C STATE OF DELAWARE DIVISION OF REVENUE PAYMENT OF PERSONAL INCOME TAX BY "S" CORPORATIONS FORM 1100-P

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1 C2-01 STATE OF DELAWARE DIVISION OF REVENUE PAYMENT OF PERSONAL INCOME TAX BY "S" CORPORATIONS FORM 1100-P

2 INSTRUCTIONS FOR PERSONAL INCOME TAX PAYMENTS BY "S" CORPORATIONS This package contains four quarterly Forms 1100-P to be used for "S" corporations to make estimated payments of personal income tax on behalf of their non-resident shareholders and Form 1100-P-Ext to request an automatic six month extension to file its "S" Information Return. "S" corporations must use the enclosed forms. Substitute forms will not be accepted. Please direct any filing requirement questions to (302) Read all instructions before completing the return. Make certain that you have selected the proper form for the reporting period and have completed all applicable lines. Write only in the space provided. Marking any other part of the return may delay the processing of your payment. DO NOT WRITE IN NUMERIC SCAN LINE. Please make certain that your return is signed. Form 1100-P-Ext must be filed on or before the prescribed due date of the final return. Payment of estimated personal income tax required to be paid on behalf of its non-resident shareholders must be remitted with the request for extension. Section 511 of Title 30 of the Delaware Code provides that the Director may grant an extension of time for filing any final return and may require that a bond not exceeding twice the amount of tax be furnished. Make checks or money orders payable to DELAWARE DIVISION OF REVENUE. Please remove any stubs from your check. Write your account number on the check or money order. Do not staple payment to the return. Mail completed return together with payment for taxes due in an envelope to: STATE OF DELAWARE DIVISION OF REVENUE P.O. BOX 8751 WILMINGTON, DE NOTIFICATION OF REQUIREMENT TO FILE A CORPORATION INCOME TAX RETURN Section 1904(b) of Title 30 requires every domestic and foreign corporation doing business in Delaware who is not specifically exempt under the provisions of Section 1902(b) to file a corporate income tax return. This return must be filed regardless of the amount, if any, of its gross income or its taxable income. Form 1100-S is due on or before the first day of the fourth month following the close of the calendar or fiscal year end. You may download from from the Business Taxpayer section of our website: Select Current Tax Forms followed by Corporate Income Tax. You may also pick up returns at any of our offices or by calling (302) This is the only notification that you will receive concerning your requirement to file an income tax return.

3 C2-02 ESTIMATED TAX FILING REQUIREMENTS Section 1158 requires every "S" corporation to make estimated payments on behalf of the "S" corporation's non-resident shareholders. The amount of estimated tax to be paid on behalf of the non-resident shareholders is equal to the highest marginal rate of tax set forth in Section 1102(a) (5.95%) multiplied by the non-resident's Delaware distributive share of the income of the "S" corporation. The computation of the estimated tax does not include distributions from other Delaware "S" corporations or partnerships, net operating loss deductions or capital losses which may reduce the total Delaware personal income tax of the non-resident shareholder. Each corporation must estimate the amount of Delaware personal income tax for each non-resident shareholder based solely on the distribution from each "S" corporation. Every "S" corporation with non-resident shareholders is required to declare the amount of its estimated tax liability and prepay the amount of its estimated tax liability in four installments. The declaration, and remittance equal to 50% of the "S" corporation's estimated tax liability, are due on or before the first day of the fourth month of the taxable year. The declaration (Form P-1) is due even if the estimated tax liability is zero and no remittance is required. The remaining coupons P-2, P-3 and P-4 are not required to be filed if the estimated tax liability remains at zero for the remainder of the taxable year. If the estimated tax liability is greater than zero during any of the remaining three quarters of the taxable year, quarterly tentative tax payments are due according to the following schedule: 20% on the 15th day of the 6th month of the taxable year; 20% on the 15th day of the 9th month of the taxable year and 10% on the 15th day of the 12th month of the taxable year. Failure to make a declaration or file and pay the required payments of personal income tax will result in a penalty. A penalty of 1½% per month is imposed on any underpayment or late payment of estimated tax. Such penalty will not be imposed if the total estimated tax paid equals or exceeds 80% of the current year's liability or equals or exceeds 100% of the tax liability of the first preceding taxable year. Corporations whose Delaware taxable income was $200,000 or more in any of the last three preceding taxable years must make estimated payments equal to 80% of the current year's tax liability.

4 If the "S" corporation fails to make estimated tax payments on behalf of each non-resident shareholder, Section 1158(c) requires the "S" corporation to be responsible for any penalties, interest and additions to tax as a result of the nonpayment of the estimated tax. Section 1158(c) exempts the non-resident shareholder from any penalties, interest and additions to tax as a result of the nonpayment of the estimated tax with respect to the non-resident's Delaware distributive share from the "S" corporation. Any overpayment of estimated tax paid on behalf of the non-resident shareholders must be included proportionally in the amount of estimated tax claimed by the non-resident shareholders upon the filing of their Delaware non-resident personal income tax return. A refund will not be issued directly to the "S" corporation for any overpayment of estimated tax paid on behalf of the nonresident shareholders. Estimated tax paid on behalf of the non-resident shareholders should be claimed by the non-resident shareholders on their Delaware personal income tax return. ELECTRONIC FUNDS TRANSFER PROGRAM A program has been established enabling an "S" corporation to remit personal estimated tax payments electronically. This program is made available to all "S" corporations on a voluntary basis. To participate in the EFT program, you must complete the State of Delaware Electronic Funds Transfer Program ACH Authorization Form. This form and its instructions are available by contacting the Division of Revenue, Electronic Funds Coordinator, Carvel State Office Building, PO Box 8911, Wilmington, DE , by telephone at (302) , or by at gregory.maccord@state.de.us. "S" CORPORATIONS ELIGIBLE FOR INCOME TAX CREDITS Chapter 20 of Title 30 of the Delaware Code authorizes five different credits for which an "S" corporation may be eligible. The income tax credits that are available are the Economic Development, Green Industries, Research & Development, Land & Historic Resource Conservation and Historic Property Preservation.

5 TAXPAYERS WORKSHEET AND RECORD OF PAYMENTS CALCULATION OF ESTIMATED TAX DUE LINE 1 Enter on Line 1 the estimated amount of distributive income for the taxable year. $.00 LINE 2a Enter on Line 2a the total percentage of stock owned by non-resident shareholders. LINE 2b Multiply Line 1 by Line 2a and enter result on Line 2b. $.00 LINE 3a Determine the corporation's apportionment percentage using the standard three factors and enter result on Line 3a. LINE 3b Multiply Line 2b by Line 3a and enter result on Line 3b. $.00 LINE 4 Multiply Line 3b by 5.95% and enter the result on Line 4. (Enter amount on Line 1 below for P-1 Thru P-4) $.00 This is the total amount of personal income tax required to be paid on behalf of the non-resident shareholders. C2-03 P-1 P-2 P-3 P-4 1ST DAY/4TH MTH 15TH DAY/6TH MTH 15TH DAY/9TH MTH 15TH DAY/12TH MTH RETURN DUE DATES OF FISCAL YEAR OF FISCAL YEAR OF FISCAL YEAR OF FISCAL YEAR 1. Estimated Liability for Year $.00 $.00 $.00 $ Percentage Due x.50 x.20 x.20 x Multiply 1 by Line 2 Amount Due with Return Enter on Tax Return $.00 $.00 $.00 $.00 P-5 1ST DAY/4TH MTH AFTER YEAR END 1. Actual Tax Liability for Year $ Estimated Tax Paid $ Amount Due with Extension $ Check Number 4. Check No. 5. Date Paid / / / / / / / / 5. Date Paid / /

6 EXTENSION OF TIME FOR FILING "S" CORPORATION RETURN An extension of time with payment for filing your Delaware "S" Corporation Reconciliation and Shareholders Information return is made by filing Voucher 1100P-5 contained in this coupon booklet on or before the due date of the original return. Payment of the estimated personal income tax required to be paid on behalf of its non-resident shareholders must be remitted with the request for extension. A timely extension extends the period of time for filing a final return, but does not extend the period of time for making payment. CHANGES OR CORRECTIONS TO YOUR FORMS Please review these forms to report estimated payments on behalf of "S" corporation's non-resident shareholders. Make any corrections or changes to your name, address, Federal Employer Identification Number or taxable year ending on the "Request For Change" form and mail to the address indicated on the coupon. This will ensure that personal estimated tax payments are posted to the proper account. Also use this change form if you have gone out of business and indicate the date your business ceased operations. If you have any questions, you may reach the Business Master File Section at (302) THE DIVISION OF REVENUE IS ON THE INTERNET To obtain more information regarding corporate tax and other information concerning the Division of Revenue, please visit our website. Our website includes information concerning office locations, telephone numbers, business and personal tax forms, Technical Information Memorandums and links to other important sites. If you wish to file electronically on a voluntary basis, go to: and click on Business Electronic Fund Transfer Program. You can download the authorization form from our website. Internet Address:

7 C2-08 FILING REQUIREMENTS FOR SHORT PERIOD RETURNS Section 1901 of Title 30 provides that the "income year" of a corporate taxpayer shall be the taxable year for which a taxpayer computes its net income for purposes of the Federal Income Tax. When a short period Federal return is due, a short period Delaware return is also required. "S" Corporations are not required to file and remit personal estimated tax when the "S" corporation's taxable period is less than 92 calendar days. For short period returns greater than the 92 days, the due dates are the same as full year taxable returns. A final return for a short year period is due on the first day of the fourth month after the end of the taxable preacquisition and postacquisition periods. NET OPERATING LOSS DEDUCTIONS Net operating loss deductions may be carried forward on the personal tax returns of non-residents where such losses were derived from "S" Corporations. Since the starting point for Delaware income tax purposes is federal adjusted gross income, there is no operating loss carryover allowable on the Delaware return that does not derive from a carryover on the federal return for the same year. COMPOSITE DELAWARE PERSONAL INCOME TAX RETURN A Composite Personal Income Tax Return, Form 200C, for qualifying non-resident shareholders of an "S" Corporation may be filed in lieu of individual non-resident personal income tax returns if all of the following conditions are met: 1. Non-resident shareholders included in the composite return must be non-residents of the State of Delaware for the full taxable year. 2. Non-resident shareholders included in the composite return must have no income (including spouse's) from sources within the State of Delaware other than his or her distributive share from the "S" Corporation. 3. All non-resident shareholders included in the composite return must have the same tax year ending for income tax purposes.

STATE OF RHODE ISLAND AND PROVIDENCE PLANTATIONS

STATE OF RHODE ISLAND AND PROVIDENCE PLANTATIONS Department of Administration DIVISION OF TAXATION One Capitol Hill Providence, RI 02908-5800 Tel: (401) 222-3911 Fax: (401) 222-5134 Forms (401) 222-1111