Page 115 - BusinessStructures & Forms

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The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.
For this purpose, the term “stock”
Line 15 Fileid: … ions/i1120/2022/a/xml/cycle08/source generally does not include any stock that
Schedule K.
If the corporation overpaid estimated tax, it Other Information (a) is nonvoting, (b) is nonconvertible,
may be able to get a quick refund by filing Complete all items that apply to the (c) is limited and preferred as to dividends
Form 4466. The overpayment must be at corporation. and does not participate significantly in
least 10% of the corporation's expected corporate growth, and (d) has redemption
income tax liability and at least $500. File Question 2 and liquidation rights that do not exceed
Form 4466 after the end of the See the list of Principal Business Activity the issue price of the stock (except for a
corporation's tax year, and no later than Codes later in the instructions. Using the reasonable redemption or liquidation
the due date for filing the corporation’s tax list of codes and activities, determine from premium). See section 1504(a)(4).
return (not including extensions). Form which activity the corporation derives the Question 4. Constructive
4466 must be filed before the corporation highest percentage of its total receipts. Ownership of the Corporation
files its tax return. See the instructions for Enter on lines 2a, 2b, and 2c the principal
Form 4466. business activity code number, the For purposes of question 4, the
corporation's business activity, and a constructive ownership rules of section
Line 18 description of the principal product or 267(c) (excluding section 267(c)(3)) apply
service of the corporation. For nonstore to ownership of interests in corporate
If the corporation had federal income tax retailers, select the PBA code by the stock and ownership of interests in the
profit, loss, or capital of a partnership. If
primary product that your establishment
withheld from any payments it received sells. For example, establishments the corporation checked “Yes” to question
because, for example, it failed to give the primarily selling prescription and 4a or 4b, complete and attach Schedule G
payer its correct EIN or was otherwise non-prescription drugs, select PBA code (Form 1120), Information on Certain
subjected to back-up withholding, include 456110 Pharmacies & Drug Retailers. Persons Owning the Corporation's Voting
the amount withheld in the total for line 18. Stock.
Question 3
Line 20. Refundable Credits Check the “Yes” box for question 3 if: Question 5. Constructive
Ownership of Other Entities
• The corporation is a subsidiary in an
Line 20a. Credit from Form 2439. Enter affiliated group (defined below), but is not For purposes of determining the
any credit from Form 2439, Notice to filing a consolidated return for the tax year corporation's constructive ownership of
Shareholder of Undistributed Long-Term with that group; or other entities, the constructive ownership
Capital Gains, for the corporation's share • The corporation is a subsidiary in a rules of section 267(c) (excluding section
of the tax paid by a regulated investment parent–subsidiary controlled group. For a 267(c)(3)) apply to ownership of interests
company (RIC) or a real estate investment definition of a parent–subsidiary controlled in partnerships and trusts as well as
trust (REIT) on undistributed long-term group, see the Instructions for Schedule O corporate stock. Generally, if an entity (a
capital gains included in the corporation's (Form 1120). corporation, partnership, or trust) is
income. Attach Form 2439. owned, directly or indirectly, by or for
Any corporation that meets either of the
Line 20b. Credit for federal tax on requirements above should check the another entity (corporation, partnership,
fuels. Enter the total income tax credit “Yes” box. This applies even if the estate, or trust), the owned entity is
claimed on Form 4136, Credit for Federal corporation is a subsidiary member of one considered to be owned proportionately
Tax Paid on Fuels. Attach Form 4136. group and the parent corporation of by or for the owners (shareholders,
Line 20c. Reserved for future use. another. partners, or beneficiaries) of the owning
entity.
Line 20d. Other. Include on line 20d any Note. If the corporation is an “excluded
other refundable credit the corporation is member” of a controlled group (see Question 5a
claiming, including the following. Attach a definition in the Instructions for
statement listing the type of credit and the Schedule O (Form 1120)), it is still List each foreign or domestic corporation
amount of the credit. considered a member of a controlled not included on Form 851, Affiliations
• Credit for tax withheld under Chapter 3 group for this purpose. Schedule, in which the corporation, at the
or 4 of the Internal Revenue Code that is end of the tax year, owned directly 20% or
shown on Form 1042-S, Form 8805, or Affiliated group. An affiliated group is more, or owned, directly or indirectly, 50%
Form 8288-A. Attach the applicable form. one or more chains of includible or more of the total voting power of all
• Credit for tax on ozone-depleting corporations (section 1504(a)) connected classes of stock entitled to vote. Indicate
chemicals. See section 4682(g)(2). through stock ownership with a common the name of the corporation, EIN (if any),
• Credit under section 960(c) (section parent corporation. The common parent country of incorporation, and the
960(b) for pre-2018 taxable years of must be an includible corporation and the percentage interest owned, directly or
foreign corporations). If an increase in the following requirements must be met. indirectly, in the total voting power. List the
limitation under section 960(c) (section 1. The common parent must own parent corporation of an affiliated group of
960(b) (pre-2018)) exceeds the total tax directly stock that represents at least 80% corporations filing a consolidated tax
on Schedule J, Part I, line 11, for the tax of the total voting power and at least 80% return rather than the subsidiary members
year, the amount of the excess is deemed of the total value of the stock of at least except for subsidiary members in which
an overpayment of tax for the tax year. one of the other includible corporations. an interest is owned, directly or indirectly,
See section 960(c) (section 960(b) 2. Stock that represents at least 80% independent of the interest owned, directly
(pre-2018)) for more information regarding of the total voting power and at least 80% or indirectly, in the parent corporation. List
the circumstances under which such an of the total value of the stock of each of a corporation owned through a
excess arises. the other corporations (except for the disregarded entity rather than the
common parent) must be owned directly disregarded entity.
Line 22 by one or more of the other includible
corporations.
Reserved for future use.

Instructions for Form 1120 -21-