Instructions For Form 1120-Fsc - 2002 printable pdf download

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Department of the Treasury

Internal Revenue Service

Instructions for Form

1120-FSC

U.S. Income Tax Return of a Foreign Sales Corporation

Section references are to the Internal Revenue Code unless otherwise noted.

represents the FSC’s interests and

Contents

Page

Contents

Page

concerns within the IRS by protecting its

Changes To Note . . . . . . . . . . . . . . . . 1

Principal Business Activity

rights and resolving problems that have

Photographs of Missing Children . . . . 1

Codes . . . . . . . . . . . . . . . . . . . . 16

not been fixed through normal channels.

Unresolved Tax Issues . . . . . . . . . . . . 1

Changes To Note

How To Get Forms and

While Taxpayer Advocates cannot

•

Additional guidance has been issued

change the tax law or make a technical

Publications . . . . . . . . . . . . . . . . . . 1

allowing qualifying small businesses to

tax decision, they can clear up problems

General Instructions . . . . . . . . . . . . . 2

adopt or change to the cash method of

that resulted from previous contacts and

Purpose of Form . . . . . . . . . . . . . . . 2

accounting. For details, see Schedule A

ensure that the FSC’s case is given a

FSC Repeal and

on page 9.

complete and impartial review.

•

Extraterritorial Income

Guidance has been issued regarding

The FSC’s assigned personal

Exclusion . . . . . . . . . . . . . . . . . . 2

the nonaccrual experience method of

advocate will listen to its point of view and

FSC Rules . . . . . . . . . . . . . . . . . . 2-4

accounting. See page 6.

•

will work with the FSC to address its

Who Must File . . . . . . . . . . . . . . . . 4

For tax years ending on or after

concerns. The FSC can expect the

December 31, 2001, if the FSC must

When To File . . . . . . . . . . . . . . . . . 4

advocate to provide:

make a section 481(a) adjustment

Where To File . . . . . . . . . . . . . . . . . 4

•

A “fresh look” at a new or on-going

because of an accounting method

Who Must Sign . . . . . . . . . . . . . . . . 4

problem.

change, the adjustment period is 1 year

•

Paid Preparer Authorization . . . . . . . 4

Timely acknowledgment.

for negative adjustments. For details,

•

Other Forms, Returns,

The name and phone number of the

including special rules and exceptions,

Schedules, and Statements

individual assigned to its case.

see Rev. Proc. 2002-19, 2002-13 I.R.B.

•

That May Be Required . . . . . . . . 5-6

Updates on progress.

696 and Rev. Proc. 2002-54, 2002-35

•

Assembling the Return . . . . . . . . . . 6

Timeframes for action.

I.R.B. 432. Also see Change in

•

Accounting Methods . . . . . . . . . . . . 6

Speedy resolution.

accounting method on page 6.

•

Accounting Periods . . . . . . . . . . . . . 7

Courteous service.

As a result of changes to the North

When contacting the Taxpayer

Rounding Off To Whole

American Industry Classification System

Advocate, the FSC should provide the

Dollars . . . . . . . . . . . . . . . . . . . . 7

(NAICS), some of the principal business

following information:

Recordkeeping . . . . . . . . . . . . . . . . 7

activity codes listed on page 16 have

•

The FSC’s name, address, and

changed, mainly in the Wholesale Trade

Payment of Tax Due . . . . . . . . . . . . 7

employer identification number (EIN).

and Information sectors.

Estimated Tax Payments . . . . . . . . . 7

•

The name and telephone number of an

The FSC must file a disclosure

Interest and Penalties . . . . . . . . . . . 8

authorized contact person and the hours

statement for each reportable tax shelter

Specific Instructions . . . . . . . . . . . . 8

he or she can be reached.

transaction in which it participated,

•

Tax and Payments . . . . . . . . . . . . . 9

The type of tax return and year(s)

directly or indirectly, if the transaction

Schedule A – Cost of Goods

involved.

affects the FSC’s Federal tax liability. See

•

Sold Related To Foreign

A detailed description of the problem.

Tax shelter disclosure statement on

•

Trading Gross Receipts . . . . . . 9-10

Previous attempts to solve the problem

page 5 for details.

Additional Information . . . . . . . . . . 10

and the office that had been contacted.

•

A description of the hardship the FSC

Schedule B – Taxable Income

Photographs of

is facing (if applicable).

or (Loss) . . . . . . . . . . . . . . . . 10-11

The FSC may contact a Taxpayer

Missing Children

Schedule E – Exemption

Advocate by calling 1-877-777-4778 (toll

Percentages Used in

The Internal Revenue Service is a proud

free). Persons who have access to TTY/

Figuring Exempt Foreign

partner with the National Center for

TDD equipment may call 1-800-829-4059

Trade Income . . . . . . . . . . . . . . 11

Missing and Exploited Children.

and ask for Taxpayer Advocate

Schedule F – Net Income From

Photographs of missing children selected

assistance. If the FSC prefers, it may call,

Nonexempt Foreign Trade

by the Center may appear in instructions

write, or fax the Taxpayer Advocate office

Income and Taxable

on pages that would otherwise be blank.

in its area. See Pub. 1546, The Taxpayer

You can help bring these children home

Nonforeign Trade Income . . . . 11-13

Advocate Service of the IRS, for a list of

by looking at the photographs and calling

Schedule G – Deductions

addresses and fax numbers.

1-800-THE-LOST (1-800-843-5678) if you

Allocated or Apportioned to

recognize a child.

Foreign Trade Income Other

How To Get Forms

Than Foreign Trade Income

and Publications

Unresolved Tax Issues

Reported on Schedule F . . . . 13-14

Schedule J – Tax Computation

. 14-15

If the FSC has attempted to deal with an

Personal computer. You can access the

Schedule L – Balance Sheets

IRS problem unsuccessfully, it should

IRS web site 24 hours a day, 7 days a

per Books . . . . . . . . . . . . . . . . . 15

contact the Taxpayer Advocate. The

week, at to:

•

Schedule M-1 . . . . . . . . . . . . . . . . 15

Taxpayer Advocate independently

Order IRS products on-line.

Cat. No. 11532V

Instructions For Form 1120-Fsc - 2002

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