Corp returns - not yet received prior year tax refund of overpayment?


W

w_cohen

My small C corp is on a 6 month extension till 10/15/2013 for 2012 taxes (fiscal year ends 1/31/2012).
On the corp's 2011 1120 form (as well as the NY CT-3) the corp had an overpayment that the corp elected to received as a refund which was deposited in the 2013 tax year.
When I fill out the 2012 1120 (and CT-3) do I need to account for the refund which didn't yet come?
Or will this be reflected on the 2013 year tax return?

Thanks.
Walter
 
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P

paulthomascpa

My small C corp is on a 6 month extension till 10/15/2013 for 2012 taxes
(fiscal year ends 1/31/2012).
On the corp's 2011 1120 form (as well as the NY CT-3) the corp had an
overpayment that the corp elected to received as a refund which was
deposited in the 2013 tax year.
When I fill out the 2012 1120 (and CT-3) do I need to account for the
refund which didn't yet come?
Or will this be reflected on the 2013 year tax return?

For cash basis it'll be income when received. Note though that federal
taxes paid are not an expense, nor are refunds of those federal taxes income
to the company. They would be properly recorded on the 1120 in Schedule M.

State taxes are generally deductible when paid, and the refunds would then
be income in the year received.

NY state may handle both of these differently.

Accrual basis reporting would have booked those as receivables and revenues
in the year of the overpayment.
 
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J

John Levine

State taxes are generally deductible when paid, and the refunds would then
be income in the year received.

NY state may handle both of these differently.
No, you're right. I've gotten 1099s from NY State for tax refunds.
 

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