Fillable Form 4876-A - Election To Be Treated As An Interest Charge Disc (Page 2 of 2) in pdf

Form 4876-A (Rev. 12-2009)

Page

General Instructions

Specific Instructions

extension beyond that date. If the transfer takes

place more than 90 days after the tax year

Section references are to the Internal Revenue

Part I

began, an extension can be granted only if the

Code unless otherwise noted.

transferor was eligible for one.

Address. Include the suite, room, or other unit

Separate statement. Any shareholder who does

Purpose of Form

number after the street address. If the post office

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

does not deliver mail to the street address and

A corporation files Form 4876-A to elect to be

must sign a separate consent statement for the

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

treated as an interest charge domestic

election to be valid. The statement must say: “I,

number instead.

international sales corporation (IC-DISC).

(shareholder’s name), a shareholder of

Item B—Principal business classification. Use

Once the election is made, it remains in effect

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

the list of Codes for Principal Business Activity in

until terminated or revoked. See Regulations

(corporation’s name) to be treated as an

the Instructions for Form 1120-IC-DISC to enter

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

IC-DISC. The consent so made by me is

the corporation’s business code number,

shareholder who owns stock in the corporation

irrevocable and is binding on all transferees of

principal business activity, and principal product

while the election is in effect.

my shares in (corporation’s name).”

or service.

In addition, the statement must show

What Is an IC-DISC?

Item C—Tax year change. If a corporation

(a) the names, addresses, and identification

electing to be an IC-DISC has to change its tax

numbers of both the corporation and the

An IC-DISC is a domestic corporation that meets

year to meet the tax year requirements of

shareholder; (b) the number of shares the

certain conditions regarding its organization and

section 441(h), the corporation generally does

shareholder owned (or expects to own) at the

international sales and that elects to be treated

not need IRS consent to make the change. A tax

beginning of the tax year the election takes

as an IC-DISC. The corporation must be

year change by a shareholder requires IRS

effect; and (c) the number of shares the

organized under the laws of a state or the

consent. A subsequent change by the

shareholder owns when making the consent.

District of Columbia and meet the following

corporation to meet the tax year requirements of

tests:

For transferred stock, also show the name

section 441(h) may require IRS consent. See

● At least 95% of its gross receipts during the

and address of the person who held the shares

section 442 and the regulations under sections

at the beginning of the tax year and the number

tax year are qualified export receipts.

441, 442, and 921 for more information. Also see

of shares to which this consent applies.

● At the end of the tax year, the adjusted basis

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

of its qualified export assets is at least 95% of

Supplemental Form 4876-A. If, between the

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

date the election is filed and the date it takes

the sum of the adjusted basis of all its assets.

clarified and modified by Notice 2002-72,

● It has only one class of stock, and its

effect, the corporation issues more shares of

2002-46 I.R.B. 843.

stock or the share ownership changes, it must

outstanding stock has a par or stated value of at

Column I—Identifying number. The identifying

file a supplemental Form 4876-A, with

least $2,500 on each day of the tax year (or, for

number for an individual is the social security

“SUPPLEMENTAL” written across the top of the

a new corporation, on the last day to elect

number. For all others, it is the employer

form. The form must be filed within the first 90

IC-DISC status for the year and on each later

identification number.

days of the tax year the election takes effect.

day).

Signature. Form 4876-A must be signed by the

● It keeps separate books and records.

On the supplemental form, include all the

president, vice president, treasurer, assistant

information from the earlier form except for the

● Its tax year must conform to the tax year of

treasurer, chief accounting officer, or other

list of owners contained in Parts I and II. Report

officer (such as tax officer) authorized to sign for

the shareholder (or shareholder group) who has

only the owners of the new or additional shares

the corporation.

the highest percentage of voting power. If two or

in Part I, and in Part II obtain their consents only.

more shareholders (or shareholder groups) have

Part II

Each new shareholder or holder of additional

the same highest percentage of voting power,

shares must consent to the IC-DISC election for

the IC-DISC’s tax year may be the same as that

Shareholders’ Consent Statement. An election

the Supplemental Form 4876-A to be valid.

of any such shareholder (or group). See section

for IC-DISC treatment will be valid only if all

441(h) and its regulations for more information.

shareholders sign either the consent statement

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

Paperwork Reduction Act Notice. We ask for

in Part II or a separate statement as described

the information on this form to carry out the

effect for the tax year.

below. Several shareholders may combine their

Internal Revenue laws of the United States. You

consents in one statement.

See section 992 and its regulations for details.

are required to give us the information. We need

If a husband and wife jointly own the stock or

Also see section 993 and its regulations for

it to ensure that you are complying with these

the income from it, both must sign the consent.

definitions of qualified export receipts and

laws and to allow us to figure and collect the

If tenants in common, joint tenants, or tenants by

qualified export assets.

right amount of tax.

the entirety own the stock, each person must

Ineligible organizations. S corporations, certain

You are not required to provide the

sign. The legal guardian should sign for a minor;

financial institutions, and other corporations

information requested on a form that is subject

if none has been appointed, the natural guardian

listed in section 992(d) are not eligible for

to the Paperwork Reduction Act unless the form

should sign.

IC-DISC treatment.

displays a valid OMB control number. Books or

The executor or administrator should sign for

records relating to a form or its instructions must

When To File

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

be retained as long as their contents may

If the estate or trust has more than one

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

become material in the administration of any

executor, administrator, or trustee, any of them

and file Form 4876-A within 90 days after the

Internal Revenue law. Generally, tax returns and

who is authorized to file the returns may sign the

beginning of the tax year. For any tax year that

return information are confidential, as required

consent. For a corporation or partnership, an

is not the corporation’s first tax year, the election

by section 6103.

officer or partner who is authorized to sign the

must be made during the 90-day period

The time needed to complete and file this

other returns may sign the consent for the

immediately preceding the first day of that tax

form will vary depending on individual

IC-DISC election.

year.

circumstances. The estimated average time is:

A foreign person’s consent may be signed by

For the election to be valid, all of the

Recordkeeping

4 hr., 4 min.

any individual who would be authorized to sign if

corporation’s shareholders, as of the first day of

the person were a U.S. person.

Learning about the law

the tax year the election is to take effect, must

or the form

1 hr., 5 min.

Extension. Normally, the consents must be

consent to it.

attached to Form 4876-A. If you establish

Preparing and sending

Where To File

reasonable cause for not filing a consent on

the form to the IRS

1 hr., 12 min.

time, you may file the consent within an

If you have comments concerning the

File Form 4876-A with the IRS Service Center

extended period granted by an Internal Revenue

accuracy of these time estimates or suggestions

where the corporation will file its annual return,

Service Center. File the consents with the same

for making this form simpler, we would be happy

Form 1120-IC-DISC, Interest Charge Domestic

service center where you filed Form 4876-A.

to hear from you. You can write to the Internal

International Sales Corporation Return.

Consent by transferee shareholder. If shares

Revenue Service, Tax Products Coordinating

are transferred before a consent is filed, the

Committee, SE:W:CAR:MP:T:T:SP, 1111

transferee shareholder may consent to the

Constitution Ave. NW, IR-6526, Washington,

IC-DISC election as long as the transfer occurs

D.C. 20224. Do not send the form to this

and the consent is filed within the first 90 days

address. Instead, see Where To File above.

of the tax year. The service center may grant an

Form 4876-A - Election To Be Treated As An Interest Charge Disc Page 2

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