FORMS AND INSTRUCTIONS AVAILABLE AT WWW.WOOSTEROH.COM 
                 
                                           2023 

                           CITY OF WOOSTER BUSINESS TAX RETURN 
 
                                    GENERAL INSTRUCTIONS 
 
BUSINESSES REQUIRED TO FILE          
 
Each C-corporation, S-corporation, partnership, trust, estate or other business entity, other than non-profit organizations, that have 
activities conducted in the City of Wooster, whether or not such organization has an office or place of business inside the City, is 
subject to Wooster income tax. Such entities must allocate their profits (losses) within the City by using the business allocation formula 
(Schedule Y). Businesses having an office or place of business in Wooster should identify the Wooster location’s street address on their 
tax return. 
 
NOTE: If a business filed a return, or was required to file a tax return in previous years, but did not do any business within 
Wooster in 2023, a Non-Filing Declaration on page 5 must be completed and returned to the City of Wooster's tax office. 
 
TAXABLE INCOME 
 
Income subject to city tax should be figured in the same manner as income subject to federal income tax, except for the following 
exempt items, that should be reported on schedule Z of this return and deducted from federal taxable income: 
 
 - Dividends 
 - Interest Income 
 - Capital Gains 
 - Income from intangible property 
 
All deductions reported on the federal income tax return may be used in computing Wooster taxable income, except for the following 
items, that should be added back to income and reported on Schedule Z: 
 
 - Taxes based on income 
 - Capital Losses 
 - Net operating loss carry backs 
 
NET OPERATING LOSS 
 
The portion of a net operating loss allocated to Wooster may be carried forward for the lesser of five calendar or six fiscal tax years and 
used to offset current Wooster Taxable Income. A schedule of net operating loss carry forwards, which shows the fiscal year the loss 
was incurred and any subsequent Wooster taxable income to which this loss was applied, should be attached. 
 
                        GENERAL INSTRUCTIONS, CONTINUED 

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ESTIMATED TAXES 
 
To receive payment vouchers for the second, third and fourth quarters, complete the 2024 estimate on line 18 of page 3 or line 7 of 
page 6 or contact this office.  Non-receipt of forms does not relieve the taxpayer of the responsibility to file forms and pay taxes due 
quarterly. 
 
Any business entity that anticipates owing tax of $200.00 or greater in 2024, must file a Declaration of Estimated Tax on or before the 
fifteenth day of the fourth month of their fiscal year. The declaration should be accompanied by payment of one-fourth (25%) of the 
estimated tax liability declared by the fifteenth day of the fourth month of the fiscal year, 1/2 (50%) by the fifteenth day of the sixth 
month, 3/4 (75%) by the fifteenth day of the ninth month and all (100%) by the fifteenth day of the twelfth month following the fiscal 
year end.  
 
Overpayments from previous tax years (carry forward credits) may be applied towards the estimated payments. Do not use the 
overpayment to decrease your estimated tax liability, but rather to decrease your quarterly payment due after the carry 
forward credit is determined. 
 
Estimated payments must, in equal quarterly installments, be equal to 90% of the current year’s Wooster tax liability. The estimate can 
be amended at any time following the initial declaration.  
 
EXTENSION OF TIME TO FILE TAX RETURN 
 
A business entity may receive an extension of time to file its City of Wooster Business Income Tax Return in one of the following 
ways: 
 
      -    By filling out the "Request for Automatic Extension of Time to File," which is included in this packet, and 
           mailing it to the City of Wooster income tax office by the original due date of the return. 
       
      -    By submitting a photocopy of the request for extension which was filed with the Internal Revenue Service, to 
           the City of Wooster income tax office, by the original due date of the return or attach a copy when filing. 
 
 Requesting an extension of time to file does not extend the due date for payment of 2023 taxes owed or  
                                2024 estimated tax payments. 
 
PENALTY AND INTEREST 
 
Penalty and interest charges are imposed for late filing/payment and/or underestimating taxes. Total payments of estimated taxes must 
be equal to or greater than 90% of the current year's total tax liability. 
 
An under payment of estimated tax penalty will be charged at 15% of the 90% of tax liability that was to be remitted. 
 
Late filing penalty is $25.00.  
 
Late payment penalty of 15% is calculated on the tax due that is remitted past the due date.   
 
Interest is calculated at .583% of the tax due, and for each month the tax is late. 
 
PAPERWORK REQUIRED 
 
S-Corporations, Partnerships Limited Liability Companies or other entities a photocopy of all five pages of federal form 1120S or 
1065 and all K-1’s issued should be attached to the return. S-corporations and partnerships that pay Wooster income tax as an entity 
should complete all portions of the return. They should attach the complete federal income tax return and a schedule of taxes deducted 
on the federal return.  
 
C-Corporation, Trusts, Estates and all entities NOT filing federal form 1120S or 1065 should attach a photocopy of the entity’s 
complete federal income tax return and include a schedule of “taxes and licenses” deducted on the federal tax return. If the company 
takes any deductions from, or makes any additions to, their federal taxable income on their city return, that is not clearly identifiable on 
the federal return, paperwork filed with the federal return showing these additions or deductions should be included. 
 
ANY RETURN RECEIVED WITHOUT THE APPROPRIATE PAPERWORK WILL NOT BE CONSIDERED PROPERLY FILED. 

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____________________________________________________________________________________________                
         LINE BY LINE INSTRUCTIONS FOR WOOSTER BUSINESS INCOME TAX RETURNS 
 __________________________________________________________________________________________________ 
Line 1-   Depending on the type of entity and federal tax form being used; enter the following amount from the federal 
        tax return: 
 
        Entity      Form    Description 
 
        Corporation  1120   Taxable Income before Net Operating Loss Deduction 
                     
        S Corporation 1120S Schedule K Income/Loss Reconciliation 
         
        Partnership  1065   Analysis of Net Income (Loss) 
                             
Line 2-  2A- Enter total from Schedule Z, Line F 
        2B- Enter total from Schedule Z, Line L 
         
Line 3-  Sum from lines 1, 2A, 2B. If a loss, this is your NOL to report for 2023. Losses may be carried forward for the 
        lesser of five calendar or six fiscal tax years.  
 
        3A- Deduct any losses from 2018, 2019, 2020, 2021, and 2022 
 
Line 5-  See instructions for schedule Y below. 
 
Line 6-  Multiply the net Wooster taxable income (line 5) by 1.5% (.015) to arrive at the 2023 Wooster income tax 
        liability. 
 
Line 7-  This section is to list all credits for 2023 Wooster income tax. Line A is the overpayment of 2022 income tax 
        credited to  2023.  Line B are the  2023  estimated tax  payments made to the City of Wooster. Line C is  the 
        amount paid towards 2023 taxes with an extension.  
 
Line 9-  If line 8 is greater than line 6; enter the overpayment on this line.  
 
Line 10-  If line 6 is greater than line 8; enter the tax due on this line.  
 
Line 11-  Amount of the overpayment, on line 9, to be refunded. If the amount on line 9 is $10.00 or less, place $0. 
 
Line 12- Amount of line 9 to apply to 2024 income tax.  
 
Line 13- Late filing penalty of $25.00. 
 
Line 14- Late payment penalty, 15% of tax due not remitted by the due date. 
 
Line 15- Interest .583% per month or fraction thereof of tax not remitted by the due date.  
 
Line 16-  Enter the 2024 tax estimate in the space provided, and any amounts applied towards that estimate on the next 
        space. Enter any remaining balance of the estimate due with the return. Please see the general instructions for 
        more detailed information on estimates (page 2). 
 
Line 17- Add lines 10, 13, 14, 15, & 16 and enter sum here. This is the payment that should be sent with the return. 
      Make check payable to “City of Wooster”.  
_______________________________________________________________________________________________________ 
________           _SCHEDULE Y INSTRUCTIONS FOR WOOSTER BUSINESS TAX RETURNS__         _______ 
 
Line 1- Enter the original cost of all tangible real and personal property related to the business for which allocation is                                                            
       made in column a,  and then the same for property located  in  Wooster in column b. Enter any annual  rental 
       amounts paid multiplied by eight for the second line. Total the columns on the third line, and divide  
       column b by a. Enter the percentage in column c. 
 
Line 2- Enter all receipts from the sale of goods or services in column a, and those for inside of Wooster in column b.  
       Section 1701.062 of the Wooster Codified Ordinances sets forth the method for determining sales of goods inside 
       and outside the City. Divide column b by a, and enter percentage in c. 
 
Line 3- Do the same for line 3 as line 2 for wages. 
 
Line 4- Total the percentages in column c. 
 
Line 5- Divide line 4 by the number of percentages in column c. If there is an amount in column a, and none in column b, 
       the percentage is -0-, and should be counted in determining the average. If both a, and b are -0-, it should not be 
       used in calculating the average. 
 
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        SCHEDULE Z INSTRUCTIONS FOR WOOSTER BUSINESS TAX RETURNS 
 
 Line A Enter your capital losses, including losses directly      
        related to the sale, exchange or other disposition of     Line G  Enter the capital gains that directly relate to the 
        an asset described in Section 1221 or 1231 of the                sale, exchange or other disposition of Section 1221 
        IRC.                                                             and 1231 assets 
 
 Line B Enter 5% of gross non-taxable income (lines H, I and      Line H  Enter dividends from federal tax return. 
        J of this schedule). 
                                                                  Line I Enter interest from federal tax return. 
 Line C Add back all taxes that are based on income, such as 
        state and local income taxes                              Line J Enter portion of royalties received whose source is 
                                                                         intangible property. 
                                                                  
 Line D Amounts paid or accrued to qualified retirement           Line K Other please list deduction. 
        plans and health and life insurance plans on behalf of 
        owners and owner employees must be totaled and 
        entered here. 
 
 Line E Enter other non-deductible expenses and attach 
        documentation and/or explanation. 

                             NON-FILING DECLARATION INSTRUCTIONS 
 
 This schedule is for businesses that have filed a Wooster Business Income Tax Return for the 2023 calendar year or a fiscal 
 period beginning in 2023, but did not do any business within Wooster in the following calendar year or fiscal period. 
 
 One of the four options should be checked. If the first one is checked, please be sure to give the effective date of liquidation. 
 If the fourth option is checked, attach a valid explanation as to why the entity, which has previously filed, is no longer 
 required to. Having a loss for the year is not a valid explanation. If the entity has changed, please give the date of change and 
 the name, address and Federal ID# for the new entity. 
 
                             QUESTIONS? CALL (330) 263-5226 FOR ASSISTANCE. 

             FORMS AND INSTRUCTIONS AVAILABLE AT WWW.WOOSTEROH.COM 
 
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