Instructions For Form 1120-Ic-Disc - 2007 (Page 14 of 16) in pdf

Example: An IC-DISC has export

Schedule B, columns (b) and (d) of lines

receipts from all sources (including the

1c, 2a, 2b, 2c, and 2d.

United States).

gross receipts of $10 million. Selling

agricultural chemicals accounts for $4.5

Column (c). Export gross receipts of

all other related U.S. persons.

million (45%) of that amount, which is the

Related persons are:

•

Complete column (c) to report other

IC-DISC’s largest product or service. The

An individual, partnership, estate, or

related U.S. persons’ export gross

trust that controls the IC-DISC;

IC-DISC should enter “287” (the product

•

receipts from all sources except the

A corporation that controls the IC-DISC

code for agricultural chemicals) and

United States.

or is controlled by it; or

“45%” in line 1a.

•

A corporation controlled by the same

Line 3. Related U.S. Persons

person or persons who control the

Enter on line 3 the name, address, and

Selling industrial chemicals accounts

IC-DISC.

identifying number of related U.S.

for $2 million (20% of the $10 million total)

persons in your controlled group.

and is the IC-DISC’s second largest

Control means direct or indirect

product or service. The IC-DISC should

Schedule O

ownership of more than 50% of the total

enter “281” (the product code for

voting power of all classes of stock

industrial inorganic and organic

Other Information

entitled to vote. See section 993(a)(3).

chemicals) and “20%” in line 1b.

Question 6. Boycott of Israel. If

U.S. person is:

question 6a, 6b, or 6c is checked “Yes,”

•

Line 2. Definitions

A citizen or resident of the United

the IC-DISC must file Form 5713 and is

States, which includes the

Export gross receipts are receipts from

also deemed to distribute part of its

Commonwealth of Puerto Rico and

any of the following.

income. See Form 5713 for more

possessions of the United States;

•

information.

Providing engineering or architectural

•

A domestic corporation or partnership;

Question 7. Tax-exempt interest.

services for construction projects located

Report any tax-exempt interest received

outside the United States.

•

An estate or trust (other than a foreign

or accrued. Include any exempt-interest

•

Selling for direct use, consumption, or

estate or trust as defined in section

dividends received as a shareholder in a

7701(a)(31)).

disposition outside the United States,

mutual fund or other regulated investment

property (such as inventory) produced in

company.

the United States.

Export Gross Receipts for 2007

Schedule P

•

Renting this property to unrelated

Column (a). All IC-DISCs should

persons for use outside the United States.

complete column (a) in line 2. If two or

Intercompany Transfer Price or

•

Providing services involved in such a

more IC-DISCs are related persons, only

Commission

sale or rental.

the IC-DISC with the largest export gross

Complete and attach a separate

•

receipts should complete columns (b) and

Providing export management services.

Schedule P (Form 1120-IC-DISC) for

(c). If an IC-DISC acts as a commission

each transaction or group of transactions

agent for a related person, attribute the

to which you apply the intercompany

For commission sales, export gross

total amount of the transaction to the

pricing rules of section 994(a)(1) and (2).

receipts include the total receipts on

IC-DISC.

which the IC-DISC earned the

commission.

Complete column (a) to report the

IC-DISC’s export gross receipts from all

For purposes of line 2, Schedule N

sources (including the United States) for

only, no reduction is to be made for

the 2007 tax year.

receipts attributable to military property.

Therefore, an IC-DISC’s export gross

Column (b). Export gross receipts of

receipts for purposes of line 2 includes

related IC-DISCs. Complete column (b)

the total of the amounts from page 2,

to report related IC-DISCs’ export gross

Privacy Act and Paperwork Reduction Act Notice. We ask for the information on this form to carry out the Internal Revenue laws

of the United States. You are required to give us the information. We need it to ensure that you are complying with these laws and to

allow us to figure and collect the right amount of tax. Section 6109 requires return preparers to provide their identifying numbers on

the return.

You are not required to provide the information requested on a form that is subject to the Paperwork Reduction Act unless the

form displays a valid OMB control number. Books or records relating to a form or its instructions must be retained as long as their

contents may become material in the administration of any Internal Revenue law. Generally, tax returns and return information are

confidential, as required by section 6103.

The time needed to complete and file the following forms will vary depending on individual circumstances. The estimated average

times are:

Copying, assembling,

Learning about the law or

and sending the form to

Form

Recordkeeping

the form

Preparing the form

the IRS

1120-IC-DISC

89 hr., 26 min.

21 hr., 52 min.

39 hr., 12 min.

4 hr., 17 min.

Schedule K

4 hr., 18 min.

47 min.

54 min.

— — —

Schedule P

12 hr., 54 min.

1 hr., 35 min.

1 hr., 52 min.

— — —

If you have comments concerning the accuracy of these time estimates or suggestions for making these forms simpler, we would

be happy to hear from you. You may write to the Internal Revenue Service, Tax Products Coordinating Committee,

SE:W:CAR:MP:T:T:SP, 1111 Constitution Ave. NW, IR-6526, Washington, D.C. 20224. Do not send these tax forms to this office.

Instead, see Where To File on page 3.

-14-

Instructions for Form 1120-IC-DISC

Instructions For Form 1120-Ic-Disc - 2007 Page 14

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