Understanding Florida’s Corporate Income Tax Filing Requirements
In Florida, if you’re running a corporation or a bank, you generally need to file an FL income tax return every year. Here’s a breakdown of what you need to know:
Who Needs to File?
- Corporations and Banks:
- Corporations defined under Florida law or banks and savings associations must file a tax return if they either owe Florida taxes or are required to file a federal tax return, even if they don’t owe Florida taxes.
- There’s no exemption in Florida’s Income Tax Code for any specific type of organization, so if your entity falls under the definitions provided in the Florida statutes, it must file unless explicitly exempted by federal tax rules or IRS determination.
- Special Cases:
- S Corporations are generally not taxed by Florida, but if they owe federal taxes, they need to file a Florida tax return.
- Single-member LLCs and certain S corporations don’t file separately if their income is included in another return. If a corporation owns them, that corporation must file for both itself and the LLC.
- Homeowners Associations must file if they file federal returns on Form 1120. However, if they use Form 1120-H, they are exempt from Florida filing.
- Political Organizations:
- Those required to file Federal Form 1120-POL must also file a Florida Form F-1120 if they report taxable income.
- Nonprofits and Tax-Exempt Organizations:
- Nonprofits exempt from federal income tax only need to file Florida returns if they have unrelated business income or need to file Form 990T. If their federal tax-exempt status is in question, they must file Florida returns until they get a determination letter.
- Insurance Companies:
- They must file a Florida tax return if they do business or earn income in the state. This includes companies that provide reinsurance.
- Credit Unions:
- Credit unions exempt under federal law are not subject to Florida tax unless they owe federal tax.
- Benefit Plans:
- Pension and health plans that are federally exempt do not need to file Florida returns as long as their exempt status remains unchanged.
- Real Estate Investment Trusts (REITs):
- REITs must file a Florida return for every year they conduct business or earn income in Florida. Qualified REIT subsidiaries are treated as part of their parent company for Florida tax purposes.
- REMICs:
- Entities treated as REMICs for federal tax purposes must file a Florida return if they owe federal tax on foreclosure income.
- Professional Service Corporations:
- These need to file a tax return every year they conduct business in Florida.
For Out-of-State and Foreign Corporations:
- Out-of-State Corporations:
- Any out-of-state corporation conducting business or earning income in Florida must file a Florida return, regardless of its status with other state agencies. Simply registering to do business in Florida doesn’t create a filing requirement, but the corporation must explain why it doesn’t need to file if asked.
- Foreign (Non-U.S.) Corporations:
- Must file if they owe Florida taxes or need to file a federal return. If they are exempt by treaty but need to file federally, they must file Florida returns as well.
- If a foreign corporation files a protective return to claim deductions and credits, it must also file a Florida return.
Filing Forms:
- Corporations and Banks: Use Form F-1120 and attach a copy of the federal return.
- Partnerships: Use Form F-1065 if any partner is subject to Florida tax, attaching a copy of the federal Form 1065.
This summary should help clarify the tax filing obligations for various entities in Florida. If you have specific questions or need detailed advice, please, contact us.