RCT-125: Corporate Net Income Tax - Cooperative Agriculture Association (RCT-125) (Revision)

Who files this form

RCT-125 is for incorporated cooperative agriculture associations that have capital stock and either:

• Do business in Pennsylvania, or
• Have capital or property employed or used in Pennsylvania.

The tax is 4 percent of net income attributable to business transacted in Pennsylvania.

When it's due

For tax years 2024 and 2025, this edition gives these deadline rules:

• Calendar-year reports: April 15. The text does not print separate year-specific due dates.
• Fiscal-year reports: On or before the 15th day of the fourth month after the fiscal year closes.
• If the due date falls on a Saturday, Sunday, or holiday, the report is due the next business day.

Request an extension of up to 60 days by the original report due date. An extension does not extend the payment deadline, and the request must be accompanied by payment of taxes owed.

An amended report must be filed within three years after the original report's due date, or its extended due date if the original report was properly extended.

Late reports are subject to a 10 percent late-filing penalty.

What you'll need

Have these items ready:

• A completed RCT-125 and copies of federal Form 1120-C or federal Form 1120.
• The association's FEIN, name, mailing address, telephone number, and email. A subsidiary must also provide its parent corporation's FEIN.
• Records of retained earnings, net income per books, patronage refunds, reserves, dividends, and other increases or decreases. Attach schedules for other increases and decreases.
• Gross receipts assignable to Pennsylvania and total gross receipts from all business.
• Estimated payments, payments carried forward, and restricted tax credits.
• Information about where business records are kept, incorporation or organization, other states where business is conducted, and Pennsylvania real property owned or rented.
• Corporate officer information and signature, plus preparer information and signature if applicable.

For an amended report: Include REV-1175, Schedule AR, and documentation supporting every change.

For a final report: Include REV-861, Schedule of Disposition of Assets; a copy of the regulatory authority's approval of the merger, dissolution, plan of reorganization, and/or articles of merger; and the surviving entity's FEIN, if applicable.

How to file

Complete the report

1. Fill in the taxpayer information and applicable questions on Page 1. Enter the FEIN on every page.
2. Complete Schedule A, Schedule B, and the tax calculation on Page 2.
3. Complete Lines 1 through 10 on Page 1.
4. Complete the general information and Pennsylvania real property schedule on Page 3.
5. Complete the officer information, sign, and date Page 1. Complete the preparer information, signature, and date on Page 2, if applicable.

File electronically

File the complete report and supporting schedules at mypath.pa.gov. You can also request a filing extension there or by mailing REV-426.

Mail or express courier

For mailed returns, extension requests, and payments under $1,000, use:

PA DEPARTMENT OF REVENUE

PO BOX 280407

HARRISBURG PA 17128-0407

Make mailed payments payable to the PA Department of Revenue.

Payments of $1,000 or more must be made electronically or by certified or cashier's check delivered in person or by express mail courier. Returns may also be filed by express mail courier. The listed address is:

PA DEPARTMENT OF REVENUE

1854 BROOKWOOD ST

HARRISBURG PA 17104

Mail an extension coupon separately from other forms. If you make an electronic payment with an extension request, do not submit the extension coupon.

Common mistakes

• Using the wrong form edition: Use the most current, non-year-specific form and instructions for all years, including amended reports.
• Leaving an amended report incomplete: Complete every section and include REV-1175, Schedule AR.
• Ignoring formatting reminders: Use whole dollars and all capital letters. Do not use dashes or slashes in fields. For negative amounts, the checklist specifically requires a minus sign before the number, not parentheses.
• Missing signatures: Include the corporate officer's signature and the preparer's signature and PTIN, if applicable. The officer's signature must be original; photocopies and faxes are not accepted.
• Assuming a federal extension covers this tax: The automatic Pennsylvania extension for taxpayers with valid federal extensions does not apply to this tax.
• Using an unapproved payment method: Payments of $1,000 or more have special payment requirements. An unapproved method results in a penalty of 3 percent of the tax due, up to $500.
• Duplicating credit requests: Do not request the same refund or transfer through both RCT-125 and written correspondence.

Questions people ask

How is the tax calculated?

Use dividends on capital stock declared or declared and paid from Schedule A, Line 9. Multiply that amount by the allocation decimal from Schedule B, then multiply the Pennsylvania-allocated income by 4 percent. Carry the tax to Page 1, Line 1.

How do I calculate the allocation decimal?

Divide gross receipts assignable to Pennsylvania by gross receipts from all business. Carry the result to six decimal places.

Can I get more time to file?

You may request up to 60 additional days through myPATH or REV-426 by the original report due date. This does not give you more time to pay, and the request must include payment of taxes owed.

What happens if I overpay?

You can request a refund or transfer the overpayment to the next tax year. The department first offsets current-period and other unpaid liabilities. If you do not select an option, the remaining overpayment automatically transfers to the next tax year.

How do I report an address change?

Enter “Y” in the address-change block on Page 1 and show the current mailing address on the report.

Official sources

• https://www.pa.gov/content/dam/copapwp-pagov/en/revenue/documents/formsandpublications/formsforbusinesses/corporationtax/documents/2024/2024_rct-125.pdf