RCT-128C — Report of Change in Corporate Net Income Tax Instructions

# preamble

1RCT-128Crevenue.pa.gov

# Instructions for RCT-128C

Report of Change in Corporate Net Income TaxRCT-128C IN (SU) 10-25

All reports for tax years beginning Jan. 1, 2022 and later must be filed on the year specific RCT-128C. All reports for tax years beginning prior to Jan. 1, 2022 must be filed on the non-year-specific RCT-128C. These forms can be found on the department's website at revenue.pa.gov.

# RECORDING DOLLAR AMOUNTS

All tax forms and schedules must show money amounts in whole-dollars. Eliminate any amount less than $0.50 and increase any amount that is $0.50 or more to the next highest dollar. Negative amounts should be written as follows: -1,234.

# REVISED SUPPLEMENTAL FORMS AND SCHEDULES

If an amount changes on any schedule as a result of the change in income, include the appropriate revised schedule with RCT-128C.

# FORM COMPLETION

Complete ALL information fields on the report even if the amounts have not changed from the previously filed RCT-101, PA Corporate Net Income Tax Report, or RCT-128C. Any taxpayer filing RCT-128C is required to enter all dates along with applicable tax rates, apportionment, and net operating loss deduction limitations in effect for the tax year being reported. See the rate table and instructions for the applicable tax year in the year-specific REV-1200, CT-1 PA Corporation Tax Instructions, found at revenue.pa.gov.

Use the RCT-128C to report changes to an entity's income as a result of a federal audit, examination, or changes as a result of an amended federal income tax return filed by the entity. The RCT-128C is used only by entities subject to corporate net income tax. This includes all entities who file as a corporation with the federal government. NOTE: The RCT-128C is not to be used to file an amended RCT-101, PA Corporate Net Income Tax Report, for reasons other than changing or correcting federal taxable income.

Any corporation who finally changes or corrects the amount of taxable income as returned to the federal government must file RCT-128C. This includes changes in federal taxable income resulting from the taxpayer filing an amended federal income tax return, as well as changes initiated by the federal government due to an audit or examination of the federal return regardless of the year involved.

In cases where the change was based on a federal amended return, RCT-128C must be filed within six months of the filing of the federal amended return. If RCT-128C is being filed to report changes due to an audit or examination of the federal return, the report must be filed within six months after the receipt of the final change or correction. A $5 a day penalty will be imposed for a late filed return. NOTE: For tax years beginning prior to Jan. 1, 2013, RCT-128C must be filed within 30 days of the filing of the federal amended return. If RCT-128C is being filed to report changes due to an audit or examination of the federal return of a tax year beginning prior to Jan. 1, 2013, the report must be filed within 30 days after the receipt of the final change or correction. A $5 a day penalty will be imposed for a late filed return.

# ATTACH A COPY OF THE INCOME TAX EXAMINATION

CHANGES OR AMENDED FEDERAL RETURN.

If you are including payment, please use the following address:

# PA DEPARTMENT OF REVENUE PAYMENT ENCLOSED

PO BOX 280427 HARRISBURG PA 17128-0427 If you are requesting a transfer of credit or refund of over - payment, please use the following address:

# PA DEPARTMENT OF REVENUE REFUND REQUESTED

PO BOX 280706 HARRISBURG PA 17128-0706 If you are neither including payment nor requesting a transfer of credit or refund of overpayment, please use the following address. This includes reports when payment was made electronically.

# PA DEPARTMENT OF REVENUE NO PAYMENT, NO REFUND

PO BOX 280708 HARRISBURG PA 17128-0708

# WHO MUST FILE WHEN TO FILE PURPOSE OF FORM HIGHLIGHTS GENERAL INFORMATION

# WHERE TO FILE

2 RCT-128C revenue.pa.gov

CAUTION: If the Department of Revenue has made prior changes to the PA corporate net income, these changes must be taken into consideration when completing RCT-128C, Report of Change in PA Corporate Net Income Tax. If you fail to incorporate prior Department of Revenue changes, your Report of Change will be adjusted accordingly.

# TAX YEAR BEGINNING

Enter the beginning date of the tax period for which a change in income occurred. Enter the date in MMDDYYYY format.

# TAX YEAR ENDING

Enter the ending date of the tax period for which a change in income occurred. Enter the date in MMDDYYYY format.

# NAME, ADDRESS, FEDERAL EIN, BUSINESS ACTIVITY CODE, AND PARENT CORPORATION FEIN

Print or type the corporation name, complete address, and nine-digit FEIN. Foreign corporations filing from outside the United States must use Province, Country Code, and Foreign Postal Code address fields, if applicable. The six-digit Business Activity Code entered here is the same Business Activity Code reported to the IRS on the federal income tax return. Parent Corporation FEIN - Taxpayers that are included in a consolidated federal income tax return must provide the nine-digit FEIN of the corporation that files the consolidated federal income tax return. If you are not included in a consolidated federal return, leave blank. Address Change - Check box if the address reported in Step B is a change from prior tax periods. If changing the address after filing the report, file the REV-854 electronically at mypath.pa.gov, via fax to 717-787- 3708, or email to ra-btftregisfax@pa.gov.

# CHECK SPECIAL FILING STATUS

52-53 Week Filer - Check box if the corporation is a 52-53 week filer. S Corp filing as C Corp - For periods beginning on or after January 1, 2006 corporations which have validly elected to be taxed for federal purposes as S corporations are automatically treated as S corporations for Pennsylvania purposes. However, a federal S corporation may elect to be taxed as a C corporation for Pennsylvania purposes by filing a timely election using form REV-976. KOZ Credit - Check box if the corporate taxpayer is claiming the Keystone Opportunity Zone Credit. Royalty/Related Interest Add-Back - Act 52 of 2013 requires the add-back of intangible expenses to income for interest, royalties, patents, trademarks, etc. between affiliated entities in certain instances. S Corp Taxable Built-in Gains - PA S corporations and QSSS are subject to PA corporate net income tax. Their taxable income is their net recognized built-in gains as determined for federal income tax purposes pursuant to IRC Section 1374(d) (2). Section 381/382/Merger NOLs - Corporations having net operating loss (NOL) limitations under IRC Section 381 and/or IRC Section 382 or claiming losses or Bonus Depreciation from a merger. Provide the Merger documents including Company Name, FEIN, and Revenue ID of merged company. Provide a schedule with NOL'S by tax periods and the balance of the Bonus Depreciation carry-forward from the merged company. Alternative Apportionment - If the taxpayer is requesting an alternate apportionment method, extra-statutory treatment, separate accounting, or unrelated asset treatment, check this box and provide a written, detailed explanation of the methodology being used as well as fully detailed supporting schedules, worksheets, and documentation to review the methodology being employed. Claiming P.L. 86-272 Protection - Corporations which sell tangible personal property and meet the activity limitations contained in P.L. 86-272 check this box. See additional information in Tax Bulletins 2004-01 and 2019-03.

Enter the adjusted PA taxable income amount from Section C, Line 12 on Page 2 of RCT-128C.

Enter the amount of PA taxable income from Section C, Line 12 of the originally filed RCT-101, or Section C Line 12 of the most recently filed RCT-128C.

Subtract Line 2 from Line 1. If Line 2 is greater than Line 1, enter the amount as a negative number: -1,234.

Enter the amount of PA corporate net income tax from Section C, Line 14 or Line 16 on Page 2 of RCT-128C.

Enter the amount of PA corporate net income tax from Section C, Line 14 or Line 16 of the originally filed RCT-101,

# LINE INSTRUCTIONS STEP A STEP B STEP C SECTION A

LINE 1 LINE 2 LINE 2A LINE 3 LINE 4

3RCT-128Crevenue.pa.gov or Section C, Line 14 or Line 16 of the most recently filed RCT-128C.

Subtract Line 4 from Line 3. If Line 3 is greater than Line 4, enter the amount as a negative number: -1,234. If a negative number, this is your overpayment. If there is an overpayment, you must complete Lines 6 and 7 of Section D on page 3 to instruct the department on how to handle the overpayment. If a positive number, this is the amount of tax owed to the department. If you owe tax to the department, enter that amount on Line 5 and provide the date the final change was received from the IRS or the date the amended federal return was filed.

Remittance made payable to the PA Department of Revenue.

# NOTICE OF FINAL CHANGE DATE

Enter the date the final notice of change was received from the Internal Revenue Service or the date the amended federal return was filed. CAUTION: If the date is not provided, interest will be imposed from the original due date applicable to that tax year. Also, a $5 a day penalty will be imposed for a late filed report.

All fields on Page 2 of the RCT-128C must be completed with figures as originally filed, where applicable, unless revised in accordance with the Federal 1120-X or Federal Audit Report. NOTE: Section C, Line 1 will be changed/updated to the income or loss from federal return on a separate-company basis as determined by the federal audit, examination or changes per the amended federal income tax return.

LINES 6 AND 7 After completing Section A on Page 1, if an overpayment exists taxpayers must instruct the department to either transfer any available credit to the next tax year or consider any available credit for refund, or both, on Lines 6 and 7 . The department will not issue refunds in the amount of $1.00 or less. Enter the amount of the overpayment to be credited to the next tax year after offsetting all unpaid liabilities on Line 6. Enter the amount of the overpayment to be refunded after offsetting all unpaid liabilities on Line 7. Taxpayers may request direct deposit of the refund by completing the Direct Deposit section of Page 3 of the RCT-128C. If no option is selected, the department will automatically transfer any overpayment to the next tax year for estimated tax purposes after offsetting current period liabilities and other unpaid liabilities within the account. A Credit Summary Notice will be mailed to the taxpayer confirming the disposition of the credit.

# CORPORATE OFFICERS

Taxpayers annual affirmation of all corporate officer's information must be included on the RCT-128C. When information is provided on RCT-128C, REV-1605 is not required. However, to report a change in corporate officers during the tax year, REV-1605 should be filed electronically at mypath.pa.gov. REV-1605 may also be submitted via fax to 717-787-3708 or email to ra-btftregisfax@pa.gov. When completing the affirmation of corporate officer section, LLCs, business trusts, and other unincorporated entities required to file RCT-101 must enter the names and Social Security numbers of individuals who are responsible for the tax and/or business matters of the entity (i.e. Tax Matter Partner, Managing Partner, Trustee). Social Security numbers must contain all nine digits. A corporate officer must sign the report. The signature may be original, stamped, or electronic. Also provide telephone number, email, and title of the officer along with the date signed.

Paid preparers must sign and date all tax returns. The preparer's name, complete address, phone number, email, federal PTIN, and the date prepared must be typed or printed in the appropriate boxes. LINE 5 LINE 4A

# SECTION D SECTION E