Instructions For Form 1120-Ic-Disc - 2003 (Page 3 of 16) in pdf

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Who Must Sign

Form 1042-S, Foreign Person’s U.S.

avoid parts of the accuracy-related penalty

Source Income Subject to Withholding, and

or certain preparer penalties).

The return must be signed and dated by:

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Form 1042-T, Annual Summary and

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Form 8288, U.S. Withholding Tax Return

The president, vice president, treasurer,

Transmittal of Forms 1042-S. Use these

for Dispositions by Foreign Persons of U.S.

assistant treasurer, chief accounting officer,

forms to report and send withheld tax on

Real Property Interests, and Form 8288-A,

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payments or distributions made to

Statement of Withholding on Dispositions by

Any other corporate officer (such as tax

nonresident alien individuals, foreign

Foreign Persons of U.S. Real Property

officer) authorized to sign.

partnerships, or foreign corporations to the

Interests. Use these forms to report and

Receivers, trustees, or assignees must

extent these payments constitute gross

transmit withheld tax on the purchase of a

also sign and date any return filed on behalf

income from sources within the United

U.S. real property interest from a foreign

of a corporation.

States (see sections 861 through 865).

person. See section 1445 and the related

If an employee of the corporation

Also, see Pub. 515, Withholding of Tax

regulations for more information.

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completes Form 1120-IC-DISC, the paid

on Nonresident Aliens and Foreign Entities,

Form 8300, Report of Cash Payments

preparer’s space should remain blank.

and sections 1441 and 1442.

Over $10,000 Received in a Trade or

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Anyone who prepares Form 1120-IC-DISC

Form 1096, Annual Summary and

Business. Use this form to report the receipt

but does not charge the corporation should

Transmittal of U.S. Information Returns.

of more than $10,000 in cash or foreign

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not complete that section. Generally,

Forms 1099. Use these information

currency in one transaction or a series of

anyone who is paid to prepare Form

returns to report the following:

related transactions.

1120-IC-DISC must sign it and fill in the

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1. 1099-A, Acquisition or Abandonment

Form 8404, Interest Charge on

“Paid Preparer’s Use Only” area.

of Secured Property.

DISC-Related Deferred Tax Liability.

The paid preparer must complete the

2. 1099-B, Proceeds From Broker and

Shareholders use this form to figure and

required preparer information and

Barter Exchange Transactions.

report their interest on DISC-related

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Sign the return in the space provided for

deferred tax liability.

3. 1099-C, Cancellation of Debt.

the preparer’s signature.

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Form 8865, Return of U.S. Persons With

4. 1099-CAP, Changes in Corporate

Give a copy of the return to the taxpayer.

Respect to Certain Foreign Partnerships. A

Control and Capital Structure.

domestic corporation may have to file Form

5. 1099-DIV, Dividends and

Other Forms, Schedules,

8865 if it:

Distributions.

and Statements That May

6. 1099-INT, Interest Income.

1. Controlled a foreign partnership (i.e.,

owned more than a 50% direct or indirect

7. 1099-MISC, Miscellaneous Income.

Be Required

interest in the partnership).

Use this form to report payments: to

providers of health and medical services, of

2. Owned at least a 10% direct or

Forms

rent or royalties, of nonemployee

indirect interest in a foreign partnership

compensation, etc.

An IC-DISC may have to file some of the

while U.S. persons controlled that

following forms. See the form for more

partnership.

Note: Every corporation must file Form

information.

3. Had an acquisition, disposition, or

1099-MISC if it makes payments of rents,

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Form W-2, Wage and Tax Statement,

change in proportional interest in a foreign

commissions, or other fixed or determinable

and Form W-3, Transmittal of Wage and

partnership that:

income (see section 6041) totaling $600 or

Tax Statements. Use these forms to report

more to any one U.S. person in the course

a. Increased its direct interest to at least

wages, tips, and other compensation, and

of its trade or business during the calendar

10% or reduced its direct interest of at least

withheld income, social security and

year.

10% to less than 10%.

Medicare taxes for employees.

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8. 1099-OID, Original Issue Discount.

b. Changed its direct interest by at least

Form 926, Return by a U.S. Transferor of

a 10% interest.

Also use these returns to report amounts

Property to a Foreign Corporation. Use this

received as a nominee for another person.

4. Contributed property to a foreign

form to report certain transfers to foreign

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Form 3520, Annual Return To Report

partnership in exchange for a partnership

corporations under section 6038B.

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Transactions With Foreign Trusts and

interest if:

Form 940 or Form 940-EZ, Employer’s

Receipt of Certain Foreign Gifts. Use this

Annual Federal Unemployment (FUTA) Tax

a. Immediately after the contribution, the

form to report a distribution received from a

Return. The corporation may be liable for

corporation owned, directly or indirectly, at

foreign trust; or, if the IC-DISC was the

FUTA tax and may have to file Form 940 or

least a 10% interest in the foreign

grantor of, transferor of, or transferor to, a

Form 940-EZ if it either:

partnership or

foreign trust that existed during the tax year.

1. Paid wages of $1,500 or more in any

b. The fair market value of the property

See Question 5 of Schedule N (Form 1120)

calendar quarter in 2002 or 2003 or

the corporation contributed to the foreign

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Form 4876-A, Election To Be Treated as

2. Had one or more employee who

partnership, when added to other

an Interest Charge DISC.

worked for the corporation for at least some

contributions of property made to the foreign

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Form 5471, Information Return of U.S.

part of a day in any 20 or more different

partnership during the preceding 12-month

Persons With Respect to Certain Foreign

weeks in 2002 or 20 or more different weeks

period, exceeds $100,000.

Corporations. This form is required if the

in 2003.

Also, the domestic corporation may have

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corporation controls a foreign corporation;

Form 941, Employer’s Quarterly Federal

to file Form 8865 to report certain

acquires, disposes of, or owns 10% or more

Tax Return. Employers must file this form to

dispositions by a foreign partnership of

in value or vote of the outstanding stock of a

report income tax withheld, and employer

property it previously contributed to that

foreign corporation; or had control of a

and employee social security and Medicare

partnership if it was a partner at the time of

foreign corporation for an uninterrupted

taxes. Also, see Trust fund recovery

the disposition.

period of at least 30 days during the annual

penalty on page 6.

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For more details, including penalties for

accounting period of the foreign corporation.

Form 945, Annual Return of Withheld

failing to file Form 8865, see Form 8865 and

See Question 4 of Schedule N (Form 1120).

Federal Income Tax. File Form 945 to report

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its separate instructions.

Form 5713, International Boycott Report.

income tax withheld from nonpayroll

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Corporations that had operations in, or

Form 8866, Interest Computation Under

distributions or payments. Also, see Trust

related to, certain “boycotting” countries file

the Look-Back Method for Property

fund recovery penalty on page 6.

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Form 5713.

Depreciated Under the Income Forecast

Form 966, Corporate Dissolution or

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Method. Figure the interest due or to be

Liquidation. Use this form to report the

Form 8275, Disclosure Statement, and

refunded under the look-back method of

adoption of a resolution or plan to dissolve

Form 8275-R, Regulation Disclosure

section 167(g)(2) for property placed in

the corporation or liquidate any of its stock.

Statement. Disclose items or positions taken

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service after September 13, 1995, that is

Form 1042, Annual Withholding Tax

on a tax return that are not otherwise

depreciated under the income forecast

Return for U.S. Source Income of Foreign

adequately disclosed on a tax return or that

Persons,

are contrary to Treasury regulations (to

method.

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Instructions for Form 1120-IC-DISC

Instructions For Form 1120-Ic-Disc - 2003 Page 3

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