Instructions For Form 1120-Ic-Disc - 2012 (Page 2 of 16) in pdf

Who Must Sign

interest charge under Regulations section

can make the election by including the

1.992-3(c)(4).

certification as provided in Notice

The return must be signed and dated by:

2005-70, 2005-41 I.R.B. 694 on or with its

The president, vice president, treasurer,

Who Must File

tax return filed by the due date (including

assistant treasurer, chief accounting

extensions) for the tax year in which the

The corporation must file Form

officer, or

transaction occurred. If the transferor is a

1120-IC-DISC if it elected, by filing Form

Any other corporate officer (such as tax

controlled foreign corporation, its

4876-A, to be treated as an IC-DISC and

officer) authorized to sign.

controlling U.S. shareholder(s) can make

its election is in effect for the tax year.

the election. The common parent of a

If a return is filed on behalf of a

If the corporation is a former DISC or

consolidated group can make the election

corporation by a receiver, trustee, or

former IC-DISC, it must file Form

for the group.

assignee, the fiduciary must sign the

1120-IC-DISC in addition to any other

return, instead of the corporate officer.

If the election is made as described

return required.

Returns and forms signed by a receiver or

above, no election need be made by the

trustee in bankruptcy on behalf of a

transferee (or any controlling U.S.

A former DISC is a corporation that

corporation must be accompanied by a

shareholder thereof).

was a DISC on or before December 31,

copy of the order or instructions of the

1984, but failed to qualify as a DISC after

Once made, the election is irrevocable.

court authorizing signing of the return or

December 31, 1984, or did not elect to be

See section 362(e)(2)(C) and Notice

form.

an IC-DISC after 1984; and at the

2005-70.

beginning of the current tax year, it had

If an employee of the corporation

Other forms and statements. See the

undistributed income that was previously

completes Form 1120-IC-DISC, the paid

Instructions for Form 1120 and Pub. 542

taxed or it had accumulated DISC income.

preparer's space should remain blank.

for a list of other forms and statements a

A former IC-DISC is a corporation that

Anyone who prepares Form

corporation may need to file in addition to

1120-IC-DISC but does not charge the

was an IC-DISC in an earlier year but did

the forms and statements discussed

corporation should not complete that

not qualify as an IC-DISC for the current

throughout these instructions.

section. Generally, anyone who is paid to

tax year; and at the beginning of the

Assembling the Return

current tax year, it had undistributed

prepare Form 1120-IC-DISC must sign it

income that was previously taxed or

and fill in the “Paid Preparer Use Only”

To ensure that the corporation's tax return

area.

accumulated IC-DISC income. See

is correctly processed, attach all

section 992 and related regulations.

schedules and other forms after the last

The paid preparer must:

A former DISC or former IC-DISC need

page of Form 1120-IC-DISC, and in the

Complete the required preparer

not complete lines 1 through 8 on page 1

following order.

information,

and the Schedules for figuring taxable

Sign the return in the space provided

1. Schedule N (Form 1120).

income, but must complete Schedules J,

for the preparer's signature, and

2. Form 4136.

L, and M of Form 1120-IC-DISC and

Give a copy of the return to the

3. Additional schedules in

Schedule K (Form 1120-IC-DISC). Write

taxpayer.

alphabetical order.

“Former DISC” or “Former IC-DISC”

across the top of the return.

Note. A paid preparer may sign original or

4. Additional forms in numerical order.

amended returns by rubber stamp,

When To File

Complete every applicable entry space

mechanical device, or computer software

on Form 1120-IC-DISC. Do not enter “See

program.

File Form 1120-IC-DISC by the 15th day

Attached” or “Available Upon Request”

of the 9th month after its tax year ends. No

Other Forms and

instead of completing the entry spaces. If

extensions are allowed. If the due date

more space is needed on the forms or

Statements That May Be

falls on a Saturday, Sunday, or a legal

schedules, attach separate statements

holiday, the corporation may file on the

Required

using the same size and format as the

next business day.

printed forms. If there are supporting

Informing Sharehholders

statements and attachments, arrange

Private delivery services (PDSs).

them in the same order as the schedules

Corporations may use certain PDSs

Shareholders who are foreign per-

designated by the IRS to meet the “timely

or forms they support and attach them

sons. The corporation should inform

mailing as timely filing/paying” rule for tax

last. Show the totals on the printed forms.

shareholders who are nonresident alien

Enter the corporation's name and EIN on

returns and payments. Go to

IRS.gov/PDS

individuals or foreign corporations, trusts,

each supporting statement or attachment.

for the current list of designated PDSs.

or estates that if they have gains from

The PDS can tell you how to get written

disposal of stock in the IC-DISC, former

Accounting Methods

proof of the mailing date.

DISC, or former IC-DISC, or distributions

Figure taxable income using the method of

from accumulated IC-DISC income,

For the IRS mailing address to use if

accounting regularly used in keeping the

including deemed distributions, they must

you’re using a PDS, go to

IRS.gov/

IC-DISC's books and records. In all cases,

treat these amounts as effectively

PDSstreetAddresses.

the method used must clearly show

connected with the conduct of a trade or

PDSs can’t deliver items to P.O.

taxable income. Permissible methods

business conducted through a permanent

boxes. You must use the U.S.

include cash, accrual, or any other method

establishment in the United States and

Postal Service to mail any item to

authorized by the Internal Revenue Code.

derived from sources within the United

CAUTION

an IRS P.O. box address.

States.

Generally, the following rules apply.

Election to reduce basis under section

An IC-DISC must use the accrual

Where To File

362(e)(2)(C). The transferor may make a

method of accounting if its average annual

File Form 1120-IC-DISC at the following

joint election under section 362(e)(2)(C) to

gross receipts exceed $5 million.

address: Internal Revenue Service, 201

limit the transferor's basis in the stock

However, see

Nonaccrual experience

W. Rivercenter Blvd., Covington, KY

received instead of the transferee's basis

method for service

providers, later.

41019.

in the transferred property. The transferor

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

-2-

Instructions For Form 1120-Ic-Disc - 2012 Page 2

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