Free CT-240-I (Instructions) - New York

New York State Department of Taxation and Finance

Instructions for Form CT-240
Foreign Corporation License Fee Return

CT-240-I
(9/08)

Important reminder to file a complete return: You must complete all required schedules and forms that make up your return, and include all pages of those forms and schedules when you file. Returns that are missing required pages or that have pages with missing entries are considered incomplete and cannot be processed, and may subject taxpayers to penalty and interest.

Up-to-date information affecting your tax return
Visit our Web site for tax law changes or forms corrections that occurred after the forms and instructions were printed (see Need help?).

by the U.S. Secretary of the Treasury or the Commissioner of Taxation and Finance. (Currently designated delivery services are listed in Publication 55, Designated Private Delivery Services. See Need help? for information on obtaining forms and publications.) If you have used a designated private delivery service and need to establish the date you filed your return, contact that private delivery service for instructions on how to obtain written proof of the date your return was given to the delivery service for delivery. If you use any private delivery service, whether it is a designated service or not, send the forms covered by these instructions to: State Processing Center, 431C Broadway, Albany NY 12204-4836.

License fee rates -- The license fee rate is five cents on each share of no-par value stock and 1/20 of 1% of the value of par value stock. The minimum license fee is $10.
When the license fee is recomputed, the amount of any license fee previously paid may be taken as a credit against the recomputed license fee. However, no credit for license fees previously paid will be allowed for a foreign corporation that merges or reincorporates in another state. Refunds will not be made to a corporation when a recomputed fee is less than the fee previously paid.

General instructions
A foreign corporation must pay a license fee for the privilege of exercising its corporate franchise or carrying on its business in New York State. This fee is in addition to the annual franchise tax and is payable only once, unless the capital share structure changed or the amount of capital stock employed in New York State increased since the last license fee return was filed. Some changes in capital share structure are as follows: -- stock split -- issuance of authorized stock -- change of par value stock to no-par value stock -- change of no-par value stock to par value stock

Whole dollar amounts -- You may elect to show amounts in whole dollars rather than in dollars and cents. Round any amount from 50 cents through 99 cents to the next higher dollar. Round any amount less than 50 cents to the next lower dollar. Negative amounts -- Show any negative amounts with a
minus (-) sign.

Who must file -- All foreign corporations (except banking
corporations as defined in section 1452(a), paragraphs 1 - 8; insurance corporations; limited liability companies (LLCs); limited liability partnerships (LLPs); and publicly traded partnerships taxed as corporations under the Internal Revenue Code) that do business in New York State must file Form CT-240. This includes foreign corporations that have elected to be New York State S corporations. A foreign corporation that is subject to the New York State franchise tax under Article 32, section 1452(a)(9), or a foreign bank holding company that is included in a combined return under Article 32, section 1462(f), is required to file a license fee return. However, a foreign corporation or bank holding company that would not otherwise be taxable in New York State, except for its inclusion in a combined return under Article 9-A or Article 32 is not required to file a license fee return. All foreign corporations included in a combined return under Article 9-A or Article 32 that would be taxable in New York State if they filed separate returns are required to file the license fee return and compute the license fee on an individual basis.

Percentages -- When computing allocation percentages, convert decimals into percentages by moving the decimal point two spaces to the right. Round percentages to four decimal places. Example: 5,000/7,500 = 0.6666666 = 66.6667%. Entering dates -- Unless you are specifically directed to use a
different format, enter dates in the mm-dd-yy format (using dashes and not slashes).

Third-party designee
If you want to authorize another person (third-party designee) to discuss this tax return with the New York State Tax Department, mark an X in the Yes box in the Third-party designee area of your return. Also print the designee's name, phone number, and any five-digit number the designee chooses as his or her personal identification number (PIN). If you want to authorize the paid preparer who signed your return to discuss the return with the Tax Department, print the preparer's name in the space for the designee's name and enter the preparer's phone number in the space for the designee's phone number. You do not have to provide the other information requested. If you do not want to authorize another person, mark an X in the No box. If you mark the Yes box, you are authorizing the Tax Department to discuss with the designee any questions that may arise during the processing of your return. You are also authorizing the designee to: · give the Tax Department any information that is missing from your return; · call the Tax Department for information about the processing of your return or the status of your refund or payment(s); and · respond to certain Tax Department notices that you shared with the designee about math errors, offsets, and return preparation. The notices will not be sent to the designee. You are not authorizing the designee to receive your refund check, bind you to anything (including any additional tax liability), or otherwise represent you before the Tax Department. If you want the designee to perform those services for you, you must file Form POA-1, Power of Attorney, making that designation with the

When and where to file -- File Form CT-240 with the first
franchise tax return, within 2½ months after the end of the fiscal or calendar year, and whenever a change is made in the capital share structure of the corporation or whenever the amount of capital stock employed in New York State has increased since the last license fee return was filed. When filing Form CT-240 other than with your franchise tax return, mail to: NYS CORPORATION TAX PROCESSING UNIT PO BOX 22038 ALBANY NY 12201-2038 Private delivery services -- If you choose, you may use a private delivery service, instead of the U.S. Postal Service, to mail in your return and tax payment. However, if, at a later date, you need to establish the date you filed your return or paid your tax, you cannot use the date recorded by a private delivery service unless you used a delivery service that has been designated

Page 2 of 2 CT-240-I (9/08) Tax Department. Copies of statutory tax notices or documents (such as a Notice of Deficiency) will only be sent to your designee if you file Form POA-1. You cannot change the PIN. The authorization will automatically end one year and 2½ months after the period-end date listed on the form. Combined filers: If you file Form CT-3-A, General Business Corporation Combined Franchise Tax Return, calculate your allocated business and investment capital and total capital, as if you were filing on a separate basis, on Form CT-3, General Business Corporation Franchise Tax Return, and your allocated subsidiary capital on Form CT-3-ATT, Schedules B, C, and D -- Attachment to Form CT-3.

Specific instructions
Computation of license fee
Line 1 -- Enter the total face value of issued par value stock. Do not include treasury stock. Line 4 -- Enter the total number of shares of no-par value stock issued. Do not include treasury stock. Line 8 -- Enter total license fee paid with prior license fee returns. Do not include interest or additional charges paid with prior returns. Line 10 -- If you do not pay the license fee on or before the due date of the return, you must pay interest on the amount of the underpayment from the due date to the date paid. (See Note.) Line 11 -- Late filing and late payment penalties Compute charges for late filing and late payment on the amount of the fee minus any payment made on or before the due date (with regard to any extension of time for filing). A If you do not file a return when due, add to the fee 5% per month up to 25% (section 1085(a)(1)(A)). B If you do not file a return within 60 days of the due date, the addition to the fee in item A above cannot be less than the smaller of $100 or 100% of the amount required to be shown (section 1085(a)(1)(B)). C If you do not pay the fee shown on a return, add to the fee ½% per month up to 25% (section 1085(a)(2)). D The total of the additional charges in items A and C above may not exceed 5% for any one month, except as provided for in item B above (section 1085(a)). If you think you are not liable for these additional charges, attach a statement to your return explaining the delay in filing or payment (section 1085). Note: You may compute your penalty and interest by accessing our Web site and clicking on Online Tax Center, or you may call and we will compute the penalty and interest for you (see Need help?).

Schedule B -- Foreign corporations taxable under Tax Law, Article 9
Compute your license fee allocation percentage by dividing assets employed in New York State by total assets. Do not include cash or U.S. obligations as part of assets.

Schedule C -- Foreign corporations taxable under Tax Law, Article 32
Add together business capital and subsidiary capital allocated to New York State and divide the result by total capital. Foreign corporations taxable under section 1452(a)(9), and foreign bank holding companies included in a combined return under section 1462(f), are required to compute the license fee allocation in the same manner as the issuer's allocation percentage. The computation of the issuer's allocation percentage is described in the instructions for Form CT-32, Banking Corporation Franchise Tax Return.

Need help?
Internet access: www.nystax.gov (for information, forms, and publications) Fax-on-demand forms: 1 800 748-3676

Telephone assistance is available from 8:00 A.M. to 5:00 P.M. (eastern time), Monday through Friday. To order forms and publications: 1 800 462-8100 Corporation Tax Information Center: 1 888 698-2908 From areas outside the U.S. and outside Canada: (518) 485-6800 Text Telephone (TTY) Hotline (for persons with hearing and speech disabilities using a TTY): 1 800 634-2110

Persons with disabilities: In compliance with the Americans with Disabilities Act, we will ensure that our lobbies, offices, meeting rooms, and other facilities are accessible to persons with disabilities. If you have questions about special accommodations for persons with disabilities, please call 1 800 972-1233.

Schedule A -- Foreign corporations (including S corporations and corporations included in a combined return) taxable under Tax Law, Article 9-A
Add the allocated New York State business capital, allocated New York State investment capital, and the allocated New York State subsidiary capital, then divide the result by total capital. Example: Business capital Investment capital Subsidiary capital Allocated NYS capital Capital everywhere

Privacy notification The Commissioner of Taxation and Finance may collect and maintain personal information pursuant to the New York State Tax Law, including but not limited to, sections 5-a, 171, 171-a, 287, 308, 429, 475, 505, 697, 1096, 1142, and 1415 of that Law; and may require disclosure of social security numbers pursuant to 42 USC 405(c)(2)(C)(i). This information will be used to determine and administer tax liabilities and, when authorized by law, for certain tax offset and exchange of tax information programs as well as for any other lawful purpose. Information concerning quarterly wages paid to employees is provided to certain state agencies for purposes of fraud prevention, support enforcement, evaluation of the effectiveness of certain employment and training programs and other purposes authorized by law. Failure to provide the required information may subject you to civil or criminal penalties, or both, under the Tax Law. This information is maintained by the Director of Records Management and Data Entry, NYS Tax Department, W A Harriman Campus, Albany NY 12227; telephone 1 800 225-5829. From areas outside the United States and outside Canada, call (518) 485-6800.

$750,000 $1,000,000 5,000 50,000 100,000 100,000 $855,000 $1,150,000 License fee allocation percentage: 74.3478% (855,000 ÷ 1,150,000) Form CT-3-S filers: If you file Form CT-3-S, New York S Corporation Franchise Tax Return, calculate your allocated business and investment capital and total capital on Form CT-3, General Business Corporation Franchise Tax Return, and your allocated subsidiary capital on Form CT-3-ATT, Schedules B, C, and D -- Attachment to Form CT-3.