CT-1120A-FS: Corporation Business Tax Return Apportionment Computation of Income from Financial Service Companies Activities (Revision 2017-12)

Who files this form

Use Form CT-1120A-FS if your company is a financial service company under Conn. Gen. Stat. §12-218b and its business activity is taxable in Connecticut, whether or not it is taxable outside Connecticut.

The definition broadly includes businesses engaged in lending money, extending credit, or otherwise dealing in money capital.

This form does not apply to net income from these activities:

• Services provided to a regulated investment company under §12-218(e): use Form CT-1120A-IRIC.
• Security brokerage services under §12-218(f): use Form CT-1120A-SBC.
• Credit card activities under §12-218(i): use Form CT-1120A-CCA.

What you'll need

Have the information needed for your applicable receipt categories:

• Corporation name, Connecticut Tax Registration Number, and income-year beginning and ending dates.
• Connecticut and total receipts for rentals, loan interest, loan sales, loan servicing, investment and trading activities, management services, and other receipts.
• Property locations, collateral values, and borrower locations for the applicable rental and loan calculations.
• Billing-address records for customers, investors, or participants where the instructions use those addresses.
• Asset values or gross income by business location for the Line 10 method you use. Worksheets A, B, and C provide help with that calculation.
• Interest values, participant counts, or fund values needed for the applicable investment-entity, pension-fund, or retirement-account calculations.

The resulting apportionment fraction is also entered on Form CT-1120, Schedule A, Line 2.

Common mistakes

• Using the wrong ink: Complete the form in blue or black ink only.
• Using different calculation methods for the two columns: Use the same method to calculate receipts for the numerator and denominator.
• Missing the Line 10 method checkbox: Check Average Value Method or Gross Income Method, as applicable.
• Switching methods without permission: Once you use the Gross Income Method, you must continue using it until the Commissioner permits a change to the Average Value Method.
• Missing the precision or transfer requirement: Carry the Line 15 fraction to six places and enter it on Form CT-1120, Schedule A, Line 2.
• Overlooking the election commitments: The international banking facility election is irrevocable for five successive income years. The Line 12 average fair market value election is irrevocable for five years and applies to all receipts from the specified services for any pension fund or retirement account.

Questions people ask

What goes in Columns A and B?

For Lines 1 through 13, enter Connecticut receipts in Column A and total receipts from within and outside Connecticut in Column B.

How do I calculate the apportionment fraction?

Add Lines 1 through 13 separately for each column and enter the totals on Line 14. Divide Line 14, Column A, by Line 14, Column B. Enter the result on Line 15, carried to six places, and on Form CT-1120, Schedule A, Line 2.

Which worksheets help with investment and trading income on Line 10?

Worksheet A calculates total income for Column B. Worksheet B calculates Connecticut receipts under the Average Value Method, and Worksheet C calculates Connecticut receipts under the Gross Income Method.

How are international banking facility receipts treated?

Normally, these receipts are excluded from both the numerator and denominator of the receipts factor. A taxpayer may instead elect to exclude them from the numerator but include them in the denominator. That election is irrevocable for five successive income years. If the election is made, the taxpayer may not deduct the facility's gross income from its gross income when calculating net income.

Official sources

• https://portal.ct.gov/-/media/drs/forms/1-2017/corporation/ct1120afs1217pdf.pdf