The updated 2007 Form 1120-F and new schedules will provide more informational disclosures regarding items such as the direct and indirect allocations of expenses to income that is effectively connected with the conduct of a U.
The introduction of Schedule M-3, Net Income (Loss) Reconciliation for Foreign Corporations with Reportable Assets of $10 Million or More, for Form 1120-F is likely to be used us a tool by the IRS to identify selected foreign corporations for audit examinations, because it is currently using Schedule M-3 for domestic corporations to identify selected taxpayers for audits.
The IRS plans to allow taxpayers to file Form 1120-F electronically for tax year 2007; however, it is unlikely that the tax preparation software will be ready to comply immediately, since the forms were just recently finalized.
IRS Releases Draft form 1120-F and Schedule M-3 and Instructions by Eileen Sherr, CPA, M.
The IRS recently released draft versions of revised Form 1120-F, U.
reported by a partnership to a foreign corporate partner and that is reportable by the partner on Form 1120-F.
In other words, is such an FDE eligible to file its own Form 1120-F even though it is not a corporation or a taxpayer for U.
To this end, the IRS issued the following new Form 1120-F schedules:
These statistics include foreign insurance companies, even though they file Forms 1120-L and 1120-PC rather than Form 1120-F.
Form 1120-F is used to report and pay income tax on taxable income from a U.
Return-type tables are published separately for all returns filed by active corporations; Form 1120 returns; Form 1120-A returns; Form 1120-F
returns; returns of active corporations other than 1120S, 1120-REIT, and 1120-RIC; and Form 1120S returns.
Property and Casualty Insurance Company Income Tax Return, and foreign corporations filing Form 1120-F