720: Kentucky Corporation Income Tax and LLET Return (2024)
Kentucky · Kentucky DOR · Used for tax years 2024
Kentucky Form 720 is the 2024 Corporation Income Tax and LLET Return. It reports corporation information and computes taxable net income using federal taxable income, Kentucky additions and subtractions, and a net operating loss deduction.
What you'll need
Include federal Form 1120 with all supporting schedules and statements.
Have your Kentucky Corporation/LLET account number, FEIN, corporation details, and officer information ready. Attach a schedule listing the vice president’s, secretary’s, and treasurer’s names, home addresses, and Social Security numbers.
Other attachments depend on your return:
- Form 722 for an elective consolidated return.
- Schedule RPC for related party expenses.
- Schedule TCS for the tax credits identified on the return.
- Form 2220-K for the estimated tax penalty.
- Schedule DE if disregarded entities are included.
- Schedule COGS for cost of goods sold on Schedule L.
- Schedule L-C if the corporation is a partner or member of a limited liability pass-through entity or general partnership doing business in Kentucky.
- Explanations for other additions or other subtractions in Part I.
The calculations also refer to Kentucky Schedules K-1, Kentucky Schedule D, and Kentucky Form 4797, where applicable.
How to file
Have an officer sign and date the return, and include federal Form 1120 with all supporting schedules and statements.
Refund or no payment enclosed:
Kentucky Department of Revenue
Frankfort, KY 40618-0010
With payment:
Kentucky Department of Revenue
Frankfort, KY 40620-0021
Make checks payable to Kentucky State Treasurer. The form lists www.revenue.ky.gov for electronic payment options.
Common mistakes
- Leaving out or incorrectly formatting the Kentucky Corporation/LLET account number. It is required and must have 9 digits. Add leading zeros if it has 6 digits.
- Skipping Schedule Q questions 1 and 2 when required. Answer them for an initial return or if no return was filed under the same name and federal ID number for the preceding year. The form warns that failing to do so may result in a request for a delinquent return.
- Leaving Schedule Q questions 3 through 10 blank. All corporations must complete them.
- Omitting the explanation for a special return. Complete Part IV for a final or short-period return and Part V for an amended return, including an amended return marked RAR.
- Overlooking Schedule L’s skip instruction. If Section B, line 1 or line 3 is $3,000,000 or less, skip Sections C and D and enter $175 in Section E, line 1 and Part II, line 1.
Questions people ask
What taxes does Form 720 calculate?
It includes separate computations for Kentucky corporation income tax and the limited liability entity tax, or LLET.
What is the minimum LLET shown on the form?
Part II, line 6 uses the greater of the calculated amount after the listed credits or the $175 minimum.
What do I complete for an amended return?
Check the applicable amended-return box and complete Part V, Explanation of Amended Return Changes. This also applies to the amended return marked RAR.
Can an overpayment be credited to the following year?
Yes. The 2024 form has lines to credit an LLET overpayment to 2025 LLET and a corporation income tax overpayment to 2025 corporation income tax.
Can the Department of Revenue discuss the return with my preparer?
The form provides Yes and No boxes for you to indicate whether the Department of Revenue may discuss the return with the preparer.