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INSTRUCTIONS FOR FORM L-NP
GENERAL INSTRUCTIONS installments. If the estimate is left blank, an estimate will be created for
you based on your prior year tax liability and municipal allocation. If no
FILING REQUIREMENT - Every corporation, partnership, trust, or estimate is required enter zero (0) on Line 16.
estate whether a resident or non-resident that conducts business in
Lakewood must file a return and pay tax on the net profit. Quarterly payments of estimated tax must be made to Lakewood if your
total tax liability is at least $200. If your estimated payments are not
WHAT CONSTITUTES NET PROFITS - Net profits are based on 90% of the tax due or are not equal to or greater than your prior year’s
Adjusted Federal Taxable Income. Ohio Revised Code Section 718.01 total tax liability, you will be subject to penalty and interest assessments.
(House Bill 95) created a uniform definition of taxable income for net
profits tax returns. In the case of a taxpayer that is not a C corporation SPECIFIC INSTRUCTIONS
and is not an individual (i.e. pass-through entities), federal taxable
income shall be computed as though the taxpayer was a C Corporation. HEADING - Check pre-printed information. If not correct, make corrections
Please see Ohio Revised Code Section 718.01 (“ORC 718.01”), available by crossing out pre-printed information and entering correct data above
via the State of Ohio website at: www.ohio.gov/government.stm for the line(s). Fiscal year and short period filers must indicate beginning
more information. and ending month/year of period covered by the return.
HOW TO TREAT A NET LOSS - The net operating loss (NOL) sustained LINE 1 - Place here your taxable federal income per attached tax return
prior to 2017, allocable to Lakewood, may be applied against the profit (Form 1120 - pg. 1, line 28; Form 1120A - pg. 1, line 24; Form 1120S -
of succeeding year(s) allocable to Lakewood, until exhausted, but in pg. 4, line 18; Form 1065 - pg. 4, line 1 & line 2; Form 1041 - page 1,
no event for more than five (5) taxable years. Per ORC 718.01(D)(3)(c) line 17). Returns will not be accepted unless accompanied by a copy of
(i), NOL sustained 2017 and after is limited to the lesser of 50% of the the entire federal tax return.
utilized NOL or 50% of the income. The NOL shall not be carried back LINE 2 - Enter amount from Schedule W, Line P.
against net profits of any prior year. The NOL sustained shall be allocated
to Lakewood in the same manner as provided herein for allocation of LINE 3 - Line 1 plus or minus Line 2.
net profits to Lakewood. The NOL of a business which loses its identity LINE 4 - If applicable, enter amount from Schedule X, Line 5.
through merger, consolidation, etc. shall be allowed as a loss carryfor-
ward deduction to the surviving business entity to the extent permitted LINE 5 - Multiply Line 3 by Line 4.
by the Internal Revenue Code. LINE 6 - Loss may be carried forward for a maximum of five years, or
until exhausted, whichever is earlier. Loss sustained in 2017 or later is
WHEN & WHERE TO FILE - File with the City of Lakewood - Division limited to the lesser of 50% of the utilized NOL or 50% of the income.
of Municipal Income Tax Office located at 12805 Detroit Avenue, Suite Loss may not be carried back.
1, Lakewood, Ohio 44107 on or before the fifteenth day of the fourth
month following the end of the entity’s tax year. If the due date falls on a LINE 7 - Subtract Line 6 from Line 5. This is your Lakewood taxable
Saturday, Sunday, or legal holiday file by the next business day. income.
LINE 8 - Multiply Line 7 by 1.5% or .015.
METHOD OF PAYMENT - Checks or money orders should be made Enter here estimate payments made to Lakewood for this
payable to CITY OF LAKEWOOD - DIVISION OF TAX. Amounts less LINE 9 -
taxable year. Estimated tax payments can be verified by calling (216)
than $10.00 need not be remitted. There will be a $30 charge for dis- 529-6620.
honored checks.
MasterCard, Visa, Discover, or American Express may be used for LINE 10 - Enter unused credit from prior year(s) overpayment(s).
payment of municipal income tax. To charge the amount of tax due, LINE 11 - Add Lines 9 and 10.
complete the Pay By Credit Card - MasterCard/Visa/Discover/American LINE 12 - Subtract Line 11 from Line 8 and proceed to Line 15. This is
Express box next to the signature box on the front of the tax return. your tax due. If less than $10.00, enter zero (0) and proceed to Line 13.
EXTENSIONS OF TIME TO FILE - A federal extension will extend the LINE 13 - If Line 11 is greater than Line 8, and not less than $10.00,
municipal due date to the due date to which the federal return is extended. you have overpaid. Subtract Line 8 from Line 11 and enter the amount
A copy of the federal extension must be filed with the Lakewood Municipal on Line 13.
Income Tax Office on or before the extension due date. LINE 14 - Overpayment on Line 13 - enter the amount you want credited
and/or refunded on the appropriate line. Proceed to Line 16.
ROUNDING OFF TO WHOLE DOLLARS is permitted. Eliminate any
amount less than fifty cents and increase any amount from fifty cents LINE 15 - If Line 8 is greater than Line 11, and not less than $10.00,
through ninety-nine cents to the next higher dollar. you have a balance due. Subtract Line 11 from Line 8 and enter the
amount on Line 15.
PENALTY AND INTEREST - In accordance with the law, penalty and LINE 16 - Enter amount from Line 8. Your 2022 tax amount is used
interest will be charged for failing to file a return and to pay taxes, to determine your 202 tax estimate.3If you anticipate earning more
including estimated taxes, when they are due. income (wage and/or non-wage) in 202 , use Form L-ES3to determine
your 202 estimate.3Quarterly payments of estimated tax must be made
DECLARATION OF ESTIMATED MUNICIPAL TAX ON NET PROFITS if the anticipated tax due amount is $200.00 or more.
- A Declaration of Estimated Income Tax on Net Profits is required by
municipal ordinance and must be filed by the following: LINE 17 - Multiply Line 16 by 25% or .25.
1. All corporations (including S Corps. and LLC’s) whose income is LINE 18 - Enter amount from Line 14. This is the 2022 credit to be
derived from sales made, work done, services performed or applied to the first quarter estimate.
rendered, and business or other activities conducted in Lakewood,
whether or not such income results in a net profit. LINE 19 - Add Lines 15, 17, and subtract Line 18. This is the amount
2. All resident or non-resident partnerships, limited partnerships, due to the City of Lakewood. Amounts less than $10.00 need not be
estates, or trusts which expect a profit or loss derived from sales paid. Make your check or money order payable to the CITY OF
made, work done, services performed or rendered, and business or LAKEWOOD - DIVISION OF TAX.
other activities conducted in Lakewood.
The estimate is due on the 15th day of the fourth month following the SIGNATURE - Sign and date your return before submitting it to the City
end of the entity’s tax year. For your convenience, you may pay the of Lakewood. A return is not “filed” within the meaning of the law, until
full amount of total estimated tax due (Line 16) with this declaration. signed by the taxpayer or an agent legally authorized to sign for such
Otherwise, 1/4 of the estimated tax due must be remitted with this taxpayer. If someone other than the taxpayer prepares the return, this
declaration and the remaining amount will be billed to you in three equal person should sign the return.
