2003 D-30Unincorporated BusinessFranchise Tax Forms andInstructions
Government of the District of ColumbiaOffice of the Chief Financial OfficerOffice of Tax and Revenue
Notice: The DC Council has fully de-coupled from the Internal RevenueCode (IRC) bonus depreciation andincreases to the amount allowed asa deduction under IRC §179,addititional expenses. Therefore, forDC tax purposes, do not claim bo-nus depreciation or additional 179expenses.
DISTRICT OF COLUMBIA
ELECTRONIC TAXPAYER SERVICE CENTER
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File Your EstimatedTax PaymentsElectronically Today!www.cfo.dc.gov/etsc
Late legislative changes and important in-formation appear in red. Line 37 and mini-mum tax instructions have been clarified,see page 8 .
Revised 7/8/04
ContentsHow can you contact us? 4
Who must file a Form D-30? 5
When do you not have to file Form D-30? 5
When and where should you file your Form D-30? 5
How can you avoid penalties and interest? 5
What other DC forms may you need to file? 6
Definition of terms 6
Instructions for 2003 D-30 6
Form D-30 Unincorporated Business Franchise Tax Return 13
FR-128 Extension of Time to File 25
Form D-30 NOL Net Operating Loss Deduction for Loss Year 29
If you need to file any of the following:
• Form FP-31 Personal Property Tax Return
• Form FR-800A or 800M Sales and Use Tax Return (Annual or Monthly)
• Form FR-900A or 900M Employer’s Withholding Tax Return (Annual or Monthly)
Call (202) 727-4TAX(4829) or visit our website www.cfo.dc.gov
Send in your original DC return, not a copy. Do not fold yourreturn. Be sure to keep a copy for your records. For one ounce thepostage is 49 cents; for two ounces the postage is 60 cents. Extrapostage of 23 cents is required for each additional ounce.
Telephone numbers
Customer service202-727-4TAX(4829)Representatives are availableto answer your tax questions
Regular hours8:15 a.m.–4:45 p.m.Monday–Friday, except holidays
Extended hoursMarch 31–April 148:15 a.m.–6:00 p.m.Monday–Friday
April 158:15 a.m.–8:00 p.m.
Request tax forms by mail202-442-6546
Request tax forms by fax202-727-4TAX(4829) (option 1)
Tax Fraud Hotline1-800-380-3495Report fraudulent tax activity
Assistance for the hearing/speech-impaired202-855-1234(this is the local Relay Service)
Walk-in service centers
Office of Tax and Revenue941 North Capitol St NE, 1st floorAsk tax questions, get tax preparationassistance and pick up tax forms
Regular hours
8:15 a.m.–4:30 p.m.Monday–Friday, except holidays
Extended hours
March 31–April 148:15 a.m.–6:00 p.m.Monday–Friday
April 3 and 109 a.m.–1:00 p.m
April 158:15 a.m.–8:00 p.m.
Penn Branch3220 Pennsylvania Av SE8:15 a.m.–4:30 p.m.Monday–Friday, except holidays
How can you contact us?
Internet service
www.cfo.dc.govWebsite of the Office of the ChiefFinancial OfficerDownload current and prior year taxforms, find taxpayer information, DCnews and financial reports
Tax forms pick-up locations
MLK Memorial Library901 G St NW, lobbySunday, 1:00–5:00 p.m.Monday–Thursday 10:00 a.m.–9:00 p.m.Friday, Saturday 10:00 a.m.–5:30 p.m.
Municipal Center300 Indiana Av NW, lobby6:30 a.m.–8:00 p.m.
Office of Tax and Revenue941 North Capitol St NE, 1st floor8:15 a.m.–4:45 p.m.
One Judiciary Square441 4th St NW, lobby7:00 a.m.–7:00 p.m.
Penn Branch3220 Pennsylvania Av SE8:15 a.m.–4:30 p.m.
Recorder of Deeds Building515 D St NW, lobby8:30 a.m.–4:30 p.m.
Reeves Center2000 14th St NW, lobby7:00 a.m.–7:00 p.m.
Wilson Building1350 Pennsylvania Av NW, lobby8:00 a.m.–5:00 p.m.
Tax preparation assistanceand seminars
Saturday Income TaxPreparation DaysFree DC individual income tax returnpreparation services941 North Capitol St NE, 1st floorApril 3 and April 109:00 a.m.–1:00 p.m.
Tax Practitioner’s Institute2004 Tax Filing Season Seminar941 North Capitol St NE, 4th floorJanuary 7 and 88:30 a.m.–4:00 p.m.
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Attend workshops
Who must file a Form D-30?Generally, an unincorporated business, with gross income over$12,000, must file a D-30 (whether or not it has net income). Thisincludes any business carrying on or engaging in any trade,business, or commercial activity in DC or receiving income fromDC sources.• To determine if you need to file, please note that gross income
includes revenue from all DC sources before deducting thecost of goods sold, expenses and other deductions allowedwhen calculating net income.
• Carrying on or engaging in a trade or business in DC isdetermined by the nature and extent of the unincorporatedbusiness’ activities in DC conducted by its owners, members,or through employees, agents or other representatives.
An unincorporated business with gross income of $12,000 or lessmust file a D-30 return for information purposes. Complete theentity portion and fill in the “Gross income of $12,000 or less” oval.Other business activities with gross income $12,000 or less andoperated as:• a partnership, must file a Form D-65;• a DC resident sole proprietor, must file a Form D-40; or• a DC resident trust, must file a Form D-41Please sign the return.
An unincorporated business with gross income in DC of over$12,000 from any of the activities shown below, must file anunincorporated business franchise tax return.• rental of real or tangible personal property; or• leasing of real or tangible personal property; or• any other similar arrangement.
Multiple businessesIf an individual or group of individuals carries on two or more distinctunincorporated businesses in DC (none of which are exempt), theymust be reported on one return. Include all income and expenses onthat one return; however, you may submit separate computations toshow the net income or loss of each business.
When do you not have to file Form D-30?You do not have to file if:• You are an organization recognized as exempt from DC taxes.
- In order to maintain your DC tax-exempt status, each yearyou must send a copy of your IRS Form 990, 990PF, or990EZ to: Office of Tax and Revenue, PO Box 556,Washington DC 20044-0556.
- Any unrelated business income, as defined in IRC §512,is subject to the corporate franchise tax and a Form D-20must be filed.
• The trade or business is by law, custom or ethics, unableto incorporate.
• It is a trade or business licensed by DC to a blind person, foroperating a stand in a federal building.
• You are a professional corporation, incorporated under the DCProfessional Corporation Act and therefore, you must file aForm D-20.
• It is a trade, business or professional organization where:- 80 percent of its gross income comes from personal
services actually rendered by owners or members of thebusiness and
- capital is not a material income-producing factor.
NOTE: If an individual or group of individuals is engaged in two ormore separate and distinct businesses during the tax year, eachbusiness is considered separate when determining tax-exemptstatus.
When and where should you file yourForm D-30?
File your return and pay any tax due by April 15th if you are acalendar year filer; and by the fifteenth day of the fourth monthafter your tax year closes, if you are a fiscal year filer. If the duedate falls on a Saturday, Sunday, or legal holiday, the return is duethe next business day.
Mail the return and payment to: Office of Tax and Revenue, POBox 610, Washington DC 20044-0610. Make the check or moneyorder payable to the DC Treasurer. Write your FEIN or SSN, D-30and the tax year on the payment.
Extension of time to fileYou may request an extension of time to file by filing DC Form FR-128 (copy included) by the return due date. You must pay any taxliability with the extension request; otherwise, the request will bedenied. Do not use the federal extension form to make this request.
How can you avoid penalties and interest?
To avoid penalties and interest, file your return on timeOTR will charge a 5 percent per-month penalty for failure to file areturn or pay any tax due on time. The penalty is calculated on theunpaid tax for each month or part of a month that the return is notfiled or the tax is not paid. The maximum penalty is an additionalamount equal to 25 percent of the tax due.
You will be charged interest of 10 percent per year, compoundeddaily, on any tax and any additional tax you owe that is not paid ontime. Interest is calculated from the due date of the return to thedate when the tax is paid. Interest on any underpayment of tax willaccrue even if you have an extension to file your return.
Underpayment penaltiesIn addition to penalties for filing late, there are penalties forunderpayment due to negligence, substantial understatement offranchise tax liability and substantial valuation misstatement.• Negligence means failure to make a reasonable attempt to
comply with tax provisions or failure to exercise ordinary andreasonable care in return preparation without intent to defraud.
• A substantial understatement of franchise tax liability occurswhen the understatement is more than the greater of 10 percentof the tax required on the return for the tax year or $4,000.The penalty is 20 percent of the portion due to negligence or asubstantial understatement.
• There are two types of valuation misstatements. A valuationmisstatement is substantial if the correct valuation differs by200 percent or more from the amount shown on the return.This penalty is an additional amount equal to 20 percent of theunderpayment.
• A valuation misstatement is gross if the correct valuation differsby 400 percent or more from the amount on the return. Thispenalty is an additional amount equal to 40 percent of theunderpayment due to the misstatement.
Paid tax preparer penaltyOTR imposes a penalty when tax liability is understated. Penaltiesare assessed if a paid tax preparer: prepares a return or refundclaim based on an unrealistic position; should have known theapplicable law or regulation; does not adequately disclose relevantfacts for the position; willfully attempts to understate tax liability; orfails to sign a return or refund claim. Penalties range from $50 to$1,000 for each return or refund claim.
Charge for Dishonored ChecksYou will be charged $65 if your check is returned to us.
Fraud penaltyIf OTR finds that part of an underpayment is due to fraud, it willpresume the entire underpayment is due to fraud. You have theburden of proof to show that it is not due to fraud. If any part of anunderpayment of tax is due to fraud, OTR will add a 75 percentpenalty to your tax liability.
Underpayment of estimated taxOTR will charge 10 percent per year, compounded daily onunderpayments of estimated franchise tax installment payments.The charge is computed from the installment payment due date tothe date when the payment is made. It is in addition to the penaltyimposed for false statements. This charge will be assessedautomatically by OTR’s integrated tax system.
What other DC forms may you need tofile?
Qualified high technology companies (QHTC)If you are a QHTC, you may be eligible for an additional credit forcosts to retrain qualified disadvantaged employees. You need tofile the supporting forms to be eligible for these credits. For formsand more details, see the pamphlet FR-399 Qualified HighTechnology Companies on our website at www.cfo.dc.gov. If youare a QHTC, fill in the QHTC oval on page 1 of the Form D-30.
Definition of termsBusiness incomeIncome arising from transactions and activities in the regular courseof the taxpayer’s trade or business is business income. This includesincome from tangible and intangible property if the acquisition,management and disposition of the property are part of thetaxpayer’s regular trade or business operations. Income of anytype — manufacturing income, compensation for services, salesincome, interest, dividends, rents, royalties, gains, operating andnon-operating income from any class or from any source — isbusiness income if it arises from transactions and activitiesoccurring in the regular course of a trade or business. Whetherincome is business or non-business depends on the underlyingtransactions and activities — the elements of a particular trade orbusiness. In general, all transactions and activities that depend onor contribute to the operation of your economic enterprise as awhole constitute your trade or business. Transactions and activitiesare those arising in the regular course of business and constitutingintegral parts of the trade or business.
Commercial domicileThe principal place from which you direct or manage your trade orbusiness.
CompensationWages, salaries, commissions and other forms of remunerationpaid or accrued to employees for personal services.
Non-business incomeAll income except business income.
Transportation companyAny business engaged in transporting persons, goods, or propertyof others for hire.
SalesAll gross receipts, including dividends, interest and royalties,considered to be business income which are not required to beallocated.
Taxable in another stateFor purposes of al location of non-business income andapportionment of business income, you must be subject to a netincome tax, a franchise tax measured by net income, a franchisetax for the privilege of doing business or a corporate stock tax inthat other state .
General InstructionsIMPORTANTSpecial rules on depreciationYou may not claim bonus depreciation or additional expenses allowedin IRC § 179 for DC tax purposes. For federal tax purposes,businesses are eligible to deduct additional bonus depreciation and179 expenses. OTR does not allow additional depreciation oradditional expenses for IRC § 179.
Office of Tax and Revenue rulingsOn July 1, 2002, the Office of Tax and Revenue (OTR) announcedthat it was reviewing rulings related to certain taxes. These included:income tax; franchise tax; personal property tax; sales tax; grossreceipts tax; and employee withholding tax. The review did notinclude: excise tax, real property or tax-exempt status.
From July 1, 2002 through December 31, 2002, OTR reviewed letterrulings and any OTR ruling submitted by taxpayers who receivedthe ruling and intended to use it for tax years beginning afterDecember 31, 2002. Generally, rulings not submitted to OTR wererevoked as of December 2002. Direct any questions by phone ore-mail to OTR, General Counsel, 202-442-6500, [emailprotected].
QHTCs filing the D-30If you are a certified QHTC please complete Lines 1-36 of theD-30. Do not show a tax on Line 37, leave it blank.
Amended returnsYou must use the Form D-30 of the year you are amending. If thereturn is for 2001 or later, fill in the Amended Return oval andcomplete the Tax Year Ending box. Attach a detailed statement ofadjustment(s). Note: Form D-2030X is obsolete for tax years after2000.
If the IRS adjusts your federal return or if you file an amendedfederal return, you must file a separate amended DC return within90 days. If the federal adjustment results in a DC tax refund, you
must file within 180 days to claim the refund. It must be refunded.You may not use it as a credit carryover to the next year.
Mail the amended return and attachments to the Office of Tax andRevenue, PO Box 610, Washington DC 20044-0610.
Refund offsetIf you have other DC tax liabilities, we may apply all or part of anyoverpayment to them.
Franchise tax rate and minimum taxThe tax rate is 9.975 percent and is applied to your “total taxableincome” from Line 36 of Form D-30. The minimum tax is $100.
Incomplete forms will delay processingComplete all items on the Form D-30. Otherwise, OTR will sendthe return back to you to complete the missing information.
Taxable year beginning and endingEnter your taxable year beginning and ending dates in the areasprovided on page 1. It can be either a calendar year or a fiscalyear. If this is your final return, also fill in the appropriate oval onpage 1.
NAICS Business Activity CodesPlease provide this on page 1 of the return. The codes are in FR-500, Combined Business Tax Registration Application. You may alsofind them on our website www.cfo.dc.gov.
All entries on the return and attachments are dollars onlyEnter only whole dollar amounts on the tax forms and schedules.Do not enter cents.
Help us identify all of your forms and attachmentsWrite your FEIN/SSN, tax period, business name and address onall statements submitted with your return. The identification numberis used for tax administration purposes only.
Signature and verificationAn authorized officer of the unincorporated business must sign thereturn. A receiver, trustee, or assignee must sign any return thathe/she is required to file for the business. Any person who preparedthe return for compensation must also sign the return and providethe requested identification number. If a firm or corporation preparesa return, it should be signed in the name of the entity. The signaturerequirement does not apply when a taxpayer’s regular employeeprepares the return.
FormsAn easy and fast way to get forms is by downloading them from ourwebsite. Go to www.cfo.dc.gov, then click on Taxpayer ServiceCenter, then click on Tax Forms and Publications.
Tax fraud hotlineAnyone suspecting tax fraud is encouraged to report such activityto the Tax Fraud Hotline at 1 800-380-3495 or by e-mail [emailprotected].
Specific Instructions
Negative amountsIf you enter a negative amount on a line, fill in the oval to the left ofthe entry blocks.
Allocation and apportionment requiredAny unincorporated business carrying on a trade or business inDC and the other jurisdictions must apportion its business incomebetween DC and the other jurisdictions. Apportion the net incomefrom trade or business activit ies using the appropriateapportionment formula. See Schedule F of the D-30. You mustallocate your non-business income to the jurisdiction of the business’domicile.
Non-business income allocation
Non-business incomeAllocate items of non-business income to DC. The following gainsand losses from sales or other dispositions are allocated to DC:• real property located in DC (other than realty used in the trade
or business whether held for sale or otherwise);• tangible personal property (other than any tangible personal
property used in the trade or business whether held for saleor otherwise) if:- the property had a situs in DC at the time of sale; or- your principal place of business is in DC and you are not
taxable in the situs state.• intangible personal property (other than intangible personal
property of any kind used in the trade or business whetherheld for sale or otherwise) are allocable to DC if the taxpayer’sprincipal place of business is in DC.
Allocate net rents and royalties from real property located in DC toDC.
Allocate non-business interest and dividends derived from sourcesin DC to DC unless specifically excluded from taxation and subjectto apportionment as business income.
Allocate to DC, non-business income from rents and royalties frompatents, copyrights, trademarks, service marks, secret processesand formulas, franchises and other like property (if not used in thetrade or business). These royalties are allocated according to thepatent’s location or place of use, or where the copyrighted materialis published or used. If DC is the principal place of business of abusiness entity, not subject to tax anywhere else, then the rent orroyalty income is allocable to DC.
Income from the sale of tangible personal property to the UnitedStates Government by a business that has its principal place ofbusiness outside DC is income from DC sources if the property isdelivered from outside DC for use in DC.
All other non-business income derived from sources in DC isallocable to DC.
Where income is allocable between DC and other jurisdictions, youmust allocate all expenses, losses and other deductions incurredin the production of the income in the same way. Losses incurred inthe production of non-business income are allowable if thetransaction’s profits would be taxable.
Gross Income
D-30, page 1, line-by-line
Line 1 Gross receipts, minus returns and allowances
Enter the total gross receipts from sales and operations, minusreturns and allowances.
Line 2 Cost of goods sold and/or operationsEnter the figure from Schedule A, Line 8. If the production,manufacture, purchase, or sale of merchandise is an income-determining factor in the trade or business, you must inventorymerchandise at the start and end of the tax year. You may valuethem at your cost or at the lower of cost or market, or by anotherIRS-approved method. You must continue to use the inventorymethod you choose until you get permission from OTR to change.If the inventories do not agree with the balance sheet figures, attacha statement explaining the reason for any difference.
Cost of Operations (where inventories are not an income-determining factor): If the amount entered on Line 2, page1, includesan amount applicable to the cost of operations, attach a statementshowing: (1) salaries and wages; and ((2) other costs in detail.
Line 3 Gross profitLine 1 minus Line 2. Enter the result here.
Line 4 DividendsEnter the total of all taxable dividends. You may deduct Subpart Fincome (as defined in IRC §952). Attach a detailed statementshowing the calculation of the taxable amount.
Line 5. InterestEnter all interest which the business received or is credited withduring the tax year, including interest paid on obligations of a State,Territory of the United States, or any of their political subdivisions,except those of DC. Include expenses connected with the purchaseor production of income from U.S. Treasury securities on Line 29(b).(Attach a detailed statement.)
Exclude interest income on obligations or securities issued by theUnited States or its instrumentalities if it was included in federalgross income.
Line 6 Gross rental incomeEnter here the gross amount you received from real or personalproperty rental from Line 7, Column 3, of Schedule D, Form D-30.Do not enter rental income on Line 26(a) that is related to a tradeor business.
Note: DC does not allow the additional federal bonus depreciationallowed under federal law. If you claimed this depreciation on yourfederal return, reduce the depreciation you claim here by thatamount. Attach a computation showing that your DC claimeddepreciation does not include the 30 percent bonus depreciationand that the basis of the depreciated property for DC tax purposeshas not been reduced by the bonus depreciation amount claimed.DC also does not allow additional Section 179 expenses. If youclaimed these expenses on your federal return, reduce yourexpenses on your D-30 by that amount.
Line 7 RoyaltiesReport royalty income and related expenses in the same manneras rental income and rental expenses. Royalties from patents youdeveloped from the licensing of processes or a trade name andsales of know-how are business income.
Line 8(a) Net Capital Gain (Loss)Capital gains or losses are treated in the same manner as they arefor federal corporation income tax purposes. (See detailedinstructions on Federal Schedule D, Form 1120, Corporation IncomeTax Return.) IRC §1231 gains are business income.
Note: Since the 30 percent federal bonus depreciation is notallowed for DC tax purposes, recalculate the capital gain/lossreported on your federal return without taking into account thefederal 30 percent amount. Attach a statement showing theadjustments.
Line 8(b) Ordinary gain (loss) from Part II, Federal Form 4797Enter the total ordinary gain (or loss) from federal Form 4797 Salesof Business Property. Attach a copy of your Form 4797.
Line 9 OtherIncomeEnter the total income not reported elsewhere on the return; attacha detailed statement. Do not enter on Line 26(a) other incomerelated to a trade or business. Enter it on line 9.
Line 10 Total gross incomeAdd lines 3 through 9.
Deductions
Deductions are allowed if they are ordinary and necessary anddirectly related to business income as defined in these instructions.Deductions must not be taken on this return for interest, taxes,contributions and other itemized deductions normally deductibleon individual income tax returns filed by owners or members of theunincorporated business.
Line 11 Salaries and wagesEnter all salaries and wages not deducted elsewhere on the return.• Do not include compensation of the owners/members of the
unincorporated business.• Do not include wages used to compute the Economic
Development Zone Incentives credit.
Line 12 RepairsEnter the cost of incidental repairs, including labor, supplies andother items that do not add to the value or appreciably prolong theproperty’s life. You may charge to a capital account, expendituresfor new buildings, machinery, equipment and/or permanentimprovements or betterments that increase the value or appreciablyprolong the life of the property.
Line 13 Bad debtsReport bad debts in the same manner as you report them for federaltax purposes. Attach a copy of the information you submitted withyour federal return.
Line 14 Rental expenses related to rental income from ScheduleD, Column 6, Line 8, Form D-30. Do not include the additionalfederal depreciation. Do not deduct elsewhere in this returnexpenses related to rental income.
Line 15 RentEnter the amount of rent paid or accrued for business property inwhich the unincorporated business has no equity.
Line 16 TaxesEnter taxes imposed on taxpayers as reported in Schedule C ofForm D-30. Do not deduct these taxes:• Income and excess profit taxes.• Franchise taxes imposed by the unincorporated business tax
law, or• Taxes assessed against the property for local benefits of a
kind tending to increase the value of the property assessed.
Line 17 Interest expenseEnter interest paid or accrued on business debt. If any interestincome is not subject to the unincorporated business tax, then therelated interest expense is not deductible.Line 18 Contributions or giftsEnter from Schedule B, page 3 of Form D-30, contributions or giftsmade to qualified organizations in the tax year. This deductionmay not exceed 15 percent of the net income, (Line 26), of thebusiness before the contribution or gifts are deducted. Attach aseparate statement detailing information about contributions andgifts. Contribution carry-overs are not allowed.
Line 19 AmortizationEnter the amortization amount from your federal Form 4562Depreciation and Amortization. Attach a copy of your Form 4562to your return.
Line 20 DepreciationEnter the depreciation amount from your federal Form 4562. Donot include amounts deducted on Line 14 or elsewhere on the return.You must use on your DC return the same depreciation methodused on your federal return. Attach a copy of your Form 4562.
Note: If you claimed the bonus depreciation or additional Section179 expenses on your federal return, reduce the depreciation youclaim here by that amount. Attach a computation showing thereduction.
Line 21 Other allowable deductionsEnter the amount from Schedule G, page 4 of the Form D-30.
Line 22 Total deductionsAdd lines 11–21 and enter here.
D-30 page 2, line-by-line_______________________
Line 23 Net IncomeSubtract Line 22 from Line 10; enter the amount here.
Line 24 Net operating loss deductionEnter any DC net operating loss carried forward from a year before2000. DC does not allow a net operating loss carryback.
Line 25 Net income after net operating loss deductionEnter the combined amounts from Lines 23 and 24. Also enter thisamount on Line 31, if it is entirely from a DC trade or business.
Line 26(a), (b) and (c)Enter income, related expenses and the net difference on theappropriate lines. Submit a detailed explanation of the income andexpenses.
Enter on Line 26(b) the portion of deductions related to the incomeallocated within or outside DC. Please note that expenses connectedwith the production of income from U.S. Treasury securities areincludible in Line 26(b).
Line 27 Net income from trade or business subject toapportionmentSubtract Line 26(c) from Line 25. Enter the amount on Line 27.
Line 28 DC apportionment factorEnter the factor computed on Schedule F, Line 5.
Line 29 Net income from trade or business apportioned to DCMultiply the amount on Line 27 by the apportionment factor onLine 28. Enter the result here.
Line 30 Add the portion of Line 26(c) attributable to DC.
Line 31 Total District net income (loss)Add Lines 29 and 30. Enter the result here.
Line 32 Minus: Salary for owner(s)/member(s) servicesSee Schedule J, column 4 on page 5. You may deduct a reasonableamount for salaries or other compensation for personal servicesactually rendered by the owner(s) or member(s) of the business inthe active conduct of the business.• The reasonable amount for owner(s) and members(s) is
reduced by any fees paid to an independent management orcollection entity for management services performed for thebusiness.
• Do not claim an amount accrued to an owner(s) or member(s)as a drawing account unless it is for services actually rendered.
• The aggregate deduction for salaries or other compensationmay not exceed 30 percent of Line 31.
Line 33 ExemptionAn exemption of up to $5000 is allowed.• Enter the number of days this return covers in the boxes on
Line 33. If it is a full year enter 365 days.• If the return is for less than a full year, prorate the exemption
by dividing the number of days entered by 365 to arrive at apercent. Then multiply $5000 by that percent. Include astatement showing your calculation of the exemption amount.Also enter this amount in Schedule J, column 5.
Line 34 Total taxable income(before the apportioned NOL deduction)Subtract Lines 32 and 33 from line 31. Enter the result on Line 34.
Line 35 Apportioned NOL deductionEnter the amount of DC apportioned net operating loss carry forwardfor loss years 2000 and later on Line 35.
Line 36 Total taxable incomeEnter the result of Line 34 minus Line 35.
Line 37 TAXCalculate the tax by multiplying any positive amount on Line 36 by.09975. Enter the result on Line 37.
Minimum Tax – If your business has gross income of more than$12,000 (Line 10) and Line 36 shows taxable income of less than$1003, your minimum tax is $100. Enter this amount on Line 37.
If your business has gross income of $12,000 or less (Line 10) andyou are only filing to satisfy the information requirement – theminimum tax does not apply. Complete only the personalinformation section of the D-30 and leave the rest of the form blank,including Line 37.
NOTE to QHTC Filers:If you are a QHTC, your D-30 return is exempt from the franchisetax. The minimum tax does not apply. Complete Lines 1 through36 and leave Line 37 blank. Attach a copy of your QHTC-CERT toyour return and fill in the QHTC oval on page 1.‘Line 38 Minus payments and creditsEnter amounts paid or credits from:
• your request for an extension of time to file (or your originalreturn if you are filing an amended return),
• estimated tax payments (Form D-30ES), also include anycarryover from your 2002 D-30 return, or an EconomicDevelopment Zone Incentives credit from the worksheet onpage 12.
Line 39 Total of Lines 38(a), (b) and (c)Add Lines 38(a), (b) and (c) and enter result here.
Lines 40 to 44(b)Follow the instructions on the form.
Form D-30 schedulesSchedule F – DC Apportionment FactorAn unincorporated business engaging in a trade or business bothin and outside DC must use property, payroll and sales as thethree factor formula to apportion its business income.
Unincorporated businesses domiciled in DC and not subject to taxelsewhere must report 100 percent of their net business incomeand allocate 100% of their non-business income to DC.
Unincorporated businesses carrying on a trade or business in DCand in other jurisdictions must apportion trade or business incometo DC. Multiply the total income by a fraction. The numerator is theproperty factor plus the payroll factor plus the sales factor. Thedenominator is three, reduced by the number of any factors withno denominator.
• Property Factor
The property factor is a fraction; the numerator is the averagevalue of real and tangible personal property you owned orrented and used in DC during the tax year. The denominator isthe average value of all real and tangible personal propertyyou owned or rented during the tax year. Do not include in thenumerator or the denominator, any property or portion ofproperty, not used to produce business income.
Transportation companies. The numerator also includes theportion of the average value of vehicles, rolling stock, aircraft,watercraft and other equipment used during the taxable periodto transport persons and property both in and outside DC. Thisportion is determined by comparing the total miles per unit ofequipment traveled in DC compared to the total mileagetraveled everywhere by each class of property.
Railroad companies – the classes of property are those youmust report for DC personal property tax purposes (DC Code§47-1512).
Where property is used in any activity the income from whichis allocable or apportionable, you may use (or OTR may require)any method that properly reflects the portion of the averagevalue used to arrive at the property factor. This is subject tothe approval of OTR.
Property you own is valued at its original cost to you plus thecost of any additions and improvements. If you cannotdetermine your original cost or if the cost is zero, value theproperty at its market value when you acquired it. Property
rented to you is valued at eight times the net annual rental.(The annual rental you paid is decreased by any annual rentalyou receive from sub-rentals, provided the rental and sub-rental rates are reasonable.) Include in the annual rental,amounts paid or accrued for the use or rental of property orfacilities of another. This net annual rate includes amountswhether paid as rent, as reasonable compensation for use orunder any other designation, pursuant to statutory enactment,lease, or rental agreement of any kind, contract, or otherwise.Do not include payments for leased property capitalized forfederal tax purposes as rent. You may only include thesepayments in this factor to the extent of their capitalized valuefor federal tax purposes. If OTR determines that any net annualrental rate or sub-rental rate is unreasonable, or if a nominalor zero rate is charged, OTR may determine and apply a rentalrate that reasonably reflects the property’s rental value.
To determine the property’s average value, average the valuesat the start and end of the tax period. You may, if necessary,use monthly or quarterly values during the tax period, toproperly reflect the average value of the property (subject toOTR approval).
• Payroll Factor
The payroll factor is a fraction; the numerator is the totalcompensation you paid to or accrued for persons performingservices for you in DC during the tax year. The denominator isthe total compensation you paid or accrued everywhere duringthe tax year. However, do not include in the numerator ordenominator, any compensation paid or accrued to employeesfor personal services rendered in the production of non-business income. Compensation paid or accrued other thanin cash, is valued at its fair market value on the date of paymentor accrual. Do not include payments to independent contractorsin this factor.
Transportation companies — the numerator of the payrollfactor in addition to that described above, also includes thatportion of the total compensation paid or accrued to employeesemployed on vehicles, rolling stock, aircraft, all watercraft, andother equipment you used during the taxable period to transportpersons and property between DC and other jurisdictions. Todetermine this factor, apply the percentage computed (as inthe property factor above) to the total compensation.
If you pay or accrue compensation for services, which generateincome that can be allocated or apportioned, you may use anymethod that will properly reflect the average value used tocalculate the payroll factor. The method you choose is subjectto OTR approval.
Compensation is paid or accrued in DC if:
– the individual’s services are performed entirely in DC; or
– the individual’s services are performed in DC and otherjurisdictions, but the services performed outside DC areincidental to the individual’s services performed in DC; or
– some of the individual’s services are performed inDC and:(1) the base of operations or if there is no base ofoperations, the place from which services are directedor controlled is in DC; or(2) the base of operations or place from which servicesare directed or controlled is not in DC, or in any statewhere some part of the services are performed, butthe individual’s residence is in DC.
• Sales Factor
The sales factor, except for transportation companies, is afraction; the numerator is the taxpayer’s total sales in DC duringthe tax year. The denominator is the taxpayer’s total saleseverywhere during the tax year.
Transportation companies — the sales factor is a fraction;the numerator is the total of revenue units the company firstreceived as originating or connecting traffic at a point in DC.Add to this the total of revenue units the company dischargedor unloaded at a point in DC, at the termination of thetransportation movement or for transfer to a connecting carrier.The denominator is twice the total of revenue units originatedeverywhere during the tax year. One ton of freight equals onerevenue unit; ten passengers equal one revenue unit. If thecompany’s revenue is predominantly from transportation ofpassengers, you may use the number of passengers loadedand discharged, in place of originating and terminating tonnage.
Tangible personal property sales, including sales to the UnitedStates Government, are considered to occur in DC, no matterwhere title is transferred, FOB point, or other sales conditions,if the property:
– is delivered or shipped to a purchaser in DC; or– has an ult imate destination in DC, after al l
transportation (including any by the purchaser) iscomplete; or
– is delivered or shipped from an office, store, ware-house, factory, or other storage place in DC to adestination outside DC — and you are not taxable inthe state to which the property is shipped or delivered.
Except for transportation companies – non-tangible personalproperty sales are considered to occur in DC if the income-producing activity or service is performed:
− in DC; or− the proportion of the income-producing activity or
service performed in DC is greater than that performedin any other jurisdiction, based on performance cost.
Schedule H – Income not reported (claimed as nontaxable) –(page 4 of Form D-30)List all income of the unincorporated business that you considernot subject to the unincorporated business franchise tax. Statewhy the income should be considered nontaxable.
Schedule I – Balance sheets (page 4 of Form D-30)Submit balance sheets for the start and end of the tax year. Conformthem to the unincorporated business’ books and records and yourfederal return. Attach an explanation of any variation.
Supplemental information (page 5 of Form D-30)Please provide all the information requested in this schedule.
Schedule J Distribution and Reconciliation of Net Income(or Loss) (Page 5 of Form D-30)Furnish all information requested. Under provisions of DC Code§47-1805.01(a), you must enter the SSN of each of the owners.The SSN is necessary for the proper identification of an owner’stax account with DC and will be used only for tax administrationpurposes. Any additional names, SSNs, etc. may be listed on anattachment filed with the return.
GeneralIf using the income allocation and apportionment rules results in atax that does not fairly represent your tax liability arising from your
Economic Development Zone Incentives Credit
Supporting Documentation Required If you are claiming anEconomic Development Zone Incentives (EDZI) credit againstyour DC franchise tax liability, you MUST attach to your return:1. a copy of the DC Council resolution approving the qualifi-
cation for any credits claimed;2. a certification of eligible employees issued by the DC De-
partment of Employment Services; and3. a completed EDZI Credit Worksheet.
The EDZI Amendment Act allows a qualified business, under cer-tain circ*mstances to take various credits against its franchise taxliability. (The maximum annual credit is $7500.) A qualified busi-ness is one that is approved as being qualified under Section 5 ofEDZI by the D.C. Office of Economic Development. You MUST com-plete the worksheet below and include the necessary attachmentswith your return. The following credits are available under EDZI toqualified businesses:
1. a credit against the franchise tax in an amount equal to 50
percent of the wages of all certified employees who meetthe requirements of Section 10(b) of EDZI;
2. a credit against the business‘ franchise tax in an amountequal to 50 percent of the insurance premiums attributableto all employees for whom it obtains employer liability in-surance under the District of Columbia Worker’s Compen-sation Act of 1979; and
3. a rent credit for lessors against the business’ franchise tax.The credit allowed is the difference between the rental mar-ket value of the space leased to a licensed non-profit childcare center and the actual rent stated in the lease agree-ment as indicated in the DC Council resolution approvingthe qualification of the business. A non-profit child care cen-ter is a child development center as defined in Section 10of EDZI.
A credit carry forward for five years is available for any EDZIcredit not used in a previous year. The maximum amount thatmay be claimed in any year is $7500, including any carry for-ward.
TotalPremiums $
Economic Development Zone Incentives Credit Worksheet (maximum annual credit is $7,500)
Column 1 - Credit Category
A. Certified employees wages
B. Certified (eligible employees) workers’ compensation liability insurance premiums
C. Child care center rent (lessor)..........
Total EDZI credit (enter on Line 38 (c), Page 2) (maximum $7500)
Column 4Column 3Column 2TotalWages $
50% of Wages Col. 2 x .50 =
Col. 2 x .50 =
Total of Column 4 (if more than $7,500, enter $7,500)
Add any EDZI credit carry forward from a previous year
Minus rent shown on lease agreement ........
Total child care center credit $
$______________________________Rental market value ............................
$________________________________
$
$
$
$
50% ofPremiums
$
$________________________________
*030300110000*Government of theDistrict of Columbia
2003 D-30 Unincorporated BusinessFranchise Tax Return
•READ INSTRUCTIONS BEFORE PREPARING RETURN•
1 Gross receipts, minus returns and allowances
2 Cost of goods sold (from Schedule A) and/or operationsAttach statement.
3 Gross profit Line 1 minus Line 2. Fill in if minus:
4 Dividends Minus Subpart F income (Attach statement).
5 Interest Attach statement.
6 Gross rental income From D-30 Schedule D. Fill in if minus:
7 Royalties Attach statement.
8 (a) Net capital gain (loss) Attach copy of federal Schedule D. Fill in if minus:
(b) Ordinary gain (loss) from Part II, federal Form 4797 Fill in if minus:
Attach copy of your Form 4797.
9 Other income Attach statement. Fill in if minus:
10 Total gross income Add Lines 3–9. Fill in if minus:
11 Salaries and wages (Do not include owner(s)/member(s)).
12 Repairs
13 Bad debts Attach copy of any statement filed with federal return.
14 Rental expenses related to rental income
15 Rent
16 Taxes From D-30 Schedule C.
17 Interest expense From D-30 Schedule E.
18 Contributions or gifts From D-30 Schedule B.
19 Amortization Attach copy of your federal Form 4562, Part VI.
20 Depreciation Attach copy of your federal Form 4562. Do not include the additional federal bonus depreciation.
21 Other allowable deductions From D-30 Schedule G.
22 Total deductions Add Lines 11–21.
2003 D-30 P1
Unincorporated Business Franchise Tax Return page 1Revised 2/04
Business name Taxable year beginning MM/YY Taxable year ending MM/YY
Business address line #1 Fill in if this is your first return or if your address is different from last year’s return.Fill in if Amended Return
Fill in if Certified QHTC
Fill in if Gross Income is $12,000 or less
Fill in if Final Return
Business address line #2
City State Zip Code
Mailing address line #1
Mailing address line #2
City State Zip Code
1 $ .002 $ .00
3 $ .00
5 $ .006 $ .007 $ .008a $ .008b $ .00
10 $ .0011 $ .0012 $ .0013 $ .0014 $ .0015 $ .00
9 $ .00
16 $ .0017 $ .0018 $ .0019 $ .0020 $ .00
21 $ .0022 $ .00
Round cents to the nearest dollar.
DED
UC
TIO
NS
5ST
APLE
CH
ECK
OR
MO
NEY
OR
DER
HER
E 5
GR
OSS
IN
CO
ME
Taxpayer Identification Number
USE
NUMBER OF BUSINESS LOCATIONS
In DC
Outside DC
Do not take federal bonus deprecia-tion or extra Section 179 expenses.
4 $ .00
-
OFFICIAL USEFill in if FEIN
Fill in if SSN
NAICS CODE
-
If Line 10, total gross income is $12,000 or less, do not fill in beyond Line 10, leave Line 37blank. Sign, date and file your return.
*030300120000*
2003 D-30 P2
Unincorporated Business Franchise Tax Return page 2 File order 4Revised 10/03
Taxpayer Name:
D-30 PAGE 2
FEIN or SSN:
23 $ .0024 $ .0025 $ .00
26b$ .0026c .0027 $ .00
28
29 $ .00
31 $ .00
32 $ .0033 $ .00
34 $ .00
35 $ .00
37 $ .0038a$ .00
38b$ .0038c$ .00
ENTER DOLLAR AMOUNTS ONLY
23 Net income Line 10 minus Line 22. Fill in if minus:
24 Net operating loss deduction Years before 2000.
25 Net income after NOL deduction Line 23 minus Line 24. Fill in if minus:
26 (a) Non-business income Attach statement. Fill in if minus:
(b) Minus: Related expense Attach statement.
(c) Subtract Line 26(b) from Line 26(a) Fill in if minus:
27 Net income from trade or business subject to apportionmentLine 25 minus 26(c). Fill in if minus:
28 DC apportionment factor From D-30 Schedule F, Col 3, Line 5.
29 Net income from trade or business apportioned to DCMultiply Line 27 by Line 28. Fill in if minus:
30 Portion of Line 26(c) attributable to DC Fill in if minus:Attach statement.
31 Total District net income (loss) Fill in if minus:
Combine Line 29 and Line 30.
32 Minus: Salary for owner(s) or members services from D-30 Schedule J, Column 4
33 Exemption Maximum amount $5000. Enter days in DC here. ❱
If less than 365, see page 9 for amount to claim.
34 Total taxable income Before apportioned NOL deduction Fill in if minus:Line 31 minus Lines 32 and 33
35 Apportioned NOL deduction
36 Total taxable income Line 34 minus Line 35. Fill in if minus:
37 TAX 9.975% of Line 36. If less than $100 enter $100.
38 Minus: (a) Tax paid, if any, with request for extension of time to file (or with original return, if this is an amended return)
(b) 2003 estimated franchise tax payments
(c) Economic development zone incentives credit from worksheet
39 Add Lines 38(a), (b), and (c)
40 Balance due Line 37 minus Line 39, if Line 37 is greater than Line 39.
41 Penalty $ Total penalty and interest ❱Interest $
42 Total unpaid balance, plus penalty and interest Add Lines 40 and 41.
43 Overpayment Line 39 minus Line 37, if Line 39 is greater than Line 37.
44 (a) Credit to 2004 estimated franchise tax
(b) Amount to be refunded Line 43 minus Line 44a.
26a$ .00
30 $ .00
39 $ .0040 $ .0041 $ .00
42 $ .0043 $ .00
44b$ .00
PLEASESIGNHERE
PAIDPREPARER
ONLY
Telephone number of person to contact
Preparer’s FEIN, SSN or PTIN Do you want to allow the preparer to discuss this return with the Officeof Tax and Revenue? If YES fill in oval.
36 $ .00
44b$ .00
.
Under penalties of law, I declare that I have examined this return and, to the best of my knowledge, it is correct. Declaration of paid preparer is based on all information available to the preparer.
Officer’s signature Title Date
Preparer’s signature (if other than taxpayer) Date Firm name Firm address
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Schedule A - COST OF GOODS SOLD (See specific instructions for Line 2.)
1Inventory at beginning of year (if different from last year's closing inventory, attach explanation)
2Purchases . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $_________________________________
Minus cost of items withdrawn for personal use . . . . . . . . . . . . . . $_________________________________ Enter result here �3Cost of Labor
4Material and supplies
5Other costs (attach statement) – (30% federal bonus depreciation is not allowed)
6Total of lines 1 through 5
7Inventory at end of year
8Cost of goods sold (Line 6 minus Line 7). Enter here and on Line 2, page 1 of this form
Method of inventory valuation used____________________________________________________________________
Schedule B - CONTRIBUTIONS OR GIFTS (See specific instructions for Line 18.)
Schedule C - TAXES (See specific instructions for Line 16.)
$ $
$TOTAL (Subject to 15% limit – also enter on Line 18, page 1)
$ $
$TOTAL (Enter on Line 16, page 1 of this form, that portion of the total not included below in Schedule D)
Type of Tax Type of TaxAmount Amount
Schedule D - INCOME FROM RENT
Col. 1 Address of PropertyCol. 2 Kind of
Property
Col. 3 GrossAmount of Rent
Col. 4 Depreciation*or Depletion (Per
Federal Form 4562)
Col. 5 Rep airs(Explain in Sch. D-1)
Col. 6 Taxes, Interestand other Expenses(Explain in Sch. D-1)
1. $ $ $ $
2.
3.
4.
5.
6.
7. TOTAL (Enter the total of Col. 3 on Line 6, page 1 ) $ $ $
$8. TOTAL OF COLUMNS 4, 5, and 6 (Also enter on Line 14, page 1). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$
Schedule D-1 - Explanation of deductions claimed in Columns 5 and 6 of Schedule DColumn
No.Explanation Column
No.Explanation AmountAmount
$ $
$
$$
*excluding the federally allowed 30% bonus depreciation
$
Round all cents to the nearest dollar. If an amount is zero, make no entry. Page 3
Schedule G - Other allowable deductions (See specific instructions for Line 21)
Page 4
Nature of Deduction AmountNature of Income Amount
$
$
TOTAL (Also enter on Line 21, page 1). . . . . . . . . . . . . . . . . . . $ TOTAL . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
Schedule H - Income not reported (claimed as nontaxable)
Schedule I - BALANCE SHEET (See page 11 of Instructions)
AMOUNTAMOUNT TOTAL TOTAL
END OF TAX YEARBEGINNING OF TAX YEAR
14. Accounts payable
15. Mortgages, notes, bonds payable in less than 1 year
16. Other current liabilities (attach statement)
17. Mortgages, notes, bonds payable in 1 year or more
18. Other liabilities (attach statement)
19. Capital
20. TOTAL LIABILITIES AND CAPITAL
As
se
tsL
iab
iliti
es
- C
apit
al
1. Cash
2. Trade notes and accounts receivable
(a) MINUS: Allowance for bad debts
3. Inventories
4. Gov't obligations: (a) U.S. and its instrumentalities
(b) States, subdivisions thereof, etc
5. Other current assets (attach statement)
6. Mortgage and real estate loans
7. Other investments
8. Buildings and other fixed depreciable assets
(a) MINUS: Accumulated depreciation
9. Depletable assets
(a) MINUS: Accumulated depletion
10. Land (net of any amortization)
11. Intangible assets (amortizable only)
(a) MINUS: Accumulated amortization
12. Other assets (attach statement)13. TOTAL ASSETS
Schedule E - Interest expense (See specific instructions for Line 17.)
$ $
$
AmountAmountName and Address of Payee Name and Address of Payee
TOTAL (Enter on Line 17, page 1, that portion of the total not included in Schedule D.) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Schedule F - DC apportionment factor (See instructions) Carry all factors to six decimal places
Column 1 TOTAL Column 2 in DC Column 3 Factor(Column 2 divided by Column 1)
1. PROPERTY FACTOR: Average value of real estate andtangible personal property owned or rented to and used by theunincorporated business.
2. PAYROLL FACTOR: Total compensation paid or accrued by theunincorporated business.
3. SALES FACTOR: All gross receipts of the unincorporated busi-ness other than gross receipts from items of non-business income.
4. SUM OF FACTORS: (Add Column 3)
5. DC APPORTIONMENT FACTOR: Line 4 divided by the number 3, or 3 reduced by the number of factors without a denominator.
$ .00
$ .00
$ .00 $ .00
$ .00
$ .00
.
.
.
.
.
Round all cents to the nearest dollar. Ifan amount is zero, leave the line blank.
Round all cents to the nearest dollar.
(See Instructions on page 11.)
2003 FORM D-30 SCHEDULE E
Schedule J - DISTRIBUTION AND RECONCILIATION OF NET INCOME (OR LOSS)
Col. 1
Name and Address of Owner(s)Social Security
Number
Col. 2Percentage
of TimeDevotedto this
Business
Col. 8Total Income (or
Loss) Not Taxable tothe Unincorporated
Business(Add Cols. 4 thru 7)
Col. 3Percent-age of
Ownership
Col. 4Salary Claimed
Col. 5ExemptionClaimed
Col. 6Net Loss
DC Sources
Col. 7Net Income
(or Loss)from
Outside DC
TOTAL . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Enter total taxable income as shown on Line 34 of return
Net income of Unincorporated Business from both within andoutside DC (from Line 23 of return) . . . . . . . . . . . . . . . . . . . . . . . . .
Col. 4 - See page 9 of InstructionsCol. 5 - See page 9 of InstructionsCol. 6 - Amount from Line 31 of return
Col. 7 - Enter the difference between Line 23 and Line 31 of return
$ $ $ $ $
$
$ $ $$ $
% %
SUPPLEMENTAL INFORMATION2. PRINCIPAL BUSINESS ACTIVITY
4. IF BUSINESS HAS TERMINATED, STATE REASON
6. TYPE OF OWNERSHIP (sole proprietor, partnership, etc.)
3. DATE BUSINESS BEGAN
5. TERMINATION DATE
7. Place where federal income tax return for period covered by this return was filed:
9. Have you filed annual Federal Information Returns, (forms Yes No If no, please state reason: 1096 and 1099) pertaining to compensation payments for 2003?
8. Name(s) under which federal return for period covered by this return was filed:
1. During 2003, has the Internal Revenue Service made orproposed any adjustments in your federal income taxreturns, or did you file any amended returns with the Internal
Revenue Service? Yes No. If "Yes", submitseparately an amended Form D-30 and a detailed s tate-ment, concerning adjustments, to the Office of Tax andRevenue, PO Box 610, Washington, DC 20044-0610.
Page 5
10. Is this return reported on the accrual basis? Yes No If no, check method used: Cash basis
Other (specify)
11. Did you withhold DC income tax from the wages Yes No If no, state reason:of your employees during 2003?
12. Did you file a franchise tax return for the business Yes No If no, state reason:with the District of Columbia for the year 2002?If yes, enter name under which return was filed:
13. Does this return include income from more than one business Yes Noconducted by the taxpayer?(If yes, list businesses and net income (loss) of each)
14. Is the income from any other business or business interest Yes Noowned by the proprietors of this business being reportedin a separate return?(If yes, list names and addresses of these businesses)
15. Is this business an adjunct of a corporation, or affiliated with Yes Noany corporation?(If yes, explain affiliation to stockholders and proprietors)
Round all cents to the nearest dollar.
*031280110000*Government of theDistrict of Columbia 2003 FR-128 Extension of Time
to File DC Franchiseor Partnership Return
2003 FR-128 P1
Extension of Time to File DC Franchise or Partnership ReturnRevised 10/03
Federal Employer I.D. Number Social Security Number (if self-employed) OFFICIAL USE
Business Name Taxable year beginning MM/YY Taxable year ending MM/YY
Business mailing address line #1 Fill in if this is your first return or if your address is different from last year’s return.
Business mailing address line #2
City State Zip code
Submit this form with your payment of any tax due as shown on Line 6 below.1 A 6-month extension of time to file until ___________________ 15, 2004, for the calendar year 2003, or a 6-month extension of time to
file until ____________________, ______________, for a fiscal year ending ____________________, ______________, is hereby requestedfor the following return (fill in one):
Corporation Franchise Tax Return, Unincorporated Business Franchise Tax Return, Partnership Return of Income, Form D-20 Form D-30 Form D-65
2 Total Tax Liability for the Period
3 Estimated Franchise Tax Payments (include any overpayment credit)
4 Other payments
5 Total payments and credits (Add Lines 3 and 4)
6 Balance due (Line 2 minus Line 5). Payment in full must be submitted with thisform or your request will be denied. (Note: you will be subject to the failure-to-paypenalty and interest on any amount of tax due and not paid with this request.)
2 $ .00ENTER DOLLAR AMOUNTS ONLY
Under penalties of law, I declare that I have examined this return and, to the best of my knowledge, it is correct.Declaration of paid preparer is based on all information available to the preparer.PLEASE
SIGNHERE
CORPORATESEAL
PAIDPREPARER
ONLY
Taxpayer(s) signature(s) (See instructions) Title Date
Preparer’s signature (If other than taxpayer) Date
Firm name
Telephone Number of Person to Contact
- -
Preparer’s FEIN, SSN or PTIN
Telephone Number of Preparer
- -
Make check or money order payable to the DC Treasurer. Include your FEIN (or SSN), “FR-128” and tax year on your payment.Mail return and payment to: Office of Tax and Revenue, 6th Floor, 941 North Capitol St NE, Washington DC 20002-4265.
3 $ .00
4 $ .00
5 $ .00
6 $ .00
-
Firm address
PurposeUse Form FR-128 to request a 6-month extension oftime to file a Corporation Franchise Tax Return (FormD-20), an Unincorporated Business Franchise Tax Re-turn (Form D-30), or a Partnership Return of Income(Form D-65).
When to fileThe request for an extension of time to file must be sub-mitted on or before the due date of the return.
Where to submit your requestMail the completed FR-128 with your payment in full ofany tax due to the Office of Tax and Revenue, 6th Floor,941 North Capitol St NE, Washington DC 20002-4265.Be sure to sign and date the FR-128. Make your pay-ment out to the DC Treasurer. On the payment includeyour FEIN or SSN, FR-128 and the tax year.
Note: If you are requesting certification as a QualifiedHigh Technology Company please submit a completedDC Form QHTC-CERT with your extension request.
Extension of time to fileA 6-month extension of time to file will be allowed if youcomplete this form properly, file it on time and PAY thefull amount of tax due shown on Line 6. Attach a copyof the FR-128 which you filed when you file your return.A separate extension request must be filed for eachreturn. Blanket requests for extensions will not beaccepted.
Federal extension formsThe Office of Tax and Revenue does not accept cop-ies of the federal application for an extension of time tofile. You must use Form FR-128.
Additional extension of timeNo additional extension of time to file will be grantedbeyond the 6-month extension unless the taxpayer isoutside the continental limits of the United States. Inthis case, an additional extension of 6 months may begranted.
Signature
The request must be signed by:• Corporations — any designated or authorized officer;• Unincorporated business — any owner or member;• Partnership — any member; or• Paid preparer — also provide your identification
number
Note: Receivers, trustees in bankruptcy, or assigneesthat are in control of the property, business or organiza-tion must sign the request for extension.
INSTRUCTIONS
Government of the District of ColumbiaOffice of Tax and Revenue
Net Operating Loss Deduction For Loss YearComplete a separate D-30 NOL for each business carrying forward an NOL.
Be sure to list NOLs prior to the year 2000 separately from those for 2000 and after.
Name of unincorporated business FEIN/SSN-
Year District net income/loss Losses claimed Losses remaining
Oldest loss year
Subsequent year 1
2
3
4
5
6
7
8
9
10
11
12
13
14
Total losses claimed Total losses remaining
200__ Summary: (to be carried forward)
Enter YearBefore 2000 _________2000 and After _________
D-30 NOL
Name of unincorporated business FEIN/SSN-
Year District net income/loss Losses claimed Losses remaining Oldest loss year
Subsequent year 1
2
3
4
5
6
7
8
9
10
11
12
13
14
Government of the District of ColumbiaOffice of Tax and Revenue
Net Operating Loss Deduction For Loss Year
Complete a separate D-30 NOL for each business carrying forward an NOL.Be sure to list NOLs before the year 2000 separately from those for 2000 and after.
D-30 NOL
Enter YearBefore 2000 _________2000 and After _________
Total losses claimed Total losses remaining
200__ Summary: (to be carried forward)
