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Instructions for

Department of the Treasury

Internal Revenue Service

Form 1120-IC-DISC

(Rev. September 2017)

Interest Charge Domestic International

Sales Corporation Return

Section references are to the Internal Revenue

Children®

(NCMEC). Photographs of

Its tax year must conform to the tax year

Code unless otherwise noted.

missing children selected by the Center

of the principal shareholder who has the

can appear in instructions on pages that

highest percentage of voting power. If two

Contents

Page

would otherwise be blank. You can help

or more shareholders have the highest

General Instructions . . . . . . . . . . . . .

bring these children home by looking at

percentage of voting power, the IC-DISC

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

the photographs and calling

must elect a tax year that conforms to that

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

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

of any one of the principal shareholders.

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

recognize a child.

See section 441(h) and its regulations for

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

more information.

General Instructions

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

Its election to be treated as an IC-DISC

Other Forms and Statements That

is in effect for the tax year.

May Be Required . . . . . . . . . . .

Purpose of Form

See Definitions, later, and section 992

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

and related regulations for details.

Accounting Methods . . . . . . . . . . . .

Form 1120-IC-DISC is an information

return filed by interest charge domestic

Accounting Periods . . . . . . . . . . . . .

Distribution to meet qualification re-

international sales corporations

Rounding Off to Whole Dollars . . . . . .

quirements.

(IC-DISCs), former DISCs, and former

An IC-DISC that does not meet the

Recordkeeping . . . . . . . . . . . . . . . .

IC-DISCs.

gross receipts test or qualified export

Definitions . . . . . . . . . . . . . . . . . . .

asset test during the tax year will still be

Penalties . . . . . . . . . . . . . . . . . . . .

What Is an IC-DISC?

considered to have met them if, after the

Specific Instructions . . . . . . . . . . . . .

An IC-DISC is a domestic corporation that

tax year ends, the IC-DISC makes a pro

Schedule A . . . . . . . . . . . . . . . . . .

has elected to be an IC-DISC and its

rata property distribution to its

Schedule B . . . . . . . . . . . . . . . . . .

election is still in effect. The IC-DISC

shareholders and specifies at the time that

Schedule C . . . . . . . . . . . . . . . . . .

election is made by filing Form 4876-A,

this is a distribution to meet the

Schedule E . . . . . . . . . . . . . . . . . .

Election To Be Treated as an Interest

qualification requirements.

Schedule J

. . . . . . . . . . . . . . . . .

Charge DISC.

If the IC-DISC did not meet the gross

Schedule K . . . . . . . . . . . . . . . . .

receipts test, the distribution equals the

Generally, an IC-DISC is not taxed on

Schedule L . . . . . . . . . . . . . . . . .

part of its taxable income attributable to

its income. Shareholders of an IC-DISC

Schedule N . . . . . . . . . . . . . . . . .

gross receipts that are not qualified export

are taxed on its income when the income

gross receipts.

Schedule O . . . . . . . . . . . . . . . . .

is actually (or deemed) distributed. In

If it did not meet the qualified export

Schedule P . . . . . . . . . . . . . . . . .

addition, section 995(f) imposes an

asset test, the distribution equals the fair

interest charge on shareholders for their

What's New

market value (FMV) of the assets that are

share of DISC-related deferred tax liability.

not qualified export assets on the last day

The list of designated private delivery

See Form 8404, Interest Charge on

of the tax year.

companies taxpayers may use to file

DISC-Related Deferred Tax Liability, for

If the IC-DISC did not meet either test,

returns and have the assurance that a

details.

the distribution equals the sum of both

timely mailing will be treated as a timely

amounts.

To be an IC-DISC, a corporation must

filing has been updated. For more

Regulations section 1.992-3 explains

be organized under the laws of a state or

information, see

Private delivery services

how to figure the distribution.

the District of Columbia and meet the

(PDSs)

under

When To

File, later.

following tests.

Interest on late distribution. If the

The information on how to apply for an EIN

At least 95% of its gross receipts during

IC-DISC makes a distribution after Form

has been updated. See

Item C—

the tax year are qualified export receipts.

1120-IC-DISC is due, interest must be

Employer Identification Number (EIN)

At the end of the tax year, the adjusted

paid to the United States Treasury. The

under

Entity

Information, later.

basis of its qualified export assets is at

interest charge is 4

% of the distribution

least 95% of the sum of the adjusted basis

Future Developments

times the number of tax years that begin

of all of its assets.

after the tax year to which the distribution

For the latest information about

It has only one class of stock, and its

relates until the date the IC-DISC made

developments related to Form 1120–

outstanding stock has a par or stated

the distribution.

IC-DISC and its instructions, such as

value of at least $2,500 on each day of the

If the IC-DISC must pay this interest,

legislation enacted after they were

tax year (or, for a new corporation, on the

send the payment to the Internal Revenue

published, go to

IRS.gov/

last day to elect IC-DISC status for the

Service Center where you filed Form

Form1120ICDISC.

year and on each later day).

1120-IC-DISC within 30 days of making

It maintains separate books and

Photographs of Missing

the distribution. On the payment, write the

records.

IC-DISC's name, address, and employer

Children

It is not a member of any controlled

identification number; the tax year; and a

group of which a foreign sales corporation

The IRS is a proud partner with the

statement that the payment represents the

(FSC) is a member.

National Center for Missing & Exploited

Sep 01, 2017

Cat. No. 11476W

Instructions For Form 1120-Ic-Disc - Interest Charge Domestic International Sales Corporation Return - 2017

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