Instructions For Form 1120-Ic-Disc - 2012 (Page 13 of 16) in pdf

Schedule L. The balance of this account is

For commission sales, export gross

Column (b). Export gross receipts of

used in figuring deferred DISC income in

receipts include the total receipts on which

related IC-DISCs. Complete column (b)

Part V of Schedule J.

the IC-DISC earned the commission.

to report related IC-DISCs' export gross

receipts from all sources (including the

Schedule N

For purposes of line 2, Schedule N

United States).

only, no reduction is to be made for

Export Gross Receipts

Column (c). Export gross receipts of

receipts attributable to military property.

all other related U.S. persons.

of the IC-DISC and Related U.S.

Therefore, an IC-DISC's export gross

Complete column (c) to report other

Persons

receipts for purposes of line 2 include the

related U.S. persons' export gross

total of the amounts from Schedule B,

receipts from all sources except the

Line 1. Product Code and

columns (b) and (d) of lines 1c, 2a, 2b, 2c,

United States.

Percentage

and 2d.

Enter in line 1a the code number and

Line 3. Related U.S. Persons

Related persons are:

percentage of total export gross receipts

An individual, partnership, estate, or

Enter on line 3 the name, address, and

(defined under

Line 2.

Definitions, later)

trust that controls the IC-DISC;

identifying number of related U.S. persons

for the product or service that accounts for

A corporation that controls the IC-DISC

in your controlled group.

the largest portion of the IC-DISC's export

or is controlled by it; or

gross receipts. The product codes are at

Schedule O

A corporation controlled by the same

the end of these instructions. On line 1b,

person or persons who control the

enter the same information for the

Other Information

IC-DISC.

IC-DISC's next largest product or service.

Question 6. Boycott of Israel. If

Example. An IC-DISC has export

Control means direct or indirect

question 6a, 6b, or 6c is checked “Yes,”

gross receipts of $10 million. Selling

ownership of more than 50% of the total

the IC-DISC must file Form 5713 and is

agricultural chemicals accounts for $4.5

voting power of all classes of stock

also deemed to distribute part of its

million (45% (0.45)) of that amount, which

entitled to vote. See section 993(a)(3).

income. See Form 5713 for more

is the IC-DISC's largest product or service.

information.

The IC-DISC should enter “287” (the

U.S. person is:

product code for agricultural chemicals)

Question 7. Tax-exempt interest.

A citizen or resident of the United

and “45%” in line 1a.

Report any tax-exempt interest received

States, which includes the Commonwealth

Selling industrial chemicals accounts

or accrued. Include any exempt-interest

of Puerto Rico and possessions of the

for $2 million (20% (0.20) of the $10

dividends received as a shareholder in a

United States;

million total) and is the IC-DISC's

mutual fund or other RIC.

A domestic corporation or partnership;

second-largest product or service. The

Question 8. Foreign owner. If the

IC-DISC should enter “281” (the product

An estate or trust (other than a foreign

answer to question 8(a) or 8(b) is "Yes,"

code for industrial inorganic and organic

estate or trust as defined in section

enter on line 8(b)a the percentage owned.

chemicals) and “20%” in line 1b.

7701(a)(31)).

On line 8(b)b, enter the owner's country,

and on line 8(b)c, if Form 5472,

Line 2. Definitions

Export Gross Receipts

Information Return of a 25%

Foreign-Owned U.S. Corporation

Export gross receipts are receipts from

Column (a). All IC-DISCs should

Engaged in a U.S. Trade or Business, is

any of the following.

complete column (a) in line 2. If two or

filed by the corporation, enter the number

Providing engineering or architectural

more IC-DISCs are related persons, only

of Forms 5472 attached.

services for construction projects located

the IC-DISC with the largest export gross

outside the United States.

Schedule P

receipts should complete columns (b) and

Selling for direct use, consumption, or

(c). If an IC-DISC acts as a commission

disposition outside the United States,

Intercompany Transfer Price or

agent for a related person, attribute the

property (such as inventory) produced in

total amount of the transaction to the

Commission

the United States.

IC-DISC.

Renting this property to unrelated

Complete and attach a separate

Complete column (a) to report the

persons for use outside the United States.

Schedule P (Form 1120-IC-DISC) for each

IC-DISC's export gross receipts from all

Providing services involved in such a

transaction or group of transactions to

sale or rental.

sources (including the United States) for

which you apply the intercompany pricing

the current tax year.

Providing export management services.

rules of section 994(a)(1) and (2).

Paperwork Reduction Act Notice. We ask for the information on this form to carry out the Internal Revenue laws of the United

States. You are required to give us the information. We need it to ensure that you are complying with these laws and to allow us to

figure and collect the right amount of tax.

You are not required to provide the information requested on a form that is subject to the Paperwork Reduction Act unless the form

displays a valid OMB control number. Books or records relating to a form or its instructions must be retained as long as their contents

may become material in the administration of any Internal Revenue law. Generally, tax returns and return information are confidential,

as required by section 6103.

The time needed to complete and file Form 1120-IC-DISC, Schedule K (Form 1120-IC-DISC), and Schedule P (Form

1120-IC-DISC), will vary depending on individual circumstances. The estimated burden for business taxpayers filing these forms is

approved under OMB control number 1545-0123.

If you have comments concerning the accuracy of these time estimates or suggestions for making these forms simpler, we would

be happy to hear from you. You can send us comments from IRS.gov/FormComment. Or you can write to: Internal Revenue Service,

Instructions for Form 1120-IC-DISC (Rev. 9-2017)

-13-

Instructions For Form 1120-Ic-Disc - 2012 Page 13

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