Page 102 - BusinessStructures & Forms

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The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.
post office does not deliver mail to the The corporation does not have to If a section 444 election is terminated
street address and the corporation has a TIP provide the information requested and the termination results in a short tax
P.O. box, show the box number instead. in (3), (4), and (5), above, if its year, type or print at the top of the first
total receipts (line 1a plus lines 4 through page of Form 1120 for the short tax year
Note. Do not use the address of the 10 on page 1 of the return) and its total “SECTION 444 ELECTION
registered agent for the state in which the assets at the end of the tax year TERMINATED.”
corporation is incorporated. For example, (Schedule L, line 15(d)) are less than
if a business is incorporated in Delaware $250,000. See Schedule K, Question 13. Schedule M-3 (Form 1120)
or Nevada and the corporation's principal A corporation with total assets
office is located in Little Rock, Arkansas, For more information on consolidated (nonconsolidated or consolidated for all
the corporation should enter the Little returns, see the regulations under section corporations included within a
Rock address. 1502. consolidated tax group) of $10 million or
If the corporation receives its mail in Life-Nonlife Consolidated more on the last day of the tax year must
file Schedule M-3 (Form 1120) instead of
care of a third party (such as an Return Schedule M-1. A corporation filing Form
accountant or an attorney), enter on the 1120 that is not required to file
street address line “C/O” followed by the If Item A, box 1a, is checked and the Schedule M-3 may voluntarily file
third party's name and street address or corporation is the common parent of a Schedule M-3 instead of Schedule M-1.
P.O. box. consolidated group that includes a life
insurance company, also check box 1b.
If the corporation has a foreign See Regulations section 1.1502-47(m) for Corporations that (a) are required to file
address, include the city or town, state or the requirements for filing a consolidated Schedule M-3 (Form 1120) and have less
province, country, and foreign postal tax return for a life-nonlife consolidated than $50 million total assets at the end of
code. Do not abbreviate the country group. the tax year, or (b) are not required to file
name. Follow the country's practice for Schedule M-3 (Form 1120) and voluntarily
entering the name of the state or province Personal Holding Company file Schedule M-3 (Form 1120), must
and postal code. A personal holding company must check either (i) complete Schedule M-3 (Form
Item A, box 2, and attach Schedule PH 1120) entirely, or (ii) complete
Item A. Identifying (Form 1120), U.S. Personal Holding Schedule M-3 (Form 1120) through Part I,
and complete Form 1120, Schedule M-1,
Information Company (PHC) Tax. See the Instructions instead of completing Parts II and III of
for Schedule PH (Form 1120) for details.
Consolidated Return Personal Service Corporation Schedule M-3 (Form 1120). If the
corporation chooses to complete
Corporations filing a consolidated return If the corporation is a personal service Schedule M-1 instead of completing Parts
must check Item A, box 1a, and attach corporation, check Item A, box 3. A II and III of Schedule M-3, the amount on
Form 851, Affiliations Schedule, and other personal service corporation is a Schedule M-1, line 1, must equal the
supporting statements to the return. Also, corporation whose principal activity for the amount on Schedule M-3, Part I, line 11.
for the first year a subsidiary corporation is testing period is the performance of See the Instructions for Schedule M-3
being included in a consolidated return, personal services. The testing period for a (Form 1120) for more details. Also, see
attach Form 1122 to the parent's tax year is generally the prior tax year the instructions for Schedule M-1, later.
consolidated return. Attach a separate unless the corporation has just been
Form 1122 for each new subsidiary being formed. Personal services include any If you are filing Schedule M-3, check
included in the consolidated return. activity performed in the fields of Item A, box 4, to indicate that
File supporting statements for each accounting, actuarial science, Schedule M-3 is attached.
corporation included in the consolidated architecture, consulting, engineering, Item B. Employer
return. Do not use Form 1120 as a health, law, and the performing arts. The
supporting statement. On the supporting services must be substantially performed Identification Number
statement, use columns to show the by employee-owners. (EIN)
following, both before and after A personal service corporation must Enter the corporation's EIN. If the
adjustments. use a calendar tax year unless: corporation does not have an EIN, it must
1. Items of gross income and • It elects to use a 52-53-week tax year apply for one. An EIN can be applied for:
deductions. that ends with reference to the calendar • Online—Go to IRS.gov/EIN. The EIN is
2. A computation of taxable income. year or tax year elected under section issued immediately once the application
3. Balance sheets, as of the beginning 444; information is validated.
• It can establish a business purpose for
• By faxing or mailing Form SS-4,
and end of the tax year. a different tax year and obtains the Application for Employer Identification
4. A reconciliation of income per approval of the IRS (see the Instructions Number.
books with income per return. for Form 1128 and Pub. 538); or
5. A reconciliation of retained • It elects under section 444 to have a tax Corporations located in the United
!
earnings. year other than a calendar year. To make CAUTION States or U.S. possessions can
use the online application. Foreign
Enter on Form 1120 the totals for each the election, use Form 8716, Election To corporations should call 267-941-1099
Have a Tax Year Other Than a Required
item of income, gain, loss, expense, or Tax Year. (not a toll free number) for more
deduction, net of eliminating entries for information on obtaining an EIN. See the
intercompany transactions between If a corporation makes the section 444 Instructions for Form SS-4.
corporations within the consolidated election, its deduction for certain amounts
group. Attach consolidated balance paid to employee-owners may be limited. EIN applied for, but not received. If the
sheets and a reconciliation of See Schedule H (Form 1120), Section corporation has not received its EIN by the
consolidated retained earnings. 280H Limitations for a Personal Service time the return is due, enter “Applied For”
Corporation (PSC), to figure the maximum and the date the corporation applied in the
deduction. space for the EIN. However, if the

-8- Instructions for Form 1120