Instructions For Form 1120-Fsc - 2007 (Page 4 of 13) in pdf

on a transaction or group of transactions,

Who Must Sign

Other Forms and

the FSC must perform (or contract with

another person to perform) all of the

The return must be signed and dated by:

Statements That May Be

•

economic process activities relating to the

The president, vice president, treasurer,

Required

transaction or group of transactions. All of

assistant treasurer, chief accounting officer;

the direct and indirect expenses relating to

the performance of those activities must be

•

Forms

Any other corporate officer (such as tax

reflected on the books of the FSC and on

officer) authorized to sign.

The FSC may have to file some of the forms

Form 1120-FSC.

listed below. See the form for more

Under Temporary Regulations section

If a return is filed on behalf of a FSC by a

information.

1.925(a)-1T(b)(2)(ii), an election may be

receiver, trustee, or assignee, the fiduciary

made to include on the FSC’s books all

For a list of additional forms the FSC

must sign the return, instead of the

expenses, other than cost of goods sold,

may need to file (most notably, forms

corporate officer. Returns and forms signed

that are necessary to figure combined

pertaining to the reporting of various types

by a receiver or trustee in bankruptcy on

taxable income for the transaction or group

of income, and any related withholding, to

behalf of a FSC must be accompanied by a

of transactions. The expenses must be

U.S. persons, foreign persons, and the IRS),

copy of the order or instructions of the court

identified on Schedule G on the applicable

see Pub. 542, Corporations.

authorizing signing of the return or form.

•

line.

Form 5471, Information Return of U.S.

If an employee of the FSC completes

Persons With Respect to Certain Foreign

Who Must File

Form 1120-FSC, the paid preparer’s space

Corporations. This form may have to be filed

should remain blank. Anyone who prepares

by certain U.S. officers, directors, or

File Form 1120-FSC if the corporation

Form 1120-FSC but does not charge the

shareholders of a FSC to report changes in

elected to be treated as a FSC or small

FSC should not complete that section.

ownership (see sections 6046 and the

FSC, and the election is still in effect.

Generally, anyone who is paid to prepare

related regulations).

Note. A FSC that elects to be treated as a

the return must sign it and fill in the “Paid

If a Form 1120-FSC is filed, Form 5471 is

domestic corporation under section

Preparer’s Use Only” area.

not required to be filed to satisfy the

943(e)(1) does not file Form 1120-FSC.

requirements of section 6038 (see

Instead, it files Form 1120.

The paid preparer must complete the

Temporary Regulations section

required preparer information and:

1.921-1T(b)(3)). However, certain U.S.

When To File

•

Sign the return in the space provided for

shareholders may be required to file

the preparer’s signature.

Generally, a corporation must file Form

Form 5471 and the applicable schedules to

•

1120-FSC by the 15th day of the 3rd month

Give a copy of the return to the taxpayer.

report subpart F income.

after the end of its tax year. A FSC that has

See the Instructions for Form 5471 for

Note. A preparer may sign original or

dissolved must generally file by the 15th day

more information.

amended returns by rubber stamp,

of the 3rd month after the date it dissolved.

•

Form 5472, Information Return of a 25%

mechanical device, or computer software

If the due date falls on a Saturday,

Foreign-Owned U.S. Corporation or a

programs.

Sunday, or legal holiday, the FSC may file

Foreign Corporation Engaged in a U.S.

on the next business day.

Trade or Business. Generally, a FSC that is

engaged in a trade or business in the United

Private delivery services. FSCs may use

Paid Preparer

States that had a reportable transaction with

certain private delivery services designated

Authorization

a foreign or domestic related party during

by the IRS to meet the “timely mailing as

the tax year must file Form 5472.

timely filing/paying” rule for tax returns and

If the FSC wants to allow the IRS to discuss

•

payments. These private delivery services

Form 5713, International Boycott Report.

its 2007 tax return with the paid preparer

include only the following:

FSCs that had operations in, or related to,

who signed it, check the “Yes” box in the

•

certain “boycotting” countries file

DHL Express (DHL): DHL Same Day

signature area of the return. This

Form 5713.

Service, DHL Next Day 10:30 am, DHL Next

authorization applies only to the individual

•

Form 8275, Disclosure Statement, and

Day 12:00 pm, DHL Next Day 3:00 pm, and

whose signature appears in the “Paid

Form 8275-R, Regulation Disclosure

DHL 2nd Day Service.

Preparer’s Use Only” section of the return. It

•

Statement. Disclose items or positions taken

Federal Express (FedEx): FedEx Priority

does not apply to the firm, if any, shown in

on a tax return that are not otherwise

Overnight, FedEx Standard Overnight,

that section.

adequately disclosed on a tax return or that

FedEx 2Day, FedEx International Priority,

are contrary to Treasury regulations (to

and FedEx International First.

If the “Yes” box is checked, the FSC is

•

avoid parts of the accuracy-related penalty

United Parcel Service (UPS): UPS Next

authorizing the IRS to call the paid preparer

or certain preparer penalties).

Day Air, UPS Next Day Air Saver, UPS 2nd

to answer any questions that may arise

•

Day Air, UPS 2nd Day Air A.M., UPS

during the processing of its return. The FSC

Form 8300, Report of Cash Payments

Worldwide Express Plus, and UPS

is also authorizing the paid preparer to:

Over $10,000 Received in a Trade or

•

Worldwide Express.

Business. Use this form to report the receipt

Give the IRS any information that is

of more than $10,000 in cash or foreign

missing from the return,

The private delivery service can tell you

•

currency in one transaction or a series of

how to get written proof of the mailing date.

Call the IRS for information about the

related transactions.

processing of the return or the status of any

•

Private delivery services cannot

Form 8886, Reportable Transaction

related refund or payment(s), and

deliver items to P.O. boxes. You

•

Disclosure Statement. Use this form to

Respond to certain IRS notices about

must use the U.S. Postal Service to

CAUTION

disclose information for each reportable

math errors, offsets, and return preparation.

mail any item to an IRS P.O. box address.

transaction in which the FSC participated.

Extension of time to file. File Form 7004,

Form 8886 must be filed for each tax year

The FSC is not authorizing the paid

Application for Automatic 6-Month Extension

that the Federal Income tax liability of the

preparer to receive any refund check, bind

of Time To File Certain Business Income

FSC is affected by its participation in the

the FSC to anything (including any

Tax, Information, and Other Returns, to

transaction. The FSC may have to pay a

additional tax liability), or otherwise

request a 6-month extension of time to file.

penalty if it is required to file Form 8886 and

represent the FSC before the IRS.

Generally, the FSC must file Form 7004 by

does not do so. The following are reportable

the regular due date of the return.

transactions:

The authorization will automatically end

no later than the due date (excluding

1. Any listed transaction which is a

Where To File

transaction that is the same as or

extensions) for filing the FSC’s 2008 tax

return. If the FSC wants to expand the paid

substantially similar to tax avoidance

File Form 1120-FSC with the:

transactions identified by the IRS.

preparer’s authorization or revoke it before it

Internal Revenue Service Center

ends, see Pub. 947, Practice Before the IRS

P.O. Box 409101

2. Any transaction offered under

and Power of Attorney.

Ogden, UT 84409

conditions of confidentiality for which the

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Instructions For Form 1120-Fsc - 2007 Page 4

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