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Blank Kentucky 720S Form

The Kentucky 720S form is the official document used by S corporations to report their income tax and limited liability entity tax (LLET) to the Commonwealth of Kentucky. This form is essential for businesses operating in Kentucky, as it ensures compliance with state tax regulations. Proper completion of the 720S is necessary for accurate tax reporting and to avoid potential penalties.

Outline

The Kentucky 720S form serves as a crucial document for S corporations operating within the Commonwealth of Kentucky. This form is primarily designed for reporting income tax and the limited liability entity tax (LLET) for the tax year. It encompasses various sections that require detailed information about the corporation, including the taxable period, identification numbers, and the number of shareholders. Additionally, the form necessitates the inclusion of K-1s for shareholders, which outline each individual's share of income, deductions, and credits. The 720S also features specific computations for both LLET and income tax, allowing corporations to accurately calculate their tax liabilities. Furthermore, the form provides sections to address any exemptions, credits, and overpayments, ensuring that all financial aspects are thoroughly accounted for. Understanding the nuances of this form is essential for compliance and effective tax management for S corporations in Kentucky.

Sample - Kentucky 720S Form

720S

Commonwealth of Kentucky

Department of Revenue

1900030256	KENTUCKY S CORPORATION
	INCOME TAX AND LLET RETURN

2019

See instructions.

Taxable period beginning _______________ , 20 ____ , and ending _______________ , 20 ____ .

ALLET

Exemption Code Enter Code

_____ _____

BIncome Tax Exemption Code Enter Code

_____ _____

CNumber of Shareholders (Attach K-1s)

_____________

Number of QSSSs Included in This Return (Attach Schedule)

_____________

D Federal Identiﬁcation

Kentucky Corporation/LLET

Number

__ __ – __ __ __ __ __ __ __

Account Number (Required)

__ __ __ __ __ __

Name of S Corporation

 Change of Name

Taxable Year Ending

M M

Y Y

Number and Street

State and Date of Incorporation

Principal Business Activity in KY

City

State

ZIP Code

Telephone Number

NAICS Code Number in KY

(See www.census.gov)

F Check if applicable:  Qualiﬁed investment partnership

 Final return (Complete Part IV)

G Provider 3-Factor

 Initial return

 Short-period return (Complete Part IV)

Apportionment Code

 LLC

 Change of accounting period

 Amended return (Complete Part V)

			PART I—LLET COMPUTATION											PART II—INCOME TAX COMPUTATION

1	Schedule L, Section D, line 1 (Page 6)				...	1			00		1	Excess net passive income tax			1		00
2	...............................Tax credit recapture					2			00		2	Built-in gains tax			2		00
3	Total (add lines 1 and 2)					3			00		2	Built-in gains tax			2		00
3	Total (add lines 1 and 2)					3		3	00		Tax installment on LIFO recapture			3		00
4	Nonrefundable LLET credit from							3			Tax installment on LIFO recapture			3		00
	.....................Kentucky Schedule(s) K-1					4			00		4	Total (add lines 1 through 3)			4		00
5	Nonrefundable tax credits										5	Estimated tax payments			5		00
	(attach Schedule TCS)					5			00		5	Estimated tax payments			5		00

											6	Extension payment			6		00
6	LLET liability (greater of line 3 less										6	Extension payment			6		00
	..........lines 4 and 5 or $175 minimum)					6			00		7	Prior year’s tax credit			7		00
7	Estimated tax payments					7			00		7	Prior year’s tax credit			7		00
								8			LLET overpayment from Part I,

8	Certiﬁed rehabilitation tax credit					8				00
8	Certiﬁed rehabilitation tax credit					8				00
9	Film industry tax credit					9			00			line 17			8		00
												line 17			8		00
10	Extension payment					10			00
10	Extension payment					10		9	00		Income tax paid on original return			9		00
11	Prior year’s tax credit					11		9		00				9		00
								10	Income tax overpayment on original

12	Income tax overpayment from
	Part II, line 13	........................................				12			00			return			10		00

13	LLET paid on original return					13			00
13	LLET paid on original return					13		11	00		Income tax due (lines 4 and 10 less
14	LLET overpayment on original							11			Income tax due (lines 4 and 10 less
14	LLET overpayment on original
	return					14			00			lines 5 through 9)			11		00
15	LLET due (lines 6 and 14 less lines 7										12	Income tax overpayment (lines 5
	through 13)					15			00		12	Income tax overpayment (lines 5
	through 13)					15			00
16	LLET overpayment (lines 7											................through 9 less lines 4 and 10)			12		00
	.............through 13 less lines 6 and 14)					16			00		13	Credited to 2019 LLET			13		00
17	Credited to 2019 income tax					17			00		13	Credited to 2019 LLET			13		00
17	Credited to 2019 income tax					17		14	00		Credited to 2019 interest			14
18	Credited to 2019 interest					18		14			Credited to 2019 interest			14
18	Credited to 2019 interest					18

19	Credited to 2019 penalty					19					15	Credited to 2019 penalty			15
20	...........................Credited to 2020 LLET					20			00		16	Credited to 2020 corporation income tax..			16		00
21	Amount to be refunded					21					16	Credited to 2020 corporation income tax..			16		00

											17	Amount to be refunded			17
											17	Amount to be refunded			17

			TAX PAYMENT SUMMARY											OFFICIAL USE ONLY
LLET				INCOME									P
1 LLET due				1 Income tax due									W
1 LLET due				1 Income tax due									2
	(Part I, Line 15)	$	.		(Part II, Line 11)		$					.	2
	(Part I, Line 15)	$	.		(Part II, Line 11)		$					.	0
													0
2	Interest	$	.	2	Interest		$					.	4

3	Penalty	$	.	3	Penalty		$					.	V
3	Penalty	$	___________________	3	Penalty		$	___________________					V
													A
4	Subtotal	$	.	4 Subtotal			$					.	A
4	Subtotal	$	___________________	4 Subtotal			$	___________________					L

TOTAL PAYMENT (Add Subtotals)						 $	.						#

41A720S (10-19)

Page 1 of 6

FORM 720S (2019)

*1900030257*

Page 2 of 6

PART III—ORDINARY INCOME (LOSS) COMPUTATION

1	Federal ordinary income (loss) (see instructions)	1	00
ADDITIONS
2	State taxes based on net/gross income	2	00
3	Federal depreciation (do not include IRC §179 expense deduction)	3	00
4	Related party expenses (attach Schedule RPC)	4	00
5	Other (attach Schedule O-PTE)	5	00
6	Total (add lines 1 through 5)	6	00
SUBTRACTIONS
7	Federal work opportunity credit	7	00
8	Kentucky depreciation (do not include IRC §179 expense deduction)	8	00
9	Other (attach Schedule O-PTE)	9	00
10	Kentucky ordinary income (loss) (line 6 less lines 7 through 9)	10	00

PART IV—EXPLANATION OF FINAL RETURN AND/OR SHORT–PERIOD RETURN

¨ Ceased operations in Kentucky		¨ Change in ﬁling status
¨	Change of ownership	¨	Merger
¨	Successor to previous business	¨	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.

Has the attached ofﬁcer information changed from the last return ﬁled?			Yes	No
President’s Name			President’s Home Address
President’s Social Security Number

Date Became President	/	/
Date Became President

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.

Sign	Signature of Ofﬁcer			Date
Sign
Here	Name of Ofﬁcer			Title

	Signature of Preparer			Date
Paid
Paid	Name of Preparer or Firm			ID Number
Preparer	Name of Preparer or Firm			ID Number
Preparer
Use
Use	Email and/or Telephone No.			May the DOR discuss this return with this preparer?
	Email and/or Telephone No.			May the DOR discuss this return with this preparer?
				¨ Yes ¨ No

	Include federal Form 1120S with all supporting	Refund	Kentucky Department of Revenue
Enclose	Include federal Form 1120S with all supporting	or No	P. O. Box 856905
Enclose	schedules and statements.	or No	P. O. Box 856905
	schedules and statements.	Payment	Louisville, KY 40285-6905
		Payment	Louisville, KY 40285-6905
	Check Payable: Kentucky State Treasurer	With	Kentucky Department of Revenue
Payment	Check Payable: Kentucky State Treasurer	With	P. O. Box 856910
Payment	E-Pay Options: www.revenue.ky.gov	Payment	P. O. Box 856910
	E-Pay Options: www.revenue.ky.gov	Payment	Louisville, KY 40285-6910
			Louisville, KY 40285-6910

41A720S (10-19)

FORM 720S (2019)

*1900030341*

Page 3 of 6

SCHEDULE Q— KENTUCKY S CORPORATION QUESTIONNAIRE

IMPORTANT: Questions 3—12 must be completed by all S corporations. If this is the S corporation’s initial return or if the S corporation did not ﬁle a return under the same name and same federal I.D. number for the preceding year, questions 1 and 2 must be answered. Failure to do so may result in a request

for a delinquent return.

1Indicate whether: (a)  new business; (b) successor to previously existing business which was organized as:

(1) corporation; (2) partnership; (3) sole proprietorship; or (4)  other __________________________________________

If successor to previously existing business, give name, address, and federal I.D. number of the previous business organization.

______________________________________________________

2If a foreign S corporation, enter the date qualiﬁed to do business in Kentucky. __ __ / __ __ / __ __

3List the following Kentucky account numbers. Enter N/A for any number not applicable.

KY Secretary of State Organization______________________

Nonresident Income Tax Withholding____________________

Employer Withholding ________________________________

Sales and Use Tax Permit ______________________________

Consumer Use Tax ____________________________________

Unemployment Insurance _____________________________

Coal Severance and/or Processing Tax __________________

4The S corporation’s books are in care of: (name and address)

______________________________________________________

5Are disregarded entities included in this return?  Yes  No. If yes, list name, address, and federal I.D. number of each entity.

______________________________________________________

6(a) Was the S corporation a partner or member in a pass-through entity doing business in Kentucky?  Yes  No. If yes, list name and federal I.D. number of each pass-through entity.

______________________________________________________

6(b) Was the S corporation doing business in Kentucky other than through its interest held in a pass-through entity doing business in Kentucky?  Yes  No

7Are related party costs per KRS 141.205(1)(l) included in this return ?  Yes  No. If yes, attach Schedule RPC, Related Party Costs Disclosure Statement, and enter any related party cost additions on Form 720S, Part III, Line 4.

8Is the entity filing this Kentucky tax return organized as a limited cooperative association per KRS Chapter 272A?  Yes  No

9Is the entity ﬁling this Kentucky tax return organized as a statutory trust or a series statutory trust per KRS Chapter 386A?  Yes  No

If yes, is the entity ﬁling this Kentucky tax return a series within a statutory trust?  Yes  No

If yes, enter the name, address, and federal I.D. number of the statutory trust registered with the Kentucky Secretary of State:

______________________________________________________

10Was this return prepared on: (a)  cash basis, (b)  accrual basis, (c)  other _____________________________________

11Did the S corporation file a Kentucky tangible personal

property tax return for January 1, 2020?  Yes  No

If yes, list the name and federal I.D. number of entity(ies) ﬁling return(s):______________________________________________

______________________________________________________

12Is the S corporation currently under audit by the Internal Revenue Service?  Yes  No

If yes, enter years under audit ________________________

If the Internal Revenue Service has made final and unappealable adjustments to the corporation’s taxable income which have not been reported to the department, check here  and file an amended Form 720S for each year adjusted. Attach a copy of the ﬁnal determination to each amended return.

41A720S (10-19)

FORM 720S (2019)

*1900030258*

Page 4 of 6

SCHEDULE K—SHAREHOLDERS’ SHARES OF INCOME, CREDITS, DEDUCTIONS, ETC.


SECTION A			Pro Rata Share Items				Total Amount

Income (Loss) and Deductions
1	Kentucky ordinary income (loss) from trade or business activities
	(page 2, Part III, line 10)					1		00
2	Net income (loss) from rental real estate activities (attach federal Form 8825)					2		00
3	(a)	Gross income from other rental activities		3(a)	00
	(b)	Less expenses from other rental activities
		(attach schedule)		(b)	00
	(c)	Net income (loss) from other rental activities (line 3(a) less line 3(b))				3(c)		00
4	Portfolio income (loss):
	(a)	Interest income				4(a)		00
	(b)	Dividend income				(b)		00
	(c)	Royalty income				(c)		00
	(d)	Net short-term capital gain (loss) (attach federal Schedule D and Kentucky
		Schedule D, if applicable)				(d)		00
	(e)	Net long-term capital gain (loss) (attach federal Schedule D and Kentucky
		Schedule D, if applicable)				(e)		00
	(f)	Other portfolio income (loss) (attach schedule)				(f)		00
5	IRC §1231 net gain (loss) (other than due to casualty or theft) (attach federal
	Form 4797 and Kentucky Form 4797)					5		00
6	Other income (loss) (attach schedule)					6		00
7	Charitable contributions (attach schedule)					7		00
8	IRC §179 expense deduction (attach federal Form 4562 and Kentucky
	Form 4562)					8		00
9	Deductions related to portfolio income (loss) (attach schedule)					9		00
10	...............................................................................Other deductions (attach schedule)					10		00

Investment Interest

11	(a)	Interest expense on investment debts	11(a)
	(b)	(1) Investment income included on lines 4(a), 4(b), 4(c), and 4(f) above	(b)(1)
	(b)	(2) Investment expenses included on line 9 above	(b)(2)

Tax Credits (see instructions)
12	Enter the applicable tax credit
12	Enter the applicable tax credit
	(a)	...................................................... _______________________________________	12(a)
	(b)	...................................................... _______________________________________	(b)
	(c)	...................................................... _______________________________________	(c)
	(d)	...................................................... _______________________________________	(d)
	(e)	...................................................... _______________________________________	(e)

41A720S (10-19)

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Form Information

Fact Name	Details
Form Title	Kentucky S Corporation Income Tax and LLET Return
Tax Year	2019
Governing Laws	KRS 141.200, KRS 141.040
Form Number	720S
Taxable Period	Begins and ends on specified dates in 2019
Shareholder Information	Requires number of shareholders and K-1 attachments
LLC Status	Form can be filed by LLCs electing S corporation status
Final Return Indicator	Must check if this is a final return
Amended Returns	Instructions provided for filing amended returns
Filing Address	Kentucky Department of Revenue, P.O. Box 856905, Louisville, KY 40285-6905

Detailed Guide for Filling Out Kentucky 720S

Filling out the Kentucky 720S form is an important step for S corporations operating in the state. Completing this form accurately ensures compliance with state tax regulations. Below are the steps to guide you through the process of filling out the form.

Begin by entering the taxable period at the top of the form. Indicate the start and end dates in the designated spaces.
Fill in the Exemption Codes for both the LLET and income tax, if applicable.

State the number of shareholders and the number of Qualified Subchapter S Subsidiaries (QSSSs) included in the return.

Provide the Federal Identification Number and Kentucky Corporation/LLET Number. Include the required account number as well.

Enter the name of the S Corporation, any changes in name, the taxable year ending date, and the corporation's principal business activity in Kentucky.

Complete the address section with the number and street, city, state, and ZIP code. Also, include the telephone number and NAICS code.

If applicable, check the boxes for qualified investment partnership, final return, initial return, short-period return, LLC, or amended return.

Proceed to Part I for LLET computation. Fill in the required lines based on the information from Schedule L and other relevant documents.

Move to Part II for income tax computation. Complete the necessary lines, including any tax credits, payments, and overpayments.

In Part III, calculate the ordinary income or loss. Fill in the additions and subtractions as required.

For Part IV, provide explanations if this is a final or short-period return, detailing the reason for the filing.

In Part V, if this is an amended return, explain the changes made.

Complete the officer information section, including names, addresses, and Social Security numbers of key officers.

Sign and date the form where indicated. Ensure that the preparer's information is also completed if someone else prepared the return.

Attach all required schedules, including federal Form 1120S, and any supporting documents.

Submit the completed form along with any payment to the Kentucky Department of Revenue.

Obtain Answers on Kentucky 720S

What is the Kentucky 720S form?

The Kentucky 720S form is used by S corporations to report their income, deductions, and tax credits for the state of Kentucky. It serves as the official income tax return for S corporations operating within the state.

Who needs to file the Kentucky 720S form?

Any S corporation doing business in Kentucky must file this form. This includes corporations that are incorporated in Kentucky as well as foreign corporations that have qualified to do business in the state.

What is the deadline for filing the Kentucky 720S form?

The form is typically due on the 15th day of the fourth month following the end of the corporation's tax year. For most corporations operating on a calendar year, this means the form is due by April 15th.

What information do I need to complete the Kentucky 720S form?

You will need various pieces of information, including:

Your federal identification number.

The number of shareholders and QSSSs included in the return.

Your corporation's name, address, and principal business activity.

Details on income, deductions, and any applicable tax credits.

Can I file an amended Kentucky 720S form?

Yes, if you discover an error after submitting your original return, you can file an amended Kentucky 720S form. Be sure to complete Part V of the form to explain the changes made.

What are the penalties for not filing the Kentucky 720S form on time?

Failure to file on time may result in penalties and interest on any unpaid taxes. It is crucial to file by the deadline to avoid these additional costs.

Are there any tax credits available for S corporations in Kentucky?

Yes, S corporations may be eligible for various tax credits, including those for certified rehabilitation, film industry, and others. Be sure to review the instructions for the 720S form for details on how to claim these credits.

What should I do if my S corporation ceases operations in Kentucky?

If your S corporation has ceased operations, you must indicate this on the 720S form. Complete Part IV to explain the circumstances surrounding the final return.

How do I make a payment for taxes owed with the Kentucky 720S form?

You can make payments via check, payable to the Kentucky State Treasurer, or through electronic payment options available on the Kentucky Department of Revenue's website.

Where can I find additional resources or assistance for completing the Kentucky 720S form?

The Kentucky Department of Revenue provides detailed instructions and resources on their website. Additionally, consulting a tax professional can offer personalized guidance tailored to your corporation's specific needs.

Common mistakes

Filling out the Kentucky 720S form can be a daunting task. Many individuals make common mistakes that can lead to delays or issues with their tax filings. Here are eight mistakes to watch out for when completing this important document.

One frequent error is failing to enter the correct taxable period. Ensure that both the beginning and ending dates are accurately filled in. Missing or incorrect dates can result in processing delays or even penalties. Double-check these entries before submitting your form.

Another common mistake is neglecting to provide the Federal Identification Number and Kentucky Corporation/LLET Number. These identifiers are crucial for the Department of Revenue to process your return correctly. Omitting this information can lead to unnecessary complications.

Many filers also overlook the number of shareholders and the number of Qualified Subchapter S Subsidiaries (QSSSs). This information is essential for the accurate assessment of your corporation’s tax obligations. Make sure to attach the required K-1s and schedules as instructed.

Inaccuracies in reporting income and deductions are another pitfall. It is vital to ensure that all amounts are calculated correctly and correspond to the appropriate lines on the form. Errors in these calculations can lead to overpayment or underpayment of taxes.

Additionally, failing to check the correct boxes for applicable statuses, such as final return or amended return, can create confusion. This information helps the Department of Revenue understand your filing status and process your return accordingly.

Another mistake is not providing the necessary supporting documentation. Attach all required schedules and statements, including federal Form 1120S. Incomplete submissions can result in delays and additional requests for information.

Many individuals also forget to sign the form. A missing signature invalidates the return, requiring resubmission. Ensure that both the officer and the preparer sign and date the form to confirm its accuracy.

Lastly, failing to review the instructions can lead to many of these mistakes. Each year, tax forms may change, and it's crucial to be aware of any new requirements or modifications. Taking the time to read the instructions thoroughly can save you from costly errors.

Documents used along the form

The Kentucky 720S form is essential for S corporations operating in the state, as it facilitates the filing of income tax and limited liability entity tax returns. When completing this form, you may also need to consider several other documents that are commonly used in conjunction with it. Below is a list of these forms, each with a brief description to help you understand their purpose and relevance.

Kentucky Schedule K-1: This form is used to report each shareholder's share of the S corporation's income, deductions, and credits. It is essential for shareholders to accurately report their income on their personal tax returns.

Kentucky Form 1120S: This federal form is required for S corporations to report income, deductions, and credits to the IRS. It must be filed alongside the Kentucky 720S to ensure compliance with both federal and state tax laws.

Kentucky Schedule TCS: This schedule is used to report estimated tax payments made by the corporation throughout the year. It helps in determining any overpayments or underpayments that may affect the final tax liability.

Kentucky Schedule O-PTE: This form is used to report any adjustments to income or deductions related to pass-through entities. It is crucial for accurately calculating the corporation's taxable income.

Kentucky Form 4562: This form is used to claim depreciation and amortization deductions for the S corporation. It is essential for reporting the corporation's assets and ensuring that all eligible deductions are claimed.

These documents play a vital role in the tax filing process for S corporations in Kentucky. By ensuring that all necessary forms are completed and submitted, you can help avoid potential issues with tax compliance and reporting. Always consider consulting a tax professional for personalized guidance tailored to your specific situation.

Similar forms

Form 1120S: This is the U.S. Income Tax Return for an S Corporation. Like the Kentucky 720S, it reports income, deductions, and credits for S corporations at the federal level. Both forms require detailed information about the corporation's financial activities and shareholder distributions.

Form 1065: This is the U.S. Return of Partnership Income. Similar to the Kentucky 720S, it is used by partnerships to report income, deductions, and credits. Both forms require a breakdown of income and expenses, as well as information on partners or shareholders.

Kentucky Form 765: This form is the Kentucky Partnership Income Tax Return. It is similar to the 720S in that it is used for reporting income and tax liabilities for partnerships operating in Kentucky. Both forms involve similar calculations and require detailed financial reporting.

Kentucky Schedule K-1: This document is used to report each partner's or shareholder's share of income, deductions, and credits. It is similar to the K-1 information required with the Kentucky 720S. Both documents ensure that shareholders receive accurate information for their personal tax returns.

Dos and Don'ts

When filling out the Kentucky 720S form, it is essential to follow specific guidelines to ensure accuracy and compliance. Here is a list of things to do and avoid:

Do double-check all entries for accuracy before submission.

Do use the most recent version of the form to avoid outdated information.

Do attach all required schedules and documents, such as K-1s and federal Form 1120S.

Do ensure that the federal identification number is correct and matches the IRS records.

Do sign and date the form where required to validate the submission.

Don't leave any fields blank; fill in all applicable sections.

Don't forget to check the boxes that apply to your situation, such as if it is a final return.

Don't use correction fluid or tape to alter any entries; instead, strike through errors and write the correct information nearby.

Don't submit the form without reviewing the instructions thoroughly.

Don't forget to keep a copy of the completed form and all attachments for your records.

Misconceptions

Misconception 1: The Kentucky 720S form is only for large corporations.

This is not true. The 720S form is designed for S corporations of all sizes, including small businesses. Any qualifying S corporation must file this form, regardless of its revenue.

Misconception 2: Filing the 720S form is optional for S corporations.

In reality, it is mandatory for S corporations doing business in Kentucky. Failing to file can result in penalties and interest on any taxes owed.

Misconception 3: You can submit the 720S form without supporting documents.

Supporting documents, such as K-1s and schedules, are required. These documents provide necessary details about income and deductions, ensuring accurate processing of your return.

Misconception 4: The 720S form is the same as the federal Form 1120S.

While both forms serve similar purposes, they are not the same. The 720S is specifically for Kentucky taxes, while the 1120S is for federal taxes. Each has its own requirements and deadlines.

Misconception 5: You can amend the 720S form without following specific procedures.

Amending the 720S requires careful attention. You must complete Part V and include an explanation of the changes. Failure to do so can lead to complications with your tax filings.

Key takeaways

The Kentucky 720S form is used by S corporations to report income tax and limited liability entity tax (LLET) in Kentucky.

Ensure that the taxable period is clearly indicated at the top of the form, specifying the beginning and ending dates.

Complete all sections accurately, including the number of shareholders and any qualified S subsidiaries, as this information is crucial for proper filing.

Attach necessary schedules, such as federal Form 1120S and K-1s, to provide supporting documentation for your return.

If filing an amended return, complete Part V to explain the changes made from the original submission.

Double-check calculations in the LLET and income tax computation sections to ensure accuracy and compliance.

Submit the completed form and payment to the Kentucky Department of Revenue by the due date to avoid penalties and interest.