CITY OF WALKER INCOME TAX 

                                                   2021 CORPORATION RETURN 
                                                                                
                             Instructions for Form W-1120 for CORPORATIONS doing business in Walker 
 
DIRECT DEPOSIT/DIRECT WITHDRAWAL                                                must  be  attached.  If  the  return  is  filed  after  the  extended  due  date, 
Direct deposit refund of overpayments and direct withdrawal of balance          penalty and interest will apply from the original due date. 
due is available for 2021 tax returns.                                           
                                                                                 
CORPORATIONS REQUIRED TO FILE                                                   PAGE 1 INSTRUCTIONS 
Every corporation doing business in the city, whether or not it has an           
office or place of business in the city, is required to file an annual City of  LINES 1 – 7, 9 AND 10.  Follow the instructions printed on the return 
                                                                                form. 
Walker Corporation Income Tax Return, Form W-1120.                              LINES    11 AND 12. Follow the instructions printed on the return form. 
Corporations  cannot elect  to file and be taxed as partnerships. 
Subchapter   S corporations are treated as C corporations.                      TAX ZONE DEDUCTIONS 
The Walker  Income Tax  Ordinance  specifically exempts financial               LINE 8. Corporations qualified to claim the Tool & Die Recovery Zone 
institutions from taxation. “Financial institutions” are defined as state and   deduction or Renaissance Zone  deduction  calculate the deduction on 
national banks, trust companies, building and loan associations, savings        Schedule  TD or  Schedule  RZ  of W-1120.  When  claiming either 
and  loan  associations,  credit  unions,  safety  and  collateral  deposit     deduction,  enter the deduction amount on line 8. 
companies, and  any  other association,  joint stock  company or                PAYMENTS AND CREDITS 
corporation at least 90% of whose assets consist of intangible personal         LINE 13.  Complete Schedule P on page 2 by entering the total of 2021 
property and at least 90% of whose gross income consists of dividends,          estimated payments, amounts carried forward from a 2020  W-1120, 
interest or other charges resulting from the use of money or credit.            amounts paid with an extension request (form W-EXT) and credit for tax 
                                                                                paid  by  a  partnership  on  behalf  of  the  corporation  on  the  applicable 
RETURN FORMS                                                                     lines.  Enter the total from Schedule P, line 5 on page 1, line13. 
Corporation income tax return forms are no longer mailed.  Forms are 
available for download at www.walkermi.gov/taxforms                             OVERPAYMENT OF TAX 
                                                                                LINE 14.  If the total tax payments (line 13) are greater than tax due (line 
TAX ZONE DEDUCTIONS                                                              12) subtract line 12 from line 13 and enter the tax overpayment. 
A  corporation located and doing business in a Walker Tool &  Die               LINE 15.  Enter all or the portion of the overpayment to be applied to the 
Recovery Zone or Renaissance Recovery Zone may be eligible to claim             2022  estimated tax as a credit forward. 
the Tool & Die Recovery  Zone  or Renaissance  Zone deduction. This             LINE  16.    If  you  would  like  to  donate  all  or  a  portion  of  your 
deduction allows  the  corporation  to deduct the portion of  their income      overpayment, check the applicable box and enter the amount on line(s) 
from income subject to Walker income tax. A taxpayer is not qualified to 
earned in a Walker Tool  & Die  Recovery Zone  or  Renaissance Zone              16a, 16b and /or 16c. 
claim either deduction if the corporation is delinquent for any Michigan or     LINE 17.  Enter all or the portion of the overpayment to be refunded via 
local taxes. A  Walker income tax return  must be filed  to claim  this          a paper refund check. 
deduction.   Schedule TD of W-1120 is required  to be attached to the           LINE 18.  If  you would like  the overpayment to be refunded via direct 
corporation  return  when  claiming  the  Tool  &  Die  Recovery  Zone          deposit, mark  the box on line 18 for Refund—Direct Deposit and 
deduction.   Schedule RZ of W-1120 is required  to be attached to the           complete (a) the bank routing number, (b) the bank account number and 
 
corporation return when claiming the Renaissance Zone deduction.                (c)  the account type.   
TAX RATE                                                                        TAX DUE  
1.0% effective January 1, 1988.                                                 LINE 19.  If tax due (line 12) is greater than the total tax payments (line 
                                                                                13) subtract line 13 from line 12 and enter the tax due. Tax due must be 
FILING DATE                                                                     paid when filing the return.  
Taxpayers on a  calendar  year  are required to  file by  May  2,  2022.         
Those on a  fiscal  year  must  file  by  the  last day  of  the fourth  month  To  pay with a check or money order make the check or money order 
following the end of  the fiscal  year. Returns  shall be  for the  same        payable  to  TREASURER,  CITY  OF  WALKER,  and  mail  the  payment 
calendar  year, fiscal  year or other  accounting  period  as  the taxpayer     with the return to CITY OF WALKER INCOME TAX DEPARTMENT, PO 
uses for federal income tax purposes.                                           BOX 153, GRAND RAPIDS, MI 49501-0153. 
                                                                                 
                                                                                To make payment via direct withdrawal from your bank account, mark 
REMITTANCE                                                                      the  box  on  line 18  to  Pay  tax  due—Electronic  funds  withdrawal, and 
The tax due must be paid when filing the return. Make check or money            complete (a) the bank routing number, (b) the bank account number and 
order payable to:                                                               (c) the account type.  The withdrawal will be made upon receipt of the 
 TREASURER, CITY OF WALKER                                                      return.  Mail your return to the address listed in the preceding paragraph. 
                                                                                 
MAILING ADDRESS                                                                 PAGE 2 INSTRUCTIONS 
Mail your return and remittance to:                                              
 CITY OF WALKER INCOME TAX DEPARTMENT                                           SCHEDULE S 
 PO BOX 153                                                                     S corporations must  file as C  corporations. Schedule S is used to 
                                                                                reconcile the amount reported on line 1, page 1 of W-1120 with federal 
 GRAND RAPIDS, MI  49501-0153                                                    Form 1120S and Schedule K (Form 1120S). 
 
EFFECTIVE DATE OF TAX                                                           SCHEDULE C 
The City of Walker income tax became effective  January 1, 1988.                COLUMN 1, LINE 3.  Enter on line 1 the nondeductible portion of a loss 
Corporations are required to pay the tax each year on that part of their        from the sale or exchange of property acquired prior to January 1, 1988.  
net income attributable to business activity  conducted in Walker,              The portion of the loss occurring prior to the inception of the Ordinance, 
commencing with their first year ending after January 1, 1988.                  January 1, 1988 is not recognized.  The amount of loss occurring prior to 
                                                                                January 1, 1988 is determined by either (1)  computing the difference 
                                                                                between the  total gain or loss for the property as reported for  federal 
EXTENSIONS                                                                      income  tax  purposes  and  the  Walker  taxable  portion  of  the loss 
Upon  filing  the  form  APPLICATION  FOR  EXTENSION  OF  TIME  TO              computed by  substituting the  fair market  value of the property on 
FILE WALKER  INCOME TAX RETURNS (W-EXT) (available on  the                      January 1, 1988, (the December 31, 1987,  closing price for traded 
City’s website) on or before the date for filing a return, the Income Tax       securities) for the basis in determining gain or loss; or (2) by multiplying 
Administrator may extend the time for filing up to six months. When an          the loss for the entire holding period, as computed for federal income tax 
extension is requested, the tentative tax must be paid.                         purposes, by a fraction, the numerator being the number of months the 
                                                                                property was held prior to January 1, 1988 and denominator being the 
When an extension form is filed with the appropriate payment, it may be         total number of months the property was held.  See Column 2, line 11 
assumed that  the extension is automatically granted unless otherwise           for  instructions  relative  to  gains  from  sales or  exchanges  of  property 
notified. When the return is filed, a copy of the application for extension     acquired prior to January 1, 1988. 

Capital  losses  from  U.S.  Government  obligations  included  in  income      operating income to arrive at the total income subject to the allocation 
reported on page 1, line 1 are not deductible.  Remove these losses by          percentage. 
including them in the amount reported on line 1.                                Taxpayers using separate accounting shall include in income subject to 
COLUMN 1, LINE 5.  Enter the losses from entities filing as partnerships        tax a proportionate share of dividends, interest and other non-operating 
that are included in taxable income reported on page 1, line 1.  Attach a       income of  the  total  corporation.  This  type of income is apportioned to 
schedule  showing the name and FEIN of the partnership(s).                      Walker  activity  on  the  same  basis  as  general  administrative  and 
COLUMN 2, LINE 7. Enter the amount of interest income  from                     overhead costs are apportioned. 
obligations of the United States,  the  states or  subordinate units of          
government of the state that is included in taxable income reported on          SCHEDULE G 
                                                                                LINE 1. Net operating losses carried forward are to be reported on this 
page 1, line 1.                                                                 line. There is no provision  for  carrying back losses to prior  tax  years. 
COLUMN 2, LINE 8. If you reported dividend income, enter on this line           Carryover  losses  are  to  be  allocated  to  Walker  at  the  percentage  of 
the amount of the dividend-received deduction allowed by the  federal           business  conducted  in Walker in the  year in which  the loss  was 
Internal Revenue Code for dividends received.                                   sustained.  If all business was not conducted in  Walker in  the  year in 
COLUMN 2, LINE 9 AND LINE 10. Taxpayers may deduct income, war                  which  the loss was  sustained, use the business allocation  percentage 
profits and excess profits  taxes imposed by foreign  countries or              formula to arrive at the deductible portion of the loss. Attach a schedule 
possessions of the United  States, allocable to  income included in             showing your computation for the amount reported on this line. 
taxable net income, any part of which would be allowable as a deduction         LINE 2. Enter on this line  the net  capital loss carryover applicable to 
in determining federal taxable income under the applicable provisions of        Walker.  Net capital  losses sustained  by  a corporation for  periods 
the federal Internal Revenue Code.                                              subsequent  to  January  1,  1988  may  be  carried  forward  in  the  same 
If a foreign tax credit, rather than a foreign tax deduction, was claimed       manner as under the federal Internal Revenue Code. No deduction will 
on your federal return, enter on line 9 the portion of the foreign tax credit   be allowed for capital losses sustained prior to January 1, 1988. If all 
which was grossed up and included in your Walker return as dividends            business was not conducted in Walker in the year in which the loss was 
                                                                                sustained, use  the business allocation percentage  formula  to arrive at 
 received.                                                                      the deductible portion of  the loss. Attach a  schedule  showing  your 
Enter on line 10 the "foreign taxes paid or accrued" portion of the foreign     computation for the amount reported on this line. 
tax  credit  claimed on your federal return, not in excess of  the federal              Corporations who are partners in a business activity taxed as a 
limitations  thereon.  The  balance  of  your  foreign  tax  credit  is  not    LINE 3. 
                                                                                partnership that has business activity in Walker must enter on this line 
 deductible.                                                                    their  portion  of  the  Walker  taxable  income  or  loss  from  the 
COLUMN 2, LINE 11.  Enter on line 11 the nontaxable portion of a gain           partnership(s). Attach a  schedule showing your computation  for the 
from the sale or exchange of property acquired prior to January 1, 1988.        amount reported on this line including the name and taxpayer 
The portion of the gain occurring prior to the inception of the Ordinance       identification number of the partnership(s). 
is not recognized.  Refer to the instructions for Schedule C, column 1, 
line 1 for computation instructions.                                            INFORMATION AND PREPARER AUTHORIZATION 
                                                                                Disclosure.  If the “Yes” box is marked, the corporation is authorizing 
Capital gains  from U.S. Government obligations  included in income             the Walker Income Tax Department to call the preparer to answer any 
reported on page 1, line 1 are not taxable.  Remove  these gains by             questions that may arise during the processing of its return. The 
                                                                                corporation is also authorizing the preparer: to give the Department any 
including them in the amount reported on line 11.                               information that is missing  from  the return; to call  the Department for 
COLUMN 2, LINE 12.  Enter income from entities filing as partnerships           information  about  the processing of the return or the status of any 
that are included in taxable income reported on page 1, line 1.  Attach a       related refund or payments; and to respond to certain notices that the 
schedule showing the name and FEIN of the partnership(s).                       corporation has shared with the preparer about math errors, offsets and 
                                                                                return preparation. 
SCHEDULE D                                                                       
The  business  allocation  percentage  formula  must  be  used  by              DECLARATION AND PAYMENT OF ESTIMATED TAX 
corporations with business activity both within and outside the City of         1.   WHO MUST FILE:  Every corporation subject to the tax on all or part 
Walker who have not been approved to use  the  separate accounting               of  its  net  profits  must  file  a  Declaration  of  Estimated  Income  Tax 
method.  If a corporation has a property and payroll percentage that is          (Form W-1120ES). A Declaration is not required from corporations if 
100%  Walker,  you  do  not  have  business  activity  outside  the  City  of    the estimated tax is two hundred fifty dollars ($250.00) or less. 
LINE 1a.  Enter in column 1 the average net book value of all real and 
Walker and may not allocate sales.  Enter 100% on Schedule D, line 5.           2.   WHEN AND WHERE TO FILE AND PAY: 
tangible personal property owned by the business, regardless of                  A. Declaration for Calendar Year. The Declaration for a calendar year 
location,  and  in  column  2  show  the  net  book  value  of  the  real  and         must be filed on or before April 30th of that year. The estimated 
tangible  personal  property  owned  and  located  or  used  in  the  City  of         tax is payable in equal installments on or before April 30th, June 
Walker. The average net book  value of real and tangible personal                      30th, September 30th and January 31st. 
property may be determined by adding the net book values at the                  B. Declaration for Fiscal Year:  The Declaration for a year, or period 
beginning of the year and the net book values at the end of the year and               differing from the  calendar year must be filed within  four (4) 
dividing the sum thus obtained by two.                                                 months after the beginning of each fiscal  year or period. For 
LINE 1b. Enter in column 1 the gross annual rent multiplied by 8 for all               example, if a fiscal year begins on April 1st, the Declaration will be 
rented real property regardless of location. In column 2 show the gross                due on July 31st. Remaining installments will then be due on the 
annual rent multiplied by 8 for rented real property located in the City of            last day of the 6th, 9th and 13th months after the beginning of the 
Walker. Gross annual rent refers to real property only, rented or leased               fiscal year. 
during the taxable period, and should include the actual sums of money           C. Filing  and  Payment:    The  Declaration  should  be  filed  with  the 
or other consideration paid, directly or indirectly, by the taxpayer for the           Walker  City  Income  Tax  Department,  P.O.  Box  153,  Grand 
use or possession of such property.                                                    Rapids, MI 49501-0153. The first installment payment must 
LINE 2.  Enter in column 1 the total compensation paid to all employees                accompany the Declaration. The estimated taxth   may be paid in full 
during the year, and in column 2 show the amount of compensation paid                  with the Declaration due on or before April 30  of the tax year. 
to employees for work or services performed within the City of Walker            
during the year.                                                                ASSISTANCE 
LINE  3. Enter  in  column  1  the  total  gross  revenue  from  all  sales  or If you have questions, would like to request forms, or need assistance in 
services rendered during the year, and in column 2 show the amount of           preparing your return call (616) 791-6880. Questions by mail should be 
revenue derived from  sales  made or  services rendered in the City of          directed to: Walker City Income Tax Department, P.O. Box 153, Grand 
Walker during the year. If there is no regularly maintained sales force         Rapids, Michigan 49501-0153. 
outside of the city, this allocation factor must be 100% for businesses          
with no other business activity outside the city.                               WEBSITE 
Separate  Accounting  -  The  taxpayer  may  petition  for,  or  the            Income tax forms, instructions and additional information are available 
administrator  may  require, use  of  the  separate  accounting  method.  If    under the Income Tax Department section of the City of Walker website, 
such method  is petitioned,  the  administrator  may require a detailed         www.walkermi.gov 
statement to determine whether the net profits attributable to the city will     
be apportioned with reasonable accuracy.                                        NOTICE 
Generally, a  corporation that is unitary in nature (i.e., has  central         These  instructions are interpretations of the Walker  Income  Tax 
management, purchasing, warehousing, advertising, etc.)  cannot use             Ordinance. The Ordinance will prevail in any disagreement between the 
separate accounting.  Taxpayers allocating on any basis other  than             instructions and the Ordinance. 
separate accounting shall include all interest, dividends and other non-