The Kentucky Telecommunications Tax Franchise Fee Credit Annual Reconciliation Return is used by telecommunications providers to reconcile franchise fee credits connected with Kentucky telecommunications tax. The return brings together information from the individual franchise fee schedules prepared for cities or other taxing jurisdictions that impose local franchise fees. Rather than reporting each jurisdiction separately on the reconciliation return, the provider summarizes totals from the supporting schedules and compares the telecommunications tax due after allowable franchise fee credits with the telecommunications tax already reported on the Telecommunications Provider Tax Return. The form asks for the total number of jurisdictions imposing franchise fees, telecommunications tax due before credits, allowable franchise fee credits, tax remaining after those credits, credits previously claimed on the Telecommunications Provider Tax Return, and the telecommunications tax reported for all applicable jurisdictions. The final calculation determines whether additional telecommunications tax is due or whether the reconciliation results in an overpayment. A telecommunications provider must prepare a separate supporting schedule for each city or taxing jurisdiction that imposed a franchise fee and then transfer the applicable column totals from those schedules to this annual reconciliation return. The form also collects the preparer’s contact information, telecommunications tax account number, reporting period, and business mailing information so the Department of Revenue can associate the reconciliation with the correct taxpayer and period.
How To File The Kentucky Telecommunications Tax Franchise Fee Credit Annual Reconciliation Return
Complete the preparer information, telecommunications tax account number, reporting period, business name and mailing address, and all applicable reconciliation lines.
Before completing the numerical portion of the return, prepare the required supporting franchise fee schedules. A telecommunications provider must submit one Form 75A051 schedule for every city or taxing jurisdiction that imposed a franchise fee.
Use the totals from those schedules to complete Lines 2 through 6 of the reconciliation return.
After reviewing the calculations, return the completed filing to:
Kentucky Department of Revenue
Division of Sales and Use Tax
Communications Services Section
P.O. Box 181 – Station #66
Frankfort, Kentucky 40602
For questions about the filing, the form provides the following contact information:
Telephone: 502-564-5170, Option #2
Fax: 502-564-2041
Email: DOR.Web.Response.Telecom@ky.gov
The form itself does not state a specific filing deadline, so use the filing requirements applicable to the reporting period and telecommunications tax account involved.
How To Complete The Kentucky Telecommunications Tax Franchise Fee Credit Annual Reconciliation Return Line By Line
Preparer Information
This section identifies the person responsible for preparing the reconciliation return.
Name Of Preparer
Print the full name of the person who prepared the return.
Use a clearly readable name so the Department of Revenue can identify the preparer if questions arise.
Date Prepared
Enter the date on which the return was prepared.
Use the date the reconciliation was completed or finalized.
Signature
The preparer should sign on this line.
The signature identifies the person responsible for preparing the return.
Telephone Number
Enter a telephone number where the preparer can be contacted.
Include the area code.
E-Mail Address
Print the preparer’s email address clearly.
Use an email address that can be used for correspondence concerning the filing.
Telecommunications Tax Account And Reporting Period
This section connects the annual reconciliation with the correct telecommunications tax account and reporting period.
Telecommunications Tax Account Number
Enter the telecommunications tax account number assigned to the business.
Review the account number carefully before filing because it is used to associate the reconciliation with the correct taxpayer account.
Period Beginning
Enter the first date of the reporting period covered by the reconciliation.
The period should correspond with the tax information and franchise fee schedules included in the filing.
Period Ending
Enter the final date of the reporting period.
Make sure the beginning and ending dates describe the same annual reconciliation period represented by the supporting schedules.
Business Name And Mailing Address
Print the complete business name and mailing address of the telecommunications provider.
Use the legal or recognized business name associated with the telecommunications tax account.
Provide the complete mailing address on the available lines, including the street address or mailing address, city, state, and ZIP Code as applicable.
Filing Destination And Department Contact Information
The return is directed to the Kentucky Department of Revenue’s Division of Sales and Use Tax, Communications Services Section.
Kentucky Department Of Revenue
This identifies the state agency receiving the reconciliation.
Division Of Sales And Use Tax
The filing is handled through the Division of Sales and Use Tax.
Communications Services Section
This section of the Department of Revenue handles the telecommunications-related filing.
Telephone
For assistance, contact the Communications Services Section at 502-564-5170 and select Option #2.
Mailing Address
Send the completed filing to:
Kentucky Department of Revenue
P.O. Box 181 – Station #66
Frankfort, Kentucky 40602
Fax
The fax number shown for the Communications Services Section is 502-564-2041.
The contact email address is DOR.Web.Response.Telecom@ky.gov.
Annual Franchise Fee Credit Reconciliation
Lines 1 through 7 summarize information from the franchise fee schedules and reconcile those amounts with the Telecommunications Provider Tax Return.
Line 1 – Total Number Of Cities Or Taxing Jurisdictions Imposing Local Franchise Fees
Enter the total number of cities or other taxing jurisdictions included in the reconciliation that imposed local franchise fees.
Count each applicable jurisdiction once.
For example, if the provider paid or was subject to franchise fees in five different taxing jurisdictions, enter 5.
A separate supporting schedule must be prepared for each jurisdiction included in this number.
Supporting Schedule Requirement
Telecommunications providers must submit one Form 75A051 for each city or taxing jurisdiction that imposed a franchise fee.
Do not combine multiple jurisdictions on a single supporting schedule when the instructions require one schedule for each jurisdiction.
The individual schedules provide the amounts that are totaled and transferred to the reconciliation lines that follow.
Line 2 – Total Telecommunications Tax Due Before Franchise Fee Credits
Add the amounts reported in Column E of all supporting schedules.
Enter the combined amount on Line 2.
This line represents the total telecommunications tax due for the jurisdictions imposing franchise fees before any franchise fee credits are applied.
For example, if three schedules show Column E amounts of $2,000, $3,000, and $1,500, the amount entered on Line 2 would be $6,500.
Line 3 – Total Allowable Franchise Fee Credits
Add all allowable franchise fee credits shown in Column F of the supporting schedules.
Enter the total on Line 3.
This amount represents the combined allowable franchise fee credit for all jurisdictions included in the annual reconciliation.
Only the allowable credit amounts from the corresponding schedule column should be included.
Line 4 – Total Telecommunications Tax Due After Allowable Credits
Add the amounts reported in Column G of all supporting schedules.
Enter that combined total on Line 4.
This line represents the telecommunications tax remaining for the applicable jurisdictions after allowable franchise fee credits have been applied.
Do not use the pre-credit amount from Line 2 in place of this figure. Line 4 should reflect the tax after the allowable credits represented in the schedules.
Line 5 – Total Franchise Fee Credits Claimed On The Telecommunications Provider Tax Return
Add the amounts shown in Column H of all supporting schedules.
Enter the combined amount on Line 5.
This figure represents the franchise fee credits that were claimed on the Telecommunications Provider Tax Return for the applicable jurisdictions.
Make sure the total comes from Column H rather than from the allowable-credit column used for Line 3.
Line 6 – Telecommunications Tax Due For All Jurisdictions As Reported On The Telecommunications Provider Tax Return
Add the amounts reported in Column I of all supporting schedules.
Enter the total on Line 6.
This amount represents the telecommunications tax due for the applicable jurisdictions as it was reported on the Telecommunications Provider Tax Return.
Verify that every jurisdiction included in the reconciliation has been included in the Column I total.
Line 7 – Additional Telecommunications Tax Due Or Overpaid
Subtract Line 6 from Line 4.
Use the following calculation:
Line 4 − Line 6 = Line 7
If Line 4 is greater than Line 6, the result represents additional telecommunications tax due.
If Line 6 is greater than Line 4, the calculation produces an overpayment.
For example, if Line 4 is $15,000 and Line 6 is $14,200:
$15,000 − $14,200 = $800
The Line 7 amount would show $800 of additional telecommunications tax due.
If Line 4 is $14,000 and Line 6 is $14,500:
$14,000 − $14,500 = −$500
The negative result indicates a $500 overpayment.
For Official Use Only
Do not write in the For Official Use Only area.
This section is reserved for processing by the Kentucky Department of Revenue.
How The Supporting Schedules Connect To The Reconciliation Return
The annual reconciliation depends on totals taken from the supporting franchise fee schedules. Before completing Lines 2 through 6, make sure every applicable jurisdiction has its own schedule.
The information transfers as follows:
- Line 2 comes from the total of Column E on all schedules.
- Line 3 comes from the total of Column F on all schedules.
- Line 4 comes from the total of Column G on all schedules.
- Line 5 comes from the total of Column H on all schedules.
- Line 6 comes from the total of Column I on all schedules.
- Line 7 is calculated by subtracting Line 6 from Line 4.
Keeping the schedules organized by jurisdiction makes it easier to verify that every amount included in the annual reconciliation is supported.
Final Review Before Filing
Before submitting the Kentucky Telecommunications Tax Franchise Fee Credit Annual Reconciliation Return, review the preparer’s name, preparation date, signature, telephone number, and email address. Confirm that the telecommunications tax account number and reporting-period dates are correct and that the business name and mailing address are complete.
Next, count the jurisdictions imposing franchise fees and make sure the number entered on Line 1 agrees with the number of supporting schedules being submitted. Confirm that a separate schedule has been prepared for every applicable city or taxing jurisdiction.
Review the column totals used to complete Lines 2 through 6. Line 2 should agree with the combined Column E amounts, Line 3 with Column F, Line 4 with Column G, Line 5 with Column H, and Line 6 with Column I.
Finally, calculate Line 7 by subtracting Line 6 from Line 4. Verify whether the result represents additional telecommunications tax due or an overpayment, check all arithmetic one final time, and submit the reconciliation with the required supporting schedules to the Kentucky Department of Revenue.