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CCH Axcess Tax

Introduction to the Ohio Cities Return

Ohio city returns are prepared for the Central Collection Agency (CCA), Columbus, the Regional Income Tax Agency (RITA), Akron, and Cincinnati. In addition to these five returns, you may create up to six generic cities where you must specify the city's name, tax rate, and filing addresses or choose one of the 300 plus single city returns form the list. These city returns will print on a generalized or generic version of Form R - Business Tax Return, Form D-1 WKST - Business Declaration of Estimated Income Tax, and Form D-1 - Quarterly Payment of Estimated Net Profit Tax. No entries on the Ohio state worksheets are necessary. Only entries on the Ohio city OHC Tax Agency and City Detail worksheets are required. The program will process the following forms:

• Akron Form D-1 - Declaration of Estimated Income Tax
• Akron Form AQ-1 - Estimated Tax Vouchers
• Akron Form BR - Akron Income Tax Business Return
• Form CCA-201 ES - Net Profit Estimate
• Form CCA 120 - Net Profit Tax Return
• Columbus Form BR-42 - Application for Filing Extension
• Columbus Form BR-21 - Declaration of Estimated City Income Tax
• Columbus Form BR-18 - Quarterly Statement of Estimated Income Tax Due
• Columbus Form BR-25 - City Income Tax Return for Businesses
• RITA EXT - Application of Extension of Time to File
• Form RITA 20 - Declaration of Estimated Municipal Tax on Net Profits
• Form RITA 27 - Net Profits Tax Return
• Form RITA SCH B - Worksheet for Schedule B - Distribution of Profits within R.I.T.A Municipalities
• CIN EXT - Extension Request Form
• CIN Form D-1 - Quarterly Payment of Estimated Net Profit Tax
• CIN Form R - Business Tax Return
• Generic Form D-1 WKST - Declaration of Estimated Income Tax (city codes OH1-OH6)
• Generic Form D-1 - D-1 Quarterly Payment of Estimated Net Profit Tax (city codes OH1-OH6)
• Generic Form R - Business Tax Return (city codes OH1-OH6)
• Generic Form D-1 WKST - Declaration of Estimated Net Profit Tax - Other cities
• Generic Form D-1 - D-1 Quarterly Payment of Estimated Net Profit Tax
• Generic Form R - Business Tax Return - Other cities

The type of return code must be entered on the OHC Tax Agency worksheet, OHC General Information section, return code field along with a city code on the City Detail worksheet, City Detail section, city code field to produce the CCA, Columbus, RITA, or any of the generic city returns. Also, for the generic cities coded OH1-OH6, the generic city's name and filing address should be entered on the OHC Tax Agency worksheet, OHC Mailing Addresses section, and the city's tax rate is required to be entered on the City Detail worksheet, Income and Tax Rate Overrides section, tax rate - override field. For other single city returns, i.e. Akron and Cincinnati or any other single city returns from the list, only the return code needs to be entered on the OHC Tax Agency worksheet, OHC General Information section, return code field; no entries on the City Detail worksheet, City Detail section, city code field are required. An entry on Federal the General worksheet, Basic Data section, city code field for city code will NOT produce an Ohio city return. OHC Tax Agency and City Detail worksheets must be present.

When processing a CCA, Columbus, or RITA return which contains multiple cities, a separate City Detail worksheet would exist for each municipality. For example, if a CCA return containing three cities is to be produced, the CCA code would be entered in the return code field on the OHC Tax Agency worksheet, OHC General Information section. Only one the OHC Tax Agency worksheet, OHC General Information section should exist for the CCA return. The city-by-city information that pertains to the three member cities would be entered on the City Detail worksheet. Three City Detail worksheets should be entered, one for each member city. The member city code must be entered in the city code field of the City Detail worksheet, City Detail section . If there was only one member city in the CCA return, instead of three, then only one the City Detail worksheet would exist.

One copy of the federal return is attached to file with the Ohio city returns. When multiple returns are processed, additional copies of the federal return should be requested on Federal the Return Options worksheet, Processing Options section, number of extra copies of Form 1120 field.

Except for the Columbus return, the program does not calculate late interest and penalty. For all returns, the penalty for underpayment of estimated tax is not calculated.

Federal Worksheet Notes and Automatic Features

Depreciation

Ohio cities allow federal depreciation. Separate entries on the federal Business worksheet, Deductions section are unnecessary to calculate the Ohio city returns. Ohio cities have not passed legislation or issued statements or instructions deconforming from federal Job Creation Workers Assistance Act or the Jobs and Growth Tax Relief Reconciliation Act. No automatic adjustments are made for depreciation differences due to JCWA or JGTRRA.

Extensions - Extensions worksheet, State Extension section

You may request a copy of Form 7004 for any of the Ohio cities, except for Cincinnati, Columbus, and RITA, by entering the return code in the field entitled "City" on the Extensions worksheet, State Extension section, or you may enter an "X" ~ on the OHC Tax Agency worksheet, OHC General Information section, federal extension Form 7004 is attached field. A copy of the Form 7004 will not print in the Ohio cities return if a 7004 had not been requested for the Federal return.

The program will also produce the RITA extension form if the code "RITA" is entered in the "City" field on the Extensions worksheet, State Extension section. Your reason for the extension should also be entered on the Extensions worksheet, State Extension section. This is the only method used to request the RITA extension form.

The Cincinnati Extension Request Form will be produced if the code "CIN" is entered in the "City" field on the Extensions worksheet, State Extension section. If Federal Form 7004 has not been filed for federal purposes, you may also enter your reason for requesting the Cincinnati extension on the Extensions worksheet, State Extension section.

For the Columbus return, the program will produce Form BR-42, Application for Filing Extension, if the code for one or more of the ten member cities is entered in the "City" field on Federal the Extensions worksheet, State Extension section. If more than one member city is present in the Columbus return, enter multiple the Extensions worksheet, State Extension sections. The program will default to each member city's taxable income on Form BR-25. If you wish to override this amount, enter the taxable income for each member city in the field entitled "Tentative tax" on the Extensions worksheet, State Extension section. The tax payments you wish to appear on Form BR-42 must be entered on Federal the Extensions worksheet, State Extension section in the fields entitled "Overpayment credited from prior years" and "Estimated/installment payments for the tax year."

FSC Codes

The Ohio city returns start from federal taxable income. The following items are automatically added back or subtracted from federal taxable income to arrive at Ohio city taxable income.

• Capital gains and losses
• Form 4797 ordinary losses - CCA and Akron only
• Taxes based on income
• Guaranteed payments to partners
• Refund of taxes based on income
• Contributions - CCA only
• Dividends
• Interest
• Royalty income
• Net operating loss - RITA only
• Dividends received deduction - RITA only

All of the above items may be overridden on a return type basis by using the Income / Deductions worksheet, Other Adjustments and Overrides section. For example, you may override dividends just for the CCA return and allow the automatic adjustment for the RITA return to take place. In addition, you may make other adjustments to a return using your own descriptions on the Income / Deductions worksheet, Other Adjustments and Overrides section.

NOL and Charitable Contributions

Use the federal NOL Carryover worksheet under the Income/Deductions category to enter NOL carryover data for all Ohio cities returns. To enter charitable contribution carryover for a CCA return use the Contribution Worksheet under the Income/Deductions Category. To enter carryover data for any Ohio city an entry must be made in the "Ohio City Code" field. This field allows you to give a detailed city by city breakdown for each member city of a multi-city reporting entity such as the CCA, RITA and Columbus city returns. First enter the code "OHC" in the field "Main City". Then enter the detailed city code in the "Ohio City Code" field.

The federal Contribution Carryover Worksheet under the Income/Deductions Category. is also used to report charitable contribution carryover data for a Ohio city return. An entry in the "Ohio City Code" field on the federal Contribution Carryover worksheet is not necessary for CCA and Columbus since this information is not required to be tracked on a member city basis. To enter charitable contribution carryover data, enter the applicable city in the "Main City" field and in the "Ohio City Code" field.

Tax Accrual

City taxes carry to the federal return when a "State and City Tax Accrual Option" is selected. Taxes computed on the city return carry to page 1 of the federal return if a "1" is entered in the "State and city tax accrual option" field in the "Calculation Options" section of the Return Options worksheet, Calculation Options section. The tax also accrues to the appropriate sections of the federal balance sheet.

State Tax Accrual Option "Deduct on Federal, Adjust Schedule M-1" carries city taxes computed on the city return to page 1 of the federal return but does not accrue them to the federal balance sheet. If required, a Schedule M-1 book/tax adjustment is made.

State Tax Accrual Option "Tax to rental, Adjust balance sheet" accrues taxes to the balance sheet, but tax expense is carried to the rental schedule instead of Form 1120S, page 1.

State Tax Accrual Option "Tax to rental, Adjust Schedule M-1" accrues taxes to Schedule M-1, but tax expense is carried to the rental schedule instead of Form 1120S, page 1.

State Tax Accrual Option "Tax to Sch. K, Adjust balance sheet" accrues taxes to the federal Schedule K and to the federal balance sheet.

State Tax Accrual Option "Tax to Sch. K, Adjust Schedule M-1" accrues taxes to the federal Schedule K and to the federal M-1.

If a State Tax Accrual Option is not selected, Ohio City taxes which are computed neither carry to the federal return nor accrue to the balance sheet.

You can also suppress either entity (state or city) accrual by making an entry in the appropriate box on the State/City Generation worksheet under the Common State category.

Refunds of City Income Taxes

City income tax refunds entered on the Federal Business worksheet, Income section are automatically carried to other "Items Not Taxable" in the Ohio city returns.

Multiple State Apportionment

If applicable, within city apportionment data should be entered on the City Detail worksheet, Within City Apportionment Amounts section for each city in the return. Use code "0385" for Columbus "Everywhere Else" amounts. Total everywhere apportionment data should be entered on the Income / Deductions worksheet, OHC Allocation and Apportionment section.