Instructions For Form 1120-Pc - 2009 (Page 6 of 21) in pdf

and Regulations section

not required to file Schedule M-3 (Form

treated as a domestic insurance company

1.1502-47(d)(12).

1120-PC) may voluntarily file Schedule

under section 953(d) will be treated as a

M-3 (Form 1120-PC) instead of Schedule

dual-consolidated loss and may not be

Corporations filing a consolidated

M-1.

used to reduce the taxable income of any

return must check box 1 of Item A and

other member of the affiliated group for

attach Form 851, Affiliations Schedule,

If you are filing Schedule M-3 (Form

this tax year or any other tax year.

and other supporting statements to the

1120-PC), check item A, box 3 at the top

return. Also, for the first year a subsidiary

of page 1 of Form 1120-PC. See the

Note. If a section 953(d) election is

corporation is being included in a

Instructions for Schedule M-3 (Form

made, include the additional tax required

consolidated return, attach Form 1122,

1120-PC) for more details.

to be paid, on line 13, page 1. On the

Authorization and Consent of Subsidiary

dotted line to the left of line 13, page 1,

Note. If you do not file Schedule M-3

Corporation To Be Included in a

write “Section 953(d)” and the amount.

(Form 1120-PC) with Form 1120-PC, see

Consolidated Income Tax Return, to the

Attach a schedule showing the

Reconciliation under Statements on page

parent’s consolidated return. Attach a

computation. See section 953(d) for more

separate Form 1122 for each subsidiary

details.

being included in the consolidated return.

Item B. Employer

File supporting statements for each

Item E. Final Return, Name

Identification Number (EIN)

corporation included in the consolidated

Change, Address Change,

return. Do not use Form 1120-PC as a

Enter the corporation’s EIN. If the

substitute for the supporting statement.

or Amended Return

corporation does not have an EIN, it must

On the supporting statement, use

apply for one. An EIN can be applied for:

Indicate a final return, name change,

columns to show the following, both

•

Online — Click on the EIN link at www.

address change, or amended return by

before and after adjustments.

irs.gov/businesses/small. The EIN is

checking the appropriate box.

1. Items of gross income and

issued immediately once the application

deductions.

information is validated.

Note. If a change of address occurs after

2. A computation of taxable income.

•

By telephone at 1-800-829-4933 on

the return is filed, use Form 8822,

3. Balance sheets as of the beginning

Monday through Friday from 7:00 a.m. to

Change of Address, to notify the IRS of

and end of the tax year.

10:00 p.m. in the corporation’s local time

the new address.

4. A reconciliation of income per

zone.

books with income per return.

•

By mailing or faxing Form SS-4,

Taxable Income

5. A reconciliation of retained

Application for Employer Identification

earnings.

Number.

Line 1, Taxable income, and line 2,

Taxable investment income. If the

If the corporation has not received its

Enter on Form 1120-PC the totals for

corporation is a small company as

EIN by the time the return is due, enter

each item of income, gain, loss, expense,

defined in section 831(b)(2) and elects

“Applied for” and the date you applied in

or deduction, net of eliminating entries for

under section 831(b)(2)(A)(ii) to be taxed

the space for the EIN. For more

intercompany transactions between

on taxable investment income, complete

information, see the Instructions for Form

corporations within the consolidated

Schedule B (ignore Schedule A) and

SS-4.

group. Attach consolidated balance

enter the amount from Schedule B, line

sheets and a reconciliation of

21, on line 2, page 1. All other

Note. Only corporations located in the

consolidated retained earnings.

corporations should complete Schedule A

United States or U.S. possessions can

(ignore Schedule B) and enter on line 1,

use the online application.

For more information on consolidated

page 1, the amount from Schedule A, line

returns, see the regulations under section

37.

1502.

Item D. Section 953

Note. If a nonlife insurance company is a

Elections

Tax Computation and

member of an affiliated group, file Form

Check the applicable box if the

1120-PC as an attachment to the

Payments

corporation is a foreign corporation and

consolidated return in addition to the

elects under:

supporting statements discussed above.

Line 3

Across the top of page 1 of Form

1. Section 953(c)(3)(C) to treat its

If the corporation is a member of a

1120-PC, write “Supporting Statement to

related person insurance income as

controlled group, check the box on line 3.

Consolidated Return.”

effectively connected with the conduct of

Complete and attach Schedule O (Form

a trade or business in the United States

1120). Component members of a

Life-Nonlife Consolidated Return. If

controlled group must use Schedule O to

the corporation is the common parent of a

2. Section 953(d) to be treated as a

report the apportionment of taxable

life-nonlife consolidated group, check

domestic corporation.

income, income tax, and certain tax

boxes 1 and 2 of Item A. See Temporary

benefits between the members of the

Regulations section 1.1502-47T(s) for the

Generally, a foreign corporation

group. See Schedule O and the

filing requirements of a life-nonlife

making either election must file its return

instructions for Schedule O for more

consolidated group.

with the Internal Revenue Service Center,

information.

P.O. Box 409101, Ogden, UT 84409. See

Schedule M-3 (Form 1120-PC)

Notice 87-50, 1987-2 C.B. 357, and Rev.

Line 4

A nonlife insurance company with total

Proc. 2003-47, 2003-28 I.R.B. 55, for the

assets (non-consolidated or consolidated

If the corporation is a member of a

procedural rules, election statement

for all companies included within a tax

controlled group and is filing Schedule O

formats, and filing addresses for making

consolidation group) of $10 million or

(Form 1120), enter the corporation’s tax

the respective elections under section

more on the last day of the tax year must

from Part III of Schedule O.

953(c)(3)(C) or section 953(d).

complete Schedule M-3 (Form 1120-PC),

Net Income (Loss) Reconciliation for U.S.

Note. Once either election is made, it will

Most corporations that are not

Property and Casualty Insurance

apply to the tax year for which made and

members of a controlled group and are

Companies With Total Assets of $10

all subsequent tax years unless revoked

not filing a consolidated return figure their

Million or More, instead of Schedule M-1.

with the consent of the IRS. Also, any

tax by using the Tax Rate Schedule on

A corporation filing Form 1120-PC that is

loss of a foreign corporation electing to be

page 7.

-6-

Instructions for Form 1120-PC (2009)

Instructions For Form 1120-Pc - 2009 Page 6

Related Articles

Related forms

Related Categories