Get Form 1120ND (Rev. August 1998). Return For Nuclear Decommissioning Funds And Certain Related Persons

The potential for radiological contamination, accidents, and long-term environmental, public health and economic damage increases as plants are dismantled and radioactive materials are handled, moved and stored.

The corporation will submit what is commonly called a "zero return." To file a corporate tax return with no activity, you'll need to use the regular corporation income tax return known as IRS Form 1120. Form 1120 instructions are the same for profitable companies and companies that are not transacting business.

It is mandatory for all corporations to file annual tax returns, even if the business was inactive or did not receive income. An LLC that chooses to be treated as a C corporation for tax purposes is required to file Form 1120 (U.S. Corporation Income Tax Return).

A corporation, including one that is taxed as an S corporation, must always file its initial tax return with the Internal Revenue Service, even if it had no business activity to report.

Decommissioning work is carried out by Site Licence Companies (SLCs), working for the NDA. Costs are currently around £3 billion annually. Approximately two-thirds is met by the government and the remainder from revenue earned through the NDA's commercial activities.

Decommissioning Funds Before a nuclear power plant begins operations, the licensee must establish or obtain a financial mechanism – such as a trust fund or a guarantee from its parent company – to ensure there will be sufficient money to pay for the eventual decommissioning of the facility.

§ 1.468A-4 Treatment of nuclear decommissioning fund. (a) In general. A nuclear decommissioning fund is subject to tax on all of its modified gross income (as defined in paragraph (b) of this section). The rate of tax is 20 percent for taxable years beginning after December 31, 1995.

The decommissioning of a nuclear installation, such as a power plant or research reactor, is the final step in its lifecycle. It involves activities from shutdown and removal of nuclear material to the environmental restoration of the site. The whole process is complex and typically takes 20 to 30 years to complete.