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When To File If it is the corporation s first tax year complete and file Form 4876-A within 90 days after the beginning of the tax year. File Form 4876-A with the IRS Service Center where the corporation will file its annual return Form 1120-IC-DISC Interest Charge Domestic International Sales Corporation Return. Address. For Paperwork Reduction Act Notice see instructions on back. Cat. No. 62075X Rev. 12-2001 Form 4876-A Rev. 12-2001 Page Genera.

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How to fill out the Form 4876 A online

Filling out Form 4876 A is an essential process for corporations electing to be treated as an interest charge domestic international sales corporation (IC-DISC). This guide provides clear, step-by-step instructions to assist users in completing the form online with confidence and accuracy.

Follow the steps to complete Form 4876 A online effectively.

  1. Click ‘Get Form’ button to obtain the form and open it in the editor.
  2. In Part I, enter the name of the corporation and its employer identification number (EIN). Fill out the address details, including the number, street, city, state, and ZIP code.
  3. For the principal business classification, refer to the provided instructions to choose the correct classification code that best describes the corporation's primary business activity.
  4. Indicate the tax year for the IC-DISC. This must align with the tax year of the shareholder with the highest percentage of voting power.
  5. Fill in the effective date for the election, ensuring it corresponds to the correct tax year.
  6. Provide the name and optional contact information of the person who can provide additional information regarding the form.
  7. List the date the corporation began doing business and enter the telephone number for contact.
  8. Complete the section that lists each shareholder's information, including name, address, number of shares held at the beginning of the tax year, and the date the shareholder consents to the election.
  9. Under penalties of perjury, ensure the authorized officer of the corporation signs and dates the form, affirming the accuracy of the information provided.
  10. In Part II, include the shareholders' consent. Each shareholder must sign and date either in this section or through an attached separate consent statement.
  11. Once all sections are completed, review the form for accuracy. Then, users can save changes, download, print, or share the final document.

Start filling out your Form 4876 A online today and ensure your corporation meets the necessary tax requirements.

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How does a domestic corporation qualify as an IC-DISC? As discussed above, an IC-DISC must be a domestic corporation. The corporation may only have a single class of stock that has a minimum par value of $2,500. In addition, the domestic corporation must pass both a gross receipts and export asset test.

The IC-DISC is tax exempt and is not taxed on the commission income it receives from the operating company. The IC-DISC pays dividends to its shareholders, which are taxed at a 20% rate. The result yields a 17/9.6% permanent tax rate arbitrage (3.8% net investment income tax may yield different results).

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.

This is an information return filed by interest charge domestic international sales corporations (IC-DISCs), former DISCs, and former IC-DISCs.

File Form 4876-A with the IRS Service Center where the corporation will file its annual return, Form 1120-IC-DISC. Address. Include the suite, room, or other unit number after the street address.

IRS Definition Form 886A, Explanation of Items explains specific changes to your return and why the IRS didn't accept your documentation.

The IC-DISC must file Form 1120-IC-DISC annually. The original due date is 8.5 months after the tax year-end with no extensions (September 15th for a calendar year entity).

Instead of forming a trust, the C corporation's U.S. owners could form an LLC to own the IC-DISC.

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