Form 4876-A - Instructions printable pdf download

Form 4876-A (Rev. 9-2016)

Page

Specific Instructions

Future Developments

the transfer takes place more than 90 days after the

tax year began, an extension can be granted only if

For the latest information about developments

the transferor was eligible for one.

Part I

related to Forms 4876-A and 1120-IC-DISC, such as

Separate statement. Any shareholder who does

legislation enacted after they were published, go to

Address. Include the suite, room, or other unit

not sign the consent in Part II of Form 4876-A must

number after the street address. If the post office

sign a separate consent statement for the election to

does not deliver mail to the street address and the

be valid. The statement must say: “I, (shareholder’s

General Instructions

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

name), a shareholder of (corporation’s name),

instead.

consent to the election of (corporation’s name) to be

Section references are to the Internal Revenue Code

treated as an IC-DISC. The consent so made by me

Item B—Principal business classification. Use the

unless otherwise noted.

is irrevocable and is binding on all transferees of my

list of Codes for Principal Business Activity in the

Purpose of Form

shares in (corporation’s name).”

Instructions for Form 1120-IC-DISC to enter the

corporation’s business code number, principal

In addition, the statement must show (a) the names,

A corporation files Form 4876-A to elect to be

business activity, and principal product or service.

addresses, and identification numbers of both the

treated as an interest charge domestic international

corporation and the shareholder; (b) the number of

Item C—Tax year change. If a corporation electing

sales corporation (IC-DISC).

shares the shareholder owned (or expects to own) at

to be an IC-DISC has to change its tax year to meet

Once the election is made, it remains in effect until

the beginning of the tax year the election takes effect;

the tax year requirements of section 441(h), the

terminated or revoked. See Regulations section

and (c) the number of shares the shareholder owns

corporation generally does not need IRS consent to

1.992-2(e). The election applies to each shareholder

when making the consent.

make the change. A tax year change by a

who owns stock in the corporation while the election

shareholder requires IRS consent. A subsequent

For transferred stock, also show the name and

is in effect.

change by the corporation to meet the tax year

address of the person who held the shares at the

requirements of section 441(h) may require IRS

beginning of the tax year and the number of shares

What Is an IC-DISC?

consent. See section 442 and the regulations under

to which this consent applies.

sections 441, 442, and 921 for more information.

An IC-DISC is a domestic corporation that meets

Supplemental Form 4876-A. If, between the date

Also see Rev. Proc. 2002-37, 2002-22 I.R.B. 1030,

certain conditions regarding its organization and

the election is filed and the date it takes effect, the

and Rev. Proc. 2002-39, 2002-22 I.R.B. 1046, as

international sales and that elects to be treated as an

corporation issues more shares of stock or the share

clarified and modified by Notice 2002-72, 2002-46

IC-DISC. The corporation must be organized under

ownership changes, it must file a supplemental Form

I.R.B. 843.

the laws of a state or the District of Columbia and

4876-A, with “SUPPLEMENTAL” written across the

meet the following tests.

Columns Ha and Hb. Number of shares of stock.

top of the form. The form must be filed within the

Enter the number of shares of stock held on the first

• At least 95% of its gross receipts during the tax

first 90 days of the tax year the election takes effect.

day of the year of election and the number held on

year are qualified export receipts.

On the supplemental form, include all the

the date of consent to make the election. Complete

• At the end of the tax year, the adjusted basis of its

information from the earlier form except for the list of

both columns for each shareholder.

qualified export assets is at least 95% of the sum of

owners contained in Parts I and II. Report only the

Column I—Identifying number. The identifying

the adjusted basis of all its assets.

owners of the new or additional shares in Part I, and

number for an individual is the social security

in Part II obtain their consents only. Each new

• It has only one class of stock, and its outstanding

number. For all others, it is the employer

shareholder or holder of additional shares must

stock has a par or stated value of at least $2,500 on

identification number.

consent to the IC-DISC election for the

each day of the tax year (or, for a new corporation,

Supplemental Form 4876-A to be valid.

Signature. Form 4876-A must be signed by the

on the last day to elect IC-DISC status for the year

president, vice president, treasurer, assistant

and on each later day).

treasurer, chief accounting officer, or other officer

Paperwork Reduction Act Notice. We ask for the

• It keeps separate books and records.

(such as tax officer) authorized to sign for the

information on this form to carry out the Internal

• Its tax year must conform to the tax year of the

corporation.

Revenue laws of the United States. You are required

shareholder (or shareholder group) who has the

to give us the information. We need it to ensure that

Part II

highest percentage of voting power. If two or more

you are complying with these laws and to allow us to

shareholders (or shareholder groups) have the same

figure and collect the right amount of tax.

Shareholders’ Consent Statement. An election for

highest percentage of voting power, the IC-DISC’s

IC-DISC treatment will be valid only if all

You are not required to provide the information

tax year may be the same as that of any such

shareholders sign either the consent statement in

requested on a form that is subject to the Paperwork

shareholder (or group). See section 441(h) and its

Part II or a separate statement as described below.

Reduction Act unless the form displays a valid OMB

regulations for more information.

Several shareholders may combine their consents in

control number. Books or records relating to a form

• Its election to be treated as an IC-DISC is in effect

one statement.

or its instructions must be retained as long as their

for the tax year.

contents may become material in the administration

If legally married spouses jointly own the stock or

of any Internal Revenue law. Generally, tax returns

See section 992 and its regulations for details.

the income from it, both must sign the consent. If

and return information are confidential, as required

Also see section 993 and its regulations for

tenants in common, joint tenants, or tenants by the

by section 6103.

definitions of qualified export receipts and qualified

entirety own the stock, each person must sign. The

export assets.

legal guardian should sign for a minor; if none has

The time needed to complete and file this form will

been appointed, the natural guardian should sign.

vary depending on individual circumstances. The

Ineligible organizations. S corporations, certain

estimated average time is:

financial institutions, and other corporations listed in

The executor or administrator should sign for an

section 992(d) are not eligible for IC-DISC treatment.

estate, and the trustee should sign for a trust. If the

Recordkeeping .

4 hr., 4 min.

estate or trust has more than one executor,

Learning about the law

When To File

administrator, or trustee, any of them who is

or the form

1 hr., 5 min.

authorized to file the returns may sign the consent.

If it is the corporation’s first tax year, complete and

Preparing and sending

For a corporation or partnership, an officer or partner

file Form 4876-A within 90 days after the beginning

the form to the IRS .

. 1 hr., 12 min.

who is authorized to sign the other returns may sign

of the tax year. For any tax year that is not the

the consent for the IC-DISC election.

If you have comments concerning the accuracy of

corporation’s first tax year, the election must be

these time estimates or suggestions for making this

made during the 90-day period immediately

A foreign person’s consent may be signed by any

form simpler, we would be happy to hear from you.

preceding the first day of that tax year.

individual who would be authorized to sign if the

You can send us comments from

person were a U.S. person.

For the election to be valid, all of the corporation’s

Click on “More Information”

shareholders, as of the first day of the tax year the

Extension. Normally, the consents must be attached

and then on “Give us feedback.” Or you can write to

election is to take effect, must consent to it.

to Form 4876-A. If you establish reasonable cause

the Internal Revenue Service, Tax Forms and

for not filing a consent on time, you may file the

Publications, 1111 Constitution Ave. NW, IR-6526,

Where To File

consent within an extended period granted by an

Washington, DC 20224. Do not file your form at this

IRS Service Center. File the consents with the same

address. Instead, see Where To File, earlier.

File Form 4876-A with the IRS Service Center where

service center where you filed Form 4876-A.

the corporation will file its annual return, Form

Consent by transferee shareholder. If shares are

1120-IC-DISC.

transferred before a consent is filed, the transferee

shareholder may consent to the IC-DISC election as

long as the transfer occurs and the consent is filed

within the first 90 days of the tax year. The service

center may grant an extension beyond that date. If

Form 4876-A - Instructions

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