Get Irs 8404 2022-2026

Filling out Form 8404, which calculates the interest charge on DISC-related deferred tax liability, is an important step for shareholders of Interest Charge Domestic International Sales Corporations. This guide will break down the process of completing the form online, ensuring you understand each component clearly.

Follow the steps to complete the IRS 8404 form online.

1. Click ‘Get Form’ button to obtain the form and open it in the editor.
2. Select the applicable box to indicate your type of taxpayer. Options include corporation, individual, trust, or decedent’s estate.
3. Enter the shareholder's identifying number in the designated field. Individuals should enter their social security number, while other filers should enter their employer identification number.
4. Input the IC-DISC's identifying number from the related Schedule K (Form 1120-IC-DISC) for which the deferred DISC income was reported.
5. Fill in the city or town, state, province, country, and ZIP or foreign postal code for the IC-DISC.
6. Enter the shareholder's tax year for which the interest charge is being calculated. Make sure this aligns with the IC-DISC's tax year end.
7. Input your taxable income or loss based on the income tax return. If not filed yet, provide an estimate.
8. List the deferred DISC income from the appropriate line of Schedule K.
9. Combine the amounts from lines 1, 2, and 3 and ensure that if zero or less, the form is not needed.
10. Calculate your tax liability based on the combined amount.
11. Determine the DISC-related deferred tax liability by subtracting the actual tax liability from your calculated tax liability.
12. Find the base period T-bill rate factor to complete the remaining calculations.
13. Compute the interest charge by multiplying the deferred tax liability by the T-bill rate factor.
14. Finalize the form by reviewing all entries. You can then save changes, download, print, or share the completed form.

Complete your Form 8404 online today to ensure accurate reporting of your DISC-related deferred tax liability.