INSTRUCTIONS: NORTH CAROLINA CORPORATION TAX RETURN (Form CD-405)

Corporations operating in North Carolina file their taxes using a form CD-405. This document can be obtained from the website maintained by the North Carolina Department of Revenue.

North Carolina Corporation Tax Return CD-405 Step 1: If not filing for the calendar year pre-printed on the form, enter the beginning and ending dates of your fiscal year.

North Carolina Corporation Tax Return CD-405 Step 2: On the right, enter your federal employer ID number, secretary of state ID, NAICS code, gross receipts from sales, and total assets from your balance sheet.

North Carolina Corporation Tax Return CD-405 Step 3: Fill in all applicable circles next to the 11 statements listed.

North Carolina Corporation Tax Return CD-405 Step 4: Indicate whether you are related to another corporation as a parent, subsidiary or affiliate by filling in the appropriate circle.

North Carolina Corporation Tax Return CD-405 Step 5: Section A concerns computation of your franchise tax. To complete line 1, first complete Schedule C on the third page.

North Carolina Corporation Tax Return CD-405 Step 6: To complete line 2, first complete Schedule D on the third page.

North Carolina Corporation Tax Return CD-405 Step 7: To complete line 3, first complete Schedule C on the third page.

North Carolina Corporation Tax Return CD-405 Step 8: Enter the greatest value from lines 1 through 3 on line 4.

North Carolina Corporation Tax Return CD-405 Step 9: Multiply line 4 by .0015 and enter the resulting product on line 5.

North Carolina Corporation Tax Return CD-405 Step 10: Complete lines 6 through 9 as directed to compute your franchise tax owed or overpaid.

North Carolina Corporation Tax Return CD-405 Step 11: Lines 10 through 32 concern computation of corporate income tax. To complete these lines, you will need to complete Schedules G and H on the fourth page and Schedules I, N and O on the sixth page.

North Carolina Corporation Tax Return CD-405 Step 12: Lines 33 through 41 calculate the final amount of tax you owe or the size of the refund you are entitled to.

North Carolina Corporation Tax Return CD-405 Step 13: An officer should sign and date the bottom of the second page, as well as providing a corporate telephone number.