RCT-128C: 2024 Report of Change in PA Corporate Net Income Tax (RCT-128C) (2024)
Pennsylvania · Pennsylvania DOR · Used for tax years 2024
Pennsylvania Form RCT-128C reports changes or corrections to a corporation’s net income as reported to or changed by the federal government. It shows the resulting changes in Pennsylvania taxable income and corporate net income tax, including any amount due or overpayment.
Who files this form
Corporations use RCT-128C to report changes or corrections to corporate net income reported to or changed by the federal government. The form states that this reporting is required by Section 406 of the Tax Reform Code of 1971.
What you'll need
Have the following information ready:
- The corporation’s federal EIN, NAICS code, name, address, and tax year beginning and ending dates.
- The date the final IRS change notice was received or the amended federal return was filed.
- Federal income or loss on a separate-company basis, Pennsylvania taxable income and tax before and after the change, and payment and credit amounts.
- Corporate officer information for all filled officer positions.
Depending on the items reported, the form calls for supporting schedules:
- Apportionment: RCT-106.
- Dividends or intangible/related interest income: REV-798, Schedule C-2 or Schedule X.
- Depreciation adjustments: REV-1834, Schedule C-8.
- Other deductions, additions, or taxes measured by net income: REV-860, Schedule OD, OA, or C-5.
- Intangible expense or related interest expense: REV-802, Schedule C-6.
- Nonbusiness income or loss: REV-934.
- Net operating loss deduction: RCT-103.
- Credit for tax paid by affiliates: REV-803, Schedule C-7.
- CNI tax withholding credit: PA Schedule CP.
Common mistakes
- Leaving out the federal change date. Enter the date the final IRS change notice was received or the amended federal return was filed. The form warns that omitting this date will result in interest from the original due date for that tax year. It also warns that a $5-per-day penalty may apply to a late-filed return.
- Using cents. The form requires whole dollars only.
- Omitting required schedules. Include RCT-106 with the apportionment schedule. The form also specifically requires REV-798, REV-802, REV-934, or REV-803 for the applicable income, expense, or credit entries.
- Missing officer details or the signature. Provide the requested information for all filled officer positions, and have a corporate officer sign the affirmation.
- Exceeding stated limits. The Qualified Manufacturing Innovation and Reinvestment Deduction cannot reduce tax liability by more than 50%. Restricted credits cannot exceed Section C, line 16.
- Entering foreign bank details for direct deposit. If the account is outside the U.S., leave the direct deposit fields blank. The department will issue a check instead.
Questions people ask
Can an overpayment be applied to the next tax year?
Yes. Section D lets you request a transfer to the next tax year after all unpaid liabilities are offset. You may also request a refund after those offsets.
Can I receive a refund by direct deposit?
Yes, if the refund will go to a bank account within the U.S. Provide the account type, routing number, and account number. Direct deposit is not permitted to accounts outside the U.S.
Who should a remittance be payable to?
The form says to make the remittance payable to the PA Department of Revenue.
What should I enter on Section C, line 14, if line 12 is negative?
Enter “0” on line 14 if line 12 is less than zero.