Rev. November 2018
Instructions for filling out Form 1120-FSC (Foreign Sales Corporation) of the U.S. Internal Revenue Service (IRS). This form is used to report income, deductions, and taxes related to a Foreign Sales Corporation. The form consists of several schedules: A - Income and Gain; B - Deductions and Taxes; C - Depreciation and Amortization; J - Tax Computation.
The codes for different types of merchandise can be found in the North American Industrial Classification System (NAICS). For example, 513100 is used for Architectural Services. However, it's important to note that NAICS codes are not directly equivalent to SIC or SOI codes.
A Foreign Sales Corporation (FSC) is a type of entity created under the Foreign Sales Corporation Act, which allows U.S. companies to avoid paying federal income tax on certain income from sales made to related foreign parties by transferring that income to an FSC, where it will be subject to tax at a lower rate or not at all, depending on the business activities of the FSC.
The main benefit of using an FSC is the ability to defer U.S. federal income tax on income from sales made to related foreign parties, allowing for greater cash flow and potentially reducing overall tax liability. However, it's important to consult with a tax professional or attorney before setting up an FSC.
Form 8938, Information Reporting by U.S. Taxpayers With Respect to Certain Foreign Financial Assets, is used by U.S. taxpayers to report specified foreign financial assets held as of the end of a tax year in accordance with Section 6038D(b) of the Internal Revenue Code.
Form 1042, Annual Withholding Tax Return for U.S. Source Income of Foreign Persons, is used to report income that is subject to withholding of tax at the source.
Form 1040-ES, Estimated Tax for Individuals, is used by individuals who do not pay enough tax throughout the year to estimate and pay their annual income taxes in installments.
Form 1099-B, Acquisition or Redemption of Capital Stock, is used to report transactions involving the issuance of capital stock by a corporation. It is used to provide information necessary for calculating gain or loss realized on the sale or exchange of capital assets.
The principal business activity code for wholesale trading of durable goods is 423100, Motor Vehicle & Motor Vehicle Parts & Supplies.
Form 1120-FSC is one of Tax forms that are documents used to report information related to taxes to the relevant tax authority. There are various types of tax forms, including federal, state, and local tax forms, which can vary depending on the taxpayer's circumstances and location.
The easiest way to fill Form 1120-FSC online
Delete filling session
Delete editing session
