Instructions For Form 1120-Sf - (Rev. December 2001)
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2
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4Instructions for
Department of the Treasury
Internal Revenue Service
Form 1120-SF
(Rev. December 2001)
U.S. Income Tax Return for Settlement Funds
Section references are to the Internal Revenue Code unless otherwise noted.
When To File
processing of its return. The fund is also
Changes To Note
authorizing the paid preparer to:
•
Generally, a fund must file its income tax return
•
Give the IRS any information that is missing
If the fund wants to allow the IRS to discuss
by the 15th day of the 3rd month after the end
from the return,
its tax return with the paid preparer who signed
•
of the fund’s tax year.
Call the IRS for information about the
it, check the “Yes” box in the area where the
If the due date falls on a Saturday, Sunday,
processing of the fund’s return or the status of
officer of the fund signed the return. See below
or legal holiday, the fund may file on the next
any related refund or payment(s), and
for details.
•
•
business day.
Respond to certain IRS notices that the fund
The tax rate applicable to settlement funds
has shared with the preparer about math
Private delivery services. Funds can use
has been reduced. See the instructions for line
errors, offsets, and return preparation. The
certain private delivery services designated by
16 on page 4 for details.
notices will not be sent to the preparer.
the IRS to meet the “timely mailing as timely
How To Get Forms and
The fund is not authorizing the paid
filing/paying” rule for tax returns and payments.
preparer to receive any refund check, bind the
The most recent list of designated private
Publications
fund to anything (including any additional tax
delivery services was published by the IRS in
liability), or otherwise represent the fund before
Personal computer. You can access the IRS
October 2001.
the IRS. If the fund wants to expand the paid
Web Site 24 hours a day, 7 days a week, at
The list includes only the following:
preparer’s authorization, see Pub. 947,
to:
•
•
Airborne Express (Airborne): Overnight Air
Practice Before the IRS and Power of Attorney.
Download forms, instructions, and
Express Service, Next Afternoon Service,
publications.
The authorization cannot be revoked.
•
Second Day Service.
See answers to frequently asked tax
•
However, the authorization will automatically
DHL Worldwide Express (DHL): DHL “Same
questions.
end no later than the due date (without regard
•
Day” Service, DHL USA Overnight.
Search publications on-line by topic or
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to extensions) for the filing of the fund’s tax
Federal Express (FedEx): FedEx Priority
keyword.
return for the following year.
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Overnight, FedEx Standard Overnight, FedEx
Send us comments or request help by
2Day.
Assembling the Return
e-mail.
•
•
United Parcel Service (UPS): UPS Next Day
Sign up to receive local and national tax
Air, UPS Next Day Air Saver, UPS 2nd Day
Attach schedules in alphabetical order and
news by e-mail.
Air, UPS 2nd Day Air A.M., UPS Worldwide
other forms in numerical order after Form
You can also reach us using file transfer
Express Plus, and UPS Worldwide Express.
1120-SF.
protocol at ftp.irs.gov.
The private delivery service can tell you
Complete every applicable entry space on
CD-ROM. Order Pub. 1796, Federal Tax
how to get written proof of the mailing date.
Form 1120-SF. Do not write “See Attached”
Products on CD-ROM, and get:
instead of completing the entry spaces. If more
Extension. File Form 7004, Application for
•
Current year forms, instructions, and
space is needed on the forms or schedules,
Automatic Extension of Time To File
publications.
attach separate sheets using the same size
Corporation Income Tax Return, to request a
•
Prior year forms, instructions, and
and format as on the printed forms. If there are
6-month extension of time to file.
publications.
supporting statements and attachments,
•
Frequently requested tax forms that may be
Who Must Sign
arrange them in the same order as the
filled in electronically, printed out for
schedules or forms they support and attach
submission, and saved for recordkeeping.
The return must be signed and dated by the
them last. Show the totals on the printed forms.
•
The Internal Revenue Bulletin.
administrator of the fund.
Also, be sure to enter the fund’s name and
Buy the CD-ROM on the Internet at
employer identification number (EIN) on each
If an employee of the fund completes Form
/cdorders from the National
supporting statement or attachment.
1120-SF, the paid preparer spaces should
Technical Information Service (NTIS) for $21
remain blank. In addition, anyone who
(no handling fee) or call 1-877-CDFORMS
Where To File
prepares Form 1120-SF but does not charge
(1-877-233-6767) toll free to buy the CD-ROM
the fund should not complete that section.
File Form 1120-SF with the Internal Revenue
for $21 (plus a $5 handling fee).
Generally, anyone who is paid to prepare the
Service Center, Philadelphia, PA 19255.
return must sign it and fill in the “Paid
By phone and in person. You can order
Preparer’s Use Only” area.
forms and publications 24 hours a day, 7 days
Tax Year and Accounting
a week, by calling 1-800-TAX-FORM
The paid preparer must complete the
Method
(1-800-829-3676). You can also get most
required preparer information and:
•
forms and publications at your local IRS office.
Sign the return, by hand, in the space
A qualified settlement fund’s tax year is the
provided for the preparer’s signature (signature
calendar year and the fund must use the
stamps and labels are not acceptable).
accrual method of accounting.
•
Give a copy of the return to the
General Instructions
Rounding Off to Whole
administrator.
Dollars
Paid Preparer Authorization
Purpose of Form
The fund may show amounts on the return and
If the fund wants to allow the IRS to discuss its
accompanying schedules as whole dollars. To
Form 1120-SF, U.S. Income Tax Return for
tax return with the paid preparer who signed it,
do so, drop any amount less than 50 cents and
Settlement Funds, is used by designated and
check the “Yes” box in the signature area of
increase any amount from 50 cents through 99
qualified settlement funds to report transfers
the return. This authorization applies only to
received, income earned, deductions claimed,
the individual whose signature appears in the
cents to the next higher dollar.
“Paid Preparer’s Use Only” section of the
tax due, and distributions made.
Recordkeeping
fund’s return. It does not apply to the firm, if
Who Must File
any, shown in that section.
Keep the fund’s records as long as they may
All section 468B designated and qualified
If the “Yes” box is checked, the fund is
be needed for the administration of any
settlement funds must file an annual income
authorizing the IRS to call the paid preparer to
provision of the Internal Revenue Code.
tax return on Form 1120-SF.
answer any questions that may arise during the
Usually, records that support an item of
Cat. No. 14988X
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