Page 113 - BusinessStructures & Forms

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such stock was held for less than 91 days Line 2 intangible under the related person
during the 181-day period that began 90 exception to the anti-churning rules should
days before the ex-dividend date. When Multiply taxable income (page 1, line 30) include any additional tax due in the total
counting the number of days the by 21%. Enter this amount on line 2. for line 2. On the dotted line next to line 2,
corporation held the stock, you cannot enter “Section 197” and the amount. See
count certain days during which the Mutual savings bank conducting life section 197(f)(9)(B)(ii).
corporation's risk of loss was diminished. insurance business. The tax under
See section 246(c)(4) and Regulations section 594 consists of the sum of (a) a Line 3
section 1.246-5 for more details. Preferred partial tax computed on Form 1120 on the
dividends attributable to periods totaling taxable income of the bank, determined
less than 367 days are subject to the without regard to income or deductions If the corporation had gross receipts of at
46-day holding period rule discussed allocable to the life insurance department, least $500 million in any 1 of the 3 tax
above. and (b) a partial tax on the taxable income years preceding the current tax year,
computed on Form 1120-L of the life
complete and attach Form 8991. Enter on
c. Dividends on any share of stock to insurance department. Enter the line 3 the base erosion minimum tax
the extent the corporation is under an combined tax on line 2. Attach Form amount from Form 8991, Part IV, line 5e.
obligation (including a short sale) to make 1120-L as a schedule (and identify it as See section 59A and the Instructions for
related payments with respect to positions such), together with the annual statements Form 8991. Also, see Schedule K,
in substantially similar or related property. and schedules required to be filed with Question 22, later.
5. Any other taxable dividend income Form 1120-L. See Regulations section
not properly reported elsewhere on 1.6012-2(c)(1)(ii). Line 5
Schedule C. Exception for insurance companies
If patronage dividends or per-unit retain filing their federal income tax returns Line 5a. To find out when a corporation
can take the credit for payment of income
allocations are included on line 20, identify electronically. If an insurance company tax to a foreign country or U.S.
the total of these amounts in a statement files its income tax return electronically, it possession, see Form 1118, Foreign Tax
attached to Form 1120. should not include the annual statements Credit—Corporations.
Line 21, Column (c) and schedules required to be filed with Line 5b. Enter any qualified electric
Form 1120-L. However, such statements
Section 247 (as affected by P.L.113-295, must be available at all times for vehicle passive activity credits from prior
Div. A, section 221(a)(41)(A), Dec. 19, inspection by the IRS and retained for so years allowed for the current tax year from
2014, 128 Stat. 4043) allows public long as such statements may be material Form 8834, Qualified Electric Vehicle
utilities a deduction of 40% of the smaller in the administration of any Internal Credit, line 7. Attach Form 8834. If
of (a) dividends paid on their preferred Revenue law. applicable, include on line 5b any credits
stock during the tax year, or (b) taxable from Form 5735, American Samoa
income computed without regard to this Deferred tax under section 1291. If the Economic Development Credit. See the
deduction. In a year in which an NOL corporation was a shareholder in a PFIC Instructions for Form 5735. Attach Form
occurs, compute the deduction without and received an excess distribution or 5735.
regard to section 247(a)(1)(B). disposed of its investment in the PFIC Line 5c. Enter on line 5c the allowable
during the year, it must include the
Line 22, Column (c) increase in taxes due under section credit from Form 3800, Part II, line 38.
Enter the section 250 deduction claimed 1291(c)(2) (from Form 8621) in the total The corporation is required to file Form
for foreign-derived intangible income for line 2. On the dotted line next to line 2, 3800, General Business Credit, to claim
(FDII) and global intangible low-taxed enter “Section 1291” and the amount. any of the business credits. See the
income (GILTI). This should equal the sum Do not include on line 2 any interest Instructions for Form 3800 for exceptions.
of the amounts on Form 8993, Part III, due under section 1291(c)(3). Instead, For a list of allowable credits, see Form
lines 28 and 29. include the amount of interest owed on 3800. Also, see the applicable credit form
Schedule J, Part I, line 9f. and its instructions.
For more information on reporting the
Schedule J. deferred tax and interest, see the Line 5d. Enter any allowable credit from
Tax Computation and Instructions for Form 8621. Form 8827, Credit for Prior Year Minimum
Tax—Corporations. Complete and attach
Payment Increase in tax attributable to partner's Form 8827.
Part I—Tax Computation audit liability under section 6226. If the Line 5e. Enter the allowable credits from
corporation is filing Form 8978 to report
Form 8912, Credit to Holders of Tax Credit
Line 1 adjustments shown on Form 8986 they Bonds, line 12.
received from partnerships that have been
If the corporation is a member of a audited and have elected to push out Line 6
controlled group, check the box on line 1. imputed underpayments to their partners,
Complete and attach Schedule O (Form include any increase in taxes due from
1120), Consent Plan and Apportionment Form 8978, line 14, in the total for Form Add lines 5a through 5e. Enter the total on
Schedule for a Controlled Group. 1120, Schedule J, line 2. On the dotted line 6.
Component members of a controlled line next to line 2, enter "FROM FORM Decrease attributable to partner's au-
group must use Schedule O to report the 8978" and the amount. Attach Form 8978. dit liability under section 6226. If the
apportionment of certain tax benefits If Form 8978, line 14, shows a decrease in corporation is filing Form 8978 to report
between the members of the group. See tax, see the instructions for Schedule J, adjustments shown on Form 8986 they
Schedule O and the Instructions for line 6. received from partnerships that have been
Schedule O for more information. Additional tax under section 197(f). A audited and have elected to push out
corporation that elects to recognize gain imputed underpayments to their partners,
and pay tax on the sale of a section 197 include any decrease in taxes due
(negative amount) from Form 8978,

Instructions for Form 1120 -19-