Instructions For Form 1120-Pc - 2010 (Page 5 of 21) in pdf

Other forms and statements. See Pub.

year or $20 million in any combination of

corporation (or consolidated group) may

years.

need to attach an elective relief

542, Corporations, for a list of other forms

5. Any transaction identified by the

agreement and/or an annual certification

and statements a corporation may need

IRS by notice, regulation or other

as provided in Regulations section

to file in addition to the forms and

published guidance as a “transaction of

1.1503-2(g)(2).

statements discussed throughout these

interest.” See Notice 2009-55, 2009-31

instructions.

Election to reduce basis under section

I.R.B. 170.

362(e)(2)(C). The transferor may make

an election under section 362(e)(2)(C) to

For more information, see Regulations

Specific Instructions

limit the transferor’s basis in the stock

section 1.6011-4. Also see the

received instead of the transferor’s basis

Instructions for Form 8886.

in the transferred property. The transferor

Period Covered

Penalties. The corporation may have

can make the election by including the

to pay a penalty if it is required to disclose

Generally, file the 2010 return for

certification as provided in Notice

a reportable transaction under section

calendar year 2010. However, if an

2005-70, 2005-2, C.B. 694 on or with its

6011 and fails to properly complete and

insurance company joins in the filing of a

tax return filed by the due date (including

file Form 8886. Penalties may also apply

consolidated return, it may adopt the tax

extensions) for the tax year in which the

under section 6707A if the corporation

year of the common parent corporation

transaction occurred. If the transferor is a

fails to file Form 8886 with its corporate

even if that year is not a calendar year.

controlled foreign corporation, its

return, fails to provide a copy of Form

For a fiscal or short tax year return, fill in

controlling U.S. shareholder(s) can make

8886 to the Office of Tax Shelter Analysis

the tax year space at the top of the form.

the election. The common parent of a

(OTSA), or files a form that fails to include

consolidated group can make the election

Name and Address

all the information required (or includes

for the group.

incorrect information). Other penalties,

Enter the corporation’s true name (as set

If the election is made as described

such as an accuracy-related penalty

forth in the charter or other legal

above, no election need be made by the

under section 6662A, may also apply. For

document creating it), address, and EIN

transferee (or any controlling U.S.

details on these and other penalties, see

on the appropriate lines. Enter the

shareholder thereof).

the Instructions for Form 8886.

address of the corporation’s principal

Once made, the election is irrevocable.

Reportable transactions by material

office or place of business. Include the

See section 362(e)(2)(C) and Notice

advisors. Material advisors to any

suite, room, or other unit number after the

2005-70.

reportable transaction must disclose

street address. If the post office does not

certain information about the reportable

deliver mail to the street address and the

Annual information statement for

transaction by filing Form 8918, Material

corporation has a P.O. box, show the box

elections under section 108(i). If the

Advisor Disclosure Statement, with the

number instead.

corporation made an election under

IRS. See the Instructions for Form 8918.

section 108(i) to defer income from

Note. Do not use the address of the

Transfers to a corporation controlled

cancellation of debt (COD) for applicable

registered agent for the state in which the

by the transferor. Every significant

debt instruments, the corporation must

corporation is incorporated. For example,

transferor (as defined in Regulations

attach a statement to its return beginning

if a business is incorporated in Delaware

section 1.351-3(d)) that receives stock of

with the tax year following the tax year for

or Nevada and the corporation’s principal

a corporation in exchange for property in

which the corporation made the election,

office is located in Little Rock, AR, the

a nonrecognition event must include the

and ending the first tax year all income

corporation should enter the Little Rock

statement required by Regulations

deferred has been included in income.

address.

section 1.351-3(a) on or with the

The statement must be labeled “Section

If the corporation receives its mail in

transferor’s tax return for the tax year of

108(i) Information Statement” and must

care of a third party (such as an

the exchange. The transferee corporation

clearly identify, for each applicable debt

accountant or an attorney), enter on the

must include the statement required by

instrument to which an election under

street address line “C/O” followed by the

Regulations section 1.351-3(b) on or with

section 108(i) applies, the following.

third party’s name and street address or

•

its return for the tax year of the exchange,

Any deferred COD income that is

P.O. box.

unless all the required information is

included in income in the current tax year.

•

included in any statement(s) provided by

Any deferred COD income that has

Item A. Identifying

a significant transferor that is attached to

been accelerated because of an event

Information

the same return for the same section 351

described in section 108(i)(5)(D) and

exchange. If the transferor or transferee

must be included in income in the current

Consolidated Return

corporation is a controlled foreign

tax year. Include a description and the

corporation, each U.S. shareholder

date of the acceleration event.

If an affiliated group of corporations

•

(within the meaning of section 951(b))

Any deferred COD income that has not

includes one or more domestic life

must include the required statement on or

been included in income in the current or

insurance companies taxed under section

with its return.

prior tax years.

801, the common parent may elect to

•

Any deferred OID deduction allowed as

Distributions under section 355. Every

treat those companies as includible

a deduction in the current tax year.

corporation that makes a distribution of

corporations. The life insurance

•

Any deferred OID deduction that is

stock or securities of a controlled

companies must have been members of

allowed as a deduction in the current tax

corporation, as described in section 355

the group for the 5 tax years immediately

year because of an accelerated event

(or so much of section 356 as it relates to

preceding the tax year for which the

described in section 108(i)(5)(D).

section 355), must include the statement

election is made. See section 1504(c)(2)

•

Any deferred OID deduction that has

required by Regulations section 1.355-5

and Regulations section

not been deducted in the current or prior

on or with its return for the year of the

1.1502-47(d)(12).

tax years.

distribution. If the distributing corporation

Corporations filing a consolidated

is a controlled foreign corporation, each

In addition, include a copy of the

return must check box 1 of Item A and

U.S. shareholder (within the meaning of

election statement filed to make the

attach Form 851, Affiliations Schedule,

section 951(b)), must include the

election to defer cancellation of debt. For

and other supporting statements to the

statement on or with its return.

more information on making the election,

return. Also, for the first year a subsidiary

Dual consolidated losses. If a

see the instructions for Schedule A, line

corporation is being included in a

domestic corporation incurs a dual

13. For more information regarding the

consolidated return, attach Form 1122,

consolidated loss (as defined in

annual information statement, see Rev.

Authorization and Consent of Subsidiary

Regulations section 1.1503-2(c)(5)), the

Proc. 2009-37, 2009-36 I.R.B. 309.

Corporation To Be Included in a

-5-

Instructions for Form 1120-PC (2010)

Instructions For Form 1120-Pc - 2010 Page 5

Related Articles

Related forms

Related Categories