On June 28, Florida Gov. Ron DeSantis signed legislation approving Florida House Bill (H.B.) 7127, which conforms the Florida corporate income tax statutes to the current Internal Revenue Code as in effect on Jan. 1, 2019. It also provides a state corporate income tax modification for global intangible low-taxed income that is effective retroactively to Jan. 1, 2018, and it requires corporations to file a new online report that is separate from Form F-1120, “Florida Corporate Income/Franchise Tax Return.”
The new report is due 10 days after the extended due date of the taxpayer’s Florida income tax return or 10 days after the date the return is filed, whichever is earlier. However, any information required to be submitted before Sept. 3, 2019, will be considered timely if submitted by Sept. 3, 2019. The bill requires that by Sept. 3, 2019, the DOR must create a secure online application for use by Florida corporate taxpayers when submitting the requested information through the DOR’s website. Until this online application is available for the public to review, it is unclear what specific information ultimately will be required for submission and how easy or complex the online system will be.
The penalty for failure to timely and accurately file this new report is the greater of 1) $1,000 or 2) 1% of the tax determined to be due on the most recently reported Florida corporate income tax return filed with the DOR.
New online report
According to H.B. 7127, corporations that are required to file a Florida income tax return for a taxable year beginning during the 2018 or 2019 calendar year must report certain demographic and tax-related information, including tax reform-related items that were reported on federal and Florida income tax returns for those taxable years, to the Florida Department of Revenue (DOR).The new report is due 10 days after the extended due date of the taxpayer’s Florida income tax return or 10 days after the date the return is filed, whichever is earlier. However, any information required to be submitted before Sept. 3, 2019, will be considered timely if submitted by Sept. 3, 2019. The bill requires that by Sept. 3, 2019, the DOR must create a secure online application for use by Florida corporate taxpayers when submitting the requested information through the DOR’s website. Until this online application is available for the public to review, it is unclear what specific information ultimately will be required for submission and how easy or complex the online system will be.
The penalty for failure to timely and accurately file this new report is the greater of 1) $1,000 or 2) 1% of the tax determined to be due on the most recently reported Florida corporate income tax return filed with the DOR.
