Instructions for IRS Form 1120-F "U.S. Income Tax Return of a Foreign Corporation"

This document contains official instructions for IRS Form 1120-F, U.S. Income Tax Return of a Foreign Corporation - a tax form released and collected by the Internal Revenue Service (IRS), a subdivision of the U.S. Department of the Treasury. An up-to-date fillable IRS Form 1120-F Schedule P is available for download through this link.

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Download Instructions for IRS Form 1120-F "U.S. Income Tax Return of a Foreign Corporation"

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2018
Department of the Treasury
Internal Revenue Service
Instructions for
Form 1120-F
U.S. Income Tax Return of a Foreign Corporation
tax years beginning after 2017, P.L.
Section references are to the Internal Revenue
Contents
Page
Code unless otherwise noted.
115-97 replaced the graduated corporate
Schedule L—Balance
tax structure with a flat 21% corporate tax
Contents
Page
Sheets per Books . . . . . . . .
30
rate. See the instructions for
Schedule J,
Schedules M-1 and M-3 . . . . . .
32
Photographs of Missing Children . . . .
2
line
2, later.
Schedule W . . . . . . . . . . . . . .
32
The Taxpayer Advocate Service . . . . .
2
Alternative minimum tax. The
How To Get Forms and
Future Developments
alternative minimum tax (previously
Publications . . . . . . . . . . . . . . .
2
reported on Schedule J, line 3 on page 5
General Instructions . . . . . . . . . . . . .
2
For the latest information about
of the form) does not apply to corporations
Purpose of Form . . . . . . . . . . . .
2
developments related to Form 1120-F and
for tax years beginning after December
Who Must File . . . . . . . . . . . . .
2
its instructions, such as legislation
31, 2017. Schedule J, line 3 is now used
Special Returns for Certain
enacted after they were published, go to
to report any base erosion minimum tax
Organizations . . . . . . . . . . . .
3
IRS.gov/Form1120F.
(discussed below).
Claim for Refund or Credit . . . . . .
3
Where To File . . . . . . . . . . . . . .
5
Prior year AMT credit. Corporations
What's New
may treat a portion of their prior year
Who Must Sign . . . . . . . . . . . . .
5
alternative minimum tax credit carryover
Paid Preparer Authorization . . . . .
5
Question W(2). On page 2 of the form,
as refundable. See Form 8827.
Other Forms, Schedules,
Question W(2), which pertains to foreign
and Statements That May
corporations claiming treaty benefits, has
Base erosion minimum tax. If the
Be Required . . . . . . . . . . . . .
5
been amended to include reference to
corporation had gross receipts of at least
Assembling the Return . . . . . . . .
7
Advance Pricing Agreements. The
$500 million in any one of the 3 tax years
Accounting Methods . . . . . . . . .
7
attachment requirement has been likewise
preceding the current tax year, complete
Accounting Period . . . . . . . . . . .
8
amended. Previously, Question W(2)
Form 8991. See section 59A and the
Rounding Off to Whole
made reference only to Competent
Instructions for Form 8991. Also see the
Dollars . . . . . . . . . . . . . . . .
8
Authority determinations.
instructions for
Schedule J, line
3, and the
Recordkeeping . . . . . . . . . . . . .
8
instructions for
item
DD, later.
New Question CC(2). On page 2 of the
Payment of Tax Due . . . . . . . . .
8
form, Question CC pertains to foreign
Small business taxpayers. Effective for
Estimated Tax Payments . . . . . .
9
corporations that are qualified derivatives
tax years beginning after 2017, P.L.
Interest and Penalties . . . . . . . . .
9
dealers (QDDs). New question CC(2)
115-97 expanded the eligibility of small
Special Rules for Foreign
requests the QI-EIN of the QDD.
business taxpayers to use the cash
Corporations . . . . . . . . . . .
10
method. See
Accounting
Methods, later.
New Question DD. See
Base erosion
Specific Instructions . . . . . . . . . . . .
11
minimum
tax, below.
Business interest expense limitation.
Period Covered
. . . . . . . . . . .
11
For tax years beginning in 2018, a
Address . . . . . . . . . . . . . . . .
11
New Question EE. See
Related party
taxpayer must file Form 8990, Limitation
Employer Identification
amounts paid or accrued in hybrid
on Business Interest Expense Under
Number (EIN) . . . . . . . . . . .
11
transactions or with hybrid
entities, below.
Section 163(j), to claim a deduction for
Computation of Tax Due or
New Questions FF and GG. See
business interest. In addition, Form 8990
Overpayment . . . . . . . . . . .
12
Business interest expense
limitation,
must be filed by any taxpayer that owns an
Section I—Income From
below.
interest in a partnership with current year,
U.S. Sources Not
Effectively Connected
or prior year carryover, excess business
New Question HH. On page 3 of the
With the Conduct of a
interest expense allocated from the
form, new Question HH pertains to foreign
Trade or Business in the
partnership, unless an exception for filing
corporations that, during the tax year,
United States . . . . . . . . . . .
16
is met. For more information, see Form
disposed of an interest in a partnership
Section II—Income
8990 and its instructions.
that directly or indirectly engaged in a
Effectively Connected
trade or business within the United States.
With the Conduct of a
Domestic production activities deduc-
See section 864(c)(8), which was added
Trade or Business in the
tion (DPAD). The DPAD has been
United States . . . . . . . . . . .
17
to the Code by P.L. 115-97, section
repealed for tax years beginning after
13501(a)(1). Also see the instructions for
Income . . . . . . . . . . . . . . . . .
18
2017 with limited exceptions. See the
item
HH, later.
Deductions . . . . . . . . . . . . . .
19
instructions for
Section II, line
27, later.
Schedule C—Dividends and
New Question II. See
Special rules for
Net operating loss. The 2-year
Special Deductions . . . . . . .
25
eligible gains invested in Qualified
carryback rule does not apply to NOLs
Schedule J—Tax
Opportunity
Funds, later.
arising in tax years ending after December
Computation . . . . . . . . . . .
27
31, 2017. Exceptions apply to certain
Tax rates. With respect to Section II on
Section III—Branch Profits
farming losses and NOLs of insurance
pages 4 and 5 of the form (income
Tax and Tax on Excess
companies other than life insurance
Interest . . . . . . . . . . . . . . .
27
effectively connected with the conduct of a
trade or business in the United States), for
Feb 11, 2019
Cat. No. 11475L
2018
Department of the Treasury
Internal Revenue Service
Instructions for
Form 1120-F
U.S. Income Tax Return of a Foreign Corporation
tax years beginning after 2017, P.L.
Section references are to the Internal Revenue
Contents
Page
Code unless otherwise noted.
115-97 replaced the graduated corporate
Schedule L—Balance
tax structure with a flat 21% corporate tax
Contents
Page
Sheets per Books . . . . . . . .
30
rate. See the instructions for
Schedule J,
Schedules M-1 and M-3 . . . . . .
32
Photographs of Missing Children . . . .
2
line
2, later.
Schedule W . . . . . . . . . . . . . .
32
The Taxpayer Advocate Service . . . . .
2
Alternative minimum tax. The
How To Get Forms and
Future Developments
alternative minimum tax (previously
Publications . . . . . . . . . . . . . . .
2
reported on Schedule J, line 3 on page 5
General Instructions . . . . . . . . . . . . .
2
For the latest information about
of the form) does not apply to corporations
Purpose of Form . . . . . . . . . . . .
2
developments related to Form 1120-F and
for tax years beginning after December
Who Must File . . . . . . . . . . . . .
2
its instructions, such as legislation
31, 2017. Schedule J, line 3 is now used
Special Returns for Certain
enacted after they were published, go to
to report any base erosion minimum tax
Organizations . . . . . . . . . . . .
3
IRS.gov/Form1120F.
(discussed below).
Claim for Refund or Credit . . . . . .
3
Where To File . . . . . . . . . . . . . .
5
Prior year AMT credit. Corporations
What's New
may treat a portion of their prior year
Who Must Sign . . . . . . . . . . . . .
5
alternative minimum tax credit carryover
Paid Preparer Authorization . . . . .
5
Question W(2). On page 2 of the form,
as refundable. See Form 8827.
Other Forms, Schedules,
Question W(2), which pertains to foreign
and Statements That May
corporations claiming treaty benefits, has
Base erosion minimum tax. If the
Be Required . . . . . . . . . . . . .
5
been amended to include reference to
corporation had gross receipts of at least
Assembling the Return . . . . . . . .
7
Advance Pricing Agreements. The
$500 million in any one of the 3 tax years
Accounting Methods . . . . . . . . .
7
attachment requirement has been likewise
preceding the current tax year, complete
Accounting Period . . . . . . . . . . .
8
amended. Previously, Question W(2)
Form 8991. See section 59A and the
Rounding Off to Whole
made reference only to Competent
Instructions for Form 8991. Also see the
Dollars . . . . . . . . . . . . . . . .
8
Authority determinations.
instructions for
Schedule J, line
3, and the
Recordkeeping . . . . . . . . . . . . .
8
instructions for
item
DD, later.
New Question CC(2). On page 2 of the
Payment of Tax Due . . . . . . . . .
8
form, Question CC pertains to foreign
Small business taxpayers. Effective for
Estimated Tax Payments . . . . . .
9
corporations that are qualified derivatives
tax years beginning after 2017, P.L.
Interest and Penalties . . . . . . . . .
9
dealers (QDDs). New question CC(2)
115-97 expanded the eligibility of small
Special Rules for Foreign
requests the QI-EIN of the QDD.
business taxpayers to use the cash
Corporations . . . . . . . . . . .
10
method. See
Accounting
Methods, later.
New Question DD. See
Base erosion
Specific Instructions . . . . . . . . . . . .
11
minimum
tax, below.
Business interest expense limitation.
Period Covered
. . . . . . . . . . .
11
For tax years beginning in 2018, a
Address . . . . . . . . . . . . . . . .
11
New Question EE. See
Related party
taxpayer must file Form 8990, Limitation
Employer Identification
amounts paid or accrued in hybrid
on Business Interest Expense Under
Number (EIN) . . . . . . . . . . .
11
transactions or with hybrid
entities, below.
Section 163(j), to claim a deduction for
Computation of Tax Due or
New Questions FF and GG. See
business interest. In addition, Form 8990
Overpayment . . . . . . . . . . .
12
Business interest expense
limitation,
must be filed by any taxpayer that owns an
Section I—Income From
below.
interest in a partnership with current year,
U.S. Sources Not
Effectively Connected
or prior year carryover, excess business
New Question HH. On page 3 of the
With the Conduct of a
interest expense allocated from the
form, new Question HH pertains to foreign
Trade or Business in the
partnership, unless an exception for filing
corporations that, during the tax year,
United States . . . . . . . . . . .
16
is met. For more information, see Form
disposed of an interest in a partnership
Section II—Income
8990 and its instructions.
that directly or indirectly engaged in a
Effectively Connected
trade or business within the United States.
With the Conduct of a
Domestic production activities deduc-
See section 864(c)(8), which was added
Trade or Business in the
tion (DPAD). The DPAD has been
United States . . . . . . . . . . .
17
to the Code by P.L. 115-97, section
repealed for tax years beginning after
13501(a)(1). Also see the instructions for
Income . . . . . . . . . . . . . . . . .
18
2017 with limited exceptions. See the
item
HH, later.
Deductions . . . . . . . . . . . . . .
19
instructions for
Section II, line
27, later.
Schedule C—Dividends and
New Question II. See
Special rules for
Net operating loss. The 2-year
Special Deductions . . . . . . .
25
eligible gains invested in Qualified
carryback rule does not apply to NOLs
Schedule J—Tax
Opportunity
Funds, later.
arising in tax years ending after December
Computation . . . . . . . . . . .
27
31, 2017. Exceptions apply to certain
Tax rates. With respect to Section II on
Section III—Branch Profits
farming losses and NOLs of insurance
pages 4 and 5 of the form (income
Tax and Tax on Excess
companies other than life insurance
Interest . . . . . . . . . . . . . . .
27
effectively connected with the conduct of a
trade or business in the United States), for
Feb 11, 2019
Cat. No. 11475L
The Taxpayer Advocate
companies. See section 172(b). Also see
General Instructions
Net operating loss
(NOL), later.
Service
Related party amounts paid or ac-
Purpose of Form
The Taxpayer Advocate Service (TAS) is
crued in hybrid transactions or with
an independent organization within the
Use Form 1120-F to report the income,
hybrid entities. A deduction for certain
Internal Revenue Service that helps
gains, losses, deductions, credits, and to
interest or royalty paid or accrued to a
taxpayers and protects taxpayer rights.
figure the U.S. income tax liability of a
related party pursuant to a hybrid
TAS's job is to ensure that every taxpayer
foreign corporation. Also, use Form
transaction or by, or to, a hybrid entity may
is treated fairly and knows and
1120-F to claim any refund that is due, to
be disallowed to the extent the related
understands their rights under the
transmit Form 8833, Treaty-Based Return
party, under its tax laws, does not include
Taxpayer Bill of
Rights.
Position Disclosure Under Section 6114 or
the amount in income or is allowed a
7701(b), or to calculate and pay a foreign
deduction with respect to the amount. See
As a taxpayer, the corporation has
corporation's branch profits tax liability
section 267A for more information. Also
rights that the IRS must abide by in its
and tax on excess interest, if any, under
see the instructions for
item
EE, later.
dealings with the corporation. TAS can
section 884.
help the corporation if:
Special rules for eligible gains inves-
A problem is causing financial difficulty
Who Must File
ted in Qualified Opportunity Funds.
for the business;
Effective December 22, 2017, section
The business is facing an immediate
Unless one of the exceptions under
1400Z-2 provides shareholders investing
Exceptions From Filing below applies or a
threat of adverse action; and
eligible gains in Qualified Opportunity
The corporation has tried repeatedly to
special return is required (see
Special
Funds (QOFs) tax-favored investments. If
contact the IRS but no one has
Returns for Certain
Organizations, later), a
the corporation is operating as a QOF,
responded, or the IRS hasn't responded
foreign corporation must file Form 1120-F
Form 8996 may be required. See Form
by the date promised.
if, during the tax year, the corporation:
8996 and its instructions. Also see the
Was engaged in a trade or business in
instructions for
item
II, later.
The TAS tax toolkit at
the United States, whether or not it had
TaxpayerAdvocate.IRS.gov
can help the
Schedule C, column (b) percentages.
U.S. source income from that trade or
corporation understand these rights.
On page 5 of the form, the percentages in
business, and whether or not income from
Schedule C, column (b) for lines 1, 2, 4, 5,
such trade or business is exempt from
TAS has offices in every state, the
6, and 7 have been reduced to reflect
U.S. tax under a tax treaty (see also
District of Columbia, and Puerto Rico.
changes made to sections 243 and 245 by
Protective Return
Filers, later);
Local advocates' numbers are in their
P.L. 115-97, section 13002.
Had income, gains, or losses treated as
local directories and at
if they were effectively connected with the
Repeal of foreign dividend gross-up
TaxpayerAdvocate.IRS.gov. The
conduct of a U.S. trade or business (see
(section 78). On page 5 of the form, old
corporation can also call TAS at
Section
II, later); or
line 10 of Schedule C was deleted to
1-877-777-4778.
Was not engaged in a trade or business
reflect P.L. 115-97, section 14301(c)(23),
in the United States, but had income from
TAS also works to resolve large-scale
which strikes section 906(b)(4) from the
any U.S. source, if its tax liability has not
or systemic problems that affect many
Code.
been fully satisfied by the withholding of
taxpayers. If the corporation knows of one
Credit for paid family and medical
tax at source under Chapter 3 of the Code.
of these broad issues, please report it to
leave. Corporations may qualify for a
Was, or had a branch that was, a QDD.
TAS through the Systemic Advocacy
credit for wages paid in tax years
Management System at IRS.gov/SAMS.
This form is also required to be filed by:
beginning after 2017 to qualifying
A foreign corporation making a claim for
employees on family and medical leave.
For more information, go to
IRS.gov/
the refund of an overpayment of tax for the
See section 45S. Also see Form 8994 and
Advocate.
tax year. See
Simplified Procedure for
its instructions.
How To Get Forms and
Claiming a Refund of U.S. Tax Withheld at
Several credits and deductions
Source, later.
Publications
available to corporations expired
!
A foreign corporation claiming the
on December 31, 2017. At the
benefit of any deductions or credits. See
CAUTION
Internet. You can access the IRS website
time these instructions went to print, they
Other Filing
Requirements, later.
24 hours a day, 7 days a week, at
IRS.gov
had not yet been extended. To see if
A foreign corporation making a claim
to:
legislation extended the credits and
that an income treaty overruled or
Download forms, instructions, and
deductions and made them available for
modified any provision of the Internal
publications;
2018, go to IRS.gov/FormsUpdates.
Revenue Code with respect to income
Order IRS products online;
derived by the foreign corporation at any
Research your tax questions online;
Photographs of Missing
time during the tax year, and such position
Search publications online by topic or
is required to be disclosed on Form 8833.
Children
keyword;
See the instructions for Form 8833 for who
View Internal Revenue Bulletins (IRBs)
The Internal Revenue Service is a proud
must file Form 8833, and who is exempt
published in the last few years; and
partner with the
National Center for
from filing by reason of a waiver provided
Sign up to receive local and national tax
Missing & Exploited Children®
(NCMEC).
under section 6114 and the regulations
news by email.
Photographs of missing children selected
thereunder. If Form 8833 is required,
by the Center may appear on pages that
Tax forms and publications. The
complete item W(1) on page 2 of the form.
would otherwise be blank. You can help
corporation can download or print all of the
bring these children home by looking at
forms and publications it may need on
Others that must file Form 1120-F
the photographs and calling
IRS.gov/FormsPubs. Otherwise, the
include the following.
corporation can go to
IRS.gov/
A Mexican or Canadian branch of a
1-800-THE-LOST (1-800-843-5678) if you
recognize a child.
OrderForms
to place an order and have
U.S. mutual life insurance company. The
forms mailed to it. The corporation should
branch must file Form 1120-F on the same
receive its order within 10 business days.
basis as a foreign corporation if the U.S.
Instructions for Form 1120-F (2018)
-2-
company elects to exclude the branch's
the foreign corporation should follow the
schedules, and attachments, Form 7004
income and expenses from its own gross
instructions for filing a protective return to
(automatic extension of time to file), and
income.
safeguard its right to receive the benefit of
Forms 940, 941, and 944 (employment tax
A receiver, assignee, or trustee in
the deductions and credits attributable to
returns). If there is a balance due, the
dissolution or bankruptcy, if that person
that gross income under Regulations
corporation can authorize an electronic
has or holds title to virtually all of a foreign
section 1.882-4(a)(3)(vi) in the event that it
funds withdrawal while e-filing. Form 1099
corporation's property or business. Form
is subsequently determined that the
and other information returns can also be
1120-F is due whether or not the property
original determination was incorrect. A
electronically filed. The option to e-file
or business is being operated (see
Who
foreign corporation should also file a
does not, however, apply to certain
Must
Sign, later, for additional
protective return if it determines initially
returns.
information).
that it has no U.S. tax liability under the
Certain corporations with total assets of
An agent in the United States, if the
provisions of an applicable income tax
$10 million or more that file at least 250
foreign corporation has no office or place
treaty (for example, because its income is
returns a year are required to e-file Form
of business in the United States when the
not attributable to a permanent
1120-F. See Regulations section
return is due.
establishment in the United States). See
301.6011-5. However, these corporations
Protective Return
Filers, later. A foreign
Treaty or Code exemption. If the
can request a waiver of the electronic filing
corporation that does not file a return will
corporation does not have any gross
requirements. See Notice 2010-13,
lose the right to take deductions and
income for the tax year because it is
2010-4 I.R.B. 327.
credits against effectively connected
claiming a treaty or Code exemption, it
income (ECI). See
Other Filing
For more information, visit
IRS.gov/
must still file Form 1120-F to show that the
Requirements, later.
Businesses.
income was exempted by treaty or Code.
Exceptions From Filing
In this case, the corporation should only
Claim for Refund or Credit
complete the identifying information
A foreign corporation does not have to file
(including items A through G) at the top of
If the corporation is filing Form 1120-F
Form 1120-F if neither the foreign
page 1 of Form 1120-F and a statement
only as a claim for refund or credit of tax
corporation nor any of its branches was a
that indicates the nature and amount of
paid or withheld at source, the simplified
QDD and any of the following apply.
the exclusions claimed. In the case of a
procedure described below may be used.
It did not engage in a U.S. trade or
treaty exemption, the corporation may
This simplified procedure may not be used
business during the year, and its full U.S.
complete item W(1) on page 2 of Form
by a corporation that was a QDD or had a
tax was withheld at source.
1120-F, which includes completing and
branch that was a QDD.
Its only U.S. source income is exempt
attaching Form 8833, if required in lieu of
from U.S. taxation under section 881(c) or
Note. You cannot claim a refund based
attaching a statement. In the case of a
(d).
on a reduced rate of, or exemption from,
Code exemption under section 883, the
It is a beneficiary of an estate or trust
U.S tax withheld from a substitute
corporation must attach Schedule S (Form
engaged in a U.S. trade or business, but
dividend payment made in connection
1120-F) in lieu of attaching a statement.
would itself otherwise not need to file.
with a securities lending or similar
Note. If the corporation does not have
transaction if the tax was withheld by a
Special Returns for
any gross income for the tax year because
withholding agent other than the
Certain Organizations
it is claiming a treaty or Code exemption,
withholding agent from which you received
and there was withholding at source, the
the payment (amounts are reported in
Instead of filing Form 1120-F, certain
corporation must complete the
box 8 of Form 1042-S). See Notice
foreign organizations must file special
Computation of Tax Due or Overpayment
2010-46, 2010-24 I.R.B. 757, for further
returns.
section at the bottom of page 1 of Form
information on limitations on refunds and
Form 1120-L, U.S. Life Insurance
1120-F (in addition to the information
credits permitted in such cases.
Company Income Tax Return, as a foreign
specified in the previous paragraph) to
life insurance company.
Simplified Procedure for
claim a refund of the amounts withheld.
Form 1120-PC, U.S. Property and
Claiming a Refund of U.S. Tax
Casualty Insurance Company Income Tax
Entities electing to be taxed as foreign
Withheld at Source
Return, as a foreign nonlife insurance
corporations. A foreign eligible entity
company.
that elected to be classified as a
To make a claim for a refund, complete
Form 1120-FSC, U.S. Income Tax
corporation must file Form 1120-F under
Form 1120-F as follows.
Return of a Foreign Sales Corporation, if
the same circumstances as a per se
Page 1. Enter the complete name,
the corporation elected to be treated as a
corporation and an entity that defaults into
address, and employer identification
FSC and the election is still in effect.
corporate status unless it is required to file
number (EIN) of the corporation. Check
a special return listed under Special
Consolidated returns. A foreign
the applicable box to indicate the type of
Returns for Certain Organizations, later.
corporation, regardless of whether it files a
filing. Provide all the information required
The entity must also have filed Form 8832,
special return, may not belong to an
in items A through G.
Entity Classification Election. A foreign
affiliated group of corporations that files a
corporation filing Form 1120-F for the year
Refund amount. Enter on lines 1 and
consolidated return. However, a Canadian
of the election must attach a copy of Form
4, page 1, the amount from line 11,
or Mexican corporation described in
8832 to its Form 1120-F. See
Form
8832,
page 3. Enter on lines 5i and 5j the
section 1504(d), maintained solely for
later, for additional information.
amount from line 12, page 3. Enter the
complying with the laws of Canada or
excess of line 5j over line 4 on lines 8a
Mexico for title and operation of property,
Protective return. If a foreign
and 9. This is the amount to be refunded
may elect to be treated as a domestic
corporation conducts limited activities in
to you.
corporation and thereby file as part of an
the United States in a tax year that the
affiliated group.
foreign corporation determines does not
Signature. An authorized officer of the
give rise to gross income which is
Electronic Filing
corporation must sign and date the return.
effectively connected with the conduct of a
Corporations can generally electronically
trade or business within the United States,
file (e-file) Form 1120-F, related forms,
Instructions for Form 1120-F (2018)
-3-
3. Any required tax certifications (for
identifies the distributing corporation and
Pages 2 and 3. Additional information.
example, Form W-8BEN-E).
provides the basis for the claim.
Complete all items on pages 2 and 3 of
If claiming a refund for overwithholding
Form 1120-F that apply to the corporation.
4. Any additional documentation to
on a distribution from a mutual fund or a
support the claim.
Page 3. Section I. Enter in column (b)
real estate investment trust (REIT) with
the gross amount of each type of income
respect to its stock because the
Refund of backup withholding tax. If
received that is required to be reported in
distribution was designated as long-term
the corporation is claiming a refund of
Section I (see
Section
I, later, for details).
capital gain or a return of capital, provide a
backup withholding tax based on its status
Include income from foreign sources that
statement that identifies the mutual fund or
as a non-U.S. resident, it must:
was subject to backup withholding. Do not
REIT and provide the basis for the claim.
Provide a copy of the Form 1099 that
include income from which no U.S. tax
If claiming a refund for overwithholding
shows the amount of reportable payment
was withheld. If the corporation is subject
on a distribution from a U.S. corporation
and backup withholding, and
to backup withholding on gross proceeds
with respect to its stock because, in the
Attach a statement signed under
from sales of securities or transactions in
foreign corporation's particular
penalties of perjury that the corporation is
regulated futures contracts, enter the
circumstances, the transaction qualifies as
exempt from backup withholding because
gross proceeds on line 10.
a redemption of stock under section 302,
it is not a U.S. corporation or other U.S.
provide a statement that describes the
Enter in columns (c) and (d),
resident (for example, Form W-8BEN-E).
transaction and presents the facts
respectively, the correct rate and amount
Refunds of U.S. withholding. If any of
necessary to establish that the payment
of U.S. income tax liability for each type of
the following apply, attach the information
was (a) a complete redemption, (b) a
income reported in column (b). If the
requested in addition to the additional
disproportionate redemption, or (c) not
corporation is claiming a refund of U.S. tax
documentation described earlier.
essentially equivalent to a dividend.
withheld in excess of the rate provided in a
If you are claiming a refund of U.S. tax
tax treaty with the United States, enter the
When To File
withheld under Chapter 4, you must
applicable treaty rate in column (c) and
provide a statement explaining the basis
figure the correct U.S. income tax liability
Foreign Corporation With an
for the claim and must provide the other
on the gross income reported in column
Office or Place of Business in
information requested in this section to
(b).
establish a reduced rate, or exemption
the United States
Enter in column (e) the U.S. tax actually
from, tax under section 881. See Treasury
withheld at source (and not refunded by
A foreign corporation that maintains an
Regulations section 1.1474-5 for the
the payer or the withholding agent) from
office or place of business in the United
requirements for claiming a credit or
each type of income reported. This should
States generally must file Form 1120-F by
refund of tax withheld under Chapter 4.
be the amount reported to you in box 10,
the 15th day of the 4th month after the end
If claiming a refund of U.S. tax withheld
Total withholding credit, of Form(s)
of its tax year. A new corporation filing a
from portfolio interest, include a
1042-S, which includes the total amount of
short-period return generally must file by
description of the relevant debt obligation,
federal tax withheld at source less any
the 15th day of the 4th month after the
including the name of the issuer, CUSIP
amount that was repaid to you by the
short period ends. A corporation that has
number (if any), interest rate, scheduled
withholding agent. If multiple rates of tax
dissolved generally must file by the 15th
maturity date, and the date the debt was
are applicable to a type of income, attach
day of the 4th month after the date it
issued. Also include a statement, signed
a statement showing the gross amounts of
dissolved.
under penalties of perjury, that the
income, applicable rate, and amount of
corporation is the beneficial owner of the
However, a corporation with a fiscal tax
liability and withholding imposed for the
interest income and not a U.S. corporation
year ending June 30 must file by the 15th
respective amounts at each tax rate (for
or other U.S. resident (for example, Form
day of the 3rd month after the end of its
example, if a corporation receives
W-8BEN-E).
tax year. A corporation with a short tax
subsidiary dividends subject to tax at 5%
If claiming a reduced rate of, or
year ending anytime in June will be
and portfolio dividends subject to tax at
exemption from, tax based on a tax treaty,
treated as if the short year ended on June
15%, a statement must be attached for
provide a certificate of entitlement to treaty
30, and must file by the 15th day of the 3rd
Section I, line 2, to show the amount of
benefits (for example, Form W-8BEN-E).
month after the end of its tax year.
dividend and tax liability for each
A separate statement should be provided
respective rate).
Extension of time to file. The
that contains any additional
corporation must file Form 7004,
Enter on line 11 the total U.S. tax
representations necessary to explain the
Application for Automatic Extension of
liability for the reported income.
basis for the claim. The corporation may
Time To File Certain Business Income
Enter on line 12 the total U.S. tax
complete item W(1) on page 2 of the form
Tax, Information, and Other Returns, by
actually withheld from such income.
(which includes completing and attaching
the return due date specified in the
Form 8833, if required) in lieu of attaching
Check the appropriate box on line 13. A
previous two paragraphs to request an
a statement.
fiscally transparent entity is one that is not
extension of time to file. However, there is
itself generally subject to income tax but
an exception that applies under
Note. To claim a reduced rate of, or
one whose tax attributes flow through to
Regulations section 1.6081-5. See the
exemption from, tax based on a tax treaty,
its owners.
Instructions for Form 7004 for additional
the corporation must generally be a
information.
resident of the particular treaty country
Additional Documentation
within the meaning of the treaty and satisfy
Foreign Corporation With No
Required
the limitation on benefits article, if any, in
Office or Place of Business in
the treaty with that country.
The corporation must attach to Form
the United States
If claiming a refund for overwithholding
1120-F the following.
on a distribution from a U.S. corporation
A foreign corporation that does not
1. Proof of the withholding (for
with respect to its stock because the
maintain an office or place of business in
example, Form 1042-S).
corporation has insufficient earnings and
the United States must generally file Form
2. A statement that describes the
profits to support ordinary dividend
1120-F by the 15th day of the 6th month
basis for the claim for refund.
treatment, provide a statement that
after the end of its tax year.
Instructions for Form 1120-F (2018)
-4-
Where To File
Respond to certain IRS notices about
Extension of time to file. File Form
math errors, offsets, and return
7004 by the 15th day of the 6th month
File Form 1120-F with the Internal
preparation.
after the end of the tax year to request an
Revenue Service Center, P.O. Box
extension of time to file. See the
409101, Ogden, UT 84409.
The corporation is not authorizing the
Instructions for Form 7004 for additional
paid preparer to receive any refund check,
Who Must Sign
information.
bind the corporation to anything (including
any additional tax liability), or otherwise
Other Filing Requirements
The return must be signed and dated by:
represent the corporation before the IRS.
The president, vice president, treasurer,
If the due date of any filing falls on a
assistant treasurer, chief accounting
The authorization will automatically end
Saturday, Sunday, or legal holiday, the
officer; or
no later than the due date (excluding
corporation may file on the next business
Any other corporate officer (such as tax
extensions) for filing the corporation's
day.
officer) authorized to sign.
2019 tax return. If the corporation wants to
Form 1120-F must be filed on a timely
expand the paid preparer's authorization
basis and in a true and accurate manner in
If a return is filed on behalf of a
or revoke the authorization before it ends,
order for a foreign corporation to take
corporation by a receiver, trustee, or
see Pub. 947, Practice Before the IRS and
deductions and credits against its ECI. For
assignee, the fiduciary must sign the
Power of Attorney.
these purposes, Form 1120-F is generally
return, instead of the corporate officer.
considered to be timely filed if it is filed no
Returns and forms signed by a receiver or
Other Forms, Schedules,
later than 18 months after the due date of
trustee in bankruptcy on behalf of a
the current year's return. An exception
and Statements That May
corporation must be accompanied by a
may apply to foreign corporations that
Be Required
copy of the order or instructions of the
have yet to file Form 1120-F for the
court authorizing signing of the return or
preceding tax year. These filing deadlines
Forms
form.
may be waived, in limited situations based
A foreign corporation may have to file
on the facts and circumstances, where the
If an employee of the corporation
some of the following forms and
foreign corporation establishes to the
completes Form 1120-F, the paid preparer
schedules. See the form or schedule for
satisfaction of the Commissioner that the
space should remain blank. Anyone who
more information.
foreign corporation acted reasonably and
prepares Form 1120-F but does not
For a list of additional forms the
in good faith in failing to file Form 1120-F.
charge the corporation should not
corporation may need to file (most
See Regulations section 1.882-4(a)(3)(ii)
complete that section. Generally, anyone
notably, forms pertaining to the reporting
for more information about the waiver.
who is paid to prepare the return must sign
of various types of income, and any
it and fill in the “Paid Preparer Use Only”
A foreign corporation is allowed the
related withholding, to U.S. persons,
area.
following deductions and credits
foreign persons, and the IRS), see Pub.
regardless of whether Form 1120-F is
542, Corporations.
The paid preparer must complete the
timely filed.
required preparer information and:
Form 1094-C, Transmittal of Employer
1. The charitable contributions
Sign the return in the space provided
Health Coverage Statements, and Form
deduction (page 4, Section II, line 19).
for the preparer's signature, and
1095-C, Employer-Provided Health
2. The credit from Form 2439 (page 1,
Give a copy of the return to the
Coverage Statement. Employers with 50
line 5f).
taxpayer.
or more full-time employees (including
full-time equivalent employees) use Forms
3. The credit for federal tax on fuels
A paid preparer may sign original
1094-C and 1095-C to report the
(page 1, line 5g).
or amended returns by rubber
TIP
information required under sections 6055
4. U.S. income tax paid or withheld at
stamp, mechanical device, or
and 6056 about offers of health coverage
computer software program.
source (page 1, line 5i).
and enrollment in health coverage for their
See Regulations section 1.882-4 for
employees. Form 1094-C must be used to
Paid Preparer
details.
report to the IRS summary information for
Authorization
each employer and to transmit Forms
Private Delivery Services
1095-C to the IRS. Form 1095-C is used
If the corporation wants to allow the IRS to
Corporations can use certain private
to report information about each
discuss its 2018 tax return with the paid
delivery services (PDS) designated by the
employee. In addition, Forms 1094-C and
preparer who signed it, check the “Yes”
IRS to meet the “timely mailing as timely
1095-C are used in determining whether
box in the signature area of the return.
filing” rule for tax returns. Go to
IRS.gov/
an employer owes payments under the
This authorization applies only to the
PDS.
employer shared responsibility provisions
individual whose signature appears in the
under section 4980H. For more
The PDS can tell you how to get written
“Paid Preparer Use Only” section of the
information, see the Instructions for Forms
proof of the mailing date.
return. It does not apply to the firm, if any,
1094-C and 1095-C. Also, for more
shown in that section.
information related to the Affordable Care
For the IRS mailing address to use if
you're using PDS, go to
IRS.gov/
Act, visit IRS.gov/ACA.
If the “Yes” box is checked, the
PDSStreetAddresses.
corporation is authorizing the IRS to call
Form 5472, Information Return of a 25%
the paid preparer to answer any questions
Foreign-Owned U.S. Corporation or a
Private delivery services cannot
that may arise during the processing of its
deliver items to P.O. boxes. You
Foreign Corporation Engaged in a U.S.
!
return. The corporation is also authorizing
Trade or Business. This form is filed by or
must use the U.S. Postal Service
CAUTION
the paid preparer to:
for a foreign corporation engaged in a U.S.
to mail any item to an IRS P.O. box
Give the IRS any information that is
trade or business that had certain
address.
missing from the return;
reportable transactions with a related
Call the IRS for information about the
party. See the Instructions for Form 5472
processing of the return or the status of
for filing instructions and information for
any related refund or payment(s); and
failure to file and maintain records.
Instructions for Form 1120-F (2018)
-5-

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