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Week Before FL Corporate Income Tax Returns Due, DOR Makes New Rules

On August 26, 2019, the Florida Department of Revenue issued a Tax Information Publication, or TIP, addressing new requirements for reporting Florida corporate income/franchise tax returns. Accountants and CPAs who have previously filed returns for 2018 are left with little notice to make potentially substantial changes for each and every one of their clients.

The Tax Information Publication No: 19C01-03 was mailed to those to whom the notice applies, specifically accountants, officers o corporations, etc., that are anticipated to file a Florida corporate income/franchise tax return for 2018 and 2019.

The information required to be reported is extensive. The Florida Department of Revenue also requires this information to be submitted to the Department online, separately from the filed Florida corporate income/franchise tax return. Therefore, accountants and CPAs are faced with a short timeframe to reevaluate all the businesses for which they’ve filed returns to ensure the below information is properly submitted online:

Florida corporate income/franchise tax return or schedule

• Taxpayer name and federal employer identification number (FEIN)
• Taxable year beginning date and ending date
• Filing basis of your Florida corporate income/franchise tax return
• Federal taxable income
• Florida apportionment fraction
• Florida net operating loss carryover to next taxable year
• Florida alternative minimum tax credit carryover to next taxable year

Federal corporate income tax return or schedule

• Federal net operating loss deduction applied in determining federal taxable income (federal Form 1120 filers, Line 29a)
• Federal net operating loss carryover that was not applied due to the limitation under section (s.) 172(a)(2), Internal Revenue Code (IRC) (80% of taxable income computed without regard to the deduction allowable under s. 172, IRC – applicable to losses generated in taxable years beginning after December 31, 2017)

Form 8993 – Section 250 Deduction for Foreign-Derived Intangible Income (FDII) and Global Intangible Low-Taxed Income (GILTI)


• Foreign-Derived Intangible Income (FDII) (federal Form 8993, Part IV, Line 3a)
• Global Intangible Low-Taxed Income (GILTI) included in federal taxable income (federal Form 8993, Part IV, Line 3b)
• Amount of FDII-related deduction under s. 250, IRC (federal Form 8993, Part IV, Line 8)
• Amount of GILTI-related deduction under s. 250, IRC (federal Form 8993, Part IV, Line 9)

Form 8990 – Limitation on Business Interest Expense Under Section 163(j)
• Amount of disallowed business interest expense carried over from previous taxable years (federal Form 8990, Part I, Section I, Line 2)
• Amount of business interest expense deduction (federal Form 8990, Part I, Section IV, Line 30)
• Amount of current year business interest expense not deducted due to limitation under s. 163(j), IRC (federal Form 8990, Part I, Section IV, Line 31)

North American Industry Classification System (NAICS) Code

• NAICS code for business activity generating the greatest amount of gross receipts for the taxpayer (If you don’t know your NAICS code, see https://www.census.gov/cgi-bin/sssd/naics/naicsrch?chart=2007.)

The additional information is due the earlier of 10 days after the extended due date of the Florida corporate income/franchise tax return, or 10 days after the tax return is filed. If the return has been or will be filed prior to September 3, 2019, the additional information is required by the September 3, 2019, date. Those who fail to report the additional information on time will face a $1,000 penalty, or a penalty of 1% of the tax due, whichever amount is greater. This penalty will apply for each taxable year the information is required, starting 2018.

Jeanette Moffa is an attorney who concentrates on state and local taxes at Moffa, Sutton, & Donnini, P.A. She is an executive council member of the American Bar Association Tax Section State and Local Tax Committee and the Florida Bar Tax Section. Ms. Moffa is an author of both the CCH’s Expert Treatise Library: Sales and Use Tax as well the ABA’s Sales and Use Tax Deskbook. In addition, her regular columns on state and local tax issues can be found in State Tax Notes and Actionline, a publication from the Florida Bar’s Real Property, Probate, and Trust Law Section. She also serves as assistant editor to the Sales and Use Tax Deskbook and Actionline. Ms. Moffa is a regular speaker at the American Bar Association Tax Section conferences, the Institute of Professionals in Taxation, the Florida Bar Tax Section, the Florida Bar Real Property, Probate, and Trust Law Section, and the FICPA. In her free time, she teaches as an adjunct professor at Broward College.

At the Law Office of Moffa, Sutton, & Donnini, PA, our primary practice area is Florida taxes, with a very heavy emphasis in Florida sales and use tax. We have defended Florida businesses against the Florida Department of Revenue since 1991 and have over 100 years of cumulative sales tax experience within our firm. Our partners are both CPAs/Accountants and Attorneys, so we understand both the accounting side of the situation as well as the legal side. We represent taxpayers and business owners from the entire state of Florida. Call our offices today for a FREE INITIAL CONSULTATION to confidentially discuss how we can help put this nightmare behind you.

Additional Resources

FL Tip No. 19c01-03