2012 Oklahoma Small Business Corporation Income Tax …2012 Oklahoma Small Business Corporation...
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• Includes Form 512-S and Form 512-SA 2012 Oklahoma Small Business Corporation Income Tax Forms and Instructions This packet contains: • Instructions for completing Form 512-S • 512-S: Small Business Corporation Income Tax form • 512-SA: Nonresident Shareholder Agreement Income Tax form Filing date: • Your Oklahoma return is generally due the 15th day of the third month following the close of the taxable year. For assistance or forms: • See page 12 for methods of contacting the Oklahoma Tax Commission. • Download Forms 24/7 • View FAQs or Email the OTC a Question • Latest Tax News www.tax.ok.gov One Site with Many Oklahoma Filing Options TM Q T uick ax Business Tax Filing System Because You Didn’t Go into Business to File Tax Forms... www.tax.ok.gov
Transcript of 2012 Oklahoma Small Business Corporation Income Tax …2012 Oklahoma Small Business Corporation...
• Includes Form 512-Sand Form 512-SA
2012 Oklahoma Small Business
Corporation Income Tax Forms and Instructions
This packet contains: • InstructionsforcompletingForm512-S • 512-S:SmallBusinessCorporation
IncomeTaxform • 512-SA:NonresidentShareholder
AgreementIncomeTaxform
Filing date: • YourOklahomareturnisgenerally
duethe15thdayofthethirdmonthfollowingthecloseofthetaxableyear.
For assistance or forms: • Seepage12formethodsofcontacting
theOklahomaTaxCommission.
•Download Forms 24/7
•View FAQs or Email the
OTC a Question•
Latest Tax News
www.tax.ok.govOne Site with Many
Oklahoma Filing Options
TMQ Tuick axBusiness Tax Filing System
Because You Didn’t Go into Business to File Tax Forms...
www.tax.ok.gov
What’s New in the 2012 Oklahoma Tax Packet?•Whencomputingdepletion,the50%netincomeappliestoalltaxpayers.•Adonationmaybemadefromyourtaxrefundtothefollowing: • SupportofDomesticViolenceandSexualAssault
Services • SupportofVolunteerFireDepartments • OklahomaLupusRevolvingFund • OklahomaSportsEyeSafetyProgram • HistoricGreenwoodDistrictMusicFestivalFund • PublicSchoolClassroomFundSeetheinstructionsonpages9-11formoreinformation.AdonationtothePublicSchoolClassroomFundmayalsobemadeifyouhaveabalancedue.SeeForm512-S,line15.
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Who Must FileAllcorporationshavinganelectionineffectunderSubchapterSoftheInternalRevenueCode(IRC)engagedinbusinessorderivingincomefrompropertylocatedinOklahomaandthatarerequiredtofileaFederalincometaxreturnusingForm1120-S,mustfileareturnonForm512-S.DonotuseForm512.AcompletecopyoftheFederalreturnmustbeenclosedwiththeOklahomaincometaxreturn.ForScorporationsnotrequiredtocompletetheFederalSchedulesLandM-1,copiesofthebalancesheetsfromtheirfinancialstatementmustbeenclosed.Failuretoenclosetherequireddocu-mentationmaycauseadelayintheprocessingoftheScorporation’sincometaxreturnaswellastheincometaxreturnsofitsshareholders.
Time and Place for FilingThereturnmustbefiledonorbeforethe15thdayofthethirdmonthfollowingthecloseofthetaxableyear.Inthecaseofcompleteliquidationorthedissolutionofacorporation,thereturnshallbemadeonorbeforethe15thdayofthefourthmonthfollowingthemonthinwhichthecorporationiscompletelyliquidated.WhenthelastdateforfilinganydocumentorperforminganyactrequiredbytheOklahomaTaxCommission(OTC)fallsonadaywhentheofficesarenotopenforbusiness,thefilingofthedocumentorperformanceoftheactshallbeconsideredtimelyifitisperformedbytheendofthenextbusinessday.AvalidextensionoftimeinwhichtofileyourFederalreturnautomaticallyextendstheduedateofyourOklahomareturnifnoOklahomaliabilityisowed.AcopyoftheFederalextensionmustbeenclosedwithyourOklahomareturn.IfyourFederalreturnisnotextended,oranOklahomaliabilityisowed,anextensionoftimetofileyourOklahomareturnmaybegrantedonForm504.MailyourreturntotheOklahomaTaxCommission,POBox26800,OklahomaCity,OK73126-0800.
Fiscal Year and Short Period ReturnsForallfiscalyearandshortperiodreturns,thebeginningandendingdatesofthetaxyearmustbeshownonthetopportionofthereturnwhereindicated.Omissionofthisinfor-mationmaycauseasignificantdelayintheprocessingofthereturnandnointerestwillaccrueonanyrefundpending.
Withholding on Nonresident Members
Pass-throughentities(partnerships,Scorporations,lim-itedliabilitycompaniesortrusts)arerequiredtowithholdOklahomaincometaxatarateof5%oftheOklahomashareoftaxableincomedistributedtoeachnonresidentmember(partner,member,shareholderorbeneficiary).Apass-throughentityisnotrequiredtowithholdincometaxwithregardtoanynonresidentmemberwhosubmitsFormOW-15“NonresidentMemberWithholdingExemptionAf-fidavit”.68OklahomaStatutes(OS)Sec.2385.29,2385.30and2385.31.
Withholdingisnotrequiredondistributionsmadetoper-sons,otherthanindividuals,whoareexemptfromFederalincometax,organizationsgrantedanexemptionunderIRCSection501(c)(3),insurancecompaniessubjecttotheOklahomaGrossPremiumTaxandthereforeexemptfromOklahomaincometaxunder68OSSec.2359(c),andnon-residentmemberswhohavefiledtheFormOW-15“Non-residentMemberWithholdingExemptionAffidavit”.
Withholdingisnotrequiredonanydistributionofroyaltyincomeonwhichthenonresidentroyaltyinterestincometaxhasalreadybeenwithheld,onanydistributionmadetoanotherpass-throughentityoronanydistributionofincomenotsubjecttoOklahomaincometax.
QuickTaxInformation...................................................... 3GeneralFilingInformation........................................... 3-4AmendedReturns........................................................... 4LinebyLineInstructions............................................ 4-11WhenYouAreFinished.................................................11DirectDepositInformation............................................ 12HowtoContacttheOTC.............................................. 12
Table of Contents
2012 Oklahoma Small Business Corporate Income Tax
(continuedonpage3)
Common AbbreviationsFound in this Packet
IRC - InternalRevenueCodeOS - OklahomaStatutesOTC - OklahomaTaxCommissionSec. - Section(s)
Common ErrorsBelowarethemostcommonerrors.Toaidinprocessingyourreturn,pleasedoublecheckyourreturncarefully.
•Refundsmustbemadebydirectdeposit.Failuretosupplydirectdepositinformationwilldelaytheprocessingoftherefund.
•CheckyourFEINonallformsandschedules.
•EncloseacompletecopyofyourFederalreturn,andallrequiredschedules.Failuretodosocanslowdowntheprocessingofyourreturn.
Withholding on Nonresident Members: (continued)Thefollowingpass-throughentitiesarenotrequiredtowithhold: • Anentityelectingtobetreatedasadisregarded
entityforFederalincometaxpurposes.Adisre-gardedentityisaneligibleentitythatistreatedasanentitythatisnotseparatefromitssingleowner.
• Anentitythatdoesnothavearequirement,orproperlyelectsoutoftherequirement,tofileaFederalincometaxreturn.
• Anentitymakingdistributionsofincomenotsub-jecttoOklahomaincometax.
Distributions made from the S CorporationScorporationsthatmakedistributionssubjecttoOkla-homawithholdingmustregisterwiththeOTC.RegisterbycompletingFormOW-11“RegistrationforOklahomaWithholdingforNonresidentMembers”.Thisformmaybeobtainedfromourwebsiteatwww.tax.ok.gov.
2012 Oklahoma Small Business Corporate Income Tax
Tofileandpaytheincometaxwithheld,theScorpora-tionmustcompleteFormWTP10003“OklahomaNonres-identDistributedIncomeWithholdingTaxAnnualReturn”(formerlyFormOW-9-C).TheScorporationwillfileFormWTP10003onorbeforetheduedate(includingexten-sions)oftheScorporation’sincometaxreturn.TheScorporationmustprovidenonresidentsharehold-ersaForm500-B,bytheduedate(includingextensions)ofitsincometaxreturn,showingtheirrespectiveamountofincomeandtaxwithheld.CopiesofForm500-B’s,alongwiththecoverForm501,mustbesenttotheOTCbythesamedate.EachnonresidentshareholdermustencloseacopyoftheForm500-BwiththeirOklahomaincometaxreturnasverificationforthiswithholding.
ForScorporationspayingthetaxonbehalfofnonresi-dentshareholders,thenonresidentshareholder’swith-holdingmaybeclaimedonForm512-S,part1,line7.Acopyofthenonresidentshareholder’sForm500-BmustbeenclosedwiththeForm512-S.
General Filing Information
Agricultural Commodity Processing Facility ExclusionOwnersofagriculturalcommodityprocessingfacilitiesmayexcludefifteenpercent(15%)oftheirinvestmentinaneworexpandedagriculturalcommodityprocessingfacilitylocatedwithinOklahoma.“Agriculturalcommodityprocessingfacility”meansbuildings,structures,fixturesandimprovementsusedoroperatedprimarilyfortheprocessingorproductionofagriculturalcommoditiestomarketableproducts.Theinvestmentisdeemedmadewhenthepropertyisplacedinservice.Undernocircum-stancesshallthisexclusionlowertheshareholder’stax-ableincomebelowzero.Intheeventtheexclusiondoesexceedincome,anyunusedportionmaybecarriedoverforaperiodnottoexceedsixyears.
Attachaseparatescheduleshowingthetypeofinvestment(s),thedateplacedinservice,thecost,thetotalexclusionandtheexclusionavailableforeachshareholder.DonotincludethisexclusionintheOkla-homanetdistributableincome;eachshareholdershallreporttheirallowableshareoftheexclusiononthedes-ignatedlineoftheirindividualreturn.Foranonresidentwhodoesnotfileanonresidentagreement,includetheshareholder’sallowableshareinPart5,column7.
Oklahoma Depletion In Lieu of Federal Depletion (Part 5)Oklahomadepletiononoilandgaswellproduction,attheoptionofthetaxpayer,maybecomputedat22%ofgrossincomederivedfromeachOklahomapropertyduringthetaxableyear.WhencomputingOklahomadepletion,corporationsshallbelimitedto50%ofthenetincome(computedwithouttheallowancefordepletion)fromeachproperty.IfOklahomaoptionsareexercised,theFederaldepletionnotuseddueto65%limitmaynotbecarriedover.Leasebonusreceivedisconsideredincomesubjecttodepletion.Ifdepletionisclaimedonaleasebonusandnoincomeisreceivedasaresultofnon-producingproperties,uponexpirationofthelease,suchdepletionmustberestored.Acompleteschedulebypropertymustbefurnished.
Note:ForeachnonresidentshareholderwhoseincomeisreportedinPart1,line1a,thedepletionisreportedinPart1,line1b.
Refundable Credit...Arefundablecreditisavailableforqualifiedcapitalexpenditures,wagesandtrainingexpensesincurredbyabusinessenterprisewhoseprincipalactivityisdataprocessingservices,computersystemsdesignservicesorothercomputerrelatedservicesthatasofJuly1,2005,maintainsanOklahomaannualpayrollofatleast$85millionandanOklahomalaborforceof1,000ormorepersons.TheComputerIndustryCreditmaybeclaimedbyfilingForm580anytime,orthecreditmaybeclaimedontheestimatedtaxlineoftheincometaxreturn.Form580mustbeenclosedwiththereturn.68OSSec.2357.201andRule710:50-15-100.
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Underpayment of Estimated Tax Interest
AllScorporations,whicharepayingtaxatthecorporatelevel,arerequiredtomakeestimatedtaxpaymentswhenthetaxforthetaxableyearcanreasonablybeexpectedtobe$500ormore.Theestimatedtaxpaymentsshallnotbelessthan70%oftheamountoftaxdue(taxliabilitylessallcreditsexceptamountspaidonestimatedtaxandextensionpayments),or100%oftheprioryear’staxliability.Shoulddeficienciesoccur,theamountofunderpaymentshallbesubjecttointerestatanannualrateof20%,orfractionthereof,fortheperiodofunderpayment.EncloseFormOW-8-P.
Note:Nounderpaymentofestimatedtaxinterestshallbeimposedifthetaxliabilityshownonthereturnislessthan$1,000.
Amended Returns
TheForm512-Sisusedforamendedreturnsalso.Ifthisisanamendedreturn,placean‘X’intheboxlocatedintheupperleftsectionofForm512-S,page1.EncloseFederalAmendedForm1120-Swhenapplicable.
WhenamendingForm512-SforScorporationswhicharepayingtaxatthecorporatelevel,line5(taxpaidonestimate)mustbeadjustedbysubtractingpreviousover-paymentsoraddingtaxpreviouslypaid.Anoverpaymentonanamendedreturnmaynotbecreditedtoestimatedtax,butwillberefunded.Theamountappliedtoestimat-edtaxontheoriginalreturncannotbeadjusted.
General Filing Information
Adjustments by Internal Revenue Service
Taxpayerswhofile“consents”extendingthetimeformakingFederaladjustmentsautomaticallyextendthetimeformakingStateadjustments.ThetaxpayerisalsorequiredtofileanamendedreturnreportingallInternalRevenueServiceadjustments.AcopyofthefinalizedRARmustbefurnished.
Banks and Credit Unions
Stateandnationalbanksandstatecreditunions,mak-ingaFederalSubchapterSelection,shallnotpayan“InLieu”taxof6%per68OSSec.2370.Theincomeorlossofthatentityshallbereportedattheshareholderlevel.
Real Estate Investment Trusts
Arealestateinvestmenttrustthatdoesnotbecomeregularlytradedonanestablishedsecuritiesmarketwithinoneyearofthedateonwhichitfirstbecomesarealestateinvestmenttrust,shallbedeemednottohavebeenregularlytradedonanestablishedsecuritiesmar-ket,retroactivetothedateitfirstbecamearealestateinvestmenttrust.Anamendedreturnshallbefiledreflect-ingsuchretroactivedesignationforanytaxyearorpartyearoccurringduringitsinitialyearofstatusasarealestateinvestmenttrust.Forpurposesofthisparagraph,arealestateinvestmenttrustbecomesarealestateinvestmenttrustonthefirstdayithasmettherequire-mentsofIRCSection856andhaselectedtobetreatedasarealestateinvestmenttrustpursuanttoIRCSection856(c)(1).68OSSec.2358.
Line by Line Instructions for Determining Oklahoma Net Distributable Income
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Computation of Allocable and/or Apportionable Income
Part 2, Column A and Part 3, Column A aretobecompletedbyallScorporations.AllScorporationsstartwithPart2.
Part 2, Column B and Part 3, Column B, aretobecompletedbyScorporationsderivingalloftheirincomefromwithinOklahomaorbyScorporationswhosebusi-nesswithinandwithoutOklahomaisoilandgasproduc-tion,mining,farming,orrental.Thisshouldbecompletedusingthedirectaccountingmethod.
Part 4istobecompletedbyScorporationsconductingabusinessofaunitarynature.Aunitarybusinessisonewhoseincomeisderivedfromtheconductinmorethanonestateofasinglebusinessenterprise,allthefactorsofwhichareessentialtotherealizationofanultimategainderivedfromtheenterpriseasawhole,andnotfromitscomponentpartswhicharetoocloselyconnectedandnecessarytoeachothertojustifydivisionorseparateallocation.
Safety Pays OSHA Consultation Service Exemption: (Part2,ColumnB,line19orPart4,line3)AnemployerthatiseligibleforandutilizestheSafetyPaysOSHAConsultationServiceprovidedbytheOklahomaDepartmentofLaborshallreceivea$1,000exemptionforthetaxyeartheserviceisutilized.Employ-ersmustbeabletosubstantiatetheirparticipationintheOklahomaDepartmentofLabor’sSafetyPaysConsulta-tionServiceuponrequest.
Qualified Refinery Property: (Part2,ColumnB,Line5orPart4,Line2)IftheelectionwasmadetoexpensethecostofqualifiedOklahomarefinerypropertyplacedinservicebeforeJanuary1,2012onapreviousyear’sOklahomareturn,thedepreciationdeductionclaimedontheFederalreturnforsuchpropertymustbeaddedbacktoarriveatOklahomataxableincome.Thisadditionmustbemaderegardlessofwhethertheexpensewasclaimedonthecorporatereturnorallocatedtoitsowners.68OSSec.2357.204.
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Line by Line Instructions for Determining Oklahoma Net Distributable Income
Cost of Complying with Sulfur Regulations: (68OSSec.2357.205)AqualifiedrefinerymaymakeanirrevocableelectiontoallocatealloraportionofthecostofcomplyingwithsulfurregulationsissuedbytheEnvironmentalProtectionAgencyasadeductionallowabletoitsowners.Theallocationforeachpersonisequaltotheratableshareofthetotalamountallocated,determinedonthebasisoftheownershipinterestoftheperson.Thetaxableincomeoftherefineryshallnotbereducedbythereasonofanyamountallowedunderthissection.If you are the Refinery -Tomaketheelection,attachaschedulestatingyourcorporatenameandFederalEmployerIdentificationNumber,alistofthecostsofcomplyingwithsulfurregulationssomeorallofwhicharebeingallocatedtoyourowners,andtheportionofsuchcostsallocatedtoeachowner(includingtheowner’snameandFederalidentificationnumber).Youshallalsoprovideeachownerwithwrittennoticeoftheamountoftheallocation.ThenoticemustincludeyourcorporatenameandFederalEmployerIdentificationNumberandtheowner’snameandFederalidentificationnumber.If you are the Owner -(Part2,ColumnB,line19,orPart4,line6)Deducttheportionofthecostofcomplyingwithsulfurregulationswhichhavebeenallocatedtoyou.Attachthewrittennoticeoftheallocationreceivedfromtherefinery.
Employers Providing Child Care Programsfor their Employees:(Part2,ColumnB,line5orPart4,line6asanaddition) EmployersincurringexpensestoprovideOklahomachildcareservicesforchildrenoftheiremployeesmaybeallowedacredit.Ifallowed,theeligibleexpensesuponwhichthecreditisbasedmustbeaddedbacktoarriveatOklahomanetdistributableincome.SeeForm511CR,number12forthecredit.Encloseascheduleofeligibleexpensesandthecomputationofthecredit.68OSSec.2357.26andRule710:50-15-91.
Captive Real Estate Investment Trusts:(Part2,ColumnB,line5orPart4,line2)Acaptiverealestateinvestmenttrust,whichissubjecttoFederalincometax,isrequiredtoadd-backthedivi-dends-paiddeductionotherwiseallowedbyFederallawincomputingnetincome.68OSSec.2358.
Part 2TocomputeOklahomanetdistributableincome,AllScorporationsstartwithPart2.
Lines 1-21, Column A:Part2,ColumnAmustbecompletedbyallScorpora-tions.ListexactfiguresasreportedonthefrontpageofyourFederal1120-S.
Lines 1-21, Column B:Part2,ColumnBistobeusedbyScorporationsde-rivingalloftheirincomefromwithinOklahoma.ThiscolumnisalsotobeusedbyallScorporationswhosebusiness,bothwithinandwithoutOklahoma,isoilandgasproduction,mining,farming,orrental.Thisshouldbecompletedusingthedirectaccountingmethod.Scorpo-rationsconductingbusinessofaunitarynaturedonotcompleteColumnB.RentsandinterestexpensespaidtoacaptiverealestateinvestmenttrustanddeductedonyourFederalreturnmustbeaddedbackonColumnB,line5tocomputeOklahomadistributableincome.Suchadd-backisnotrequiredifthecaptiverealestateinvestmenttrustissubjecttotheadd-backforthedividends-paiddeduction.Seethe“CaptiveRealEstateInvestmentTrusts”section.ScorporationsincurringexpensestoprovideOklahomachildcareservicesforchildrenoftheiremployeesshouldrefertothe“EmployersProvidingChildCareProgramsfortheirEmployees”section.
Part 3 If Federal and Oklahoma net distributable incomes are the same,
you may complete line 18 of Part 3, then complete Part 5. A copy of your Federal Form 1120-S and K-1
must be enclosed with your Oklahoma return. An Oklahoma return must be filed.
Lines 1-18, Column A: Part3,ColumnAistobeusedbyallScorporations.ListfiguresasreportedonyourFederal1120-S,Sch.K.
Lines 1-18, Column B: Part3,ColumnBistobeusedbyScorporationsderiv-ingalloftheirincomefromwithinOklahoma.ThiswillbethesameasinColumnA,exceptforlines4band4c.ThiscolumnisalsousedbyScorporationswhosebusi-nesswithinandwithoutOklahomaisoilandgasproduc-tion,mining,farming,orrental.Completethiscolumnonadirectaccountingbasisasfollows:
Line 1 -Income(loss)shallbeallocatedinaccordancewiththesitusofsuchproperty.Overheadexpenseshallbeallo-catedonthebasisofdirectexpenseinOklahomatothetotaldirectexpenseeverywhere.UsePage2,Part2orencloseaschedule.
Lines 2 and 3 -Income(loss)fromrealandtangiblepersonalpropertyshallbeallocatedinaccordancewiththesitusofsuchproperty.
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Electronic Payments
Visitwww.tax.ok.govandclickonthe“Online Services”linktomakeapayment
electronically.Allelectronicpaymentmethodsprovideyouwithaconfirmationnumberand
thepeaceofmindinknowingyourpaymentwasreceived.
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Line by Line Instructions for Determining Oklahoma Net Distributable Income
State and Municipal Bond Interest: (continued)Note:Iftheinterestisexempt,thecapitalgain/lossfromthesaleofthebondmayalsobeexempt.Thegain/lossfromsaleofastateormunicipalbond,otherthanthoseprovidedforinline1,isexemptonlyifsoprovidedbythestatuteauthorizingitsissuance.Line 4c - Interest on U.S. Government Obligations:Ifyoureportinterestonbonds,notes,andotherobli-gationsoftheU.S.onyourFederalreturn,itmaybeexcludedfromyourOklahomaincomeifadetailedscheduleisfurnished,accompaniedwith1099sshow-ingtheamountofinterestincomeandthenameoftheobligationfromwhichtheinterestisearned.IftheincomeisfromamutualfundwhichinvestsinU.S.GovernmentobligationsenclosedocumentationfromthemutualfundtosubstantiatethepercentageofincomederivedfromobligationsexemptfromOklahomatax.InterestfromentitiessuchasFNMA&GNMAdoesnotqualify.Lines 7 through 9 -Gainsorlossesfromthesaleofthefollowingshallbeal-locatedinaccordancewiththesitusoftheproperty: • realortangiblepersonalproperty, • lease,royaltyorbonusincomefromoilandgas
properties.Line 10 -Thegainonproperty,forwhichasection179expensedeductionwaspassedthroughtoshareholdersandwhichisreportedasSupplementalInformationontheFederalK-1,istobereportedonthislineforOkla-homapurposes.Enclosethefollowing:descriptionoftheproperty,datethepropertywasacquired,datethepropertywassold,grosssalesprice,costorotherbasisplusexpenseofsale(includingtheScorporation’sbasisreductioninthepropertyduetothesection179expensededuction),depreciationallowedorallowable(notinclud-ingthesection179expensededuction),andamountofsection179expensededuction(ifany)passedthroughtoeachshareholderforthepropertyandtheScorpo-ration’staxyear(s)inwhichtheamountwaspassedthrough.Lines 12 through 17 - Expensesrelativetotheincomeaboveshallbeallocateddirectlytothatincome.
Line 4 -AccountsreceivableinterestincomeandinterestincomefrominvestmentsheldtogenerateworkingcapitalshallbeallocatedtoOklahomaonthebasisofdirectexpense.SeePart3,Line1.
Allotherintangibleincome(loss)shallbeallocatedinaccordancewiththesitusoftheScorporation.Gainsorlossesfromthesaleofleasesandgainsorlossesfromthesaleofrealandtangiblepersonalproperty,shallbeallocatedinaccordancewiththesitusoftheproperty.
Line 4b - State and Municipal Bond Interest:SCorporationsdomiciledinOklahomathatreceiveincomeonbondsissuedbyanystateorpoliticalsubdivisionthereof,exemptfromFederaltaxationbutnotexemptfromtaxationbythelawsoftheStateofOklahoma,shalladdthetotalofsuchincometoarriveatOklahomaincome.
1) Incomefromallbonds,notesorotherobligationsissuedbytheStateofOklahoma,theOklahomaCapitalImprovementAuthority,theOklahomaMunicipalPowerAuthority,theOklahomaStudentLoanAuthority,andtheOklahomaTransportationAuthority(formerlyTurnpikeAuthority)isexemptfromOklahomaincometax.Theprofitfromthesaleofsuchbonds,notesorotherobligationsshallbefreefromtaxation.
2) IncomefromlocalOklahomagovernmentalobligationsissuedafterJuly1,2001,otherthanthoseprovidedforinline1,isexemptfromOklahomaincometax.Theexceptionsarethoseobligationsissuedforthepurposeofprovidingfinancingforprojectsfornonprofitcorporations.Localgovernmentalobligationsshallincludebondsornotesissuedby,oronbehalfof,orforthebenefitofOklahomaeducationalinstitutions,cities,towns,orcountiesorbypublictrustsofwhichanyoftheforegoingisabeneficiary.
3) IncomefromOklahomaStateandMunicipalBondsissuedpriortoJuly2,2001,otherthanthoseprovidedforinline1,isexemptfromOklahomaincometaxonlyifsoprovidedbythestatuteauthorizingtheirissuance.
4) Incomeonbondsissuedbyanotherstateor politicalsubdivisionthereof(non-Oklahoma),exemptfromFederaltaxation,istaxableforOklahomaincometax.
Encloseascheduleofallmunicipalinterestreceivedbysourceandamount.Iftheincomeisfromamutualfundwhichinvestsinstateandlocalgovernmentobligations,enclosedocumentationfromthemutualfundtosubstantiatethepercentageofincomederivedfromobligationsexemptfromOklahomatax.
Part 3, continued...
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Line by Line Instructions for Determining Oklahoma Net Distributable Income
Part4istobeusedbyScorporationsconductingabusi-nessofunitarynature.Aunitarybusinessisonewhoseincomeisderivedfromtheconductinmorethanonestateofasinglebusinessenterprise,allthefactorsofwhichareessentialtotherealizationofanultimategainderivedfromtheenterpriseasawhole,andnotfromitscompo-nentpartswhicharetoocloselyconnectedandnecessarytoeachothertojustifydivisionorseparateallocation.Generally,theresultingamountisapportionedtoOkla-homabasedonthe3-factorformula.Thebasisoftheapportionmentistheaverageofthreefactorsconsistingofproperty,payrollandsales.Iflessthan3factorsarepresent,theresultingamountisapportionedtoOkla-homaona2-factororsinglefactorformulaconsistingofthearithmeticalaverageofthefactorspresent.Afactorisconsideredpresentifthereisadenominator.EachfactorisaratioofthetotalwithinOklahomatothetotaleverywhere.TotheincomeapportionedtoOklahomathereistobeaddedallincomeseparatelyallocatedtoOklahomawiththeresultbeingOklahomataxableincome.68OSSec.2358.
Line 1 -EnternetdistributableincomefromPage2,Part3,ColumnA,line18.
Line 2 -Deductionsrelatingtoincomewhichissepa-ratelyallocableshallnotbeallowedasapportionableandwillbeenteredhere.RentsandinterestexpensespaidtoacaptiverealestateinvestmenttrustanddeductedonyourFederalreturnmustbeaddedbacktocomputeOklahomadistributableincome.Suchadd-backisnotrequiredifthecaptiverealestateinvestmenttrustissubjecttotheadd-backforthedividends-paiddeduction,see“CaptiveRealEstateInvestmentTrusts”onpage5.
Line 3 - IncomefromU.S.obligations(seePart3,line4cinstructions)andnetincomeseparatelyallocated(oilandgasproduction,mining,farming,orrentalsandotherCorporationincomeorloss)willbeenteredhere.Gainsorlossesfromsaleofintangiblepersonalpropertywhichisdirectlyallocatedshouldalsobeenteredhere.
Line 4 - Totalapportionableincome.
Line 5 - ApportionmentFactorfromApportionmentSchedule.
Line 6 - IncomeseparatelyallocatedtoOklahomashouldbeenteredhere(interestincomefromstateobli-gationsorpoliticalsubdivisions,oilandgasproduction,mining,farmingorrentals,etc.).Scorporationsincurringexpensestoprovidechildcareservicesforchildrenoftheiremployeesshouldrefertothe“EmployersProvidingChildCareProgramsfortheirEmployees”onpage5.Line 7 - Oklahomanetdistributableincome.PlacethisfigureonPage2,Part3,ColumnB,line18.Thencom-pletePart5.
Part 5AllScorporationsmustcompletePart5.IfyourbusinessiseitherwhollyOklahomaorofanal-locablenature,completePart5afteryoucompletePart3.Ifyourbusinessisofaunitarynature,completePart5afteryoucompletePart4.
Shareholder’s Pro Rata Share of IncomeEnterthenames,SocialSecurityNumbersorFederalEmployerIdentificationNumbersandaddressesoftheshareholders,andwriteintheapplicablecolumneachshareholder’sproratashareofnetincome,whetherdistributedornot.Notice:TheamountshownonPart5maynotbetheamounttobeenteredontheshareholder’sOklahomaincometaxreturn.ThisamountincludesallallowableScorporationincome,lossesanddeductions;however,someoftheseitemsmaybelimitedontheFederalindividualreturn.IftheseitemsareallowedinfullorinpartonyourFederalincometaxreturn,theywillbeallowedtothesameex-tentonyourOklahomareturn.Corporations Please Note:NonresidentshareholdersmustencloseForm512-SAindicatingthatanincometaxformwillbefiledwithOklahomareportingtheirincomeorloss.ThisagreementmustbeenclosedwiththeoriginalScorporationincometaxreturn,Form512-S,foreachnonresidentshareholder,otherwisethecorporationshallbetaxedonthatpartofthecorporation’snetincomeallocabletothesharesofstockownedbythenonresidentshareholder.Oncetheagreementhasbeensigned,itisirrevocableforthistaxyear.Ifasignedagreementisnotsubmittedwiththeoriginalfiledreturn,thetaxonthecorporationisbinding.Shareholder’ssocialsecuritynumberorFederalidentificationnumbermustbeshownfortheagreementtobevalid.
Depletion
Entereachshareholder’sallowabledepletion.Encloseadetailedschedule.
Withholding
OklahomaincometaxiswithheldfromoilandgasroyaltiespaidtononresidentScorporations.Entereachshareholder’sportionofsuchwithholding.TheScorpo-rationmustencloseitsForm500-A,Form1099-MISC,FormK-1orotherdocumentationtosubstantiateanyOklahomawithholdingpassingthroughtoitsshareholders.Note:Ifyouhaveanynonresidentshareholderswhohavenotfiledawithholdingexemptionaffidavit(FormOW-15),Oklahomaincometaxshouldhavebeenwith-heldonanydistributionofOklahomataxableincome.Suchwithholdingisnotreportedhere,insteadyoushouldhaveissuedaForm500-Btoyournonresidentshareholder.
Part 4
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Line by Line Instructions for Determining Oklahoma Net Distributable Income
Credits
Enteranddescribeeachshareholder’sportionofcredits.Encloseallformsrequiredtosubstantiatethecredit(s).SeetheinstructionsforPart1“OklahomaCredits”formoredetailonthecreditsavailable.
Part 1
Part1istobecompletedforthosenonresidentshare-holdersforwhomtheNonresidentShareholderAgree-ment(Form512-SA)isnotenclosed.TheScorporationwillbetaxedonthenon-resident’sshareofincome.
Line 1b - Nonresident Share of Deductions• Share of Net Operating Loss CarryoverEntertheamountofNetOperatingLosscarryoverwhichisattributabletothosenonresidentswhodidnotfileanonresidentshareholderagreement(Form512-SA)inthelossyear.Encloseadetailedschedule.
• Oklahoma Capital Gain Deduction:TaxpayerscandeductqualifyinggainsreceivingcapitaltreatmentwhichareincludedinFederaltaxableincome.“Qualifyinggainsreceivingcapitaltreatment”meanstheamountofthenetcapitalgains,asdefinedunderIRCSection1222(11).Thequalifyinggainmust:
1)BeearnedonrealortangiblepersonalpropertylocatedwithinOklahomathatyouhaveowned,eitherdirectlyorindirectly,foratleastfiveuninterruptedyearspriortothedateofthesale,
2) BeearnedonthesaleofstockorownershipinterestinanOklahomaheadquarteredcompany,limitedliabilitycompany,orpartnershipwheresuchstockorownershipinteresthasbeenowned,directlyorindirectly,byyouforatleastthreeuninterruptedyears(twoforindividuals)priortothedateofthesale,or
3) Beearnedonthesaleofrealproperty,tangiblepersonalpropertyorintangiblepersonalpropertylocatedwithinOklahomaaspartofthesaleofallorsubstantiallyalloftheassetsofanOklahomacompany,limitedliabilitycompany,orpartnershipwheresuchpropertyhasbeendirectlyorindirectlyownedbysuchentityorownedbytheownersofsuchentity,andusedinorderivedfromsuchentityforaperiodofatleastthreeuninterruptedyears(twoforindividuals)priortothedateofthesale.
Form561-SisusedtodeterminethequalifyingOkla-homanetcapitalgainofthenonresidentshareholderswhoseincomeisreportedonForm512-S,Part1.Form512-S,Part1isforthosewhodidnotfileanonresidentshareholderagreement(Form512-SA).EncloseForm561-SandacopyofyourFederalScheduleD.
• Oklahoma Depletion:ForeachnonresidentshareholderwhoseincomeisreportedinPart1,line1a,Oklahomadepletiononoilandgaswellproduction,attheoptionofthetaxpayer,maybecomputedat22%ofgrossincomederivedfromeachOklahomapropertyduringthetaxableyear.WhencomputingOklahomadepletion,corporationsshallbelimitedto50%ofthenetincome(computedwithouttheallowancefordepletion)fromeachproperty.Leasebonusreceivedisconsideredincomesubjecttodepletion.Ifdepletionisclaimedonaleasebonusandnoincomeisreceivedasaresultofnon-producingproperties,uponexpirationofthelease,suchdepletionmustberestored.Acompleteschedulebypropertymustbefurnished.
Oklahoma Credits...Encloseacopyofthecreditformorschedule.Completethescheduleshowingeachshareholder’sproratashareofcredit.Foreachcredit,enterthatportionattributabletothenonresidentshareholderswhodonotfileanonresi-dentshareholderagreement(Form512-SA).Line 3 - Other Credits:TheamountofothercreditsclaimedonForm511CRshouldbeenteredonthisline.Enterintheboxthenumberthatcorrespondswiththecredittowhichthetaxpayerisentitled.Ifyouareentitledtomorethanonecredit,enter“99”inthebox.SeethefollowingforalistofcreditsavailableonForm511CR.EncloseForm511CRandanyapplicableformsorschedules.Thisformcanbeobtainedfromourwebsiteatwww.tax.ok.gov.TaxcreditstransferredorallocatedmustbereportedonOTCForm569.FailuretofileForm569willresultintheaffectedcreditsbeingdeniedbytheOTCpursuantto68OSSec.2357.1A-2.• OklahomaInvestment/NewJobsCredit Enclose Form 506. 68OSSec.2357.4andRule710:50-15-74.• CoalCredit 68OSSec.2357.11andRule710:50-15-76.• CreditforEnergyAssistanceFundContribution 68OSSec.2357.6.• CreditforInvestmentinaClean-BurningMotorFuel
PropertyorInvestmentinQualifiedElectricMotorVehicleProperty
68OSSec.2357.22andRule710:50-15-81.• CreditforHazardousWasteDisposal 27AOSSec.2-11-303andRule710:50-15-75.• CreditforQualifiedRecyclingFacility 68OSSec.2357.59andRule710:50-15-84.• SmallBusinessCapitalCredit Enclose Form 527-A. 68OSSec.2357.60-2357.65andRule710:50-15-86.• OklahomaAgriculturalProducersCredit Enclose Form 520. 68OSSec.2357.25andRule710:50-15-85.
Part 5, continued...
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Line by Line Instructions for Determining Oklahoma Net Distributable Income
Line 3 - Other Credits: (continued)• SmallBusinessGuarantyFeeCredit Enclose Form 529. 68OSSec.2357.30.• CreditforEmployersProvidingChildCarePrograms 68OSSec.2357.26andRule710:50-15-91.• CreditforEntitiesintheBusinessofProvidingChild
CareServices 68OSSec.2357.27.• CreditforFoodServiceEstablishmentsthatPayfor HepatitisAVaccinationfortheirEmployees 68OSSec.2357.33.• CreditforCommercialSpaceIndustries 68OSSec.2357.13.• CreditforTourismDevelopmentorQualifiedMedia ProductionFacility 68OSSec.2357.34-2357.40.• OklahomaLocalDevelopmentandEnterpriseZone IncentiveLeverageActCredit 68OSSec.2357.81.• CreditforQualifiedRehabilitationExpenditures 68OSSec.2357.41andRule710:50-15-108.• RuralSmallBusinessCapitalCredit Enclose Form 526-A. 68OSSec.2357.71-2357.76andRule710:50-15-87.• CreditforElectricityGeneratedbyZero-Emission
Facilities 68OSSec.2357.32A.• CreditforFinancialInstitutionsMakingLoansunder
theRuralEconomicDevelopmentLoanAct 68OSSec.2370.1.• CreditforManufacturersofSmallWindTurbines 68OSSec.2357.32BandRule710:50-15-92.• CreditforQualifiedEthanolFacilities 68OSSec.2357.66andRule710:50-15-106.• PoultryLitterCredit 68OSSec.2357.100andRule710:50-15-95.• CreditforQualifiedBiodieselFacilities 68OSSec.2357.67andRule710:50-15-98.• FilmorMusicProjectCredit Enclose Form 562. 68OSSec.2357.101andRule710:50-15-101.• CreditforBreedersofSpeciallyTrainedCanines 68OSSec.2357.203andRule710:50-15-97.• CreditforWagesPaidtoanInjuredEmployee 68OSSec.2357.47andRule710:50-15-107.• CreditforModificationExpensesPaidforanInjured
Employee 68OSSec.2357.47andRule710:50-15-107.• DryFireHydrantCredit 68OSSec.2357.102andRule710:50-15-99.• CreditfortheConstructionofEnergyEfficientHomes 68OSSec.2357.46andRule710:50-15-104.• CreditforRailroadModernization 68OSSec.2357.104andRule710:50-15-103.
• ResearchandDevelopmentNewJobsCredit Enclose Form 563. 68OSSec.54006andRule710:50-15-105.• GasUsedinManufacturingCredit 68OSSec.2357(C).• CreditforBiomedicalResearchContribution 68OSSec.2357.45andRule710:50-15-113.• CreditsforEmployersintheAerospaceSector Enclose Form 565. 68OSSec.2357.301,2357.302&2357.303and
Rule710:50-15-109.· WireTransferFeeCredit 68OSSec.2357.401andRule710:50-15-111.· CreditforManufacturersofElectricVehicles 68OS2357.402andRule710:50-15-112.• BusinessActivityTaxCredit 68OSSec.1219andRule710:95-19-6.• CreditforCancerResearchContribution 68OSSec.2357.45andRule710:50-15-113.• OklahomaCapitalInvestmentBoardTaxCredit 74OSSec.5085.7.
Line 7 - Oklahoma WithholdingEntertheportionofOklahomawithholdingthatispass-ingthroughtheScorporationtothosenonresidentshareholderswhodidnotfileanonresidentshareholderagreement(Form512-SA).Theshareholder’sportionofsuchwithholdingisshownonPage4,Part5,Column10.EnclosetheForm1099-MISC,Form500-A,FormK-1orotherwithholdingstatementreceivedbytheScorpora-tiontosubstantiatetheOklahomawithholding.
EntertheOklahomaincometaxwithheldfromOklahomadistributionsmadetoyournonresidentshareholderswhodidnotfileanonresidentshareholderagreement(Form512-SA).Theshareholder’swithholdingisshownontheForm500-B.EncloseacopyoftheForm500-Bforeachsuchnonresidentshareholder.
Note:DonotincludetheportionoftheScorporation’swithholdingpassingthroughtoresidentshareholdersortothosenonresidentshareholderswhofiledanonresi-dentshareholderagreement(Form512-SA).
Line 11 - Donations from Your RefundYouhavetheopportunitytomakeafinancialgiftfromyourrefundtoavarietyofOklahomaorganizations.En-tertheamountofyourdonationandplacethenumberoftheorganizationshownonpages9-11intheboxonline11ofForm512-S.Ifyougivetomorethanoneorganiza-tion,puta“99”intheboxandattachascheduleshowinghowyouwouldlikeyourdonationsplit.
Oklahoma Wildlife Diversity ProgramTheOklahomaWildlifeDiversityProgramisfundedpri-marilybyconcernedOklahomans.Alldonationsprovideforavarietyofprojects.Ifyouarenotreceivingarefund,youmaystilldonate.Mailyourcontributionto:WildlifeDiversityProgram,1801NorthLincolnBlvd.,OklahomaCity,OK73105.
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Line by Line Instructions for Determining Oklahoma Net Distributable Income
Line 11 - Donations from Your Refund (continued)
Oklahoma Breast and Cervical Cancer FundYoumaydonateforthebenefitofbreastandcervicalcancerearlydetection,publiceducationandresearch.Yourdonationwillbeplacedinafundtobeusedforthepurposeoffundingprogramstoincreaseknowledgeofbreastandcervicalcancerriskandpreventionandprovidemammograms,paptestsandbiopsiesforlowin-comewomen.Ifyouarenotreceivingarefund,youmaystilldonate.Mailyourcontributionto:StateDepartmentofHealthBreastandCervicalCancerRevolvingFund,1000NE10thStreet,OklahomaCity,OK73152. Support of Programs for Volunteers to Act as Court Appointed Special Advocates for Abused or Neglected ChildrenYoumaydonatefromyourtaxrefundtosupportpro-gramsforvolunteerstoactasCourtAppointedSpecialAdvocatesforabusedorneglectedchildren.DonationswillbeplacedintheIncomeTaxCheckoffRevolvingFundforCourtAppointedSpecialAdvocates.MonieswillbeexpendedbytheOfficeoftheAttorneyGeneralforthepurposeofprovidinggrantstotheOklahomaCASAAs-sociation.Ifyouarenotreceivingarefund,youmaystilldonate.Mailyourcontributionto:OklahomaCASAAsso-ciation,Inc.,POBox54946,OklahomaCity,OK73154.
Oklahoma Pet Overpopulation FundYoumaydonatefromyourtaxrefundforthebenefitoftheOklahomaPetOverpopulationFund.MoniesplacedinthisfundwillbeexpendedbytheDepartmentofAg-riculture,FoodandForestryforthepurposeofdevelop-ingeducationalprogramsonpetoverpopulationandforimplementingspay/neutereffortsinthisstate.Ifyouarenotreceivingarefund,youmaystilldonate.Mailyourcontributionto:OklahomaDept.ofAgriculture,Food&Forestry-AnimalIndustryDivision,2800NorthLincolnBlvd.,OklahomaCity,OK73105.
Support of the Oklahoma National GuardYouhavetheopportunitytodonatefromyourtaxrefundforthebenefitofprovidingfinancialrelieftoqualifiedmembersoftheOklahomaNationalGuardandtheirfamilies.DonationswillbeplacedintheIncomeTaxCheckoffRevolvingFundfortheSupportoftheOkla-homaNationalGuardReliefProgram.Monies,toassistOklahomaNationalGuardmembersandtheirfamilieswithapprovedhardshipexpenses,willbeexpendedbytheMilitaryDepartment.Ifyouarenotreceivingare-fund,youmaystilldonate.Peasemailyourcontributionto:OperationHomefrontTaskForce,3501MilitaryCircle,OklahomaCity,OK73111-4398. Oklahoma Leukemia and Lymphoma FundYouhavetheopportunitytodonatefromyourtaxrefundforthebenefitoftheOklahomaLeukemiaandLymphomaRevolvingFund.MoniesfromthefundwillbeusedbytheStateDepartmentofHealthforthepurposeofsupportingvoluntaryhealthagenciesdedicatedtocuringLeukemia,Lymphoma,Hodgkin’sDisease,andMyelomaandtoim-provingthequalityoflifeofpatientsandtheirfamilies.Ifyouarenotreceivingarefund,youmaystilldonate.Mailyourcontributionto:StateDepartmentofHealth-Okla-homaLeukemiaandLymphomaRevolvingFund-228,POBox268823,OklahomaCity,OK73152-8823.
Support of Programs for Regional Food Banks in OklahomaYoumaydonatefromyourtaxrefundforthebenefitoftheRegionalFoodBankofOklahomaandtheCom-munityFoodBankofEasternOklahoma(OklahomaFoodBanks).TheOklahomaFoodBanksarethelargesthunger-relieforganizationsinthestate-distributingfoodtocharitableandfaith-basedfeedingprogramsthrough-outall77countiesinOklahoma.Yourdonationwillbeusedtohelpprovidefoodtothemorethan500,000Oklahomansatriskofhungeronadailybasis.Ifyouarenotreceivingarefund,youmaystilldonatebymailingyourcontributionto:OklahomaDepartmentofHumanServicesRevenueProcessingUnit,Re:ProgramsforOKFoodBanks,POBox248893,OklahomaCityOK73124.
Support of Folds of Honor Scholarship Program Youhavetheopportunitytodonatefromyourtaxre-fundtosupporttheFoldsofHonorFoundation.FoldsofHonorisa501(c)(3)charitableorganizationthatprovidespost-secondaryeducationalscholarshipsforchildrenandspousesofmilitaryservicemenandwomenkilledordisabledwhileservinginthewarinIraqorAfghanistan.Ifyouarenotreceivingarefund,youmaystilldonate.Mailyourcontributionto:FoldsofHonorFoundation,5800NorthPatriotDrive,Owasso,OK74055.
Y.M.C.A. Youth and Government ProgramYouhavetheopportunitytodonatefromyourtaxrefundforthebenefitoftheOklahomachapteroftheY.M.C.A.YouthandGovernmentprogram.MoniesdonatedwillbeexpendedbytheStateDepartmentofEducationforthepurposeofprovidinggrantstotheProgramsoyoungpeoplemaybeeducatedregardinggovernmentandthelegislativeprocess.Ifyouarenotreceivingarefund,youmaystilldonate.Mailyourcontributionto:Okla-homaStateDepartmentofEducation-YMCAYouthandGovernmentProgram,OfficeoftheComptroller,2500NorthLincolnBoulevard,Room415,OklahomaCity,OK73105-4599.
Multiple Sclerosis Society FundYoumaydonateforthebenefitofresearchtowardacureforMultipleSclerosis.YourdonationwillbeplacedinafundforthepurposeofprovidinggrantstotheMultipleSclerosisSocietyforpurposesofmobilizingpeopleandresourcestodriveresearchforacureandtoaddressthechallengesofeveryoneaffectedbymultiplesclerosis.Ifyouarenotreceivingarefund,youmaystilldonate.Mailyourcontributionto: OklahomaStateDepartmentofHealthMultipleSclerosisSocietyRevolvingFund,POBox268823,OklahomaCity,OK73126-8823.
Support Oklahoma Honor FlightsYouhavetheopportunitytodonateanyamountofyourtaxrefundtosupportOklahomaHonorFlights.Okla-homaHonorFlightsisa501(c)(3)not-for-profitorgani-zationthattransportsOklahomaWorldWarIIveteranstoWashington,D.C.tovisitthememorialdedicatedtohonortheirserviceandsacrifice.Ifyouarenotreceivingarefund,youmaystilldonate.Mailyourcontributionto:OklahomaHonorFlights,POBox10492,MidwestCityOK73140.
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Line by Line Instructions for Determining Oklahoma Net Distributable Income
Line 11 - Donations from Your Refund (continued)
Support of Domestic Violence and Sexual Assault ServicesYoumaydonatefromyourtaxrefundforthebenefitofdomesticviolenceandsexualassaultservicesinOkla-homathathavebeencertifiedbytheAttorneyGeneral.Yourdonationwillbeusedtoprovidegrantstodomesticviolenceandsexualassaultserviceprovidersforthepurposeofprovidingdomesticviolenceandsexualas-saultservicesinOklahoma.Theterm“services”includesbutisnotlimitedtoprograms,sheltersoracombinationthereof.Ifyouarenotreceivingarefund,youmaystilldonate.Mailyourcontributionto:AttorneyGeneral,Do-mesticViolenceandSexualAssaultServicesFund,313NE21stStreet,OklahomaCity,OK73105.
Support of Volunteer Fire DepartmentsYoumaydonatefromyourtaxrefundforthebenefitofvolunteerfiredepartmentsinOklahoma.Yourdonationwillbeusedtoprovidegrantstovolunteerfiredepart-mentsinthisstateforthepurposeofpurchasingbunkergear,wildlandgearandotherprotectiveclothing.Ifyouarenotreceivingarefund,youmaystilldonate.Mailyourcontributionto:OklahomaStateFireMarshal,Attn:VolunteerFireDepartmentFund,2401NW23rdStreet,Suite4,OklahomaCity,OK73107.
Oklahoma Lupus Revolving FundYoumaydonatefromyourrefundforthebenefitoftheOklahomaLupusRevolvingFund.MoniesfromthefundwillbeusedbytheStateDepartmentofHealthtopro-videgrantstotheOklahomaMedicalResearchFoun-dationforthepurposeoffundingresearchintotreatingandcuringlupusinthisstate.Ifyouarenotreceivingarefund,youmaystilldonate.Mailyourcontributionto:StateDepartmentofHealth,LupusRevolvingFund,P.O.Box268823,OklahomaCity,OK73152-8823.
Oklahoma Sports Eye Safety ProgramYoumaydonatefromyourrefundforthebenefitoftheOklahomaSportsEyeSafetyProgram.YourdonationwillbeusedbytheStateDepartmentofHealthtoestab-lishasportseyesafetygrantprogramforthepurchaseanddistributionofsportseyesafetyprogramsandmaterialstoOklahomaclassroomsandsportseyesafetyprotectiveweartochildrenage18andunder.Monieswillalsobeusedtoexploreopportunitiestoutilizenonprofitorganizationstoprovidesuchsafetyinformationorequipment.Ifyouarenotreceivingarefund,youmaystilldonate.Mailyourcontributionto:StateDepartmentofHealth,SportsEyeSafetyFund,P.O.Box268823,OklahomaCity,OK73152-8823.
Historic Greenwood District Music Festival FundWithpartofyourtaxrefundyoucansupportmusicfestivalsintheHistoricGreenwoodDistrictofTulsa.YourdonationwillbeusedbytheOklahomaHistoricalSocietytoassistwithmusiceducation,publicconcerts,andacelebrationofTulsa’sandOklahoma’smusicalheritage.Youmayalsomailyourcontributionsto:GreenwoodDis-trictMusicFestivalFund,OklahomaHistoricalSociety,800NazihZuhdiDr.,OklahomaCity,OK73105.
Public School Classroom Support FundDonationstothePublicSchoolClassroomSupportRe-volvingFundwillbeusedbytheStateBoardofEduca-tiontoprovideoneormoregrantsannuallytopublicschoolclassroomteachers.Grantswillbeusedbytheclassroomteacherforsupplies,materials,orequipmentfortheclassorclassestaughtbytheteacher.Grantap-plicationswillbeconsideredonastatewidecompetitivebasis.Youmayalsomailadonationto:OklahomaStateBoardofEducation,PublicSchoolClassroomSupportFund,OfficeoftheComptroller,2500NorthLincolnBou-levard,Room415,OklahomaCity,OK73105-4599.Line 13 -Allrefundsmustbedirectlydepositedintoabankac-count.Seepage12“DirectDepositInformation”fordetails.Line 15 -Public School Classroom Support FundAdonationtothisfundmaybemadeonataxduereturn.Forinformationregardingthisfund,seetheinstructionsforLine11,#17.Line 16 -Underpayment of Estimated Tax InterestAllScorporationsarerequiredtomakeestimatedtaxpaymentsifthetaxliabilityis$500ormore.Toavoidthe20%UnderpaymentofEstimatedTaxInterest,timelyfiledestimatedtaxpaymentsarerequiredtobeequaltothesmallerof70%ofthecurrentyeartaxliabilityor 100%ofyourprioryeartax.Thetaxliabilityisthetaxduelessallcreditsexceptamountspaidonestimatedtaxandextensionpayments.Note: NoUnderpaymentofEstimatedTaxInterestshallbeimposedifthetaxliabilityshownonthereturnislessthan$1,000.EncloseFormOW-8-P.Line 17 - Delinquent Penalty and InterestInterestattherateof11/4%permonthshallbepaidonthetaxduefromtheoriginalduedateuntilpaid.90%ofthetaxliabilitymustbepaidbytheoriginalduedateofthereturntoavoidadelinquentpenaltychargeof5%forlatepayment.
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When You Are Finished...
•Pleasemailtheoriginals,alongwithanypaymentdue,to:
Oklahoma Tax Commission Income Tax PO Box 26800 Oklahoma City, OK 73126-0800
•Intheeventthatyouowetaxes,pleaseencloseacheckormoneyorderpayableto“OklahomaTaxCommission”.ThetaxpayerFederalEmployerIdentificationNumberandthetaxyearshouldbeonyourcheckormoneyorderforyourpaymenttobeproperlycredited.•Whencomplete,makecopiesofallthedocumentsforyourrecordsanddonotencloseanyothertaxreportsorcorrespondenceintheenvelope.•Paymentsmayalsobemadeelectronically.Visitourwebsiteformoreinformation,www.tax.ok.gov.
Direct Deposit Information
ABC Corporation123MainStreetAnyplace,OK00000
1234
ANYPLACE BANKAnyplace,OK00000
For
PAYTOTHE ORDEROF $
15-0000/0000
DOLLARS
:120120012 : 2020268620 1234
RoutingNumber
AccountNumber
SAMPLE
SAMPLE Note:Theroutingandaccountnumbersmayappearindifferentplacesonyourcheck.
Placean‘X’intheappropriateboxastowhethertherefundwillbegoingintoacheckingorsavingsaccount.Pleasekeepinmindyouwillnotreceivenotificationofthedeposit.
Fillouttheroutingnumber.Theroutingnumbermustbeninedigits.Ifthefirsttwodigitsarenot01through12or21through32,thedirectdepositwillberejectedandacheckwillbeissuedinstead.Usingthesamplecheckshownbelow,theroutingnumberis120120012.
Enteryouraccountnumber.Theaccountnumbercanbeupto17characters(bothnumbersandletters).In-cludehyphensbutomitspacesandspecialsymbols.Enterthenumberfromlefttorightandleaveanyunusedboxesblank.Onthesamplecheckshownbelow,theaccountnumberis2020268620.
123
* EXCEPTION!Duetoelectronicbankingrules,theOTCwillnolongerallowdirectdepositstoorthroughforeignfinancialinstitutions.Ifyouuseaforeignfinancialinstitution,orhaveaforeignaddressonyourincometaxreturn,youwillbeissuedapapercheck.IfyouhaveanaddresswithanAPO,FPOorDPOyouarenotconsideredtohaveaforeignaddress;yourrefundwillbedirectdeposited.
Allrefunds,withverylimitedexceptions*,mustbemadebydirectdeposit.Pleasecompletethedirectdepositboxonthetaxreturntohavetherefunddirectlydepositedintoyouraccountatabankorotherfinancialinstitution.
Please Note:TheOTCisnotresponsibleifafinancialinstitutionrefusesadirectdeposit.Ifadirectdepositisre-fused,acheckwillbeissuedtotheaddressshownonyourtaxreturn.
The Oklahoma Tax Commission is not required to give actual notice to taxpayers of changes in any state tax law.
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How to Contact the Oklahoma Tax Commission
Oklahoma City2501NorthLincolnBoulevard
(405) 521-3160
Tulsa440SouthHouston,5thFloor
(918) 581-2399
TheOklahomaTaxCommissioncanbereachedat
(405) 521-3160.Thein-statetollfreenumberis
(800) 522-8165.Press“0”tospeaktoarepresentative.
Whether you need a tax form, have a question or need further information, there are many ways to reach us.
Visit Us on the Web!You’llfindawealthofinforma-tiononourweb-site,including
downloadabletaxforms,answerstocommonquestions,andonlinefilingoptionsforbothincomeand
businesstaxes!
www.tax.ok.gov
Office Locations! Give Us a Call!
Federal Employer Identification Number (FEIN): The request for your FEIN is authorized by Section 405, Title 42, of the United States Code. You MUST provide this information. It will be used to establish your identity for tax purposes only.
Oklahoma Small BusinessCorporation Income Tax ReturnThis form must be filed on or before the 15th day of the third month after the close of the taxable year.
Corporate Name:
Street Address:
City, State and Zip:
Nonresident share of income from Page 4, Part 5, column 7 ..............1aNonresident share of deductions (see instructions) ............................1bNonresident share of taxable income (line 1a minus line 1b) ...................................................1 Tax: 6% of line 1 .......................................................................................................................2Other Credits Form (see instructions) (enclose Form 511CR) ..................................... ..... 3Balance of tax due (line 2 less line 3, but not less than zero) ..................................................4Amount paid on 2012 estimate (i.e. Form(s) OW-8-ESC) .................... 5Amount paid with extension request ..................................................... 6Okla. withholding (enclose Form 1099, 500-A, 500-B or other withholding statement) . 7Total credits (add lines 5, 6 and 7) ............................................................................................8Overpayment (line 8 minus line 4) ............................................................................................9Amount of line 9 to be credited on 2013 estimated tax .......................10
Part 1: Tax Computation Schedule for Nonresident Shareholders Who Do Not File a Nonresident Shareholder Agreement (512-SA)
Line 11 instructions provide you the opportunity to make a financial gift from your refund to a variety of Oklaho-ma organizations. Place the line number of the organization from the line 11 instructions in the box below and enter the amount you are donating. If giving to more than one organization, put a “99” in the box and attach a schedule showing how you would like your donation split.
Donations from your refund .. $2 $5 $ ______ ....... 11Total (add lines 10 and 11) ......................................................................................................12Amount of line 9 to be refunded to you (line 9 minus line 12) ............................ Refund 13
Telephone Number and Area Code
Form 512-S - 2012
Date of Incorporation Under the Laws of:
Federal Employer Identification Number: Business Code Number: Type of Business: If this is a final return, place an ‘X’ here:
If this is an Amended Returnplace an‘X’ here
AMENDED RETURN!
1a1b12345678910
111213
14151617
18
00000000
0000
0000
0000
000000
00
00
Is this refund going to or through an account that is located outside of the United States? Yes No
Routing Number:checking account
savings account
Account Number:
Deposit refund in my: Direct Deposit Note:
All refunds must be by direct deposit. See Direct Deposit Information on page 12 of the 512S Packet for details.
Make check payable to the Oklahoma Tax Commission
#1695#
For the year January 1 - December 31, 2012, or other taxable yearbeginning:
2012ending:
, ,
If the Oklahoma Tax Commission may discuss this return with your tax preparer, place an ‘X’ here:
Must enclose a copy of Federal return - Remit to Oklahoma Tax Commission - Post Office Box 26800 - Oklahoma City, OK 73126-0800
Under penalties of perjury, I declare I have examined this return, including any accompanying schedules and statements, and to the best of my knowledge and belief, it is true, correct and complete. If prepared by person other than the taxpayer, this declaration is based on all information of which preparer has any knowledge.
Corporate Seal
Signature of Officer Date
Printed Name of Officer
Title
Signature of Preparer Date
Preparer’s Address
Area Code and Phone Number
The Oklahoma Tax Commission is not required to give actual notice to taxpayers of changes in any state tax law.
000000
0000
Tax Due (line 4 minus line 8) ........................................................................... Tax DueDonation: Public School Classroom Support Fund ..... $2 $5 $ _________ .....Underpayment of estimated tax interest (enclose Form OW-8-P) ......................................... For delinquent payment add penalty of 5% $ ________________plus interest of 1.25% per month $ __________________________ ..................................Total tax, donation, penalty and interest (add lines 14 - 17) .....................Balance Due
141516
1718
Preparer’s PTIN
1 Ordinary income (loss) from trade or business (from above on Part 2, line 21) . 2 Net income (loss) from rental real estate activity(ies) (enclose schedule). . . . . 3 Net income (loss) from other rental activity(ies) (enclose schedule) . . . . . . . . . 4 Interest income a: Interest on loans, notes, mortgages, bonds, etc. . . . . . . . . . . . . . . . . . . . . b: Interest on obligations of a state or political subdivision . . . . . . . . . . . . . . c: Interest on obligations of the United States . . . . . . . . . . . . . . . . . . . . . . . . d: Other interest income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 Dividend income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 Royalties . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 Net short-term capital gain (loss) (Schedule D, 1120-S) . . . . . . . . . . . . . . . . . 8 Net long-term capital gain (loss) (Schedule D, 1120-S) . . . . . . . . . . . . . . . . . 9 Net gain (loss) under Section 1231 (other than due to casualty or theft) . . . . . 10 Other (enclose schedule) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 Total income (add lines 1 through 10) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
12 Section 179 deduction (enclose schedule) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 Contributions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 Deductions related to portfolio income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .15 Intangible drilling costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .16 Other deductions authorized by law (enclose schedule) . . . . . . . . . . . . . . . . .17 Total Deductions (add lines 12 through 16) . . . . . . . . . . . . . . . . . . . . . . . . . . .
18 Net distributable income (line 11 minus line 17) . . . . . . . . . . . . . . . . . . . . . . . .
1
2
3
4a
4b
4c
4d
5
6
7
8
9
10
11
12
13
14
15
16
17
18
Column AAs reported on Federal Return
Column BTotal applicable
to Oklahoma
2012 Form 512-S - Page 2
000000
00
000000000000000000
000000000000
00
000000
0000
0000000000000000
000000000000
00
1 a. Gross receipts or sales . . . . . .$_________________ b. Minus returns and allowances $_________________ = . . . . . . . . . . . . . . 2 Cost of goods sold and/or operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 Gross profit (subtract line 2 from line 1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 Net gain (loss) (Form 4797 Part II, line 17). . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 Other income (loss) (enclose schedule) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 Total income (loss) (add lines 3 through 5) . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 Compensation of officers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 Salaries and wages . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 Repairs and maintenance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .10 Bad debts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .11 Rent . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .12 Taxes and licenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .13 Interest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .14 Depreciation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .15 Depletion (do not deduct oil and gas depletion) . . . . . . . . . . . . . . . . . . . . . . . .16 Advertising . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .17 Pension, profit-sharing, etc. plans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .18 Employee benefit programs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .19 Other deductions (enclose schedule) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 Total deductions (add lines 7 through 19) . . . . . . . . . . . . . . . . . . . . . . . . . .21 Ordinary Income (Loss) from trade or business: Subtract line 20 from line 6. Enter here and below on Part 3, line 1 . . . . . . .
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
0000000000000000000000000000000000000000
00
0000000000000000000000000000000000000000
00
Column AAs reported on Federal Return
Column BTotal applicable
to Oklahoma
Part 2: Ordinary Income from Trade or BusinessComplete Column A. Column B should be completed by S Corporations whose income is all within Okla-homa and/or by those whose income is partly within and partly without Oklahoma (not of a unitary nature). CAUTION: Include only trade or business income and expenses on lines 1a through 21 below.
If Federal and Oklahoma distributable net incomes are the same, please see instructions on page 6 of packet.
Part 3: Shareholders’ Pro Rata Share ItemsIncome (lines 1 through 11)
Deductions (lines 12 through 17)
Total (line 18)
1 Value of real and tangible personal property used in the unitary business (by averaging the values at the beginning and ending of the tax period). (a) Owned property (at original cost): (i) Inventories ......................................................... (ii) Depreciable property.......................................... (iii) Land ................................................................... (iv) Total of section “a” ............................................. (b) Rented property (capitalize at 8 times net rental paid) (c) Total of sections “a” and “b” above ........................... 2 (a) Payroll ...................................................................... (b) Less: Officer’s salaries ............................................ (c) Total (subtract officer’s salaries from payroll) ........... 3 Sales : (a) Sales delivered or shipped to Oklahoma purchasers: (i) Shipped from outside Oklahoma........................ (ii) Shipped from within Oklahoma .......................... (b) Sales shipped from Oklahoma to: (i) The United States Government ......................... (ii) Purchasers in a state or country where the ...... corporation is not taxable (i.e. under Public Law 86-272) . (c) Total of sections “a” and “b” ...................................... 4 If Revenue, Traffic Units or Miles Traveled is used rather than Sales, indicate here: 5 Total percent (sum of items 1, 2 and 3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 Average percent (1/3 of total percent) (Carry to Part 4, line 5 above) . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2012 Form 512-S - Page 3
Part 4:
Apportionment Formula
1 Net distributable income from Page 2, Part 3, Column A, line 18......................... 2 Add: (a) Taxes based on income ................................................................... (b) Unallowable deduction (enclose schedule) ..................................... (c) Other income (enclose schedule) ..................................................... (d) Total of lines 2a through 2c ............................................................... 3 Deduct all items separately allocated: (a) Interest on obligations of the United States ...................................... (b) _____________________________ ................................................ (c) _____________________________ ............................................... (d) Total of lines 3a through 3c ............................................................... (Note: Items listed in 2 and 3 above must be net amounts supported by schedules showing source, location, expenses, etc.) 4 Net apportionable income (line 1 plus line 2d, minus line 3d) .............................. 5 Oklahoma’s portion thereof __________________%, from schedule below ....... 6 Add items separately allocated to Oklahoma: (a) ____________________________________ ................................................ (b) ____________________________________ ............................................... (c) ____________________________________ ............................................... (d) ____________________________________ ............................................... (e) Total of lines 6a through 6d ............................................................................. 7 Oklahoma net distributable income (add lines 5 and 6e; enter here and on Page 2, Part 3, Column B, line 18) ...
Column ATotal WithinOklahoma
Column BTotal Within and
Without Oklahoma
A divided by BPercent Within
Oklahoma
$
$
$
$
$
$
%
%
%
%%
2a
2b
2c
3a
3b
3c
6a
6b
6c
6d
1
2d
3d
4
5
6e
7
Note: Enclose a complete copy of your Federal return.
Computation of Oklahoma Taxable Income of a Unitary Enterprise whose Income is Partly within and Partly without Oklahoma
2012 Form 512-S - Page 4
1. Kind of Business: _____________________________________________________________________ 2. Is this return on cash or accrual basis? _____________________________________________________3. Name of Business (if different from that of corporation): ________________________________________4. Corporation books are kept by: ___________________________________________________________5. Address at which books are kept: _________________________________________________________6. Date business began in Oklahoma: _______________________________________________________7. Did you make a return of information on Oklahoma Forms 500, 500-A or 500-B for the calendar year 2012? yes no
8. Were you notified this year of a change in your Federal taxable income for prior year(s)? yes no If you answered “yes” to #8, please list the year(s) here: _____________________________________9. Did you file amended returns for the years stated above? yes no
Enclose a copy of your Federal return.
Part 5: Shareholders’ Pro Rata Share of Income
Name and address of shareholder
1 Check if
non-resident
2SSN orFEIN
3Number
of Shares
4Shareholders applicable %
Share of Oklahoma net distributable income
(Part 3, Column B, line 18 times Part 5, Column 4**)
6 87 11If nonresident agreement (Form 512-SA) is NOT attached, check box and enter the amount shown in Column 6. The S corporation will be taxed on the
income reported in this column.
Shareholder’s portion of Okla-homa credit or
withholding
Total: Nonresident share of income to tax (add amounts shown in column 7). Enter here and on Page 1, Part 1, line 1a
**NOTE: The amount shown in Part 3, Column B, line 18, Oklahoma net distributable income, may not be the amount to be entered on the shareholder’s Oklahoma income tax return. This amount includes all allowable shareholder’s income, losses, and deductions. Some of these items may be limited on the Federal return. If these items are allowed in full or part on your Federal income tax return, they will be allowed to the same extent on your Oklahoma return.
5Net distributable income as reported on Federal return (Part 3, Column A, line
18, times Part 5, Column 4**)
Type of Credit or Withholding
10
(a)
(b)
(c)
(d)
(e)
(f)
(a)
(b)
(c)
(d)
(e)
(f)
(Forms 500/500-A may be filed in lieu of the Federal Form 1099)(Form 500-B is filed when there is a distribution to a nonresident shareholder)
9
Allowable Oil andGas Depletion
(Federal)
Allowable Oil andGas Depletion
(Oklahoma)
Part 6: Additional Information
Dated this day of , .
This agreement must be filed with the original Small Business Corporation Income Tax Return, Form 512-S, for each nonresident shareholder. Otherwise, the corporation shall be taxed on that part of the corporation’s net taxable income allocable to the shares of stock owned by the nonresident shareholder. Once the agreement has been signed, it is irrevocable for this taxable year.
Corporation Please Note:
Signature of Shareholder Executing Agreement Social Security Number or Federal EmployerIdentification Number
Nonresident Shareholder Agreement
I, , the undersigned, do agree I will
file an Oklahoma Income Tax Return for the taxable year ending .
I will include, in Oklahoma adjusted gross income, my share of distributed or undistributed
taxable income or net operating loss of the corporation named below to the extent such
income, gain or loss, is at the corporate level, derived from sources within Oklahoma. I
further state I made and executed this agreement for the purpose of filing it with the fol-
lowing named corporation to be submitted with the Oklahoma Small Business Corporation
Income Tax Return, Form 512-S, filed by the corporation for the taxable year indicated
above.
Corporation
Street Address or Post Office Box
City State Zip
Federal Employer Identification Number
FO
RM 2
012
512-sa
