Form 3800: General Business Credit

Form 3800 is generally completed by identifying applicable business credits, entering current-year credit amounts, accounting for applicable carryforward or carryback amounts, and calculating the general business credit. The information should generally agree with the taxpayer’s applicable credit forms and tax records.

The basic process is to gather the applicable business credit information, determine which credits apply, enter the applicable amounts, complete the credit calculations and limitations, and review the completed form before submitting it with the applicable tax return. Taxpayers should retain supporting records for the credits being claimed.

Section 1

Enter the taxpayer’s identifying information and applicable tax information. This generally includes the taxpayer’s name, identifying information, and other information needed to associate Form 3800 with the applicable tax return.

The information should be reviewed carefully to make sure it is accurate and consistent with the taxpayer’s tax records.

Section 2

Identify and report applicable current-year business credits. These amounts generally come from the individual forms used to calculate the specific business credits.

Taxpayers should review each applicable credit before entering the amounts on Form 3800. Only credits that apply to the taxpayer’s circumstances should generally be included.

Section 3

Enter applicable credit amounts received from other sources or passed through from certain entities when required. The information may come from partnership, S corporation, estate, trust, or other applicable tax records.

Taxpayers should compare these amounts with their supporting tax documents to help ensure that the credits are reported accurately.

Section 4

Report applicable business credit carryforwards. A carryforward may apply when qualifying credit amounts from a prior period were not fully used and are available for use in a later period.

Taxpayers should review prior tax records and applicable credit documentation before entering carryforward amounts. The amounts should generally agree with the taxpayer’s records.

Section 5

Report applicable business credit carrybacks when required. Carryback information may apply when qualifying credits are available to be applied to an earlier tax period under applicable rules.

Taxpayers should maintain records supporting any carryback amount reported and review the applicable requirements before including the amount on Form 3800.

Section 6

Complete the applicable general business credit calculations. This generally involves combining qualifying credit amounts and applying the applicable limitations to determine the credit available for the reporting period.

Taxpayers should review the calculations carefully and make sure the amounts are supported by the applicable credit forms and tax records.

Section 7

Complete any applicable credit limitation calculations. The amount of general business credit that can be used may be limited by the taxpayer’s circumstances and applicable tax rules.

Taxpayers should compare the limitation calculations with their applicable tax records and supporting documentation before determining the final credit amount.

Section 8

Enter any additional applicable credit information or adjustments required by Form 3800. Only information that applies to the taxpayer’s circumstances should generally be included.

Taxpayers should maintain supporting documentation for any additional amounts or calculations reported on the form.

Section 9

Determine the final general business credit amount available to the taxpayer. The final calculation should generally reflect applicable current-year credits, carryforward or carryback amounts, and applicable limitations.

Taxpayers should compare the final amount with their supporting credit forms and tax records before submitting the return. The applicable credit should be reported according to the requirements that apply to the taxpayer’s return.

Section 10

Review the completed Form 3800 and make sure all applicable information has been entered. Check the taxpayer information, current-year credits, carryforward amounts, carryback amounts, pass-through credits, limitations, calculations, and final credit amount.

The completed form should generally be included with the applicable tax filing when required. Taxpayers should also keep a copy of Form 3800 and supporting credit and tax records for their records.

Final Review

Review Form 3800 after completing all applicable sections. Check the taxpayer information, current-year business credits, carryforward amounts, carryback amounts, pass-through credits, credit limitations, calculations, supporting records, and final credit amount.

A final review can help identify calculation or reporting errors before the form is submitted. Taxpayers should retain Form 3800 and supporting business credit and tax records with their tax records.