2025 Form CT-3-I, Instructions for Form CT-3

Only the designated agent may act on behalf of the members of the combined group for matters relating to the combined return § 210-C.7. The designated agent files the combined return of the combined group. Designated agent – Each combined group must have one designated agent, which must be a taxpayer.

Form CT-1, Supplement to Corporation Tax Instructions

The tax on the combined business income base is calculated in Part 3. In addition, the tax on a combined return includes the fixed dollar minimum tax of each member of the combined group (other than the designated agent) that is a taxpayer. Commonly owned group election § 210-C.3 – Subject to the restrictions of § 210-C.2(c) (see above for such restrictions), a taxpayer may elect to treat as its combined group all corporations that meet only the ownership requirements of § 210-C.2(a) (see above for such requirements) without regard to also meeting the unitary business requirement.

Determining whether a type H financial instrument is a qualified financial instrument

• See the instructions for Form CT-3-A, Part 6, line 28 and also the specific instructions below.
• Form CT-186-E, Telecommunications Tax Return and Utility Services Tax Return, must be filed by a corporation that provides telecommunication services.
• For more information for foreign corporations that are a partner in a partnership, see Corporate partners.
• If you mark the box, you must attach a statement explaining why you have no receipts required to be included in the business apportionment factor.
• New York receipts equal the amount reported in Column A, line 57 of Part 6, Calculation of business apportionment factor.

Most browsers include functionality to let you increase or decrease the text on a web page. To change the text size on NYC.gov you can use your web browser’s settings. You can get answers to questions about the tax or help with filing and paying. Mailed extension requests should be sent to the address on the form. Download the extension request form. To request a filing extension by mail, you must complete the extension request form.

Use Worksheet D in the Part 6 instructions to calculate such receipts. The designated agent’s New York receipts are the receipts included in the numerator of the apportionment factor as determined in Part 6, Calculation of business apportionment factor. Report the sum of the fixed dollar minimum taxes for each taxable group member on line 4b.

Who must file a combined return § 201-C, 20 NYCRR 6.2 and 9-4.4

From that sum, subtract the greater of the tentative minimum tax for the tax year or 25% of the amount of their regular tax liability that exceeds $25,000 ($12,500 for married taxpayers filing separately, but only if both of them qualify for the credit) If one spouse has no current or unused credit, the other spouse may use the entire $25,000 in determining their credit for the tax year. General business credits are treated as first-in, first-out (FIFO). However, as a nonrefundable credit, it reduces the tax liability to zero. Because it’s a tax credit, not a tax deduction—the amount comes directly off the tax bill.

If you think you are not liable for these additional charges, attach a statement to your return explaining the delay in filing, payment, or both. Calculate additional charges for late filing and late payment on the amount of tax minus any payment made on or before the due date (with regard to any extension of time for filing). An extension of time for filing does not extend the due date for payment of tax.

Tips for reporting losses (Form CT-3.3 and Form CT-3.

The general business credit (GBC) is the aggregate value of individual tax credits a business claims during a tax year. Julia Kagan is a financial/consumer journalist and former senior editor, personal finance, of Investopedia. Form 1040-ES is used by persons with income not subject to tax withholding to figure and pay estimated tax. The IRS has released a new tax filing form for people 65 and older ( PDF, Download Adobe Reader).

Worksheet C: Marked to market net gains: Form CT-3-A and Form CT-3-A/BC, Part 6, line 28 and Worksheet D, line 28

If you are a qualified emerging technology company eligible for the lower business income base tax rate, the 0% capital base tax rate, and the lower fixed dollar minimum tax amounts, you must mark an X in the box. However, a domestic corporation that is no longer doing business, employing capital, owning or leasing property, or deriving receipts from activity, in New York State is exempt from the fixed dollar minimum tax after its final tax year and is not required to file a franchise tax return as long as it meets the requirements listed in § 209.8. Row b, subcolumn J(iii) – Subcolumn J(iii), lines 10, 12, 16, 18, 20, 21, 23, 24, 27, and all lines 30, is used to compute New York State marked to market net gains, for those financial instruments described on each such line, under the sourcing rules of J(iii). Row b, subcolumn J(ii) – Subcolumn J(ii), lines 10, 12, 16, 18, 20, 21, 23, 24, 27, and all lines 30, is used to compute New York State marked to market net gains, for those financial instruments described on each such line, under the sourcing rules of J(ii). If the fixed percentage method for qualified financial instruments is in effect, and you have marked to market any partnership interest in a widely held or publicly traded partnership under IRC § 475 or § 1256 in the tax year, complete substep 2.1, below; otherwise leave line 30.5 blank and continue with Totals of Parts 1 and 2 below. Include the taxpayer’s distributive share (IRC § 704) of each partnership item of receipts, income, gain, loss, and deduction, and the taxpayer’s proportionate part of each partnership asset, liability, and partnership activity in the computation of the taxpayer’s business income base, capital base, and the fixed dollar minimum.

What information must be reported on general business corporation tax?

If the fixed percentage method for qualified financial instruments is not in effect (Form CT-3-A, Part 6, line 8 box is not marked), you must complete the steps under the Customer-based sourcing instructions below to complete Worksheet C. Do not complete the steps under the 8% fixed percentage method elected instructions. In each entity’s column A, enter on line 30.4, row a, 100% of net gains from sales of stock that is business capital; if the amount is less than zero, enter the negative amount with a minus (-) sign. The clause (H) QFI box is not marked on Form CT-3-A, Part 6, above line 29, each entity’s column A, lines 30.1 and 30.2, rows b and c, are completed in the same manner as if the fixed percentage method is not in effect (see above instructions).

Types of Tax Credits

Also, use the customer-based sourcing rule below for all financial instruments to be reported on this line when the 8% fixed percentage method is not elected. If using customer-based sourcing to source such marked to market net gains, when § 210-A.5(a)(2)(J)(iii) applies, never include any amounts sourced under the 8% fixed percentage method election in calculating the New York State aggregate marked to market factor in Part 2 of Worksheet C. Marking to market a financial instrument of the type under clause (G) does not cause financial instruments of the type under clause (H) to be qualified financial instruments. Marking to market a financial instrument of the type under clause (H) does not cause financial instruments of the type under clause (G) to be qualified financial instruments.

Form CT-222, Underpayment of Estimated Tax by a Corporation, must be filed to inform the Tax Department that your corporation meets one of the exceptions to reduce or eliminate the underpayment of estimated tax penalty pursuant to § 1085(d). This form must be filed for every tax year a combined group carries a balance of a prior net operating loss conversion subtraction, even if the group is unable to utilize the subtraction in a given year. When a member of a combined group has a tax year that differs from that of its designated agent, the member’s tax year that ends within the designated agent’s tax year is included in the combined return.

Taxable domestic international sales corporations must file Form CT-3 on or before the 15th day of the ninth month after the end of the tax year. Domestic international sales corporations that do not meet the 5% test under Tax-exempt domestic international sales corporations are taxable domestic international sales corporations. The tax-exempt domestic international sales corporation itself has no franchise tax filing requirement. A limited liability company or limited liability partnership that is treated as a partnership for federal income tax purposes is treated as a partnership for New York State tax purposes. To determine whether an eligible S corporation is deemed to have made this election, you must include the income of a qualified subchapter S subsidiary owned, directly or indirectly, by the eligible S corporation with the income of the eligible S corporation. A corporation is considered to be deriving receipts in this state if it has receipts within New York of $1.283 million or more in a tax year.

Corporations subject to tax under Article 9-A filing as a combined group generally must calculate three distinct taxes and pay the tax that results in the largest amount owed. See Approved software developers for corporation tax e-file. You may request up to two additional extensions by filing Form CT-5.1, Request for Additional Extension of Time to File (for franchise/business taxes, MTA surcharge, or both).

Therefore, you may report more than one type of other financial instruments on either of lines 29 and 30, and some types may be qualified financial instruments while other types may not be qualified financial instruments. If the taxpayer has in the tax year marked to market a financial instrument within types A, B, C, D, and I, then any financial instrument within that same type that has not been marked to market by the taxpayer under IRC § 475 or § 1256 is also a qualified financial instrument in the tax year. If a combined group has no receipts required to be included in the denominator of the apportionment factor, you must mark the box at the beginning of Form CT-3-A, Part 6, Calculation of business apportionment factor.

Tax tips for avoiding common filing errors for general business corporations

Use column B, subcolumn J(iii), lines 10, 12, 16, 18, 20, 21, 23, 24, 27, and all lines 30, in column B, to calculate New York State marked to market net gains on a combined basis for those financial instruments described on each line under the sourcing rules of J(iii). Use column B, subcolumn J(ii), lines 10, 12, 16, 18, 20, 21, 23, 24, 27, and all lines 30, in column B, to calculate New York State marked to market net gains on a combined basis, for those financial instruments described on each line, under the sourcing rules of J(ii). Use row b, subcolumn J(iii), lines 10, 12, 16, 18, 20, 21, 23, 24, 27, and all lines 30 in each entity’s column A, to calculate New York State marked to market net gains, for those financial instruments described on each line, under the sourcing rules of J(iii). Use row b, subcolumn J(ii), lines 10, 12, 16, 18, 20, 21, 23, 24, 27, and all lines 30, in each entity’s column A, to calculate New York State marked to market net gains, for those financial instruments described on each line, under the sourcing rules of J(ii). You must leave row b, subcolumn J(ii) and row b, subcolumn J(iii) blank for those lines because they do not apply when the 8% fixed percentage method sourcing is in general business corporation tax forms current year effect for qualified financial instruments.

• If the business is less than three years old, base the average yearly gross receipts on the period the entity has existed.
• In addition, you must mark an X in the 1120-REIT or 1120-RIC box in Part 1, Section C, line 1, to avoid an erroneous assessment or delayed refund.
• Corporations subject to tax under Tax Law Article 9-A generally must compute three distinct taxes and pay the tax that results in the largest amount owed.
• Regardless of whether or not the 8% fixed percentage method is in effect for the combined group, for lines 30.1 and 30.2, row a (Everywhere), follow the applicable Form CT-3-A-I, Part 6, line 30 instructions to determine the amount of everywhere receipts, except that if the amount is less than zero, enter the negative amount with a minus (-) sign.

Entity X enters $7 million in Line 10, column A, row 10b (Everywhere). You may enter amounts less than zero in an entity’s Worksheet A, column A, rows a, b, d, and e. Complete as many columns A as there are entities in your combined return. In the instructions below, all lines refers to lines 10, 12, 21, and 24, and specific rows (a, b, c, d, e, or f) are indicated to clarify which rows of these lines the specific instruction applies to. This worksheet calculates the amounts for Forms CT-3-A and CT-3-A/BC, Part 6, lines 10, 12, 21, and 24, as well as the amounts for these lines for Worksheet D, Designated agent’s New York State Receipts for purposes of fixed dollar minimum tax base.