January and April. We last updated Kentucky Form 720 from the Department of Revenue in January 2024.
Form 720 is a Kentucky Corporate Income Tax form. Like the Federal Form 1040, states each provide a core tax return form on which most high-level income and tax calculations are performed. While some taxpayers with simple returns can complete their entire tax return on this single form, in most cases various other additional schedules and forms must be completed, depending on the taxpayer's individual situation, to create a complete income tax return package.
About the Corporate Income Tax
The IRS and most states require corporations to file an income tax return, with the exact filing requirements depending on the type of company.
Sole proprietorships or disregarded entities like LLCs are filed on Schedule C (or the state equivalent) of the owner's personal income tax return, flow-through entities like S Corporations or Partnerships are generally required to file an informational return equivilent to the IRS Form 1120S or Form 1065, and full corporations must file the equivalent of federal Form 1120 (and, unlike flow-through corporations, are often subject to a corporate tax liability).
Additional forms are available for a wide variety of specific entities and transactions including fiduciaries, nonprofits, and companies involved in other specific types of business.
Historical Past-Year Versions of Kentucky Form 720
We have a total of eleven past-year versions of Form 720 in the TaxFormFinder archives, including for the previous tax year. Download past year versions of this tax form as PDFs here:
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