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2024 RI-1120S - Rhode Island Business Corporation Tax Return
SPECIFIC INSTRUCTIONS

NEW FOR TAX YEAR 2024 LIMITED LIABILITY COMPANY FILERS:

(i) If the LLC is to be treated as a corporation for federal tax purpos-
Form RI-PTE is now RI Schedule PTE es, it shall pay a tax the same as a “C” corporation and file Form RI-
Form RI-PTE is now a schedule that is part of Form RI-1120S. If the 1120C.
entity elects to pay state income tax at the entity level for any part-
ner, member, or shareholder, the entity must complete and include (ii) If the LLC is to be treated as a subchapter S corporation for fed-
RI Schedule PTE with its filing. eral tax purposes, it shall pay a fee equal to the minimum tax as
defined under R.I. Gen. Laws § 44-11-2(e) and file Form RI-1120S.
Each K-1aissued to partner, member, or shareholder must include
the tax paid on behalf of the partner, member, or shareholder, as (iii) All other LLCs shall pay a fee equal to the minimum tax as defined
well as the increasing modification amount for the partner, member, under R.I. Gen. Laws § 44-11-2(e) and fileForm RI-1065.
or shareholder, if applicable.
QUALIFIED SUB-CHAPTER “S” SUBSIDIARY:
Total Number of K-1s issued
To aid in proper reporting of partner, member, or shareholder infor- If Qualified Sub-Chapter “S” subsidiary(s) are included for federal
mation on RI Schedule K-1s there are fields to use to report a count purposes, they may also be filed on one return for Rhode Island pur-
of the number of K-1s issued by the entity for the tax year. poses. They may do so by checking the "Q-sub Included" check
box on page 1 and attaching RI-1120S Q-Sub Schedule to the tax
Total number of RI K-1s issued: Enter the total number of RI return. The minimum tax must be included for each entity included
Schedule K-1s issued by the entity for the tax year. in the return. See Reg 280-RICR-20-25-14 for further details.

Total number of RI K-1s issued for Schedule PTE: Enter the total
number of RI Schedule K-1s issued by the entity for the tax year that SCHEDULE A - COMPUTATION OF TAX
are reporting RI Schedule PTE (Pass-through Entity Election) infor-
mation in Section VI of RI Schedule K-1.
TAXABLE INCOME
Total number of RI K-1s issued for Schedule PTW: Enter the total
number of RI Schedule K-1s issued by the entity for the tax year that Line 1 - Federal Taxable Income
are reporting RI Schedule PTW (Pass-through Withholding) infor- Enter the taxable income as it appears on Federal Form 1120S,
mation in Section IV of RI Schedule K-1. Schedule K, line 18.

Line 2 - Total Deductions
Enter Total Deductions from page 2, Schedule B, line 1e.
INFORMATION SECTION
Line 3 - Total Additions
Enter Total Additions from page 2, Schedule C, line 1f.
Enter the requested entity information on the top of the form, includ-
ing name, address, federal identification number, email address,
NAICS code, and if the entity is not a calendar year filer, enter the
beginning and end dates of the entity’s fiscal year. DRAFT APPORTIONED TAXABLE INCOME

Enter the following information in the corresponding boxes: Line 4 - Adjusted Taxable Income
A. The gross receipts from U.S. Form 1120S, page 1, line 1a or Subtract the total deductions amount on line 2 from the Federal
other applicable Federal form. Taxable Income amount on line 1. Add to that the total additions
B. The depreciable assets from line 10a Column (c), Schedule L, amount on line 3.
U.S. Form 1120S, page 4 or other applicable Federal form.
C. Enter the total assets from line 15, Column (d), Schedule L, U.S. Line 5 - Rhode Island Apportionment Ratio
Form 1120S, page 4 or other applicable Federal form. Complete Schedule I on page 4. Enter the amount from Schedule
I, line 5.
NOTE: If filing a final return, a separate request for a letter of good
standing for dissolution or withdrawal should also be filed. Attach Line 6 - Apportioned Rhode Island Taxable Income
the final return to the request form and follow the instructions for 11/04/2024Multiply your adjusted taxable income amount from line 4 times the
section V or VI. The final return and request form must be completed Rhode Island Apportionment Ratio from line 5.
through the date of withdrawal. When filing for dissolution or with-
drawal, an extension is not valid. Within thirty (30) days of the date Line 7a - Minimum Tax
of the letter, it must be recorded with the Secretary of State. Rhode Island minimum tax is $400.00.

If line 23a or 23b of Federal 1120S is applicable, refer to Rhode
SUBCHAPTER S CORPORATION FILERS: Island Schedule S for your tax calculation. Enter the tax from
Form RI-1120S is to be used only by entities taxed as subchap- Schedule S, line 8.
ter S corporations for federal tax purposes.
If Qualified Sub-chapter S Subsidiary, multiply the number of Q-

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2024 RI-1120S - Rhode Island Business Corporation Tax Return
SPECIFIC INSTRUCTIONS - page 2

Subs that are a part of this filing by the minimum tax and enter here. Interest shall accrue on the amount from line 12 at the rate of 12%
per annum from the due date for filing the return (the fifteenth day of
Line 7b - Jobs Growth Tax the third month following the close of the taxable year) to the actual
Enter 5% of the aggregate performance-based compensation paid date of payment.
to eligible employees as per the Jobs Growth Act (R.I. Gen. Laws § (b) Penalty on the balance due
44-64.11-5).
For failure to file the return on time, a penalty at the rate of 5%
Line 7c - Pass-Through Withholding (0.0500) per month not to exceed 25% (0.2500) shall be assessed.
Enter Rhode Island Pass-Through Withholding from RI Schedule
PTW, line 13. For failure to pay the tax on time, a penalty at the rate of 0.5%
(0.0050) per month not to exceed 25% (0.2500) shall be assessed.
Starting with tax years beginning on or after January 1, 2023, pass-
through entities will calculate pass-through withholding for its non- (c) Interest for underpayment of estimated taxes
resident members using RI Schedule PTW and including the sched-
ule with Form RI-1120S. In the case of any underpayment of the estimated taxes by a corpo-
ration there shall be added to the tax as the case may be for the tax-
See the RI Schedule PTW section on page 4 of these instructions able year, an amount determined at the rate of 12% per annum upon
for more information. the amount of the underpayment for the period of the underpay-
ment.
Line 7d - Pass-through Entity Election Tax
Enter the amount of Rhode Island Pass-through Entity Election Tax The amount of the estimated payments made for the tax year must
from RI Schedule PTE, line 5. equal at least eighty (80%) percent of the current year tax amount,
or one hundred (100%) percent of the prior year tax amount,
Starting with tax years beginning on or after January 1, 2024, pass- whichever is less. In addition, unless using the annualization of
through entities making the election to pay tax at the entity level for income method, total payments and withholding for each quarter
its members will calculate the tax using RI Schedule PTE and must be at least equal to one quarter of the amount of tax in order
include the schedule with Form RI-1120S. to avoid underestimating interest. An overpayment or underpay-
ment from the immediately preceding quarter should be applied to
See the RI Schedule PTE section on page 5 of these instructions for the next quarter when determining the overpayment or underpay-
more information. ment for that quarter.

Line 8a and 8b - RI Business Corporation Tax and Withholding Line 13 - Total Due with the Return
Add lines 7a through 7d. Add lines 11 and 12. The amount is due and payable when the
return is filed. See the at the end of Electronic Mandate section
Line 9a - Estimated Tax Payments these instructions for information on how to file your return and remit
Enter the total estimated tax payments made with respect to the tax- payment.
able year, if any, including any overpayment allowed from the pre-
ceding taxable year. Line 14 - Overpayment
If line 10 is more than line 8b, this is the amount of your overpay-
Line 9b - Other Payments ment. If there is an amount due on line 12c, subtract that amount
Enter the amount of all other tax payments (i.e.DRAFTextension pay- from your overpayment.
ment) made with respect to the taxable year.
If the amount on line 12c is more than your overpayment, enter the
Note: Rhode Island Pass-through Withholding Payments MAY amount on line 13. This amount is due and payable when the return
NOT be claimed by subchapter S corporations or LLCs on is filed.
Form RI-1120S since they themselves are pass-through enti-
ties. Subchapter S corporations and LLCs must complete Line 15 - Amount to be Applied to 2025 Estimated Tax
their own RI Schedule PTW as part of Form RI-1120S and pass Enter the amount of the overpayment from line 14 that is to be cred-
any pass-through withholding payments through to their ited against next year’s estimated tax. The amount on this line may
members/shareholders. be adjusted by the Tax Administrator.

Line 10 - Total Payments Line 16 - Amount to be refunded.
Add the amounts from lines 9a through 9d. 11/04/2024Subtract line 15 from line 14.

Line 11 - Net Tax Due
Subtract the amount on line 10 from the amount on line 8b. SCHEDULE B - DEDUCTIONS

Line 12 - Interest and Penalty Calculation
Enter the total of (a), (b) and (c) on this line. Line 1a - Exempt Interest
(a) Interest on the balance due Enter the amount of interest exempt from Rhode Island tax includ-
ed on line 4, Schedule K of Federal 1120S.
For failure to pay the tax on time, interest at the rate of 12% (0.1200)
per year; or 1.0% (0.0100) per month, shall be assessed. Line 1b - Bonus Depreciation Adjustment
Enter the amount of adjustment which represents the difference

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2024 RI-1120S - Rhode Island Business Corporation Tax Return
SPECIFIC INSTRUCTIONS - page 3

between normal first year depreciation and residual depreciation as
long as depreciation lasts. Line 1 - Elective Deduction for New Research and Development
Facilities - Refer to R.I. Gen. Laws § 44-32-1 for more details.

Line 1c- Modification for Tax Incentives for Employers Line 2 - Capital Investment Deduction - Rhode Island General
Enter the amount of modification allowed under R.I. Gen. Laws § 44- Laws provide for a deduction for purposes of computing net
55. Attach Form RI-107 and required documentation to the return. income in accordance with R.I. Gen. Laws § 44-11, for investments
in certified venture capital partnerships. Taxpayers claiming this
Line 1d - Cash Basis Only- Deduction for Pass-through Entity deduction for investments in certified venture capital partnerships
Tax must provide copies of certification from the Department of
Enter the amount of deductions for Pass-through Entity Tax claimed Economic Development of the Venture Capital Partnership. A
in prior year. recapture of a previously take deduction may be necessary under
the law. This should be done by listing the recaptured amount as a
Line 1e- Total Deductions negative number.
Add lines 1a through 1d. Enter here and on page 1, Schedule A, line
2.
SCHEDULE I - ALLOCATION FACTOR

SCHEDULE C - ADDITIONS
Prior to considering your apportionment factors, R.I. Gen.
Laws § 44-11-13 and Regulation 280-RICR-20-25-9 should be
Line 1a - Interest considered to determine whether a company has the ability to
Enter the gross amount of interest income received or accrued with apportion its Rhode Island adjusted taxable income. All
respect to all obligations of any state, territory or possession of the apportionment factors must be filled out even if your appor-
United States or any political subdivision of the foregoing, or the tionment is 100% Rhode Island.
District of Columbia other than Rhode Island or its political subdivi-
sions not included on line 4, Schedule K of Federal 1120S. If utilizing an alternative allocation apportionment as allowed
under R.I. Gen. Laws § 44-11-14.1, § 44-11-14.2, § 44-11-14.3, §
Line 1b - Bonus Depreciation Adjustment 44-11-14.4, § 44-11-14.5 or § 44-11-14.6, check the box above
Enter the entity’s bonus depreciation amount less its normal depre- the apportionment schedule.
ciation amount.
Line 1 - Average Net Book Value Factor
Line 1c - Intangible Addback Real and tangible personal property owned is valued at book value.
Enter the total amount of interest expenses and costs and intangible Real and tangible personal property rented is valued at 8 times the
expenses and costs that must be added back under R.I. Gen. Laws annual net rental rate. The annual net rental rate shall be reduced
§ 44-11-11(f). (but not to less than zero) by the annual rental rate received from
subrentals.
Line 1d - Pass-through Entity Tax Elected to be Paid
Enter the total amount of the pass-through Entity elected to be paid “Tangible personal property” means such property as machinery,
under R.I. Gen. Laws § 44-11-2.3. tools, implements, goods, wares, and merchandise. It does not
DRAFT include cash, shares of stock, bonds, notes, credits, or evidences of
See the RI Schedule PTE section on page 5 of these instructions for an interest in property and evidences of debt.
more information.
Line 2 - Receipts Factor
Line 1e - Taxable portion of Paycheck Protection Loan 2a) 100% allocation to Rhode Island of the gross receipts from sales
Enter the taxable portion of the Paycheck Protection program loan of tangible personal property sold in the regular course of business
amount under R.I. Gen. Laws § 44-11-11. where Rhode Island (or any other state or place) is the place of origin
and Rhode Island is the destination. Sales of tangible personal prop-
Line 1f - Total Additions erty are in Rhode Island if the property is delivered or shipped to a
Add lines 1a through 1e. Enter here and on page 1, Schedule A, line purchaser within this state regardless of the free on board (F.O.B.)
3. point or other conditions of the sale.

11/04/2024Gross income from services is attributed to Rhode Island if the serv-
SCHEDULE D - RHODE ISLAND CREDITS ices are performed in Rhode Island.

Pursuant to R.I. Gen. Laws § 44-11-14(a)(2)(i)(B), gross sales of tan-
If the entity has credits passing through to its members, complete gible personal property where shipments are made from an office,
RI Schedule CR-PT - Other RI Credits for RI-1065 & RI-1120S filers. store, warehouse, factory or other place of storage in this state and
the taxpayer is not taxed in the state of purchase must now be includ-
ed in the Receipts section of the Rhode Island apportionment column.
SCHEDULE E – OTHER DEDUCTIONS TO This gross receipts amount must be listed separately as shown on the
FEDERAL TAXABLE INCOME apportionment schedule.

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2024 RI-1120S - Rhode Island Business Corporation Tax Return
SPECIFIC INSTRUCTIONS - page 4

2b) Dividend income. This amount should not be included in 2(h). cent (7%) for corporations on the member’s share of income of the
entity that is derived from or attributable to sources within this state
2c) Interest income. This amount should not be included in 2(h). distributed to each nonresident member and pay the withheld
amount to the R.I. Division of Taxation.
2d) Gross rental income from the leasing or renting of real and tangi-
ble personal property. If a nonresident member’s only source of income within Rhode
Island is from one or more pass-through entities, that nonresident
2e) Royalty income associated with Rhode Island activities. member may elect to be included in a composite return to satisfy
the nonresident pass-through withholding requirement under R.I.
2f) Net income from the sale of real property, tangible personal prop- Gen. Laws § 44-11-2.2.
erty, or other capital assets not held by the taxpayer for sale to cus-
tomers in the For tax years beginning on or after January 1, 2023, Rhode Island
regular course of business. pass-through withholding of a pass-through entity with nonresi-
dent partners, members, beneficiaries and shareholders will be
reported and calculated using RI Schedule PTW as part of Form
2g) Net income from the sale or disposition of securities or financial RI-1120S rather than using Form RI-1096PT.
obligations. Do not include related dividends or interest. Dividends
and interest are reported on line 2(b) and 2(c). RI Schedule PTW is not required to be filed if there are no nonresi-
dent members of the pass-through entity.
2h) Gross income from all other receipts includes income from all
other sources (not listed above) and includes (but is not limited to) The pass-through entity is required to include RI Schedule PTW
receipts from patents, royalties, copyrights, commissions, dividends showing the amount of Rhode Island withholding for all nonresident
and interest. Gross income from royalties is attributable to Rhode members for whom Rhode Island taxes were withheld. This does
Island to the extent that the patent or copyright is used in this state not include any nonresident members who made the election on
by the person paying royalties to the taxpayer. A patent is used in Form RI-1040C-NE to file a composite return (RI-1040C) or elected
Rhode Island to the extent that it is employed in fabrication, manu- to file on RI Schedule PTE - Pass-through Entity Election.
facturing, production or other processing in Rhode Island or to the
extent that a patented product is produced in Rhode Island. A copy- Entities with shareholders making elections on RI-1040C-NE or RI
right is used in Rhode Island to the extent that printing or other pub- Schedule PTE must complete these Form RI-1040C and/or RI
lication originates in Rhode Island. Accordingly, all such gross Schedule PTE before completing RI Schedule PTW.
income should be included in Schedule I, line 2(h), Column A. For
corporations organized under Rhode Island laws, all gross income When submitting RI Schedule PTW with Form RI-1120S, the pass-
from interest and dividends must be shown on Schedule I, lines throughmustentity attach all corresponding RI Schedule K-1s .
2(b&c), Column A.
If any of the following exceptions apply to the pass-through entity,
2i) Income exempt from federal taxation. check the applicable box at the top of the form and enter the amount
of income associated with the exception on the appropriate line
Line 3 - Salaries and Wage Factor under Part B.
Schedule I, line 3, Column A represents that part of the total wages, • Cannot distribute funds due to Federal or State restrictions
salaries and other compensation to officers and employees paid or • Exempt from income tax
incurred by the taxpayer during the taxable yearDRAFTwhich is assignable • Nonresident member(s) with less than $1,000.00 in Rhode
to offices, agencies, or places of business within the State of Rhode Island source income
Island, or which is attributable to services performed in connection • All Rhode Island source income for the nonresident mem
with the taxpayer’s activities or transactions within this state during ber(s) is being reported on Form RI-1040C - Composite
the taxable year. Income Tax Return.
• A pass-through entity election was made and all Rhode
Line 4 - Rhode Island Ratios Island source income for the nonresident member(s) is
Total the Rhode Island ratios from lines 1f, 2k and 3b. being reported on RI Schedule PTE.

Line 5 - Allocation Factor If the pass-through entity cannot distribute funds due to Federal or
If dollar amounts for property, receipts and salaries exist in Column state restrictions, a statement explaining what is prohibiting the dis-
B, the total of the three ratios on line 4 should be divided by 3. If tribution of the funds along with all of the corresponding RI Schedule
one factor is not found in Column B, then the total of11/04/2024the two ratios K-1s containing all required information.
on line 4 must be divided by 2. If only one factor exists in Column B,
then the ratio on line 4 should be carried to line 5. Also, enter this If all the nonresident members of the pass-through entity have
ratio on page 1, Schedule A, line 5. Rhode Island source income less than $1,000.00, RI Schedule PTW
must be filed reporting the Rhode Island source income of all non-
resident members on line 1, calculating the pass-through withholden
RI SCHEDULE PTW due and listing the Rhode Island source income of all members on
line 7. All of the corresponding RI Schedule K-1s should show the
nonresident members’ withholding as zero.
Pursuant to R.I. Gen. Laws § 44-11-2.2. Pass-through entities, A
pass-through entity shall withhold income tax at the highest Rhode Part A - Nonresident Rhode Island Source Income
Island withholding tax rate provided for individuals or seven per-

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2024 RI-1120S - Rhode Island Business Corporation Tax Return
SPECIFIC INSTRUCTIONS - page 5

Calculation
Line –13 Add lines 12a and 12b. Enter here and Form RI-1120S,
Line –1Enter the pass-through entity’s apportioned Rhode Island line 7c.
taxable income from Form RI-1120s, line 6.
Line 2 – Enter the profit percentage or current year allocation per- Part C - Pass-through Withholding Paid on Entity’s
centage of all members/partners that are nonresidents. behalf by another Pass-through Entity

Line 3 – Multiply the apportioned Rhode Island taxable income on Part C must be completed if the entity is claiming an amount on
line 1 by the profit percentage or current year allocation percentage Form RI-1120S, page 2, line 9b. Attach a separate sheet if addi-
of all nonresident members/partners from line 2 to calculate Rhode tional room is needed. In addition, a copy of all RI Schedule K-1s
Island source income for all nonresidents. issued to the entity must be attached in order for credit to be given.
Failure to attach a copy will result in the disallowance of the pass-
Part B - Pass-through Withholding Calculation through withholding amount until documentation is provided.

Line 4 – Using the amount of Rhode Island source income for all Enter the amount of any nonresident pass-through withholding
nonresidents from line 3, enter the amount attributed to nonresi- payments made on the entity’s behalf by another pass-through
dent members that are C Corporations on line 4a and that are Sub entity. This amount should equal the Total Pass-through withhold-
S Corporations, Individuals, LLCs, Partnerships and Trusts. ing amount from RI Schedule PTW, Part C, line 1f.

Lines 4a and 4b must equal line 3.
RI SCHEDULE PTE
For lines 5 through 9: Use the appropriate column(s) based on
entity type and enter the Rhode Island source of income of the
nonresident member(s) not subject to pass-through withholding on Pursuant to R.I. Gen. Laws § 44-11-2.3. Pass-through entities –
RI Schedule PTW. Election to pay state income tax at the entity level, for tax years
beginning on or after January 1, 2019, a pass-through entity may
Column A: C Corporations elect to pay the state tax at the entity level at the rate of five and
Column B: Sub S Corporations, Individuals, LLCs, Partnerships ninety-nine hundredths percent (5.99%).
and Trusts.
If a pass-through entity elects to pay an entity tax under this sub-
Line 5 – Entermountthe ahodeof R Island source income for all section, the entity shall not have to comply with the provisions of
nonresident members of the pass-through entity which cannot be R.I. Gen. Laws § 44-11-2.2 regarding withholding on non-resident
distributed due to Federal or State restrictions. owners.

Line 6 – Entermountthe ahodeof R Island source income for all For tax years beginning on or after January 1, 2024, partners, mem-
nonresident members of the pass-through entity exempt from tax. bers, and shareholders of a Rhode Island pass-through entity that
makes a pass-through entity election for partners, members, and
Line 7 – Enter the amount of Rhode Island source of income of shareholders will report and calculate the pass-through entity
those nonresident members with income less than $1,000 net mod- income and tax using RI Schedule PTE as part of Form RI-1120S
ifications. rather than using Form RI-PTE.
DRAFT
Line 8 – Enter the amount of the Rhode Island source of income of RI Schedule PTE must be completed and included with Form RI-
nonresident members being reported on Form RI-1040C - 1120S if the entity is making the election to pay the pass-through
Composite Income Tax Return. entity tax on behalf of its partners, members or shareholders.

Line 9 – Enter Rhode Island source of income of those nonresidents
being reported on RI Schedule PTE - Pass-through Entity Election. Entity Accounting Method
Include both RI Schedule PTW and RI Schedule PTE with Form RI-
1120S when filing. Check the method of accounting - Accrual or Cash Basis - being
used by the pass-through entity to calculate the amount required to
Line 10 – Rhode Island source income of nonresident members be taken as an increasing modification on the personal income tax
subject to pass-through withholding. returns of the partners, members, and shareholders of the pass-
Column A, subtract the amounts from lines 5a - 9a from11/04/2024line 4a. through entity.
Column B, subtract the amounts from lines 5b - 9b from line 4b.

Line 11 – Rhode Island pass-through withholding rate. Determining the Amount of the State Tax Credit
For C corporations only, the rate is 7.0%. for the Pass-through Entity
For Sub S corporations, individuals, LLCs, partnerships and trusts,
the rate is 5.99%. The State tax credit amount shall be the amount of tax paid by the
pass-through entity, at the entity level, which is passed through to
Line 12 – For each column, multiply the amount of Rhode Island the owners, on a pro rata basis.
source income of those nonresidents from line 10 by the pass-
through withholding rate line 11 to calculate the pass-through with- Regardless of the Accounting Method used by the pass-through
holding amount.

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              2024 RI-1120S - Rhode Island Business Corporation Tax Return 
                                            SPECIFIC INSTRUCTIONS - page 6

entity making the pass-through entity election, the amount of tax paid  
by the pass-through entity is equal to the amount calculated for line  For example, a calendar year ending pass-through entity makes four 
5 of RI Schedule PTE.                                                  estimated tax payments on the following dates - April 15, June 15,  
                                                                       September 15 and December 15. The accrual basis pass-through 
NOTE: The tax amount must be paid in order to receive the credit.      entity also makes an extension payment and a payment following the 
         Determining the Amount of the State Tax Credit                end of the calendar year.  
              for the Pass-through   Entity Member(s)                   
                                                                       The accrual basis pass-through entity must report the total of the four 
To determine the amount of state tax credit for the pass-through enti- estimates, the extension payment and the payment made with the 
ty member(s), multiply the state tax credit from line 5 of RI Schedule return as an increasing modification on RI Schedule M, line 2h.  
PTE by the precent of ownership for each pass-through entity mem-       
ber. This is the amount each pass-through entity member will report   If the payments made for the tax year exceeds the amount of tax on 
on RI Schedule W when filing Form RI-1040 or Form RI-1040NR.           line 5, the total amount of payments must be reduced by the overpay-
                                                                       ment amount regardless of whether the overpayment is refunded or 
                                                                       carried forward. 
       Determining the Amount of Income Required to be                  
              Reported by the Pass-through Entity                      Part A - Pass-through Entity Election Tax Calculation 
                                                                                                   
Cash Basis Pass-through Entity:                                        Line 1 – Enter the pass-through entity’s total amount of income 
The amount required to be reported as income by the pass-through       apportioned to Rhode Island from Form RI-1120s, line 6. 
entity member(s) is the member’s apportioned share of the total of      
payments made by the pass-through entity DURING the tax year of        Line 2 – Enter the total percentage of economic benefit received by 
the return being filed.                                                each individual member of the pass-through entity who is making this 
                                                                       election. 
For example, a calendar year ending pass-through entity makes four      
estimated tax payments on the following dates - April 15, June 15,     Note #1:  
September 15 and December 15. The cash basis pass-through entity       This percentage should only represent the total of any member(s) of 
also makes an extension payment and a payment following the end        the pass-through entity that are individuals.  Portions related to non-
of the calendar year.                                                  individual member(s) should not be included in this amount. 
                                                                        
The cash basis pass-through entity member(s) must report the           Note #2: 
apportioned share of the total of the four estimates paid during the   This percentage should not include portions related to individual 
calendar year as an increasing modification on RI Schedule M, line     member(s) who are not making the pass-through entity election. 
2h.                                                                     
                                                                       Line 3 – Multiply the Total Pass-through Entity Income apportioned 
In addition, a cash basis pass-through entity member(s) may take a     to Rhode Island on line 1 by the total percentage of economic benefit  
decreasing modification on RI Schedule M, line 1v for the amount       on line 2 to calculate the Pass-through Entity income generated by 
of pass-through entity tax claimed in the prior year which was an      the individuals making the pass-through entity election. 
overpayment calculated on the RI Schedule PTE when filed.               
                                                                       Line 4 - Individual tax rate is 5.99%. 
If the pass-through entity is a cash basis entityDRAFTas shown on the enti- 
ty’s federal return and Form RI-PTE for tax year 2023 had an over-     Line 5 - Pass-through Entity Election Tax. Multiply line 3 by line 4. 
payment that was refunded to the entity, use the following to deter-   Enter on this line, as well as on Form RI-1120S, line 7d. 
mine the decreasing modification amount.                                
                                                                       Note:  This is the amount of state tax credit that will be passed 
Tax Year 2023 Overpayment Refunded to the Entity:                      through to the member(s) of the pass-through entity. See 
If the pass-through entity’s tax year 2023 filing had an overpayment   “Determining the Amount of the State Tax Credit for the Pass-through 
that was refunded to the entity, the entity would be expected to       Entity” and “Determining the Amount of the State Tax Credit for the 
include that refund as income on its tax year 2024 corporate filings   Pass-through Entity Member(s)” on page 5 of these instructions for 
enabling the individual taxpayer to claim a decreasing modification in additional information.  
tax year 2024 as long as the individual taxpayer previously account-    
ed for the tax year 2023 refund as part of the payments made in cal-
                                                                       Part B - Additional Information 
endar year 2023 AND properly claimed the payments as an increas-11/04/2024
ing modification in tax year 2023. If any part of the 2023 overpayment                             
was due to payments made within calendar year 2024, the individual     Line 1 – Enter the amount of Rhode Island pass-through entity tax 
taxpayer should not have accounted for those payments as part of       included on US Form 1120-S, line 12. 
the 2023 increasing modification because the payments were made                                    
within 2024.                                                                                       
                                                                                        ELECTRONIC MANDATE 
Accrual Basis Pass-through Entity:                                                                 
The amount required to be reported as income by the pass-through                                   
entity is the total of payments made by the pass-through entity FOR    The R.I. Division of Taxation has an electronic mandate that 
the tax year of the return being filed minus any overpayment on the    requires Larger Business Registrants use electronic means to file 
return.                                                                returns and remit taxes beginning on January 1, 2023.

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 2024 RI-1120S - Rhode Island Business Corporation Tax Return 
                                        SPECIFIC INSTRUCTIONS - page 7

A "larger business registrant" is defined as any person who: 
 
1) Operates as a business whose combined annual liability for all 
taxes administered by the Division of Taxation for the entity is or 
exceeds $5,000; or 
 
2) Operated as a business whose annual gross income is over 
$100,000 for the entity. 
 
If you meet either of the above criteria you are required to file 
returns and remit taxes electronically. 
 
Visit the RI Division of Taxation’s website for additional information.   
 
https://tax.ri.gov/resources/businesses/electronic-filing-mandate 
 
 YOU MAY BE SUBJECT TO A PENALTY FOR  
 FAILURE TO FILE RETURNS AND/OR REMIT  
 PAYMENTS VIA ELECTRONIC                MEANS.

                                        DRAFT 

                                        11/04/2024

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