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                                                          CITY OF SPRINGFIELD 
                                             CORPORATION INCOME TAX RETURN 
                            Instructions for Form SF-1120 for CORPORATIONS doing business in Springfield 
                                                                             
ELECTRONIC FILING                                                             
Taxpayers may elect to receive their refund via direct deposit or pay        AMENDED RETURN 
tax due via direct withdrawal.  Springfield accepts paper filed returns. 
                                                                             An amended City of Springfield return is required if a determination is 
CORPORATIONS REQUIRED TO FILE                                                made by the Internal Revenue Service that affects the taxpayer’s City 
Every corporation doing business in the city, whether or not it has an       of Springfield tax liability. The amended return is due within 90 days 
office or place of business in the city, is required to file an annual City  from the date of the IRS final determination.  
of Springfield Corporation Income Tax Return, Form SF-1120.                   
Corporations  cannot  elect  to  file  and  be  taxed  as  partnerships.     PAGE 1 INSTRUCTIONS 
Subchapter S corporations are treated as C corporations.                      
The Springfield Income Tax Ordinance specifically exempts financial          LINES 1 - 10.  Follow the instructions printed on the return form. 
institutions from taxation. “Financial institutions” are defined as state     
and national banks, trust companies, building and loan associations,         PAYMENTS AND CREDITS 
savings and loan associations, credit unions, safety and collateral 
deposit companies, and any other association, joint stock company or         LINE 11. Follow the instructions printed on the return form.  Credit for 
corporation  at  least  90%  of  whose  assets  consist  of  intangible      tax paid by a partnership on behalf of the corporation is claimed on 
personal property and at least 90% of whose gross income consists            line 11. 
of  dividends,  interest  or  other  charges  resulting  from  the  use  of 
money or credit.                                                             COMPUTATION AND PAYMENT OF TAX 
                                                                             Line 15.  If tax due (line 10) is greater than the total tax payments (line 
MAILING OF RETURN FORMS                                                      11) subtract line 11 from line 10 and enter the tax due.  
Corporation income tax return forms are normally mailed to every             To pay with a check or money order make the check or money order 
corporation that filed a return for the previous tax year. If you do not     payable to the City of Springfield and mail the payment with the return 
need  printed  return  forms  because  you  use  software-generated          to: Springfield Income Tax Department, 601 Avenue A, Springfield MI 
forms, please indicate by placing a mark in the box on page 2 of the         49037-7774. 
corporation return form.                                                     To make payment via direct withdrawal from your bank account mark 
                                                                             the box on line 16 to Pay tax due – Electronic funds withdrawal, enter 
TAX RATE                                                                     the electronic funds withdrawal effective date and complete (a) the 
                                                                             bank routing number, (b) the account type and (c) the bank account 
1.0% effective January 1,1989.                                               number.      Mail your return to the address listed in the preceding 
                                                                             paragraph. 
FILING DATE                                                                   
                                                                             OVERPAYMENT OF TAX 
Taxpayers on a calendar year are required to file by April 30. Those 
on a fiscal year must file by the last day of the fourth month following     Line 12.  If the total tax payments (line 11) are greater than tax due 
the end of the fiscal year. Returns shall be for the same calendar           (line 10) subtract line 10 from line 11 and enter the tax overpayment. 
year, fiscal year or other accounting period as the taxpayer uses for        Line 13.  Enter all or the portion of the overpayment to be forwarded 
federal income tax purposes.                                                 as a credit to the 2010 estimated tax. 
                                                                               
REMITTANCE                                                                   Line 14.  Enter the amount of your overpayment to be refunded.  A 
The tax due must be paid when filing the return. Make check or               refund will be issued via a paper refund check unless you choose to 
money order payable to: City of Springfield                                  get the refund via direct deposit by marking the box on line 16 for 
                                                                             Refund – Direct Deposit and entering (a) the bank routing number, (b) 
MAILING ADDRESS                                                              the account type and (c) the bank account number.   
                                                                              
Mail your return and remittance to:                                          PAGE 2 INSTRUCTIONS 
   City of Springfield Income Tax Department 
   601 Avenue A                                                               
                                                                             THIRD PARTY DESIGNEE 
   Springfield, MI 49037-7774 
                                                                             If  the  “Yes”  box  is  marked,  the  corporation  is  authorizing  the 
EFFECTIVE DATE OF TAX                                                        Springfield Income Tax Department to call the preparer to answer any 
                                                                             questions that may arise during the processing of its return. The 
The City of Springfield’s income tax became effective January 1,1989.        corporation is also authorizing the preparer: to give the Department 
Corporations are required to pay the tax each year on that part of           any information that is missing from the return; to call the Department 
their  net  income  attributable  to  business  activity  conducted  in      for information about the processing of the return or the status of any 
Springfield, commencing with their first year ending after January           related refund or payments; and to respond to certain notices that the 
1,1989.                                                                      corporation has shared with the preparer about math errors, offsets 
                                                                             and return preparation. 
EXTENSIONS                                                                    
                                                                             SCHEDULE S 
Upon filing the form APPLICATION FOR EXTENSION OF TIME TO 
FILE SPRINGFIELD INCOME TAX RETURN (available on the City’s                  S corporations must file as C corporations. Schedule S is used to 
website) on or before the date for filing a return, the Finance Director     reconcile the amount reported on line 1, page 1 SF-1120 with federal 
may extend the time for filing up to six months. When an extension is        Form 1120S and Schedule K (Form 1120S). 
requested, the tentative tax must be paid. When an extension form is          
filed, it may be assumed that the extension is automatically granted         SCHEDULE C 
unless otherwise notified. When the return is filed, a copy of the 
application for extension must be attached. If the return is filed after     LINE 1.  Enter on line 1 the nondeductible portion of a loss from the 
the  extended  due  date,  penalty  and  interest  will  apply  from  the    sale or exchange of property acquired prior to January 1, 1989. The 
original due date.                                                           portion of the loss occurring prior to the inception of the Ordinance, 
                                                                             January 1, 1989 is not recognized.  The amount of loss occurring 
                                                                                                                                                                                    prior to January 1, 1989, is determined by either  
                                                                              
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(1) computing the difference between the total gain or loss for the method is petitioned, the Finance Director may require a detailed
property as reported for federal income tax purposes and the statement to determine whether the net profits attributable to the city
Springfield taxable portion of the loss computed by substituting the will be apportioned with reasonable accuracy (Ordinance Section 19).
fair market value of the property on January 1, 1989, (the December Generally, a corporation that is unitary in nature (i.e., has central
31, 1988, closing price for traded securities) for the basis in management, purchasing, warehousing, advertising, etc.) cannot use
determining loss; or separate accounting. Taxpayers allocating on any basis other than
separate accounting shall include all interest, dividends and other
(2) by multiplying the loss for the entire holding period, as computed non-operating income to arrive at the total income subject to the
the number of months the property was held prior to January 1, 1989
for federal income tax purposes, by a fraction, the numerator being allocation percentage.
and the denominator being the total number of months the property Taxpayers using separate accounting shall include in income subject
was held. See line 10 for instructions relative to gains from sales or to tax a proportionate share of dividends, interest and other non-
exchanges of property acquired prior to January 1, 1989. operating income of the total corporation. This type of income is
apportioned to Springfield activity on the same basis as general
Capital losses from US Government obligations included in income administrative and overhead costs are apportioned.
reported on page 1, line 1, are not deductible. Remove these losses
SCHEDULE G
by including them in the amount reported on line 1.
LINE 4. Enter the losses from entities filing as partnerships that are LINE 1. Net operating losses carried forward are to be reported on
included in taxable income reported on page 1, line 1. this line. There is no provision for carrying back losses to prior tax
years. Carryover losses are to be allocated to Springfield at the
LINE 5. Enter Domestic Productions Activities Deduction. percentage of business conducted in Springfield in the year in which
LINE 6. Enter the amount of interest income from obligations of the the loss was sustained. If all business was not conducted in
United States, the states or subordinate units of government of the Springfield in the year in which the loss was sustained, use the
business allocation percentage formula to arrive at the deductible
state that is included in taxable income reported on page 1, line 1. portion of the loss. Attach a schedule showing your computation for
LINE 7. If you reported dividend income, enter on this line the the amount reported on this line.
amount of the dividend-received deduction allowed by the Federal
LINE 2. Enter on this line the net capital loss carryover applicable to
Internal Revenue Code for dividends received. Springfield. Net capital losses sustained by a corporation for periods
LINE 8 AND LINE 9. Taxpayers may deduct income, war profits and subsequent to January 1, 1989, may be carried forward in the same
excess profits taxes imposed by foreign countries or possessions of manner as under the Federal Internal Revenue Code. No deduction
the United States, allocable to income included in taxable net income, will be allowed for capital losses sustained prior to January 1, 1989. If
any part of which would be allowable as a deduction in determining all business was not conducted in Springfield in the year in which the
federal taxable income under the applicable provisions of the Federal loss was sustained, use the business allocation percentage formula to
Internal Revenue Code. arrive at the deductible portion of the loss. Attach a schedule showing
If a foreign tax credit, rather than a foreign tax deduction, was claimed your computation for the amount reported on this line.
on your federal return, enter on line 8 the portion of the foreign tax LINE 3. Corporations who are partners in a business activity taxed as
credit which was grossed up and included in your Springfield return a partnership that has business activity in Springfield must enter on
as dividends received. this line their portion of the Springfield taxable income or loss from the
Enter on line 9 the "foreign taxes paid or accrued" portion of the partnership(s). Attach a schedule showing your computation for the
foreign tax credit claimed on your federal return, not in excess of the amount reported on this line including the name and taxpayer
federal limitations thereon. The balance of your foreign tax credit is identification number of the partnership(s).

not deductible. DECLARATION AND PAYMENT OF ESTIMATED TAX
LINE 10. Enter on line 10 the nontaxable portion of a gain from the
sale or exchange of property acquired prior to January 1, 1989. The 1. WHO MUST FILE: Every corporation subject to the tax on all or
portion of the gain occurring prior to the inception of the Ordinance, part of its net profits must file a Declaration of Estimated Income
January 1, 1989, is not recognized. Refer to the instructions for Tax (Form SF-1040ES). A Declaration is not required from
Schedule C, line 1 for computation instructions. corporations if the estimated tax is two hundred fifty dollars
Capital gains from US Government obligations included in income ($250.00) or less.
reported on page 1, line 1, are not taxable. Remove these gains by
including them in the amount reported on line 10. 2. WHEN AND WHERE TO FILE AND PAY:
A. Declaration for Calendar Year. The Declaration for a calendar
LINE 11. Enter income from entities filing as partnerships that are year must be filed on or before April 30th of that year. The
included in taxable income reported on page 1, line 1. estimated tax is payable in equal installments on or before April
30th, June 30th, September 30th and January 31st.
SCHEDULE D B. Declaration for Fiscal Year: The Declaration for a year or period
The business allocation percentage formula must be used by differing from the calendar year must be filed within four (4)
corporations with business activity both within and outside the City of months after the beginning of each fiscal year or period. For
Springfield who have not been approved to use the separate example, if a fiscal year begins on April 1st, the Declaration will
be due on July 31st. Remaining installments will then be due on
accounting method. the last day of the 6th, 9th and 13th months after the beginning
LINE 1a. Enter in column 1 the average net book value of all real and of the fiscal year.
tangible personal property owned by the business, regardless of
location, and in column 2 show the net book value of the real and C. Filing and Payment: The Declaration should be filed with the
tangible personal property owned and located or used in the City of City of Springfield Income Tax Department, 601 Avenue A,
Springfield. The average net book value of real and tangible personal Springfield MI 49037-7774. The first installment payment must
property may be determined by adding the net book values at the accompany the Declaration. The estimated tax may be paid in
beginning of the year and the net book values at the end of the year full with the Declaration.

and dividing the sum thus obtained by two. ASSISTANCE
LINE 1b. Enter in column 1 the gross annual rent multiplied by 8 for
all rented real property regardless of location. In column 2 show the If you have questions, would like to request forms, or need assistance
gross annual rent multiplied by 8 for rented real property located in in preparing your return call (269) 965-8324. Questions by mail
the City of Springfield. Gross annual rent refers to real property only,
rented or leased during the taxable period, and should include the should be directed to: Springfield Income Tax Department, 601
actual sums of money or other consideration paid, directly or Avenue A, Springfield MI 49037-7774.

indirectly, by the taxpayer for the use or possession of such property. WEBSITE
LINE 2. Enter in column 1 the total compensation paid to all
employees during the year, and in column 2 show the amount of Income tax forms, instructions and additional information are available
compensation paid to employees for work or services performed at the City of Springfield’s web site, www.springfieldmich.com.
within the City of Springfield during the year.
LINE 3. Enter in column 1 the total gross revenue from all sales or NOTICE
services rendered during the year, and in column 2 show the amount
of revenue derived from sales made or services rendered in the City These instructions are interpretations of the Springfield Income Tax
of Springfield during the year. If there is no regularly maintained sales Ordinance. The Ordinance will prevail in any disagreement between
force outside of the city, this allocation factor must be 100% for the instructions and the Ordinance.
businesses with no other business activity outside the city.
Separate Accounting - The taxpayer may petition for, or the Finance
Director may require, use of the separate accounting method. If such
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