Fillable Form 5452 - Corporate Report Of Nondividend Distributions (Page 2 of 4) in pdf

Form 5452 (Rev. 12-2006)

Page

Instructions

basis. If the corporation used an accelerated method of

depreciation, attach a schedule of the depreciation (and any

Section references are to the Internal Revenue Code.

amortization) figured under the straight line method. Also

attach a reconciliation of any difference between that amount

Purpose of Form

and the amount deducted on Form 1120 or other

Complete Form 5452 if the corporation made nondividend

comparable return. See Exhibits B and C in Rev. Proc.

distributions to shareholders under section 301, section

75-17.

1368(c)(3), or section 1371(e).

2. The parent of a consolidated group must also attach the

Who Must File

following information.

A schedule that shows the allocation of the consolidated

All corporations that have made nondividend distributions to

tax liability and identifies the method used. (Indicate if an

their shareholders must file Form 5452. If the corporation is a

intercompany agreement is in effect.)

member of a consolidated group, the parent corporation

A schedule that shows the taxable income or loss of each

must file Form 5452.

member of the consolidated group.

An S corporation should file this form only for distributions

For each member of a consolidated group that made

made under section 1368(c)(3). However, a corporation

nondividend distributions, provide the information requested

making cash distributions under section 1371(e) during the

in Item 1 above.

post-termination transition period from being an S

corporation should file this form.

E. Corporate Distributions

How and When To File

Complete Part E, Corporate Distributions, showing the

taxable and nontaxable status of distributions reported to

A calendar tax year corporation must attach Form 5452

shareholders. The percent of distributions that is taxable and

and the items listed under Supporting Information to its

the percent that is nontaxable are based on the amounts

income tax return due for the tax year in which the

shown on each line in the column labeled "Total Amount

nondividend distributions were made.

Paid." If noncash distributions were made, attach a

A fiscal tax year corporation must attach Form 5452 and

statement and show both the tax bases and fair market

the items listed under Supporting Information to its income

values.

tax return due for the first fiscal year ending after the

calendar year in which the nondividend distributions were

Paperwork Reduction Act Notice. We ask for the

made.

information on this form to carry out the Internal Revenue

Nondividend Distributions

laws of the United States. You are required to give us the

information. We need it to ensure that you are complying

Nondividend distributions are distributions made to

with these laws and to allow us to figure and collect the right

shareholders in the normal course of business.

amount of tax.

They are considered fully or partially nontaxable as

You are not required to provide the information requested

dividends only because the paying corporation’s current and

on a form that is subject to the Paperwork Reduction Act

accumulated earnings and profits are less than the

unless the form displays a valid OMB control number. Books

distributions. Nondividend distributions do not include

or records relating to a form or its instructions must be

tax-free stock dividends or distributions exchanged for stock

retained as long as their contents may become material in

in liquidations or redemptions.

the administration of any Internal Revenue law. Generally, tax

returns and return information are confidential, as required by

Supporting Information

section 6103.

1. Attach the following information to Form 5452. See

The time needed to complete and file this form will vary

Revenue Procedure 75-17, 1975-1 C.B. 677.

depending on individual circumstances. The estimated

A computation of earnings and profits for the tax year (see

average time is:

the example of a filled-in worksheet on page 3 and a blank

Recordkeeping

28 hr., 13 min.

worksheet on page 4). If the corporation was required to

Learning about

complete Schedule M-1 (Form 1120) or Schedule M-3 (Form

the law or the form

58 min.

1120) for the tax year, also attach a schedule of the

differences between the earnings and profits computation

Preparing the form

2 hr., 24 min.

and the Schedule M-1 or Schedule M-3.

Copying, assembling, and

sending the form to the IRS

16 min.

A year-by-year computation of the accumulated earnings

and profits, and a schedule of differences since the origin of

If you have comments concerning the accuracy of these

the company, February 28, 1913, or the last year that

time estimates or suggestions for making this form simpler,

information was furnished, whichever is later.

we would be happy to hear from you. See the instructions

for the tax return with which this form is filed.

If the corporation was required to complete Schedule L

(Form 1120) for the tax year, a tax basis balance sheet.

Show application of the net differences to the balance sheet

items as shown on Schedule L. Explain any further

adjustments necessary to figure the balance sheet on a tax

Form 5452 - Corporate Report Of Nondividend Distributions Page 2

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