September 25, 2020

Florida Corporate Income Tax Reporting: Additional Required Information for 2019 Tax Returns

By John Bonk, National State & Local Tax Leader

Florida Corporate Income Tax Reporting: Additional Required Information for 2019 Tax Returns State & Local Tax

On June 28, 2019, HB 7127 was signed by Florida Governor Ron DeSantis. This bill included new Florida Statute Section 220.27, which requires additional information to be submitted to the Florida Department of Revenue.

Every taxpayer required to file a Florida corporate income tax return for taxable years beginning during the 2018 or 2019 calendar years must submit the following information to the Florida Department of Revenue. (Much of the information requested below is already included on filed returns, but the state requires reentry through the website as noted below.)

Florida Corporate Income/Franchise Tax Return

  • Taxpayer’s name and federal employer identification number (FEIN);
  • Taxable-year beginning date and end date;
  • Federal taxable income;
  • Florida apportionment fraction;
  • Election of filing basis;
  • Florida Net Operating Loss (NOL) carryover to next taxable year;
  • Florida Alternative Minimum Tax (AMT) credit carryover to next taxable year.

Federal Corporate Income Tax Return

  • Federal net operating loss deduction applied in determining federal taxable income;
  • Federal net operating loss carryover not applied due to the limitation under Section 172(a)(2), Internal Revenue Code (IRC);
  • North American Industry Classification (NAICS) code.

Form 8990 – Limitation on Business Interest Expense Under Section 163(j)

  • Amount of business interest expense deduction on the federal return, including any carryover;
  • Amount of disallowed business interest expense carried over from previous taxable year;
  • Amount of current-year business interest expense not deducted due to the limitation.

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

  • Foreign Derived Intangible Income (FDII);
  • Amount of FDII-related deduction under Section 250, Internal Revenue Code (IRC);
  • Amount of Global Intangible Low-Taxed Income (GILTI) included in federal taxable income;
  • Amount of GILTI–related deduction under Section 250, IRC.

Potential Penalties

  • Taxpayers who fail to provide the required information by the submission date are subject to the greater of either, but not both:
    • $1,000; or
    • 1% of the tax determined to be due.

Who can submit the application on behalf of the taxpayer?

  • An officer of the taxpayer or a person duly authorized to act on the taxpayer’s behalf must certify that the information submitted is true and correct. A person duly authorized includes the taxpayer’s accountant.

When should the information be reported?

  • The information must be submitted by the earlier of the extended due date of the state corporate income/franchise tax return or 10 days after the state corporate/franchise tax return is filed.

Where do I submit the required information?

For questions about how this update affects your Florida corporate income tax requirement, please contact your Marcum State and Local Tax professional.