2.2 Schedule D (RI-1120C ⸺ Schedule D)

Schedule D (RI-1120C ― Schedule D) is required for corporations claiming pass-through withholding. It lists pass-through entities, their federal EINs, and withholding details. This schedule must be attached to Form RI-1120C to validate the claimed credits, ensuring compliance with Rhode Island tax regulations for accurate reporting and processing.

Filing Requirements

Form RI-1120C must be filed by the 15th day of the third month after the tax year ends. Electronic filing is required for larger businesses, as per 2023 rules.

3.1 Who Must File RI-1120C

C corporations operating in Rhode Island must file RI-1120C for their business income. This includes corporations with nexus in the state and those part of a combined group filing a return.

3.2 Electronic Filing Requirements

Larger business registrants must file RI-1120C electronically, effective for tax periods starting January 1, 2023. Electronic filing ensures accuracy, faster processing, and compliance with state regulations. Corporations can e-file through approved platforms, with support available for technical issues. The due date for electronic submissions is April 18, 2024, aligning with federal tax deadlines.

Pass-Through Withholding

Pass-through withholding is claimed on Line 17b of RI-1120C. Corporations must complete Schedule D, listing pass-through entities and their federal IDs. Failure to include Schedule D disallows the claimed withholding.

4.1 Claiming Pass-Through Withholding on Line 17b

Claiming pass-through withholding on Line 17b requires completing Schedule D. Corporations must list each pass-through entity’s name and federal employer identification number. This step ensures proper allocation of withheld taxes. Failure to include Schedule D results in disallowance of the claimed withholding, emphasizing the importance of accurate and complete documentation.

4.2 Completing Schedule D for Pass-Through Entities

Schedule D must be completed for pass-through entities claiming withholding on Line 17b. List each entity’s name and federal employer ID. Ensure accuracy to avoid disallowance of claimed withholding. Attach Schedule D to Form RI-1120C at filing. Proper completion is essential for compliance with Rhode Island tax regulations.

Taxable Income Calculation

Calculate taxable income by adjusting federal taxable income, considering Rhode Island-specific rules and deductions. Ensure accuracy in reporting to comply with state tax regulations for corporations.

5.1 Adjustments to Federal Taxable Income

Adjustments to federal taxable income are necessary to comply with Rhode Island tax laws. Common adjustments include adding back certain expenses and excluding specific income items. Corporations must ensure all state-specific deductions and additions are accurately reported. Refer to the instructions for detailed guidance on allowable adjustments to avoid errors in taxable income calculation.

5.2 Special Rules for Combined Returns

Corporations filing combined returns under RI-1120C must adhere to specific rules. Combined returns are permitted for corporations with shared ownership of at least 50%. All income, deductions, and credits must be reported collectively. The apportionment of income is based on business activity within Rhode Island. Special rules apply to ensure accurate representation of each corporation’s share in the combined return. Compliance with these rules is essential for proper tax calculation.

Net Operating Loss (NOL) Deductions

Corporations may claim NOL deductions on RI-1120C for losses exceeding income. NOLs are calculated using federal taxable income adjustments and can be carried forward or back.

6.1 Calculating NOL for RI-1120C

Net operating losses (NOLs) for RI-1120C are calculated by adjusting federal taxable income to Rhode Island-specific rules. NOLs arise when deductions exceed income and can be carried forward or back, subject to state-specific limitations. Corporations must complete Schedule D and attach it to the return to claim NOL deductions, ensuring compliance with Rhode Island’s tax regulations.

6.2 Carryforward and Carryback Rules

Net operating losses (NOLs) for RI-1120C can be carried forward for 20 years or carried back for 2 years, following federal guidelines. Corporations must apply the NOL to the earliest tax year first. Schedule D must be completed to document the NOL and its application. Rhode Island adheres to federal NOL rules, ensuring consistency in tax calculations and deductions.

Tax Credits

Rhode Island offers various tax credits for corporations, such as the Historic Preservation Tax Credit and the Economic Growth Tax Credit. These credits reduce taxable income and must be claimed on the return with proper documentation and completed schedules.

7.1 Available Tax Credits for Corporations

Corporations filing RI-1120C may claim various tax credits, including the Historic Preservation Tax Credit, Economic Growth Tax Credit, and Research and Development Tax Credit. These credits reduce taxable income and must be supported by proper documentation. Eligibility and credit amounts vary, with specific requirements outlined in the instructions to ensure accurate claim submission.

7.2 Claiming Credits on the Return

To claim tax credits on Form RI-1120C, corporations must complete the applicable sections and attach supporting documentation. Credits are reported on specific lines, with detailed calculations provided on Schedule D. Eligible credits must be supported by proper documentation, and any excess credits may be carried forward under Rhode Island’s tax rules. Ensure all credits comply with state regulations and are accurately reported to avoid disallowance.

Filing Deadlines and Extensions

Form RI-1120C must be filed by the 15th day of the 3rd month after the tax year ends. Extensions can be requested using Form RI-7004.

8.1 Due Dates for RI-1120C

Form RI-1120C is due on or before the 15th day of the 3rd month following the close of the taxable year. For calendar-year corporations, the deadline is March 15. Fiscal year-end filers must submit by the 15th day of the 3rd month after their year ends. Deadlines are subject to change, so check the Rhode Island Division of Taxation for updates.

8.2 Requesting an Extension

Corporations can request a six-month extension to file Form RI-1120C using Form RI-7004. This form must be filed by the original due date of the return. An automatic six-month extension is granted for filing, but not for payment of taxes. Interest accrues on unpaid taxes from the original due date. File the extension electronically or by mail to avoid penalties;

Payments and Penalties

Payments can be made online, by check, or via electronic funds transfer. Late payments incur penalties and interest, calculated at 18% annually, starting from the original due date.

9.1 Payment Options

Payments for RI-1120C can be made online through the Rhode Island Division of Taxation portal, by mailing a check, or via electronic funds transfer. Online payments offer convenience and immediate confirmation. Checks must be payable to the “Rhode Island Division of Taxation” and include the corporation’s EIN. Separate checks are required for extension payments to avoid processing delays.

9.2 Interest and Penalties for Late Filing

Failure to file or pay on time results in interest and penalties. The interest rate is 1.5% per month, compounded monthly, starting from the original due date. Penalties are imposed for late filing, and interest accrues until payment is made. Larger businesses required to file electronically face additional penalties for non-compliance, ensuring timely submissions are crucial to avoid extra charges and maintain compliance.

Obtaining and Completing the Form

The RI-1120C form can be downloaded in PDF or completed online. Ensure to review the instructions for specific requirements and submission guidelines to avoid delays.

10.1 Downloading the Form and Instructions

The RI-1120C form and its instructions for 2022 can be downloaded from the Rhode Island Division of Taxation website. The form is available in PDF format, and fillable versions can be accessed online. Ensure to download the correct version for the 2022 tax year and review the instructions carefully for accurate completion and submission.

10.2 Filling Out the Form Online

The RI-1120C form can be completed online through the Rhode Island Division of Taxation website. Users can access the fillable PDF version, enter required information digitally, and save progress. The online platform offers tools for data entry and validation. Ensure all fields are filled accurately, and review the form before submission. Detailed instructions are provided on the website for guidance.

General Instructions

Complete all schedules and attachments accurately. Ensure all required documentation is included. Signatures from authorized representatives are mandatory. Review instructions carefully to ensure compliance with Rhode Island tax regulations.

11.1 Completing Schedules and Attachments

Ensure all schedules and attachments are completed accurately. Schedule D is required for pass-through withholding claims. Include RI K-1s for each shareholder or partner. Attach supporting documents like federal returns and calculations. Verify all entries for accuracy and completeness. Follow specific instructions for each schedule to avoid errors. Properly sign and date all forms to ensure compliance with Rhode Island tax regulations.

11.2 Amended Returns and Address Changes

For amended returns, file Form RI-1120C with “Amended Return” checked. Include a detailed explanation of changes and supporting documentation. Address changes must be reported to the Rhode Island Division of Taxation. Use the provided address section on the form or submit a separate written notification. Ensure all contact information is updated to receive correspondence accurately. Timely updates prevent processing delays.

Contact Information

For assistance, contact the Rhode Island Division of Taxation at (401) 574-8955 or visit their website at tax.ri.gov. Their office is located at 1 Capitol Hill, Providence, RI 02908. They provide resources and support for tax-related inquiries and filings.

12.1 Division of Taxation Contact Details

The Rhode Island Division of Taxation can be reached at (401) 574-8955 or via their website at tax.ri.gov. Their office is located at 1 Capitol Hill, Providence, RI 02908. For additional resources and the latest updates, visit their official website for accurate information and assistance with tax-related inquiries.