Instructions For Form 1120-Fsc - 2006 (Page 4 of 13) in pdf

any activities performed in connection with

Generally, file Form 7004 by the regular due

ends, see Pub. 947, Practice Before the IRS

foreign military sales except those activities

date of the Form 1120-FSC.

and Power of Attorney.

described in section 924(e). See

Where To File

Regulations section 1.924(d)-1(f) for details.

Other Forms and

File Form 1120-FSC with the:

Section 925(c) Rule

Statements That May Be

Internal Revenue Service Center

To use the administrative pricing rules to

P.O. Box 409101

Required

determine the FSC’s (or small FSC’s) profit

Ogden, UT 84409

on a transaction or group of transactions,

Forms

the FSC must perform (or contract with

Who Must Sign

another person to perform) all of the

The FSC may have to file some of the forms

The return must be signed and dated by:

economic process activities relating to the

listed below. See the form for more

•

The president, vice president, treasurer,

transaction or group of transactions. All of

information.

assistant treasurer, chief accounting officer;

the direct and indirect expenses relating to

the performance of those activities must be

For a list of additional forms the FSC

•

Any other corporate officer (such as tax

reflected on the books of the FSC and on

may need to file (most notably, forms

officer) authorized to sign.

Form 1120-FSC.

pertaining to the reporting of various types

of income, and any related withholding, to

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

Under Temporary Regulations section

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

receiver, trustee, or assignee, the fiduciary

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

see Pub. 542, Corporations.

must sign the return, instead of the

made to include on the FSC’s books all

•

Form 5471, Information Return of U.S.

corporate officer. Returns and forms signed

expenses, other than cost of goods sold,

by a receiver or trustee in bankruptcy on

Persons With Respect to Certain Foreign

that are necessary to figure combined

Corporations. This form may have to be filed

behalf of a FSC must be accompanied by a

taxable income for the transaction or group

copy of the order or instructions of the court

by certain U.S. officers, directors, or

of transactions. The expenses must be

shareholders of a FSC to report changes in

authorizing signing of the return or form.

identified on Schedule G on the applicable

ownership (see sections 6046 and the

line.

If an employee of the FSC completes

related regulations).

Form 1120-FSC, the paid preparer’s space

Who Must File

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

should remain blank. Anyone who prepares

not required to be filed to satisfy the

Form 1120-FSC but does not charge the

File Form 1120-FSC if the corporation

requirements of section 6038 (see

FSC should not complete that section.

elected to be treated as a FSC or small

Temporary Regulations section

Generally, anyone who is paid to prepare

FSC, and the election is still in effect.

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

the return must sign it and fill in the “Paid

Note. A FSC that elects to be treated as a

shareholders may be required to file

Preparer’s Use Only” area.

domestic corporation under section

Form 5471 and the applicable schedules to

The paid preparer must complete the

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

report subpart F income.

required preparer information and:

Instead, it files Form 1120 (or Form 1120-A).

•

See the instructions for Form 5471 for

Sign the return in the space provided for

more information.

the preparer’s signature.

When To File

•

Form 5472, Information Return of a 25%

Give a copy of the return to the taxpayer.

Foreign-Owned U.S. Corporation or a

Generally, a corporation must file Form

Note. A preparer may sign original or

Foreign Corporation Engaged in a U.S.

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

amended returns by rubber stamp,

Trade or Business. Generally, a FSC that is

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

mechanical device, or computer software

engaged in a trade or business in the United

dissolved must generally file by the 15th day

programs.

States that had a reportable transaction with

of the 3rd month after the date it dissolved.

a foreign or domestic related party during

Paid Preparer

If the due date falls on a Saturday,

the tax year must file Form 5472.

Sunday, or legal holiday, the FSC may file

•

Authorization

Form 5713, International Boycott Report.

on the next business day.

FSCs that had operations in, or related to,

If the FSC wants to allow the IRS to discuss

Private delivery services. FSCs may use

certain “boycotting” countries file

its 2006 tax return with the paid preparer

certain private delivery services designated

Form 5713.

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

•

by the IRS to meet the “timely mailing as

Form 8275, Disclosure Statement, and

signature area of the return. This

timely filing/paying” rule for tax returns and

Form 8275-R, Regulation Disclosure

authorization applies only to the individual

payments. These private delivery services

Statement. Disclose items or positions taken

whose signature appears in the “Paid

include only the following:

on a tax return that are not otherwise

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

•

adequately disclosed on a tax return or that

DHL Express (DHL): DHL Same Day

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

are contrary to Treasury regulations (to

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

that section.

avoid parts of the accuracy-related penalty

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

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

or certain preparer penalties).

DHL 2nd Day Service.

•

authorizing the IRS to call the paid preparer

Federal Express (FedEx): FedEx Priority

Form 8300, Report of Cash Payments

to answer any questions that may arise

Over $10,000 Received in a Trade or

Overnight, FedEx Standard Overnight,

during the processing of its return. The FSC

FedEx 2Day, FedEx International Priority,

Business. Use this form to report the receipt

is also authorizing the paid preparer to:

of more than $10,000 in cash or foreign

and FedEx International First.

•

Give the IRS any information that is

United Parcel Service (UPS): UPS Next

currency in one transaction or a series of

missing from the return,

related transactions.

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

•

Call the IRS for information about the

•

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

Form 8886, Reportable Transaction

processing of the return or the status of any

Worldwide Express Plus, and UPS

Disclosure Statement. Use this form to

related refund or payment(s), and

Worldwide Express.

disclose information for each reportable

•

Respond to certain IRS notices about

transaction in which the FSC participated.

The private delivery service can tell you

math errors, offsets, and return preparation.

Form 8886 must be filed for each tax year

how to get written proof of the mailing date.

The FSC is not authorizing the paid

that the Federal Income tax liability of the

Private delivery services cannot

preparer to receive any refund check, bind

FSC is affected by its participation in the

deliver items to P.O. boxes. You

the FSC to anything (including any

transaction. The FSC may have to pay a

must use the U.S. Postal Service to

additional tax liability), or otherwise

penalty if it is required to file Form 8886 and

CAUTION

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

represent the FSC before the IRS.

does not do so. The following are reportable

transactions:

Extension of time to file. File Form 7004,

The authorization will automatically end

1. Any listed transaction which is a

Application for Automatic 6-Month Extension

no later than the due date (excluding

of Time To File Certain Business Income

extensions) for filing the FSC’s 2007 tax

transaction that is the same as or

substantially similar to tax avoidance

Tax, Information, and Other Returns, to

return. If the FSC wants to expand the paid

request a 6-month extension of time to file.

preparer’s authorization or revoke it before it

transactions identified by the IRS.

-4-

Instructions For Form 1120-Fsc - 2006 Page 4

Related Articles

Related forms

Related Categories