Form CT-1120 PIC "Information Return for Passive Investment Companies" - Connecticut

What Is Form CT-1120 PIC?

This is a legal form that was released by the Connecticut Department of Revenue Services - a government authority operating within Connecticut. As of today, no separate filing guidelines for the form are provided by the issuing department.

Form Details:

  • Released on December 1, 2017;
  • The latest edition provided by the Connecticut Department of Revenue Services;
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  • Compatible with most PDF-viewing applications;
  • Fill out the form in our online filing application.

Download a printable version of Form CT-1120 PIC by clicking the link below or browse more documents and templates provided by the Connecticut Department of Revenue Services.

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Form CT-1120 PIC
Department of Revenue Services
State of Connecticut
I
nformation Return
PO Box 2974
Hartford CT 06104-2974
for Passive Investment Companies
(Rev. 12/17)
Complete this form in blue or black ink only. See instructions on reverse.
Enter Income Year Beginning ____________________________, ________, and Ending __________________________, ________
Passive investment company (PIC) name
CT Tax Registration Number
Taxpayer
Number and street
PO Box
DRS use only
Please
– 20
type
City or town
State
ZIP code
Federal Employer ID Number (FEIN)
or print.
Check and Complete All Applicable Boxes
5. Indicate the method used to determine the number of full-time
1. Date PIC began commercial operations: __________________
equivalent employees. See Instructions.
Date PIC began commercial operations in CT: _____________
Actual time or business records
Safe harbor method elected:
2. Parent company’s name: ______________________________
____ First 30 days of taxable year
__________________________________________________
____ Average of first three months of taxable year
CT Tax Registration Number: __________________________
6.
Indicate the method used to allocate expenses and employee
3. Is a common paymaster used:
Yes
No
costs to the PIC. See instructions.
If Yes, indicate the common paymaster’s:
I.R.C. §482 type method
Name: _____________________________________________
Safe harbor method elected:
__________________________________________________
____ Percentage of time
____ Percentage of loans
CT Tax Registration Number: ___________________________
The PIC hereby affirms that the applicable period selected under
4. Did the PIC have at least five full-time equivalent employees in
the safe harbor methods in either Line 5 or Line 6 is representative
Connecticut for the period covered by this return:
of, or generally no less than, its level of employment for the entire
year.
No
Yes
7.
Amount of expenses and employee costs to be allocated to the
If Yes, indicate the number of PIC employees:
PIC: _____________________________________________
Full-time: _______________ Part-time: _________________
Attach detailed schedule. See instructions.
Dual: _________ See instructions.
8.
Amount of the PIC’s total gross receipts: ________________
Attach detailed schedule.
If No, the company does not qualify as a PIC. Do not file this
return.
9.
Amount of total dividends issued by the PIC: _____________
Attach detailed schedule.
10. PIC apportionment fraction: ___________________________
Carry to six places. Complete and attach Form CT-1120A-FS,
Corporation Business Tax Return Apportionment Computation
of Income From Financial Service Company Activities.
Declaration: I declare under penalty of law that I have examined this return (including any accompanying schedules and statements) and, to the
best of my knowledge and belief, it is true, complete, and correct. I understand the penalty for willfully delivering a false return or document to the
Department of Revenue Services (DRS) is a fine of not more than $5,000, or imprisonment for not more than five years, or both. The declaration of
a paid preparer other than the taxpayer is based on all information of which the preparer has any knowledge.
Corporate officer’s name (print)
Corporate officer’s signature
Date
Sign Here
Corporate officer’s email address (print)
Title
Telephone number
(
)
Keep a
copy
Paid preparer’s signature
Date
Preparer’s SSN or PTIN
of this
return for
Firm’s name and address
FEIN
your
records.
Telephone number
(
)
Form CT-1120 PIC
Department of Revenue Services
State of Connecticut
I
nformation Return
PO Box 2974
Hartford CT 06104-2974
for Passive Investment Companies
(Rev. 12/17)
Complete this form in blue or black ink only. See instructions on reverse.
Enter Income Year Beginning ____________________________, ________, and Ending __________________________, ________
Passive investment company (PIC) name
CT Tax Registration Number
Taxpayer
Number and street
PO Box
DRS use only
Please
– 20
type
City or town
State
ZIP code
Federal Employer ID Number (FEIN)
or print.
Check and Complete All Applicable Boxes
5. Indicate the method used to determine the number of full-time
1. Date PIC began commercial operations: __________________
equivalent employees. See Instructions.
Date PIC began commercial operations in CT: _____________
Actual time or business records
Safe harbor method elected:
2. Parent company’s name: ______________________________
____ First 30 days of taxable year
__________________________________________________
____ Average of first three months of taxable year
CT Tax Registration Number: __________________________
6.
Indicate the method used to allocate expenses and employee
3. Is a common paymaster used:
Yes
No
costs to the PIC. See instructions.
If Yes, indicate the common paymaster’s:
I.R.C. §482 type method
Name: _____________________________________________
Safe harbor method elected:
__________________________________________________
____ Percentage of time
____ Percentage of loans
CT Tax Registration Number: ___________________________
The PIC hereby affirms that the applicable period selected under
4. Did the PIC have at least five full-time equivalent employees in
the safe harbor methods in either Line 5 or Line 6 is representative
Connecticut for the period covered by this return:
of, or generally no less than, its level of employment for the entire
year.
No
Yes
7.
Amount of expenses and employee costs to be allocated to the
If Yes, indicate the number of PIC employees:
PIC: _____________________________________________
Full-time: _______________ Part-time: _________________
Attach detailed schedule. See instructions.
Dual: _________ See instructions.
8.
Amount of the PIC’s total gross receipts: ________________
Attach detailed schedule.
If No, the company does not qualify as a PIC. Do not file this
return.
9.
Amount of total dividends issued by the PIC: _____________
Attach detailed schedule.
10. PIC apportionment fraction: ___________________________
Carry to six places. Complete and attach Form CT-1120A-FS,
Corporation Business Tax Return Apportionment Computation
of Income From Financial Service Company Activities.
Declaration: I declare under penalty of law that I have examined this return (including any accompanying schedules and statements) and, to the
best of my knowledge and belief, it is true, complete, and correct. I understand the penalty for willfully delivering a false return or document to the
Department of Revenue Services (DRS) is a fine of not more than $5,000, or imprisonment for not more than five years, or both. The declaration of
a paid preparer other than the taxpayer is based on all information of which the preparer has any knowledge.
Corporate officer’s name (print)
Corporate officer’s signature
Date
Sign Here
Corporate officer’s email address (print)
Title
Telephone number
(
)
Keep a
copy
Paid preparer’s signature
Date
Preparer’s SSN or PTIN
of this
return for
Firm’s name and address
FEIN
your
records.
Telephone number
(
)
Department of Revenue Services
Form CT-1120 PIC
State of Connecticut
Information Return for Passive Investment Companies
(Rev. 12/17)
Instructions
Complete this form in blue or black ink only. Use Form
constructive ownership of stock provided in I.R.C. §267(c) other
CT-1120 PIC, Information Return for Passive Investment
than paragraph (3) of said section.
Companies, to establish that the corporation meets the
Intangible investments of a PIC are limited to:
requirements of a passive investment company (PIC) as
defined in Conn. Gen. Stat. §12-213(a)(27).
• Loans secured by real property, as defined in Conn. Gen.
Stat. §12-218b(a)(11); or
Filing Instructions
• Short-term investments of cash.
If the PIC parent company (taxpayer) is subject to the Connecticut
corporation business tax, Form CT-1120 PIC must be attached
Line Instructions
to Form CT-1120, Corporation Business Tax Return. If the
Line 1 - Enter the date the PIC began commercial operations
PIC parent company is not subject to such tax, Form CT-1120
and the date the PIC began commercial operations in
PIC must be filed on or before the fifteenth day of the month
Connecticut.
following the due date of the corporation’s corresponding federal
income tax return for the income year (May 15 for calendar year
Line 2 - Enter the PIC’s parent company name and its
taxpayers).
Connecticut Tax Registration Number.
Mail to: Department of Revenue Services
Line 3 - Check the appropriate box to indicate whether a common
PO Box 2974
paymaster is used. If Yes, indicate the common paymaster’s
Hartford CT 06104-2974
name and Connecticut Tax Registration Number.
Definitions
Line 4 - Check the appropriate box to indicate whether the PIC
had at least five full-time equivalent employees in Connecticut.
Passive investment company (PIC) means any corporation
Enter the number of employees on the appropriate line(s).
which is a related person to a financial service company or to an
If the company did not have at least five full-time equivalent
insurance company, as defined in Conn. Gen. Stat. §12-218b,
employees in Connecticut, the company does not qualify as a
and:
PIC, and its income will be subject to tax. Do not complete this
• Employs not less than five full-time equivalent employees
informational return.
in the state;
A full-time employee must work 35 hours or more per week.
• Maintains an office in the state; and
See Conn. Gen. Stat. §12-217u(d); Conn. Agencies Regs.
• Confines its activities to the purchase, receipt, maintenance,
§31-236-58(c)(2). A dual employee works for both the PIC and
management, and sale of its intangible investments, and
the parent company. Part-time or dual employees may be used
the collection and distribution of the income from such
in calculating the number of full-time equivalent employees. The
investments, including but not limited to interest and gains
PIC must employ the number of full-time, part-time, and/or dual
from the sale, transfer, or assignment of such investments
employees that will add up to at least five full-time equivalent
or from the foreclosure upon or sale, transfer, or assignment
employees, when calculating the amount of time such employees
of the collateral securing such investments.
work on PIC-related matters. However, the maximum number of
employees whose time may be allocated to attain the requisite
Related person means:
five full-time equivalent employees is 25.
• A corporation, limited liability company, partnership,
association, or trust controlled by the taxpayer;
Line 5 - Check the appropriate box to identify the method used
to determine the number of full-time equivalent employees. The
• An individual, corporation, limited liability company,
five full-time equivalent employees may be established from the
partnership, association, or trust in control of the taxpayer;
employees’ time records. In lieu of relying on actual time records
• A corporation, limited liability company, partnership,
maintained throughout the year, taxpayers may use an annual
association, or trust controlled by an individual, corporation,
safe-harbor test based on the employees’ time records for either
limited liability company, partnership, association, or trust in
the first 30 days of the taxable year or an average of the first
control of the taxpayer; or
three months in such taxable year (“the applicable period”).
• A member of the same controlled group as the taxpayer.
Line 6 - Check the appropriate box to identify the method used
to allocate expenses and employee costs to the PIC.
Control, with respect to a corporation, means ownership,
directly or indirectly, of stock possessing 50% or more of
PIC-related expenses and costs may be allocated to a PIC
the total combined voting power of all classes of the stock
on any reasonable basis provided in I.R.C. §482. Use of such
of such corporation entitled to vote. Control, with respect to a
method will require the taxpayer to maintain adequate books and
trust, means ownership, directly or indirectly, of 50% or more of
records. In lieu of this method, the taxpayer is allowed to make
the beneficial interest in the principal or income of such trust.
one of two alternative safe harbor elections on its return each
The ownership of stock in a corporation, of a capital or profits
year in determining the reasonable allocation of the aggregate
interest in a partnership or association, or of a beneficial interest
pool of expenses and employee costs to the PIC.
in a trust shall be determined in accordance with the rules for
Page 2 of 3
Percentage of Time Method
Line 7 - Enter the amount of expenses and employee costs to
be allocated to the PIC. A detailed schedule must be attached
Under this safe harbor method, PIC-related expenses and
showing all expenses and employee costs (including wages)
employee costs are allocated on the basis of the ratio of the
of the financial service company to be allocated to the PIC, the
number of PIC employees to the total number of employees in
the PIC and the related financial service company. The number
computation of the percentage used in allocating expenses
and employee costs to the PIC, and the resulting amount of
of PIC employees may be determined either from the employees’
PIC expenses and employee costs for the taxable year. Do
time records used in calculating the five full-time equivalent
not include interest expenses on borrowings, deposits, and
employees under the safe harbor test, or from actual time records
for those taxpayers that do not rely on the safe harbor test. No
escrows. Do not include expenses related to FDIC insurance
premiums and investment and banking fees relating to mergers,
employee that expends less than 20% of his or her time on PIC
acquisitions, and other extraordinary transactions.
business shall be included in the calculation of the number of
PIC employees for purposes of determining the ratio.
Line 8 - Enter the PIC’s total gross receipts. A detailed schedule
Percentage of Loans Method
must be attached to this return.
Under this method, PIC-related expenses and employee costs
Line 9 - Enter the total amount of dividends issued by the PIC.
may be allocated on the basis of the ratio of the number of PIC
A detailed schedule must be attached to this return.
loans to all loans serviced by the PIC and its related financial
service company. Such ratio shall be based upon the average
Line 10 - Enter the apportionment fraction for the PIC. Carry
number of loans held during the first month of a PIC’s taxable
to six places. Complete and attach Form CT-1120A-FS,
year or first 30 days after it begins commercial operations in
Corporation Business Tax Return Apportionment Computation
Connecticut for its first taxable year, and the average number
of Income From Financial Service Company Activities. Complete
of loans held during the last month of a PIC’s taxable year. This
the form using the PIC’s receipts and apportioning such receipts
method may be used by any entity that employs five or more
as if the PIC were a financial service company.
full-time employees on PIC business without the need to allocate
employees’ time in order to qualify for PIC status.
The method selected in a particular year must be consistently
applied to all expenses and employee costs on an all or nothing
basis.
On the basis of the method identified, detailed schedules must
be attached to this return.
Form CT-1120 PIC (Rev. 12/17)
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