Instructions for Form BR-25 | City of Columbus, Ohio

Instructions for

Form BR-25

Columbus Business Return

We strongly recommend you file with

our new online tax portal, Columbus

Revenue Information Portal (CRISP) at

crisp.columbus.gov.

Use to prepare returns for tax year

2022

The Columbus tax rate is

2.5%

Do I Need to File?................................................

How Do I File?.....................................................

Payments and Refunds……….……………………

General Information………..………………………

Required attachments……………………………..

Completing Form BR-25…………………………..

Part A

Part B

Schedule X

Schedule Y

Schedule E

Part C

Filing Form BR-PV…………….…………………..

We strongly recommend you file with our new online tax

portal, CRISP at crisp.columbus.gov. On CRISP, you can

electronically complete your Form BR-25 and upload all

documentation. Part C of the BR-25 replaces the Form

BR-21 Declaration of Estimated Tax. Form BR-PV

replaces Form BR-18 and Form BR-42.

You must file an annual net profit return on Form BR-25

and a Declaration of Estimated Tax on Part C if you are

engaged in the following business enterprises:

1. Associations (including Partnerships, Joint

Ventures, etc.) deriving income from work done,

services performed or rendered, or business

conducted in Columbus.

2. Corporations (including S-Corporations) and

Fiduciaries (Estates and Trusts) deriving income or

losses from work done, services performed or

rendered, or business conducted in Columbus.

You must file Form BR-25 even if a net loss is reported by

the business.

Form BR-25 is NOT appropriate for

Schedule C filers. Schedule C filers must

file using Form IR-25, Columbus Individual

Return.

Nonprofit businesses

Nonprofit businesses (as defined in I.R.C. §501(c)) are

not required to file an annual city tax return if a copy of the

organization’s approved I.R.S. determination letter is on

file with the City. However, should such a business have

unrelated business income (as defined in I.R.C. §512),

the business is required to file and pay city income tax.

Tax Exempt Activities

If the entity is in an exempt status per O.R.C. §715.013

(such as banks, trucking, or insurance companies) please

provide documentation designating the exempt status.

Associations whose only activity is as an

investment club must file a city income tax

return, even though profits earned from this

kind of enterprise are non-taxable.

Should I use Form BR-25?

Corporations, including S-corporations, partnerships, joint

ventures, and fiduciaries (estates and trusts) must file

using Form BR-25.

Sole proprietorships, rental properties, and farms must file

using Form IR-25. Residents who are a partner in an

association must report their share of the taxable income

using Form IR-25.

Can my corporation file a consolidated return?

An affiliated group of corporations may file a consolidated

income tax return using Form BR-25 if that affiliated group

filed a consolidated return for federal income tax purposes

for the same tax reporting period. Form BR-25 is required

to be completed based on the common parent federal

income tax return of the affiliated group as filed with the

Internal Revenue Service.

“Affiliated Group of Corporations” means an affiliated

group as defined in section 1504 of the Internal Revenue

Code. “Consolidated Federal Income Tax Return” means

a consolidated return for federal income tax purposes

pursuant to section 1501 of the Internal Revenue Code.

What is the period of the return?

Your business is required to file a BR-25 return covering

the same period as the business’s federal income tax

return.

Do I Need to File?

What’s new?

Table of Contents

NOTE

How Do I File?

When is Form BR-25 due?

This return must be filed on or before the 15th day of the

fourth month following the close of the tax year. For

calendar year taxpayers, this means the return is due

April 18, 2023.

What if I need more time?

If your business has requested an extension for filing the

business’s federal income tax return, you will

automatically receive the same extension for filing the

Columbus return.

An extension of time to file is not an extension of the time

to pay any tax due.

The extended due date of the City income tax return is the

15th day of the tenth month after the last day of the

taxable year to which the return relates.

If your business is not requesting a federal extension but

needs to request an extension for the Columbus return,

you must file Columbus Form BR-PV with payment, on or

before the original due date of Form BR-25. This form

may also be filed through the online tax portal, CRISP at

crisp.columbus.gov.

If you are unable to pay any taxes owed, you must still file

your annual return timely with the Division.

What if I file or pay late?

Columbus charges penalties for failure to file, late filing,

and filing a false or fraudulent return.

Corporations, associations, trusts and

estates located within or doing business

within Columbus will incur a penalty of $25

per month up to a maximum of $150 for

failing to file this return in a timely fashion.

Columbus also charges penalty and interest on taxes that

are unpaid to the city after they are due. This penalty is

15% of the amount of unpaid tax, and the annual interest

rate on unpaid taxes is 7%.

Paying tax due

If the full amount of the business tax liability as reported

on Form BR-25 has not been paid by quarterly estimated

payments, the unpaid balance must be filed and paid by

the due date unless the balance due is $10 or less.

Requesting a refund

Your business may request a refund due to an

overpayment of estimated tax. To request a refund, check

the refund box in the upper right section of Form BR-25

and record the refund amount properly on Line 6B.

Refunds cannot be less than $10.

No refund or carryforwards of overpayment to subsequent

years shall be allowed unless a written request is

presented to the Administrator of the Columbus Income

Tax Division within three (3) years after the tax was due

or paid, whichever is later, as defined in C.C.C.

§362.096(B)(1).

Mailing addresses

Refund Requested or No Payment Enclosed:

Mail to: Columbus Income Tax Division

PO Box 182437

Columbus, Ohio 43218-2437

Payment Enclosed:

Payable to: CITY TREASURER

Mail to: Columbus Income Tax Division

PO Box 182158

Columbus, Ohio 43218-2158

How are local taxes determined?

Businesses conducting activities within Columbus are

liable for the income tax. These instructions are applicable

to Columbus only.

If you have any questions about completing any of our

forms, please call (614) 645-7370. All forms,

instructions, and applicable tax codes for Columbus are

available for download at:

http://www.columbus.gov/incometaxdivision.

What is taxable income?

Columbus only taxes the portion of the allocated net

profits from business or professional activities conducted

within the city’s boundaries. Net operating loss carrybacks

are not permitted.

Requirements for associations

Columbus requires that the partnership (or LLC) pay all

tax due on behalf of all affected partners. Guaranteed

payments to partners must be included in net profits.

This requirement applies to all resident and non-resident

associations (including partnerships, limited partnerships,

and limited liability corporations (LLCs) treated as

partnerships for federal income tax purposes).

Requirements for corporations

Columbus requires that the corporation or fiduciary pay all

tax due on their taxable income. Sub-Chapter S

corporations are taxed as regular C corporations for City

tax purposes, and must adjust their income accordingly.

This requirement applies to all corporations (including S-

corporations and limited liability companies (LLCs)

treated as corporations for federal income tax purposes),

and fiduciaries (estates and trusts).

General Information

NOTE

Payments and Refunds

Partnerships and associations

You must attach pages 1 through 5 of the business’s

Federal Form 1065.

Corporations

You must attach copies of Pages 1 through 6 of the

business’s Federal Form 1120 or Pages 1 through 5 of

the business’s Federal Form 1120S.

Fiduciaries, trusts, and estates

You must attach a copy of Page 1 of the business’s

Federal Form 1041.

Federal Forms

Attach complete copies of the following if attached to the

business’s federal tax return:

a. schedule of other income

b. schedule of other deductions

c. Federal Form 1125-A other costs

d. Federal Form 8825

e. Federal Form 4797

f. Federal Schedule E

g. Federal Schedule D

h. Federal Form1125-A

i. Federal Schedule M-3

j. Federal Form 8949

k. Copies of all 1099-MISC forms issued to

central Ohio residents.

Other attachments

Additionally, in order to avoid delay in processing or

disallowance of undocumented credits or losses by the

Tax Administrator, your business should attach any other

documentation, including:

a. a list of disregarded entities covered by the

return,

b. schedules

c. other municipal income tax returns

d. supporting documentation necessary to

verify credits, income, losses, or other

pertinent factors on the return.

Enter year of tax return and beginning and ending dates

in top right corner of return. Fiscal year taxpayers, use the

beginning year of the fiscal period as the tax year reported

on the businesses attached Federal return.

1. Enter the information for business name, current

mailing address and EIN/FID or account number in

the spaces provided.

2. Check the appropriate box that corresponds to the

filing status of the business. This form is NOT

appropriate for Schedule C filers. Schedule C filers

must file using Form IR-25, Columbus Individual

Return.

3. If your business is requesting a refund with this return,

place an “X” in the box marked REFUND located in

the upper right section. The requested amount of the

refund must appear on line 6B.

If your business is amending an already-submitted

return, place an “X” in the box marked AMENDED

located in the upper right section. If your business is

amending the City return based upon an amended

return filed with the I.R.S., you must include a copy of

the Amended Federal Return, including any

applicable schedules that pertain to the amendment.

If your business is amending the City return based

upon an audit that the I.R.S. conducted, you must

include documentation identifying when the I.R.S.

audit was concluded. Note any changes that were

made by the I.R.S. to reduce or increase taxable

income.

4. Complete the box that pertains to the filing of a city

return in the previous year, whether or not the return

is a consolidated corporation return, and whether or

not the account should be inactivated.

If you are requesting that the business’s account be

inactivated, provide an explanation, in the space

provided or on a separate form. If this is a final return,

give the reason why. If the business has been sold,

provide the name, address, and phone number of the

purchaser on a separate attachment. Finally, indicate

if the sale was a sale of assets or of stock.

5. If the address of the business operation is different

from the mailing address, provide the complete local

business address.

Mailing addresses, used for postal

purposes, cannot be used to determine

taxing jurisdictions. Mailing addresses of

Columbus, Ohio can fall in another taxing

jurisdiction as well as in non-taxing areas

(townships). If you are unsure where a local

address is actually located, please use

CRISP at crisp.columbus.gov. to verify

addresses.

Part A: Tax Calculation

Complete Schedules X, Y, and E (if applicable) before

completing this section.

Column B: Enter total net taxable income from net

profits of corporations, associations

(partnerships, joint ventures, etc.) and

fiduciaries (from Schedule X and/or

Schedule Y). Entry in Column B cannot

be less than zero.

Unincorporated losses cannot offset

corporate income. Corporate losses cannot

offset unincorporated income.

Column C: Multiply the figure in Column B by 2.5%.

Completing Form BR-25

NOTE

Required Attachments

Column D: Enter applicable City of Columbus Jobs

Tax Credit. Entry in this column cannot

reduce Column E to less than zero.

Column E: Subtract Column D from Column C.

Line 1: Enter total net tax due amount from

Column E.

Line 2: Enter all declaration and extension

payments made for this tax year and any

overpayment carried forward from the

prior year’s return.

Line 3: Subtract Line 2 from Line 1. If the result

is a negative number, indicate amount in

parentheses and carry to Line 6.

Line 4: Enter penalty, interest, and late filing fee,

if applicable. All taxes unpaid after April

15 are subject to a 15% penalty. Taxes

remaining unpaid to Columbus after they

become due are subject to an annual

interest rate of 7%. A late filing fee of $25

per month up to a maximum of $150 may

apply.

Line 5: Enter total amount due - Line 3 plus Line

4. If tax due is $10 or less, no payment is

necessary.

Line 6: Enter overpayment, if applicable, from

Line 5 as a positive number (do not use

parentheses).

a. Line 6A: Enter amount of the

overpayment from Line 6 to be

credited to next year’s tax estimate.

b. Line 6B: Enter the amount of the

overpayment from Line 6 to be

refunded. Refunds must be greater

than $10.

Part B: Required Questions

All questions in this section regarding the business entity

must be answered.

Signature

Form BR-25 is not considered a complete return unless

the corporation’s officer signs it and attaches all required

documents (see attachments required above).

Anyone the corporation pays to prepare Form BR-25 must

sign and date it in the space provided and provide their

Paid Preparer Tax Identification Number (PTIN).

Paid Preparer Authorization

If your business wants to allow the City of Columbus to

discuss its tax return with the paid preparer who signed it,

check the “YES” box in the signature area of the return.

This authorization applies only to the individual whose

signature appears in the “Paid Preparer’s Use Only”

section of the return. It does not apply to the firm, if any,

shown in that section.

By checking “YES”, your business authorizes the City of

Columbus to call the paid preparer to answer any

questions that may arise during the processing of its

return.

The corporation also authorizes the paid preparer to:

a. Give the City of Columbus any information that is

missing from the return,

b. Call the City of Columbus for information about

the processing of the return or the status of any

refund or payment(s), and

c. Respond to certain City of Columbus notices

about math errors, offsets, and return

preparation.

Your business is not authorizing the paid preparer to

receive any refund check, bind the corporation to anything

(including any additional tax liability), or otherwise

represent the corporation before the City of Columbus.

Schedule X: Reconciliation with Federal

Income Tax Return

Complete this section to reconcile the city return with the

business’s federal return as required in C.C.C. §362.

Enter all items shown on the business entity’s federal tax

return (Forms 990T, 1041, 1065, 1120, 1120REIT or

1120S) which are non-taxable or non-deductible for city

tax purposes.

Associations reconciling from Line 1 of the “Analysis of

Net Income (Loss)” section of Schedule K of Federal

Form 1065 must complete all lines as applicable except

Line 4D. Taxes paid by associations on this return are

considered to be paid on behalf of the members of the

association and should not be deducted on Line 14 of

Federal Form 1065 or Line 11 of Federal Form 8825.

Line 1: Income per attached Federal tax return per

C.C.C. §362.03(A).

Line 2 A: Items not deductible (from 4J below).

Line 2 B: Items not taxable (from Line 5F below).

Line 2 C: Record excess of Line 2A or 2B.

Line 2 D: Partnership income or loss adjustment (add

back a partnership loss or deduct a

gain).Must attach completed form BR-25

schedule E see page 6 for instructions.

Line 2 E: Suspended §179 expense from prior years

allowed in this tax year.

Line 2 F: Suspended charitable contributions from

prior years allowed in this tax year.

Line 2 G: Other City taxable income not in Line 1

(such as I.R.C. §291 recalculation of §1250

gain for S corporations, partnerships or

trusts treated as C corporations per C.C.C.

§362.03(A)(12)).

Line 2 H: Net operating loss calculated per C.C.C.

§362.03(A)(8), per §362.03(A)(8)(e). This

figure must be entered as a positive number.

You must attach a schedule detailing the

calculation and application of the net

operating loss carryforward.

Line 3: City net taxable income after applying the

net operating loss allowed by C.C.C.

§362.03(A)(8).

Items not deductible are added to taxable income.

They should be entered as follows:

Line 4A: Non-deductible losses incurred from the sale

or exchange of capital or other assets per

C.C.C. §362.03(A)(3).

Line 4B: Amount equal to 5% of intangible income not

attributable to the sale, exchange or other

disposition of I.R.S. §1221 property.

Line 4C: Taxes based on net income - includes any

state or municipal tax deducted.

Line 4D: Guaranteed payments to partners - applies

only if guaranteed payments to

partners/members has not been included

within net profits under C.C.C.

§362.03(W)(1).

Line 4E: Charitable contributions – All business

entities should report any contributions over

the 10% corporate limitations in accordance

with C.C.C. §362.03(A)(12). Non-C corporate

businesses may carry forward any unused

contributions as if they were C corporations.

A schedule should be provided to show how

your deduction was calculated and identify

any portion that was carried forward from

prior years. (Deduction is limited to 10% of

city taxable income before consideration

for any charitable contribution

deduction).

Line 4F: In accordance with C.C.C. §362.03(A)(12)

Non-corporate business entities may be

limited to the corporate limitations for I.R.S.

§179 expense deduction.

Line 4G: Qualified retirement, health insurance and life

insurance plans on behalf of owners/owner

employees must be added back as non-

deductible under C.C.C. §362.03(A)(12).

Line 4H: Add any deduction for a pass-through entity

not allowed as a deduction for a C-

Corporation under the Internal Revenue

Code. i.e. 754 Basis Adjustments and

Section 163(J) Interest Expense.

Federal Form 1065 Schedule K1 Line 13d

(applies to associations only).

Line 4I: Other expenses not deductible (with

explanation). Do not include expenses on

income earned in other taxing districts (see

Line 5E instructions).

Line 4J: Total Additions - add Lines 4A through 4I -

carry result to Line 2A.

Items not taxable are deducted from taxable income.

They should be entered as follows:

Line 5A: Non-taxable gains from sale or exchange of

capital or other assets per C.C.C.

§362.03(A)(4).

Line 5B: Interest Income.

Line 5C: Dividend Income.

Line 5D: Income from patents, trademarks, copyrights,

and royalties related to intangible sources.

Do not include royalty income derived from

land (timber rights, grazing rights, etc.) which

is fully taxable for city tax purposes.

Line 5E: Other exempt income (with explanation). The

changes in municipal taxation mandated by

HB5 do not include any adjustments for

Federal credits such as the FICA tip credit,

Work Opportunity credit, Welfare to Work

credit, Indian Employment Tax credit,

Empowerment Zone credit, etc. Therefore,

the City of Columbus will no longer allow

these deductions against Adjusted Federal

Taxable Income on Schedule X.

Line 5F: Total Deductions - add Lines 5A through 5E

- carry result to Line 2B.

Distributions from investment partnerships cannot be

apportioned. These distributions must be deducted on

Line 2D.

Calculate adjusted net income (Line 3) and carry result:

1) to Part A, Page 1; 2) to adjusted net income column of

Schedule Y if allocation of net profits is required.

Schedule Y: Required Calculation of Net

Profit for Multi-City Allocation

Complete Schedule Y to properly allocate city taxable

income between multiple cities. In order to promote

uniformity and consistency in the calculation of net profits,

the City of Columbus Division of Income Tax strictly

interprets Ohio Revised Code §718.02.

Column A, Line a: List the average original cost of all real

and tangible personal property owned or used by the

taxpayer that was situated within the city limits. Include

the annual rental on rented and leased real property

situated within the city limits multiplied by 8.

Column A, Line b: Divide Column A, Line a by the

amount of Line 3. If the amount of Line 3 is zero, enter

“n/a” on this line.

Column B, Line a: List the gross receipts from sales

made, rentals made or services performed within the city

limits.

Column B, Line b: Divide Column B, Line a by the

amount of Line 4. If the amount of Line 4 is zero, enter

“n/a” on this line.

Column C, Line a: List the wages, salaries and other

compensation paid to W-2 employees for services

performed within the city limits except compensation

exempt from municipal taxation under C.C.C.

§362.03(K)(17).

Column C, Line b: Divide Column C, Line a by the

amount of Line 5. If the amount of Line 5 is zero, enter

“n/a” on this line.

Column D: Divide the sum of line b for Columns A-C by

the number of factors used.

Example 1: Line 5 shows no wages

companywide. If Line b for Columbus shows 30%,

60%, and N/A for Columns A-C respectively,

divide 90% (30% + 60%) by 2 (since only two

columns had numbers).

Example 2: Line 5 reports wages companywide.

None of those wages are earned in Columbus.

Thus, if Line b for Columbus shows 30%, 60%,

and 0% for columns A-C respectively, divide 90%

(30% + 60% + 0%) by 3 (since all three columns

had numbers, even though Column C’s number

was zero).

Column E: Multiply the amount shown on Schedule X,

Line 3 by the percentage shown in Column D. If the

amount is zero or less, enter zero on Form BR-25, Page

1, Part A, Column B. If Column E is more than zero, enter

the amount on Form BR-25, Page 1, Part A, Column B.

Schedule E: Pass-Through K-1 Income

(or Loss)

Complete this section to determine the income or loss

resulting from investments in partnerships. Corporations,

associations (partnerships, joint ventures, etc.), and

fiduciaries are not permitted to offset local partnership

income with local partnership losses.

Column 5: Enter total income/loss incurred by each

activity listed in Column 1. Enter the total

amount on line 2D of Schedule X.

Filing a Declaration of Estimated Tax

AII business enterprises must complete Part C,

Declaration of Estimated Tax, on Form BR-25 for the

current year.

Making estimated payments

AII estimated payments must be made using form BR-PV.

Payments can also be made on CRISP at

crisp.columbus.gov. No extensions of time to file or pay

will be granted.

For calendar year taxpayers, payments are due:

 April 15, 2023

 June 15, 2023

 September 15, 2023

 December 15, 2023

For fiscal year filers, payments are due:

 the 15th day of the fourth month, and

 the 15th day of the sixth month, and

 the 15th day of the ninth month, and

 the 15th day of the twelfth month of the

business's year.

Each estimated tax payment made using Form BR-PV

must be accompanied by a payment of at least 25% of the

total estimated tax shown on Part C of Form BR-25 or

include a credit carry-forward. Your business may apply

credit for overpayment from a prior year return entirely to

the first quarter payment or may divide the credit between

each quarterly payment.

All 2023 quarterly estimated payments must total at least

90% of the total tax liability shown on the business’s 2023

tax return or at least 100% of the total tax liability shown

on the businesses 2022 tax return. If all estimated

payments total an amount less than either of these

criteria, or if payments are not made by the due dates

listed above, the business will be subject to penalty and

interest.

To amend a declaration of estimated city income tax,

provide a written statement including the expected new

tax liability, the tax year being amended and account

number/FEIN. An amended declaration of estimated city

income taxes may also be filed by going to CRISP at

crisp.columbus.gov and submitting a web-request, which

must include the expected new tax liability, tax year, and

account number/FEIN.

For additional payment vouchers, please

visit our website and download Form BR-

PV.

Rev. 01/17/2023

NOTE

Completing Part C and Form BR-PV