Instructions For Form 1120-Pc - 2016 (Page 7 of 23) in pdf

Corporations located in the United

953(d)” and the amount. Attach a

Tax Rate Schedule

States or U.S. possessions can

statement showing the computation. See

use the online application. Foreign

section 953(d) for more details.

CAUTION

If the amount on Form 1120-PC, page 1, line 1

corporations should call 1-267-941-1099

or line 2 is:

Item E. Final Return, Name

(not a toll-free number) for more

information on obtaining an EIN. See the

Of the

Change, Address Change,

But not over

amount

Instructions for Form SS-4.

or Amended Return

Over—

—

Tax is:

over—

$50,000

15%

EIN applied for, but not received. If the

Indicate a final return, name change,

50,000

75,000

$ 7,500 + 25%

50,000

corporation has not received its EIN by the

address change, or amended return by

75,000

100,000

13,750 + 34%

75,000

time the return is due, enter Applied For

checking the appropriate box.

100,000

335,000

22,250 + 39%

100,000

and the date the corporation applied in the

335,000 10,000,000

113,900 + 34%

335,000

space for the EIN. However, if the

Note. If a change in address or

10,000,000 15,000,000 3,400,000 + 35% 10,000,000

15,000,000 18,333,333 5,150,000 + 38% 15,000,000

corporation is filing its return electronically,

responsible party occurs after the return is

18,333,333

- - - - -

35%

an EIN is required at the time the return is

filed, use Form 8822-B, Change of

filed. An exception applies to subsidiaries

Address or Responsible Party—Business,

of corporations whose returns are filed

to notify the IRS. See the Instructions for

Deferred tax under section 1291. If the

with the parent's electronically filed

Form 8822-B for details.

corporation was a shareholder in a

consolidated Form 1120. These

passive foreign investment company

Taxable Income

subsidiaries should enter Applied For in

(PFIC) and received an excess distribution

the space for the EIN on their returns. The

or disposed of its investment in the PFIC

Line 1, Taxable income, and line 2,

subsidiaries' returns are identified under

during the year, it must include the total

Taxable investment income. If the

the parent corporation's EIN.

increase in taxes due under section

corporation is a small company as defined

For more information, see the

1291(c)(2) (from Form 8621) in the

in section 831(b)(2) and elects under

Instructions for Form SS-4.

amount entered on line 4. On the dotted

section 831(b)(2)(A)(ii) to be taxed on

line next to line 4, enter “Sec. 1291” and

taxable investment income, complete

Item D. Section 953

the amount.

Schedule B (ignore Schedule A) and enter

Elections

Do not include on line 4 any interest

the amount from Schedule B, line 21, on

line 2, page 1. All other corporations

due under section 1291(c)(3). Instead,

Check the applicable box if the

should complete Schedule A (ignore

include the amount of interest owed on

corporation is a foreign corporation and

line 12.

Schedule B) and enter on line 1, page 1,

elects under:

the amount from Schedule A, line 37.

For more information on reporting the

1. Section 953(c)(3)(C) to treat its

deferred tax and interest, see the

related person insurance income as

Tax Computation and

Instructions for Form 8621.

effectively connected with the conduct of a

Payments

trade or business in the United States or

Additional tax under section 197(f). A

corporation that elects to recognize gain

2. Section 953(d) to be treated as a

Line 3

and pay tax on the sale of a section 197

domestic corporation.

If the corporation is a member of a

intangible under the related person

Generally, a foreign corporation making

controlled group, check the box on line 3.

exception to the anti-churning rules should

either election must file its return by

Complete and attach Schedule O (Form

include any additional tax due in the total

sending it to:

1120), Consent Plan and Apportionment

for line 4. On the dotted line next to line 4,

Schedule for a Controlled Group.

enter “Section 197” and the amount. See

Internal Revenue Service Center

Component members of a controlled

section 197(f)(9)(B)(ii).

P.O. Box 409101

group must use Schedule O to report the

Line 5. Enter amount of tax that a re-

Ogden, UT 84409

apportionment of taxable income, income

ciprocal must include. A mutual

tax, and certain tax benefits between the

insurance company that is an interinsurer

members of the group. See Schedule O

See Notice 87-50, 1987-2 C.B. 357, and

or reciprocal underwriter may elect, under

and the Instructions for Schedule O for

Rev. Proc. 2003-47, 2003-28 I.R.B. 55, for

section 835, to limit the deduction for

more information.

the procedural rules, election statement

amounts paid or incurred to a qualifying

formats, and filing addresses for making

Line 4

attorney-in-fact to the amount of the

the respective elections under section

deductions of the attorney-in-fact allocable

If the corporation is a member of a

953(c)(3)(C) or section 953(d).

to the income received by the

controlled group and is filing Schedule O

attorney-in-fact from the reciprocal. If this

(Form 1120), enter the corporation's tax

Note. Once either election is made, it will

election is made, any increase in taxable

apply to the tax year for which made and

from Part III of Schedule O.

income of a reciprocal as a result of this

all subsequent tax years unless revoked

Most corporations that are not

limitation is taxed at the highest rate of tax

with the consent of the IRS. Also, any loss

members of a controlled group and are not

specified in section 11(b).

of a foreign corporation electing to be

filing a consolidated return figure their tax

treated as a domestic insurance company

Make no entry on line 5 if the mutual

by using the Tax Rate Schedule below.

under section 953(d) will be treated as a

insurance company's taxable income

dual-consolidated loss and may not be

before including the section 835(b)

used to reduce the taxable income of any

amount is $100,000 or more. Otherwise,

other member of the affiliated group for

this tax is 35% of the section 835(b)

this tax year or any other tax year.

amount. If an entry is made on line 5,

attach a statement showing how the tax

Note. If a section 953(d) election is made,

was computed.

include the additional tax required to be

Reciprocal underwriters making the

paid on line 13, page 1. On the dotted line

section 835(a) election are allowed a

to the left of line 13, page 1, write “Section

Instructions for Form 1120-PC (2016)

-7-

Instructions For Form 1120-Pc - 2016 Page 7

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