Instructions For Form 1120-Fsc - 2016

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Instructions for Form
Department of the Treasury
Internal Revenue Service
1120-FSC
(Rev. December 2016)
U.S. Income Tax Return of a Foreign Sales Corporation
Photographs of Missing
FSC Repeal and
Section references are to the Internal Revenue Code
unless otherwise noted.
Children
Extraterritorial Income
Contents
Page
Exclusion
The Internal Revenue Service is a proud
General Instructions . . . . . . . . . . . . .
1
partner with the
National Center for Missing
In general, the FSC Repeal and
Purpose of Form . . . . . . . . . . . .
1
& Exploited Children®
(NCMEC).
Extraterritorial Income Exclusion Act of 2000:
FSC Repeal and
Photographs of missing children selected by
Repealed the FSC rules,
Extraterritorial Income
the Center may appear on pages that would
Provided taxpayers with an exclusion,
Exclusion
. . . . . . . . . . . . . .
1
otherwise be blank. You can help bring these
which is figured on Form 8873,
Pre-Repeal FSC Rules . . . . . . . .
2
children home by looking at the photographs
Extraterritorial Income Exclusion, and
Who Must File . . . . . . . . . . . . .
3
and calling 1-800-THE-LOST
Provided transition rules for existing
When To File . . . . . . . . . . . . . .
4
(1-800-843-5678) if you recognize a child.
FSCs. These rules are included in Rules for
Where To File . . . . . . . . . . . . . .
4
Existing FSCs below.
The Taxpayer Advocate
Who Must Sign . . . . . . . . . . . . .
4
Service
Note. The American Jobs Creation Act of
Paid Preparer Authorization . . . . .
4
2004 repealed the extraterritorial income
Other Forms That May Be
The Taxpayer Advocate Service (TAS) is an
exclusion provisions generally for
Required . . . . . . . . . . . . . . .
4
independent organization within the IRS
transactions after 2004, subject to a
Assembling the Return . . . . . . . .
4
that helps taxpayers and protects taxpayer
transition rule. See the Instructions for Form
Accounting Methods . . . . . . . . .
5
rights. TAS’s job is to ensure that every
8873 for more information.
Accounting Period . . . . . . . . . . .
5
taxpayer is treated fairly and knows and
The Tax Increase Prevention and
understands their rights under the
Taxpayer
Recordkeeping . . . . . . . . . . . . .
5
Reconciliation Act of 2005 repealed the FSC
Bill of
Rights.
Tax Payments . . . . . . . . . . . . .
5
binding contract exception. See Binding
Estimated Tax Payments . . . . . .
5
As a taxpayer, the corporation has rights
contract exception below for details.
Interest and Penalties . . . . . . . . .
6
that the IRS must abide by in its dealings
Rules for Existing FSCs
with the corporation. TAS can help the
Rounding Off to Whole Dollars . . . . . .
5
corporation if:
In general, a FSC that was in existence on
Specific Instructions . . . . . . . . . . . . .
6
A problem is causing financial difficulty for
September 30, 2000, and at all times
FSC Information . . . . . . . . . . . .
6
the business.
thereafter may continue to use the FSC rules
Tax and Payments . . . . . . . . . . .
7
The business is facing an immediate
for any transaction in the ordinary course of
Schedule A . . . . . . . . . . . . . . .
7
threat of adverse action.
business that is (a) before January 1, 2002,
Additional Information
. . . . . . . .
8
The corporation has tried repeatedly to
or (b) after December 31, 2001, if such
Schedule B . . . . . . . . . . . . . . .
8
contact the IRS but no one has responded,
transaction is pursuant to a binding contract
Schedule E . . . . . . . . . . . . . . .
9
or the IRS hasn't responded by the date
that meets the requirements described in
promised.
Schedule F . . . . . . . . . . . . . . .
9
Binding contract exception below.
Schedule G . . . . . . . . . . . . . .
10
The TAS toolkit at
Binding contract exception. The binding
Schedule J
. . . . . . . . . . . . . .
11
can help the
contract exception has been repealed for tax
Schedule L . . . . . . . . . . . . . .
12
corporation understand these rights.
years beginning after May 17, 2006. For tax
Schedule M-1 . . . . . . . . . . . . .
12
years beginning before May 18, 2006, the
TAS has offices in every state, the District
following rules apply: The transaction must
of Columbia, and Puerto Rico. Local
Future Developments
be pursuant to a binding contract between
advocates' numbers are in their local
the FSC (or a person related to the FSC) and
directories and at
IRS.gov/Advocate/Local-
a person other than a related person if that
For the latest information about
Taxpayer-Advocate. The corporation can
binding contract was in effect on September
developments related to Form 1120-FSC
also call TAS at 1-877-777-4778.
30, 2000, and has remained in effect. A
and its instructions, such as legislation
binding contract includes a purchase,
TAS also works to resolve large-scale or
enacted after they were published, go to
renewal, or replacement option that is
systemic problems that affect many
enforceable against a lessor or seller
taxpayers. If the corporation knows of one of
(provided the option is part of a contract that
these broad issues, please report it to TAS
What's New
is binding and in effect on September 30,
through the Systemic Advocacy
2000, and has remained in effect).
Management System at IRS.gov/sams.
New return due date for most Form
1120-FSC filers. For tax years beginning
The mere entering into of a single
For more information, go to
IRS.gov/
after 2015, P.L. 114-41 changed the return
transaction, such as a lease, would not, in
advocate.
due date for most Form 1120-FSC filers. For
and of itself, prevent the transaction from
General Instructions
most of these filers, Form 1120-FSC is now
being in the ordinary course of business.
due by the 15th day of the 4th month after
the end of the foreign sales corporation's
Election To Apply Exclusion Rules
(FSC's) tax year. Special rules apply to
Purpose of Form
corporations with tax years ending in June.
Taxpayers may elect to apply the
See When To File, later, for the new return
Use Form 1120-FSC to report the income,
extraterritorial income exclusion rules
due date information for all Form 1120-FSC
gains, losses, deductions, credits, and to
instead of the FSC rules for transactions
filers.
figure the income tax liability of a FSC.
Jan 19, 2017
Cat. No. 11532V

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