Who is required to file a corporation franchise tax return?Back to top
If you are a corporation doing business in Minnesota and you have not elected to be taxed as an S corporation, you must file the Minnesota Form M4 series. Before you complete the Form M4 series, complete federal Form 1120 and supporting schedules.
Where can I get the Form M4 series?Back to top
You can download the Form M4 series and instructions from our website.
You may fax a request to 651-556-5209. The requested forms will be sent via fax.
Please include your contact information:
The department no longer prints most business tax forms and instructions, including those for corporations.
How do I make the federal bonus depreciation adjustment?Back to top
Minnesota does not fully adopt bonus depreciation under IRC section 168[k]. The federal provision allows taxpayers to elect to deduct 100% of the cost of most new capital assets.
Minnesota law requires taxpayers to add back 80 percent of the bonus depreciation to their Minnesota return [M.S. 290.01, Subd. 19c(15)]. The addback can then be taken as a subtraction in equal parts over the following five tax years.
What is the minimum fee?Back to top
The corporation is subject to a minimum fee if the sum of its Minnesota source property, payroll and sales or receipts is at least $500,000. In some cases, the property, payroll and sales used for computing the minimum fee will be different from those used for apportionment.
You will determine the minimum fee when you complete the Form M4 series.
When is the corporation required to pay estimated tax?Back to top
A corporation must make quarterly estimated tax payments if its total franchise tax liability is $500 or more.
Estimated tax payments are due by the 15th day of the third, sixth, ninth and 12th months of the tax year. If the due date falls on a weekend or holiday, your payment is due the following business day.
Do I need a Minnesota tax ID number as well as a federal ID number?Back to top
Form M4 has a regular due date of March 15 of the following year. If you are filing on a fiscal year, the regular due date is the 15th day of the third month after the end of your tax year.
If the regular due date falls on a weekend or holiday, your return is due the following business day.
How do I apply for an extension?Back to top
All corporations are granted an automatic seven-month extension to file Form M4.
There is NO extension to pay. All tax must be paid by the regular due date.
How do I calculate the federal bonus depreciation if the asset is sold early?Back to top
When bonus depreciation is taken on a federal return, the treatment for the state is "locked." The 80 percent addback for Minnesota is required for the year the bonus depreciation is taken, and there is a subtraction in equal parts for the following five tax years regarding that addback (regardless of early disposition of the asset).
Can I file my corporation franchise tax return electronically?Back to top
Click here to see software products that currently support electronic filing of business income tax returns.