The Delaware 1902 B form is an annual information return specifically designed for holding and investment companies claiming exemption from Delaware corporate income tax. This form requires detailed information about the corporation's activities, including employee data and sources of income, to determine eligibility for tax exemption under Delaware law. To ensure compliance, corporations must accurately complete and submit this form by the designated deadline.
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The Delaware 1902 B form serves as an essential document for corporations seeking to claim exemption from corporate income tax under Delaware law. Specifically designed for holding and investment companies, this form must be completed annually to provide detailed information about the corporation's activities and financials. Key sections of the form include general information about the corporation, such as its name, address, and Employer Identification Number (EIN), as well as details about compensated employees and significant stockholders. Additionally, the form contains questions that help determine whether the corporation engages in non-exempt activities that could subject it to tax liability. For instance, it inquires about sources of income from rental properties and services provided within Delaware. Conversely, it also addresses exempt activities, asking about income derived from intangible assets and operations outside the state. Completing the 1902 B form accurately is crucial, as it not only helps ensure compliance with Delaware tax regulations but also protects the corporation’s exempt status. Timely filing is required, with specific deadlines and procedures outlined for extensions, making it imperative for corporations to stay informed about their obligations under Delaware law.
Things to Do:
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FORM 1902(b)
2011
DELAWARE
INFORMATION RETURN
HOLDING COMPANY I INVESTMENT COMPANY
FOR OFFICE USE ONLY
This return is for calendar year 2011
If not for calendar year, insert ending date of fiscal year
Name of Corporation
Rev Code 042
20
Delaware Address
Zip Code
Mailing Address (if different from above)
Date and State of Incorporation
Employer Identification Number
PART- I GENERAL INFORMATION
1.Name and social security number of compensated employees working in Delaware. (Do not include Directors.)
Name
Social Security Number
Full or Part Time
2.Name and FEIN/SSN of owners (individual corporations) of more than 10% of the stock of the corporation whose Delaware individual or corporate income tax liability exceeded $100,000 in any of the past three years.
EI or SSN
PART II - QUESTIONS RELATING TO NON-EXEMPT ACTIVITIES
If the answer to any of the following is “YES”, it would be an indication that the corporation is NOT exempt from Delaware corporate tax under Section 1902(b)(8), 30 DEL. C. (If yes, please provide a brief description.)
1. Did the corporation receive income from the following sources:
a. Rental income from real property located within Delaware.
YES
/
NO
b. Rental income from tangible personal property located within Delaware.
2.Did the corporation provide in Delaware any of the services listed below for an unaffiliated entity or an affiliated entity other than as part of the corporation’s maintenance and management of its intangible assets? (If yes, please provide a brief description.)
YES / NO
a.Accounting and Bookkeeping
b.Legal
c.Consultation
d.Investment Advice
e.Collections
f.Management
g.Computer Services
PART III - QUESTIONS RELATING TO EXEMPT ACTIVITIES
If the answer to any of the following is “YES”, it would be an indication that the corporation is exempt from Delaware corporat e tax under Section 1902(b)(8), 30 DEL C. (If yes, please provide a brief description.)
1.Did the corporation directly or indirectly receive income from any one of the following sources?Please check the appropriate box for each source of income and, for each “yes” response where the income received isin excessof $1 million, provide a description of the activity performed in Delaware with regard to such income.
a.
Interest on notes secured by real estate mortgages.
b.
Interest on all other debt obligations.
c.
Dividends.
d.
Patents, patent applications, trademarks, trade names and know-how.
e.
Gain on the sale of intangible investments.
f. Rental income from real property located outside of Delaware.
g.
Rental income from tangible personal property located outside of Delaware.
2.Is the corporation engaged in business activities outside of Delaware other than described
in Question 1 above? (If yes, please describe.)
PART IV - ADDITIONAL INFORMATION
Did the corporation have any source of income other than the sources of income described in Parts II and III above? (If yes, please describe the source of income and the activity in Delaware relating to it.)
Under penalties of perjury, I declare that I have examined this return and statements, and believe it is true, correct and complete.
Signature
Title
Date
(Revised 11/21/11)
INSTRUCTIONS FOR FORM 1902(B)
INFORMATION RETURN FOR HOLDING COMPANY/INVESTMENT COMPANY
GENERAL INSTRUCTIONS
CORPORATIONS REQUIRED TO FILE RETURNS
Under 30 Del. C., §1904(g), an Annual Information Return may be required of each corporation claiming exemption from Delaware corporate income tax under 30 Del. C., §1902(b)(8) which provides an exemption for “Corporations whose activities within this State are confined to the maintenance and management of their intangible investments and the collection and distribution of the income from such investments or from tangible property physically located outside this State. For purposes of this paragraph, ‘intangible investments’ shall include, without limitation, investments in stocks, bonds, notes, and other debt obligations (including debt obligations of affiliated corporations), patents, patent applications, trademarks, trade names and similar types of intangible assets.” Form 1902(b), Information Return for Holding Company/Investment Company, must be filed annually by corporations claiming exemption from corporate taxation under Section 1902(b)(8) of Title 30 of the Delaware Code.
PERIOD COVERED BY RETURN
The taxable year ending date of a corporation required to file Form 1902(b) Information Return shall be the same as it is for purposes of computing its federal income tax.
WHEN TO FILE AND EXTENSIONS
Form 1902(b) Information Return must be filed on or before the first day of the fourth month following the end of the taxable year. A request for an automatic extension of six months to the Internal Revenue Service will automatically extend the filing date of the Delaware return by six months. If no federal extension was requested, an extension of time for filing may be made by a letter on or before the due date. Copies of extensions granted (Federal Form 7004 or Delaware Division of Revenue Approval Letter) must be attached to the return when filed. Please detach and mail Form 1902(b), Information Return, to the Division of Revenue, 820 N. French Street, P.O. Box 2044, Wilmington, Delaware 19899-2044.
PART 1 - GENERAL INFORMATION
LINE 1 - COMPENSATED DELAWARE EMPLOYEES
Enter on Line 1 the names and social security number(s) of individuals employed by the filing corporation within Delaware (do not include Directors). Please also indicate whether employed on a full or part time basis. If additional space is needed, please attach a separate schedule.
LINE 2 - PERSONS OWNING MORE THAN 10% OF THE STOCK OF THE CORPORATION
Enter on Line 2 the name and Federal Employer Identification Number or Social Security Number of owners (individual partnership or corporation) of more than 10% of the outstanding stock of the corporation whose Delaware individual or corporate income tax liability exceeded $100,000 in any of the past three years. If additional space is needed, please attach a separate schedule.
SPECIFIC INSTRUCTIONS
If the answer to any of the following questions is yes, it would be an indication that the corporation is NOT exempt from Delaware Corporate income tax under 30 Del. C. §1902(b)(8).
1.SOURCES OF INCOME. Did the corporation receive rental income from real property and/or tangible personal property located within Delaware? Please check appropriate box for each source of income and provide a description of the activities performed within Delaware for each “yes” box.
2.SERVICES PROVIDED. Did the corporation provide in Delaware any of the services listed for an unaffiliated entity or an affiliated entity other than as part of the corporation’s maintenance and management of its intangible assets? Please check appropriate box for each service and provide a description of the service performed within Delaware for each “yes” box.
If the answer to any of the following is “yes”, it would be an indication that the corporation is exempt from Delaware corporate income tax under §1902(b)(8), 30 Del. C.
1.SOURCES OF INCOME WITHIN DELAWARE. Did the corporation directly or indirectly receive income from anyone of the sources listed? Please check appropriate box for each source of income and, for each “yes” response where the income received is in excess of $1 million, provide a description of the activity performed in Delaware in the space provided.
2.SOURCES OF INCOME WITHOUT DELAWARE. Is the corporation engaged in business activities outside of Delaware other than those described in Question 1 above? If yes, please provide a brief description in the space provided.
Did the corporation have any sources of income other than the sources of income described in Parts II and III above? If yes, please describe the source of income and the activity in Delaware relating to it in the space provided.
SIGNATURE
Please sign and date this return indicating the title of the officer or designee signing this return, detach Form 1902(b) and mail to the Division of Revenue, 820 N. French Street, P.O. Box 2044, Wilmington, Delaware 19899-2044.
(Revised 12/09/10)
The Delaware 1902 B form shares similarities with the IRS Form 1120, which is the U.S. Corporation Income Tax Return. Both documents require corporations to report their financial activities, income, and expenses. While the 1902 B form focuses on Delaware-specific tax exemptions for holding and investment companies, Form 1120 is a federal requirement applicable to all corporations. Each form necessitates detailed information about the corporation's income sources, deductions, and tax liabilities, ensuring compliance with respective tax regulations.
Another document that resembles the Delaware 1902 B form is the IRS Form 1065, used by partnerships to report income, deductions, and profits. Like the 1902 B form, Form 1065 requires information on the partners’ shares of income and the nature of the business activities. Both forms aim to provide a comprehensive overview of the entity’s financial activities, although Form 1065 is specifically tailored for partnerships rather than corporations.
The IRS Form 990 is also comparable to the Delaware 1902 B form, particularly for nonprofit organizations. Form 990 requires detailed financial information, including revenue sources and expenditures. Similarly, the 1902 B form collects data on income sources and activities to determine tax liability. Both forms emphasize transparency and accountability, allowing tax authorities to assess compliance with tax regulations.
Form 5471, which is used to report information on foreign corporations owned by U.S. citizens or residents, shares a common goal with the Delaware 1902 B form: ensuring proper reporting of income and ownership structures. Both forms require detailed disclosures about ownership percentages and income sources. However, while the 1902 B form focuses on Delaware tax exemptions, Form 5471 addresses international tax compliance issues.
The Texas Motor Vehicle Power of Attorney form is an essential legal document that empowers an individual to appoint another person to manage vehicle ownership and registration affairs on their behalf, particularly useful when the owner is unavailable due to travel or health concerns. By utilizing this form, owners can facilitate timely vehicle transactions without unnecessary holdups, making it important to reference resources such as smarttemplates.net/fillable-texas-motor-vehicle-power-of-attorney/ for guidance.
The IRS Form 1040, the individual income tax return, also exhibits similarities with the Delaware 1902 B form. Both forms require individuals or entities to report income and deductions to determine tax liability. While Form 1040 is specific to individuals, the 1902 B form is tailored for corporate entities, yet both share the fundamental purpose of assessing tax obligations based on reported income.
Form 941, the Employer's Quarterly Federal Tax Return, is another document that parallels the Delaware 1902 B form in terms of employment-related information. Both forms require reporting on compensated employees, including names and identification numbers. While Form 941 focuses on payroll taxes and employee compensation, the 1902 B form addresses corporate tax exemptions and financial activities.
Additionally, the Delaware Annual Franchise Tax Report is similar to the 1902 B form as both require corporations to disclose essential financial information to the state. The franchise tax report focuses on the corporation's capital structure and assesses the franchise tax owed to Delaware. Meanwhile, the 1902 B form is concerned with income sources and potential tax exemptions, but both forms play critical roles in maintaining compliance with state regulations.
Lastly, the IRS Form 990-T, which is used by tax-exempt organizations to report unrelated business income, shares characteristics with the Delaware 1902 B form. Both documents require detailed reporting of income sources and activities that may trigger tax liabilities. While Form 990-T focuses on unrelated business income for nonprofits, the 1902 B form addresses income and activities for holding and investment companies, highlighting the importance of transparency in financial reporting.
Incorrect Calendar Year: Many individuals mistakenly enter the wrong calendar year for which the form is being filed. Ensure that the year corresponds to the corporation's tax year.
Missing Employer Identification Number: Failing to provide the Employer Identification Number (EIN) can delay processing. This number is essential for identification.
Omitting Compensated Employees: Some filers forget to list all compensated employees working in Delaware, including their social security numbers. This information is crucial for compliance.
Incorrect Ownership Information: Reporting inaccurate information regarding owners who hold more than 10% of the corporation’s stock can lead to penalties. Ensure that the names and identification numbers are correct.
Failure to Answer Income Source Questions: Not responding to questions about income sources, such as rental income or services provided, can indicate non-compliance. All relevant questions must be answered.
Neglecting to Provide Descriptions: When answering "yes" to questions regarding income sources or services, it is essential to provide descriptions. Omitting these details can lead to misunderstandings.
Missing Signatures: Some individuals forget to sign the form. A signature is required to validate the return and affirm its accuracy.
Incorrect Mailing Address: Failing to provide the correct mailing address can result in lost documentation. Always double-check the address before submission.
Not Checking for Additional Income: Many filers overlook reporting other sources of income not covered in Parts II and III. This could lead to penalties if undisclosed income is later discovered.
Ignoring Filing Deadlines: Missing the filing deadline can result in late fees or penalties. Be aware of the due dates and plan accordingly to avoid issues.
The Delaware 1902 B form is an essential document for corporations claiming exemption from corporate income tax under Delaware law. Alongside this form, various other documents are often required to ensure compliance with state regulations. Below are six forms and documents that are frequently used in conjunction with the Delaware 1902 B form.
These documents collectively support the filing of the Delaware 1902 B form and help ensure that corporations remain compliant with state laws. Proper preparation and submission of these forms are crucial for avoiding penalties and maintaining good standing in Delaware.
Completing the Delaware 1902 B form requires careful attention to detail. This form must be filled out accurately to ensure compliance with Delaware tax regulations. After completing the form, it should be mailed to the appropriate state department for processing.
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