Federal Shareholder's Statement of IC-DISC Distributions

Shareholder's Statement of IC-DISC Distributions
Schedule K (Form 1120-IC-DISC) (Rev. November 2018)
Shareholder's Statement of IC-DISC Distributions

SCHEDULE K
(Form 1120-IC-DISC)
(Rev. November 2018)
Department of the Treasury
Internal Revenue Service

Part I
1

2
3

For calendar year 20
beginning

, 20

OMB No. 1545-0123

or tax year

, ending

COPY A—Attach to
Form 1120-IC-DISC

, 20

(Complete for each shareholder. See instructions on back of Copy C.)

Taxable Distributions

Deemed distributions: a Under section 995(b)(1) . . . . . . . . . . . . .
b Annual installment under section 995(b)(2) . . . . . . .
c Total. Add lines 1a and 1b . . . . . . . . . . . .
Actual taxable distributions . . . . . . . . . . . . . . . . . . . . .
Total taxable distributions. Add line 1c and line 2. Enter here and in Section A or B below

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1a
1b
1c
2
3

Section A—C Corporations
4a Part of line 3 above entitled to section 243 dividends-received deduction . .
b Part of line 3 above not entitled to section 243 dividends-received deduction

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4a
4b

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5

Actual distributions from previously taxed income and accumulated pre-1985 DISC income
Other actual nontaxable distributions . . . . . . . . . . . . . . . . . . .
Total nontaxable distributions. Add lines 6 and 7 . . . . . . . . . . . . . .

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6
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8

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9
10

Section B—Shareholders Other Than C Corporations
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Amount of taxable dividends included on line 3

Part II
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7
8

Part III
9
10

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Nontaxable Distributions

Other Information

Accumulated IC-DISC income attributable to stock sold during the year .
Deferred DISC income. See instructions . . . . . . . . . . . .

Shareholder’s name, identifying number, and address (including ZIP code)

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Name, employer identification number, and address (including ZIP code)
of IC-DISC, former DISC, or former IC-DISC

For Paperwork Reduction Act Notice, see the Instructions for Form 1120-IC-DISC. www.irs.gov/Form1120icdisc

Cat. No. 11474A

Schedule K (Form 1120-IC-DISC) (Rev. 11-2018)

Shareholder's Statement of IC-DISC Distributions

SCHEDULE K
(Form 1120-IC-DISC)
(Rev. November 2018)
Department of the Treasury
Internal Revenue Service

Part I
1

2
3

, 20

beginning

OMB No. 1545-0123

COPY B—
For Shareholder's
records

or tax year

For calendar year 20
, ending

, 20

Taxable Distributions

Deemed distributions: a Under section 995(b)(1) . . . . . . . . . . . . .
b Annual installment under section 995(b)(2) . . . . . . .
c Total. Add lines 1a and 1b . . . . . . . . . . . .
Actual taxable distributions . . . . . . . . . . . . . . . . . . . . .
Total taxable distributions. Add line 1c and line 2. Enter here and in Section A or B below

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1a
1b
1c
2
3

Section A—C Corporations
4a Part of line 3 above entitled to section 243 dividends-received deduction . .
b Part of line 3 above not entitled to section 243 dividends-received deduction

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4a
4b

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5

Actual distributions from previously taxed income and accumulated pre-1985 DISC income
Other actual nontaxable distributions . . . . . . . . . . . . . . . . . . .
Total nontaxable distributions. Add lines 6 and 7 . . . . . . . . . . . . . .

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6
7
8

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9
10

Section B—Shareholders Other Than C Corporations
5

Amount of taxable dividends included on line 3

Part II
6
7
8

Part III
9
10

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Nontaxable Distributions

Other Information

Accumulated IC-DISC income attributable to stock sold during the year .
Deferred DISC income. See instructions . . . . . . . . . . . .

Shareholder’s name, identifying number, and address (including ZIP code)

www.irs.gov/Form1120icdisc

Cat. No. 11474A

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Name, employer identification number, and address (including ZIP code)
of IC-DISC, former DISC, or former IC-DISC

Schedule K (Form 1120-IC-DISC) (Rev. 11-2018)

Instructions for Shareholder
Section references are to the Internal Revenue
Code.
Purpose of forms. Copy B of Schedule K
(Form 1120-IC-DISC) reports an actual or
deemed distribution from an IC-DISC, former
IC-DISC, or former DISC. It also reports
deferred DISC income from an IC-DISC.
Keep it for your records; do not file it with
your income tax return.

Part I—Taxable Distributions
Report as distributions from an IC-DISC:
1. Deemed and actual taxable distributions;
and
2. Gain, to the extent of accumulated
IC-DISC income, on the sale of stock (see
Disposing of IC-DISC Stock below).
Line 1—Deemed distributions. You are
treated as having received deemed
distributions (line 1c) as of the last day of the
IC-DISC tax year. You must pay tax on the
distributions in your tax year that includes that
date.
Line 2—Actual taxable distributions. You
must pay tax on actual taxable distributions in
the year of receipt.
Line 4. Line 4a shows the part of the total
taxable distribution on line 3 that qualifies for
the 50% or 65% dividends-received
deduction under section 243. Line 4b shows
the part that does not qualify for the
deduction.

Line 5. If you are an individual, partnership,
S corporation, estate, or trust, line 5 shows
the amount of line 3 distributions taxable to
you as a dividend.
For a tax-exempt entity, treat any deemed
distribution or actual distribution of previously
untaxed income as derived from the conduct
of an unrelated trade or business.
Disposing of IC-DISC stock. If you disposed
of stock in an IC-DISC, former IC-DISC, or
former DISC, you may need to include all or
part of the gain in your income. The gain,
reported as a dividend under section 995(c), is
included to the extent of accumulated
IC-DISC income attributable to the stock
while you held it (line 9). This dividend is not
eligible for the section 243 deduction.
For a tax-exempt entity, treat the gain
under section 995(c) as derived from the
conduct of an unrelated trade or business.
Foreign shareholders treat all gains on the
disposition of stock in an IC-DISC, former
IC-DISC, or former DISC, and all distributions
from accumulated IC-DISC income or
accumulated pre-1985 DISC income,
including deemed distributions, as effectively
connected with the conduct of a trade or
business through a permanent establishment
within the United States. See section 996(g)
for details.
Acquiring IC-DISC stock. If you acquired
stock in an IC-DISC and subsequently
received a distribution with respect to that
stock, you may be able to treat part of that
distribution as a nontaxable distribution. See
section 996(d) for details.

Part II—Nontaxable Distributions
Actual distributions from previously taxed
income and accumulated pre-1985 DISC
income are generally not taxable to the extent
of your basis in the stock for which the
distribution was made. Except for
distributions of accumulated IC-DISC income
and of earnings and profits from the time
before the corporation became an IC-DISC,
actual distributions are not taxable to the
extent of your basis in the stock for which the
distribution was made. Treat distributions in
excess of your basis as a gain from the sale
or exchange of property. See section 996(e).

Part III—Other Information
Line 10—Deferred DISC income. Line 10
shows your share of the IC-DISC’s deferred
income for the year. Section 995(f) imposes
an interest charge on the additional tax you
would pay if you included this deferred
income in your income for your tax year that
ends with or includes the IC-DISC’s tax year
end shown on Schedule K. Complete Form
8404, Interest Charge on DISC-Related
Deferred Tax Liability, to figure the interest
charge.
Future developments. For the latest
information about developments related to
Schedule K (Form 1120-IC-DISC) and its
instructions, such as legislation enacted after
they were published, go to www.irs.gov/
Form1120icdisc.

Schedule K (Form 1120-IC-DISC) (Rev. 11-2018)

Shareholder's Statement of IC-DISC Distributions

SCHEDULE K
(Form 1120-IC-DISC)
(Rev. November 2018)
Department of the Treasury
Internal Revenue Service

Part I
1

2
3

For calendar year 20
, 20

beginning

OMB No. 1545-0123

or tax year

, ending

COPY C—
For IC-DISC's records

, 20

(Complete for each shareholder. See instructions on back of Copy C.)

Taxable Distributions

Deemed distributions: a Under section 995(b)(1) . . . . . . . . . . . . .
b Annual installment under section 995(b)(2) . . . . . . .
c Total. Add lines 1a and 1b . . . . . . . . . . . .
Actual taxable distributions . . . . . . . . . . . . . . . . . . . . .
Total taxable distributions. Add line 1c and line 2. Enter here and in Section A or B below

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.

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.
.
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.

1a
1b
1c
2
3

Section A—C Corporations
4a Part of line 3 above entitled to section 243 dividends-received deduction . .
b Part of line 3 above not entitled to section 243 dividends-received deduction

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.
.

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.

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4a
4b

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5

Actual distributions from previously taxed income and accumulated pre-1985 DISC income
Other actual nontaxable distributions . . . . . . . . . . . . . . . . . . .
Total nontaxable distributions. Add lines 6 and 7 . . . . . . . . . . . . . .

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6
7
8

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.

9
10

Section B—Shareholders Other Than C Corporations
5

Amount of taxable dividends included on line 3

Part II
6
7
8

Part III
9
10

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.

.

.

.

.

.

Nontaxable Distributions

Other Information

Accumulated IC-DISC income attributable to stock sold during the year .
Deferred DISC income. See instructions . . . . . . . . . . . .

Shareholder’s name, identifying number, and address (including ZIP code)

www.irs.gov/Form1120icdisc

Cat. No. 11474A

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.

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.

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.

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.

Name, employer identification number, and address (including ZIP code)
of IC-DISC, former DISC, or former IC-DISC

Schedule K (Form 1120-IC-DISC) (Rev. 11-2018)

Instructions for IC-DISC
Section references are to the Internal Revenue
Code.
Future developments. For the latest
information about developments related to
Schedule K (Form 1120-IC-DISC) and its
instructions, such as legislation enacted after
they were published, go to www.irs.gov/
Form1120icdisc.

General Instructions
Complete Schedule K (Form 1120-IC-DISC) for
each shareholder who had an actual or deemed
distribution during the tax year or to whom the
corporation is reporting deferred DISC income
for the tax year. Attach Copy A to Form 1120IC-DISC. Give Copy B to the shareholder by the
last day of the second month after your tax year
ends. Keep Copy C for your records.
Note: Do not report on Form 1099-DIV actual
and deemed distributions or deferred DISC
income.

Specific Instructions
Part I—Taxable Distributions
Line 1. On line 1a, enter the shareholder’s pro
rata share of the deemed distributions under
section 995(b)(1). On line 1b, enter the
shareholder’s pro rata share of the annual
installment under section 995(b)(2). The sum
of the amounts on these lines for all
shareholders should equal the total the
corporation reports in Part I and Part III,
Schedule J, Form 1120-IC-DISC.

Line 2. Enter the amount of actual distributions
that are taxable to the shareholder. These
distributions come from accumulated IC-DISC
income and other earnings and profits.
Line 4a. Enter on line 4a each shareholder’s
amount of dividends out of other earnings and
profits that are eligible for the dividendsreceived deduction under section 243. No
dividends-received deduction is allowed for a
dividend from an IC-DISC, former IC-DISC, or
former DISC if it is:
1. Paid out of accumulated IC-DISC income
or accumulated pre-1985 DISC income,
2. Paid out of previously taxed income, or
3. A deemed distribution under section
995(b)(1).
Line 5. Complete for shareholders that are
individuals, partnerships, S corporations,
estates, or trusts. Enter on line 5 each
shareholder’s pro rata share of taxable
dividends included on line 3.

Part II—Nontaxable Distributions
Line 6. Enter the shareholder’s pro rata share
of actual distributions from previously taxed
income and distributions from accumulated
pre-1985 DISC income. The total of line 6 for
all shareholders should equal the total the
corporation reports on Form 1120-IC-DISC,
Schedule J, Part IV, line 4a.
Line 7. Enter the shareholder’s pro rata share
of actual nontaxable distributions out of other
than (1) previously taxed income or
accumulated pre-1985 DISC income, (2)
accumulated IC-DISC income, and (3) other

earnings and profits. The total of this line for
all shareholders should equal the total
nontaxable income reported on Form 1120IC-DISC, Schedule J, Part IV, line 4d.

Part III—Other Information
Line 9. If (1) a shareholder disposes of stock
in an IC-DISC or former DISC, or (2) the stock
of an IC-DISC, former IC-DISC, or former
DISC is disposed of in a transaction that
terminates the separate corporate existence
of an IC-DISC, former IC-DISC, or former
DISC (other than a mere change in the place
of organization), enter on line 9 the
accumulated IC-DISC income attributable to
the stock that was accumulated during the
period the shareholder held the stock.
Line 10. Enter the shareholder’s share of the
corporation’s deferred DISC income at tax
year end. See section 995(f) and the
instructions for Schedule J, Part V, in the
Instructions for Form 1120-IC-DISC for
information on figuring deferred DISC income.
The total of this line for all shareholders
should equal the total amount reported on
Form 1120-IC-DISC, Schedule J, Part V,
line 3.

Schedule K (Form 1120-IC-DISC) (Rev. 11-2018)