720U: Kentucky Unitary Combined Corporation Income Tax and LLET Return (2024)

Who files this form

Use the 2024 Form 720U package only if you are required to file as a Kentucky Unitary Combined Corporation Income Tax and LLET Group. The form asks for the designated filer corporation’s information and the number of corporations in the water’s-edge group and with Kentucky nexus.

What you'll need

Have these records and attachments ready:

• Federal Form 1120 with all supporting schedules and statements.
• The designated filer’s FEIN, Kentucky Corporation/LLET account number, and business information.
• Group member information for Schedule U1 and affiliation information for Schedule U2, including mergers, members that left, and excluded members, as applicable.
• Income, deductions, adjustments, and receipts needed for Schedules U3, U4, and U5. Form 720U’s tax summaries use combined totals from Schedule U9.
• Officer information, including an attached schedule listing the designated filer’s vice president, secretary, and treasurer, with their names, home addresses, and Social Security numbers.

Additional attachments may apply:

• Schedule DE if disregarded entities are included.
• A supporting statement if a corporation was a partner or member in more than three pass-through entities doing business in Kentucky.
• Schedule U6 if a corporation is a partner or member of a limited liability pass-through entity or general partnership doing business in Kentucky.
• An explanation of changes for an amended return.

How to file

Complete Form 720U and attach the required schedules and federal Form 1120 with all supporting schedules and statements. Complete the officer signature and date fields on Schedule U1.

Mail a return showing a refund or no payment to:

Kentucky Department of Revenue

Frankfort, KY 40618-0010

Mail a return with payment to:

Kentucky Department of Revenue

Frankfort, KY 40620-0021

Make checks payable to Kentucky State Treasurer. The form lists www.revenue.ky.gov for e-pay options.

Common mistakes

• Using an incomplete account number. The Kentucky Corporation/LLET account number is required and must have nine digits. Add leading zeros if it has six digits.
• Skipping Schedule U1 questions. Every corporation in the combined group must complete questions 3–8. Questions 1 and 2 must also be answered for an initial return or if the corporation did not file, or was not included in the group, under the same name and FEIN for the preceding year. The form warns that failing to answer may result in a request for a delinquent return.
• Leaving out the explanation for a final or short-period return. Complete Box G when either box is checked.
• Omitting an amended-return explanation. Attach a statement explaining the changes.
• Forgetting the federal return attachments. Include federal Form 1120 with all supporting schedules and statements.

Questions people ask

Where do the totals on Form 720U come from?

Part I uses the combined totals from Schedule U9, Section A, for LLET. Part II uses the combined totals from Schedule U9, Section B, for income tax.

What if disregarded entities are included in the return?

Answer yes to Schedule U1, question 5, and attach Schedule DE.

What if a corporation has an interest in a Kentucky pass-through entity?

Schedule U1 asks for the names and federal identification numbers of pass-through entities doing business in Kentucky in which the corporation was a partner or member. Attach a supporting statement if there are more than three. Schedule U5 also directs a corporation that is a partner or member of a limited liability pass-through entity or general partnership doing business in Kentucky to check the box and complete Schedule U6.

Can the Department of Revenue discuss the return with the paid preparer?

Schedule U1 includes a yes-or-no choice authorizing the Department of Revenue to discuss the return with the preparer.

Official sources

• https://revenue.ky.gov/Forms/Form%20720U%202024.pdf