INSTRUCTIONS FOR FORM I-1120 

                      CITY OF IONIA CORPORATION RETURN 
                            For corporations doing business in the City of Ionia 
Filing Date and Remittance 
                                                             Line 10.   Not applicable in the City of Ionia. 
An annual return is due on or before the last day of the 
fourth month following the end the corporation's taxable     Line 11 - 12.  Follow the instructions printed on the return 
year.    Returns must be for the same calendar year, fiscal  form. 
year, or other accounting period as the taxpayer uses for 
federal income tax purposes.  For calendar year filers the   PAYMENTS AND CREDITS 
due date is April 30.                                        Line 13.  Enter the total of estimated payments, amounts 
                                                             carried forward from an  I-1120, amounts paid with an 
Make remittance payable to:                                  extension request (Ionia extension form) and a credit for 
      City of Ionia                                          tax paid by a partnership on behalf of the corporation. 

Mail your return and remittance to:                          OVERPAYMENT OF TAX 
      City of Ionia                                          Line 14.  If the total tax payments (line 13) are greater than 
      Income Tax Division                                    tax due (line 12) subtract line 12 from line 13 and enter the 
      PO Box 512                                             tax overpayment. 
      Ionia, MI 48846 
Who Must File a Corporation Return (I-1120)                  Line 15.  Enter all or the portion of the overpayment to be 
                                                             applied to the next year's estimated tax as a credit forward. 
The City of Ionia income tax became effective January 1, 
1994.  Every corporation doing business in the City of       Line 16.  Enter all or the portion of the overpayment to be 
Ionia after January 1, 1994, whether or not an office or     refunded via a paper refund check. 
place of business was maintained in the City, is required to 
make and to file an annual City of Ionia Income Tax          Line 17.  Enter all or the portion of the overpayment to be 
Corporation Return, Form I-1120.  An annual return must      refunded via a direct deposit and enter the following:  
be filed whether or not the corporation has net profits.     routing number, type of account and account number. 

Corporations cannot elect to file and be taxed as            An overpayment refund will be issued via a paper check or 
partnerships.  A corporation that elects to file under Sub-  direct deposit.  A refund may not be split.   
chapter S of the internal revenue code must file as a C 
corporation for Ionia Income Tax purposes.                   TAX DUE 
                                                             Line 18.  If tax due (line 12) is greater that the total tax 
Non-profit corporations which have applied for and           payments (line 13) subtract line 13 from line 12 and enter 
received approval for exemption from Federal income tax      the tax due.  Tax due must be paid when filing the return. 
shall not be required to file an Ionia return provided they  Make check or money order payable to CITY OF IONIA, 
submit, to the Administrator, a copy of their approved       and mail the remittance with the return to CITY OF 
exemption from the Internal Revenue Service.  The            IONIA, INCOME TAX DEPARTMENT, PO BOX 512, 
exemption from filing a City of Ionia return will continue   IONIA  MI  48846. 
as long as the Federal exemption is in effect.  
                                                             PAGE 2 INSTRUCTIONS 
The ordinance also specifically exempts state and national 
banks, trust companies, insurance companies, building and    SCHEDULE S 
loan and saving and loan associations, and credit unions     S corporations must file as C corporations.  Schedule S is 
(chartered by either the state or federal government).       used to reconcile the amount reported on line 1, page 1 of 
                                                             I-1120 with Federal Form 1120S and Schedule K (Form 
Extensions                                                   1120S). 
The Administrator may extend the time for filing up to six 
months with a written request of the taxpayer or to one      SCHEDULE C 
month beyond the extension when a longer extension has       COLUMN 1, LINE 1.  Enter on line 1 the nondeductible 
been granted by the Internal Revenue Service, All requests   portion of a loss from the sale or exchange of property 
for extension must be made on or before the required filing  acquired prior to January 1, 1994.  The portion of the loss 
date of the return.                                          occurring prior to the inception of the Ordinance, January 
                                                             1, 1994 is not recognized.  The amount of loss occurring 
A valid extension does not extend the time for paying the    prior to January 1, 1994 is determined by either (1) 
tax due.  Payment of the total estimated tax due must be     computing the difference between the total gain or loss for 
made with the request for extension.  Interest and penalty   the property as reported for federal income tax purposes 
will be charged for underestimation of, or not paying, the   and the Ionia taxable portion of the loss computed by 
estimated tax due.                                           substituting the fair market value of the property on 
                                                             January 1, 1994, (the December 31, 1993, closing price for 
PAGE 1 INSTRUCTIONS                                          traded securities) for the basis in determining gain or loss; 
                                                             or (2) by multiplying the loss for the entire holding period, 
Line 1 - 9.  Follow the instructions printed on the return   as computed for federal income tax purposes, by a fraction, 
form.                                                        the numerator being the number of months the property 
                                                             was held prior to January 1, 1994 and the denominator 

being the total number of months the property was held.       owned and located or used in the City of Ionia.  The 
See Column 2, line 5 for instructions relative to gains from  average net book value of real and tangible personal 
sales or exchanges of property acquired prior to January 1,   property may be determined by adding the net book values 
1994.                                                         at the beginning of the year and the net book values at the 
                                                              end of the year and dividing the sum thus obtained by two. 
Capital losses from U.S. Government obligations included 
in income reported on page 1, line 1 are not deductible.      LINE 1a.  Enter in column 1 the gross annual rent 
Remove these losses by including them in the amount           multiplied by 8 for all rented real property regardless of 
reported on line 1.                                           location.  In column 2 show the gross annual rent 
                                                              multiplied by 8 for rented real property located in the City 
COLUMN 1, LINE 4.  Enter the losses from entities             of Ionia.  Gross annual rent refers to real property only, 
filing as partnerships that are included in taxable income    rented or leased during the taxable period, and should 
reported on page 1, line 1.                                   include the actual sums of money or other consideration 
                                                              paid, directly or indirectly, by the taxpayer for the use or 
COLUMN 2, LINE 1.  Enter the amount of interest               possession of such property. 
income from obligations of the United States, the states or 
subordinate units of government of the state that is          LINE 2.  Enter in column 1 the total compensation paid to 
included in taxable income reported on page 1, line1.         all employees during the year, and in column 2 show the 
                                                              amount of compensation paid to employees for work or 
COLUMN 2, LINE 2.  If you reported dividend income,           services performed within the City of Ionia during the year. 
enter on this line the amount of the dividend-received 
deduction allowed by the federal Internal Revenue Code        LINE 3.  Enter in column 1 the total gross revenue from 
for dividends received.                                       all sales or services rendered during the year, and in 
                                                              column 2 show the amount of revenue derived from sales 
COLUMN 2, LINE 3 AND LINE 4.  Taxpayers may                   made or services rendered in the City of Ionia during the 
deduct income, war profits and excess profits taxes           year.  If there is no regularly maintained sales force outside 
imposed by foreign countries or possessions of the United     of the city, this allocation factor must be 100% for 
States, allocable to income included in taxable net           businesses with no other business activity outside the city. 
income, any part of which would be allowable as a 
deduction in determining federal taxable income under the     Separate Accounting – The taxpayer may petition for, or 
applicable provisions of the federal Internal Revenue         the administrator may require, use of the separate 
Code.                                                         accounting method.  If such method is petitioned, the 
If a foreign tax credit, rather than a foreign tax deduction, administrator may require a detailed statement to determine 
was claimed on your federal return, enter on line 3 the       whether the net profits attributable to the city will be 
portion of the foreign tax credit which is grossed up and     apportioned with reasonable accuracy. 
included in you Ionia return as dividend received. 
                                                              Generally a corporation that is unitary in nature (i.e., has 
Enter on line 4 the “foreign taxes paid or accrued” portion   central management, purchasing, warehousing, advertising, 
of the foreign tax credit claimed on you federal return, not  etc.) can not use separate accounting.  Taxpayers allocating 
in excess of the federal limitations thereon.  The balance of on any basis other than separate accounting shall include 
your foreign tax credit is not deductible.                    all interest, dividends and other non-operating income to 
                                                              arrive at the total income subject to the allocation 
COLUMN 2, LINE 5.  Enter on line 5 the nontaxable             percentage. 
portion of a gain from the sale or exchange of property 
acquired prior to January 1, 1994.  The portion of the gain   Taxpayers using separate accounting shall include in 
occurring prior to the inception of the Ordinance is not      income subject to tax a proportionate share of dividends, 
recognized.  Refer to the instructions for Schedule C,        interest and other non-operating income of the total 
column 1, line 1 for computation instructions.                corporation.  This type of income is apportioned to Ionia 
                                                              activity on the same basis as general administrative and 
Capital gains from U.S. Government obligations included       overhead costs are apportioned. 
in income reported on page 1, line 1 are not taxable.  
Remove these gains by including them in the amount            SCHEDULE G 
reported on line 5.                                           LINE 1.  Net operating losses carried forward are to be 
                                                              reported on this line.  There is no provision for carrying 
COLUMN 2, LINE 6.  Enter income from entities filing          back losses to prior tax years.  Carryover losses are to be 
as partnerships that are included in taxable income           allocated to Ionia at the percentage of business conducted 
reported on page 1, line 1.                                   in Ionia in the year in which the loss was sustained.  If all 
                                                              business was not conducted in Ionia in the year in which 
SCHEDULE D                                                    the loss was sustained, use the business allocation 
The business allocation percentage formula must be used       percentage formula to arrive at the deductible portion of 
by corporations with business activity both within and        the loss.  Attach a schedule showing your computation for 
outside the City of Ionia who have not been approved to       the amount reported on this line. 
use the separate accounting method.  If a corporation has 
property and payroll percentage that is 100% Ionia, you do    LINE 2.  Enter on this line the net capital loss carryover 
not have business activity outside the City of Ionia and      applicable to Ionia.  Net capital losses sustained by a 
may not allocate sales.  Enter 100% on Schedule D, line 5.    corporation for periods subsequent to January 1, 1994 may 
LINE 1.  Enter in column 1 the average net book value of      be carried forward in the same manner as under the federal 
all real and tangible personal property owned by the          Internal Revenue Code.  No deduction will be allowed for 
business, regardless of location, and in column 2 show the    capital losses sustained prior to January 1, 1994.  If all 
net book value of the real and tangible personal property     business was not conducted in Ionia in the year in which 

the loss was sustained, use the business allocation           WEBSITE 
percentage formula to arrive at the deductible portion of 
the loss.  Attach a schedule showing your computation for     Income tax forms and instructions are available on the City 
the amount reported on this line.                             of Ionia website, www.ci.ionia.mi.us. 
                                                              NOTICE 
LINE 3  .  Corporations who are partners in a business        These instructions are interpretations of the Ionia Income 
activity taxed as a partnership that has business activity in Tax Ordinance.  The Ordinance will prevail in any 
Ionia must enter on this line their portion of the Ionia      disagreement between the instructions and the Ordinance. 
taxable income or loss from the partnership(s).  Attach a 
schedule showing your computation for the amount 
reported on this line including the name and taxpayer 
identification number of the partnership(s). 

INFORMATION AND PREPARER AUTHORIZATION 
Third Party Designee.  If the “Yes” box is marked, the 
corporation is authorizing the Ionia Income Tax 
Department to call the preparer to answer any questions 
that may arise during the processing of its return.  The 
corporation is also authorizing the preparer: to give the 
Department any information that is missing from the return 
or the status of any related refund or payments; and to 
respond to certain notices that the corporation has shared 
with the preparer about math errors, offsets and return 
preparation. 

DECLARATION AND PAYMENT OF ESTIMATED 
TAX 
   1. WHO MUST FILE:  Every corporation subject to
        the tax on all or part of its net profits must file a
        Declaration of Estimated Income Tax (Form I
        1040ES).  A Declaration is not required from
        corporations if the estimated tax is two hundred
        fifty dollars ($250.00) or less.

   2. WHEN AND WHERE TO FILE:
             A. Declaration for Calendar Year:  The 
                Declaration for a calendarthyear must be 
                filed on or before April 30  of that year.  
                The estimated tax is payable in equal 
                installments on or before April 30th, June 
                30th, September 30th and January 31st. 
             B. Declaration for Fiscal Year:  The 
                Declaration for a year, or period differing 
                from the calendar year must be filed 
                within four (4) months after the beginning 
                of each fiscal year or period.  For example, 
                if a fiscal year begins on April 1st, the 
                Declaration will be due on July 31st.  
                Remaining installments will then be due 
                on the last day of the 6th, 9th and 13th 
                months after the beginning of the fiscal 
                year. 
             C. Filing and Payment:  The Declaration 
                should be filed with the City of Ionia, 
                Income Tax Division, PO Box 512, Ionia  ,
                MI  48846.  The first installment payment 
                must accompany the Declaration. The 
                estimated tax may be paid in full with the 
                Declaration. 

ASSISTANCE 
If you have questions or would like to request forms ,call 
(616) 523-0142.  Questions by mail should be directed to:  
City of Ionia, Income Tax Division, PO Box 512, Ionia ,
  MI  48846.