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SCHEDULE K Form 1120-IC-DISC Department of the Treasury Internal Revenue Service Part I Shareholder s Statement of IC-DISC Distributions 2009 For calendar year 2009 or tax year beginning 2009 ending Complete for each shareholder. See instructions For Paperwork Reduction Act Notice see the instructions for Form 1120-IC-DISC. Name employer identification number and address including ZIP code of IC-DISC former DISC or former IC-DISC Cat. No. 11474A ...

How to fill out schedule k form 1120-ic-disc

How to fill out SCHEDULE K (Form 1120-IC-DISC)

1. Obtain Form 1120-IC-DISC from the IRS website or your tax preparer.
2. Review the instructions specific to SCHEDULE K within the form.
3. Fill out the top section with your corporation's name, address, and Employer Identification Number (EIN).
4. Complete line 1 by entering the total amount of gross receipts for the taxable year.
5. Populate lines 2 through 5 with required details: sales, cost of goods sold, and deductions.
6. Adjust any necessary amounts in the tax computation sections.
7. Double-check all entries for accuracy and completeness.
8. Submit SCHEDULE K along with Form 1120-IC-DISC by the tax filing deadline.

Who needs SCHEDULE K (Form 1120-IC-DISC)?

1. Any corporation that qualifies as an Interest Charge Domestic International Sales Corporation (IC-DISC) and is filing Form 1120-IC-DISC needs to complete SCHEDULE K.
2. Corporations engaged in exporting goods or services who wish to benefit from tax incentives provided for related international activities.

People Also Ask about

What does disc stand for in tax?

In 1971, the U.S. Congress voted to use U.S. tax law to subsidize exports of U.S.-made goods. The initial mechanism was through a Domestic International Sales Corporation (DISC), an entity with no substance which received tax benefits.

Is IC-disc owned by Roth IRAs?

An Interest-Charge Domestic International Sales Corporation (IC-DISC) is a specialized entity used by U.S.-based export companies to reduce income taxes by paying tax-deductible commissions to an IC-DISC, which is exempt from federal income tax. In this specific structure, the IC-DISC is owned by one or more Roth-IRAs.

What is the election to be treated as an IC-disc?

Corporations file Form 4876-A to elect to be treated as an interest charge domestic international sales corporation (IC-DISC). It applies to each shareholder who owns stock in the corporation while the election is in effect.

How can I avoid CD tax?

How to Avoid Tax on CD Interest Time CD maturity for lower tax years: CD laddering can help time interest payments for years when income is lower, potentially reducing the overall tax burden. Use tax-advantaged accounts: Holding CDs in a Traditional IRA allows interest to grow tax-deferred until withdrawals begin.

What is IC-disc tax benefit?

The use of the IC-DISC can generate tax savings by converting some of a business's export income into qualified dividends through a tax-deductible commission to the IC-DISC. This effectively lowers the taxable income of the export business.

What is an 1120 IC-disc?

Form 1120-IC-DISC is an information return filed by interest charge domestic international sales corporations (IC-DISCs), former DISCs, and former IC-DISCs. What Is an IC-DISC? An IC-DISC is a domestic corporation that has elected to be an IC-DISC and its election is still in effect.

What is Schedule K for C Corp?

Form 1120 Schedule K is filed by a C-Corporation as part of its tax return. This schedule is for reporting the corporation's financial activities, income, deductions, and tax credits at the corporate level.

What is the schedule K on form 1120?

Schedule K is a summary schedule of all shareholders' shares of the corporation's income, deductions, credits, etc. All corporations must complete Schedule K.

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What is SCHEDULE K (Form 1120-IC-DISC)?

SCHEDULE K (Form 1120-IC-DISC) is a supplementary form used by Interest Charge Domestic International Sales Corporations (IC-DISCs) to report various information required for tax purposes, primarily related to income, expenses, and tax benefits associated with the IC-DISC.

Who is required to file SCHEDULE K (Form 1120-IC-DISC)?

A corporation that has elected to be treated as an IC-DISC under the Internal Revenue Code is required to file SCHEDULE K (Form 1120-IC-DISC) as part of its annual return to report its qualifying activities and financial information.

How to fill out SCHEDULE K (Form 1120-IC-DISC)?

To fill out SCHEDULE K, the filer should gather the necessary financial data, including income and expenses related to qualifying export activities, and input this information into the designated sections of the form. Detailed instructions from the IRS must be followed to ensure accurate reporting.

What is the purpose of SCHEDULE K (Form 1120-IC-DISC)?

The purpose of SCHEDULE K is to report specific financial details about the IC-DISC's operations. This includes information regarding exports, qualifying income, and calculations that affect the IC-DISC's tax treatment, thereby helping ensure compliance with tax regulations.

What information must be reported on SCHEDULE K (Form 1120-IC-DISC)?

SCHEDULE K requires reporting information such as gross receipts from qualified export activities, expenses associated with those activities, and other financial data relevant to the IC-DISC's income tax return, including any relevant deductions or credits.