(Rev. December 2025)

Instructions for

Form 1120-ND

(Rev. December 2025)

Return for Nuclear Decommissioning Funds and Certain Related Persons

Section references are to the Internal Revenue Code

unless otherwise noted.

Future Developments

For the latest information about developments related to

Form 1120-ND and its instructions, such as legislation

enacted after they were published, go to IRS.gov/

Form1120ND.

What’s New

Form 1120-ND. Use the December 2025 revision of

Form 1120-ND and instructions for 2025 and subsequent

years until a superseding revision of Form 1120-ND is

issued.

Increase in penalty for failure to file. For tax returns

required to be filed after 2025, the minimum penalty for

failure to file a return that is more than 60 days late has

increased to the lesser of the tax due or $525 (adjusted for

inflation). See Late filing of return, later.

Gain from the sale or exchange of qualified farmland

property to qualified farmers. P.L. 119-21, commonly

known as the One Big Beautiful Bill Act, created new

section 1062, regarding the gain from the sale or

exchange of qualified farmland property to qualified

farmers. Section 1062 allows taxpayers to elect to pay the

net income tax attributable to the gain from the sale or

exchange of qualified farmland property to qualified

farmers in four equal, annual installments. This election is

available for sales and exchanges of qualified farmland

property to a qualified farmer in tax years beginning after

July 4, 2025. For more information, see section 1062 and

new Form 1062, Deferral of Tax on Gain From the Sale or

Exchange of Qualified Farmland Property to Qualified

Farmers, when it is available.

To report the section 1062 applicable net tax liability

and the installment due in the first tax year, two lines were

added to Form 1120-ND. Report the full amount of section

1062 applicable net tax liability on line 14f. Report the first

installment due in tax year 2025 on Form 1120-ND,

line 13b. For more information, see the instructions for

line 13b and line 14f, later.

Electronic payments. If the fund has access to U.S.

banking services or electronic payment systems, it should

use direct deposit for any refunds and pay electronically

for any payments, whenever possible.

Direct deposit. Direct deposit fields have been added

to the form on lines 18c, 18d, and 18e. If there is an

overpayment on line 17, enter the amount the fund wants

refunded on line 18b and complete the direct deposit

information on lines 18c, 18d, and 18e. Instead of a direct

Jan 8, 2026

deposit of the fund’s refund, it can still choose to have all

or part of the overpayment credited to next year’s

estimated tax by completing line 18a. See Line 17, later,

for more information.

Making a payment. If there is a balance due on

line 16, go to IRS.gov/Payments for information on how to

make a payment. See Tax Payments and the instructions

for line 16, later, for more details.

General Instructions

Purpose of Form

Nuclear decommissioning funds use Form 1120-ND to

report contributions received, income earned, the

administrative expenses of operating the fund, and the tax

on modified gross income. The return is also used to

report the section 4951 initial taxes on self-dealing.

Taxpayers, electing under section 468A, are allowed

deductions for amounts contributed to a qualified fund, up

to 100% of the present value of the nuclear power plant’s

decommissioning costs. Taxpayers can apply for a new

ruling amount if the nuclear power plant is granted a

license renewal extending its useful life. See section 468A

for more information.

Who Must File

All section 468A nuclear decommissioning funds must file

Form 1120-ND. A disqualified person engaging in

self-dealing must file Form 1120-ND to report the initial

tax. See Part II, later, to determine if an individual has

engaged in self-dealing as a trustee or disqualified

person.

Note: Each person liable for filing a return to pay any tax

reportable on this form must file a separate return.

When To File

Generally, a fund must file its income tax return by the

15th day of the 4th month after the end of its tax year. The

return of a trustee or self-dealer who owes tax under

section 4951 must be filed by the 15th day of the 4th

month after the end of the tax year of the trustee or

self-dealer.

However, a fund with a fiscal tax year ending on June

30 must file by the 15th day of the 3rd month after the end

of its tax year. A fund with a short tax year ending in June

will be treated as if the short year ended on June 30, and

must file by the 15th day of the 3rd month after the end of

its tax year.

If the due date falls on a Saturday, Sunday, or legal

holiday, the fund may file on the next business day.

Instructions for Form 1120-ND (Rev. 12-2025) Catalog Number 11508V

Department of the Treasury Internal Revenue Service www.irs.gov

Where To File

File the fund’s, disqualified person’s, or trustee’s return at

the applicable IRS address listed below.

If the fund’s principal business, office, or agency is

located in the United States, file Form 1120-ND at the

following address.

Department of the Treasury

Internal Revenue Service Center

Ogden, UT 84201-0012

If the fund’s principal business, office, or agency is

located in a foreign country or a U.S. territory, file Form

1120-ND at the following address.

Internal Revenue Service Center

P.O. Box 409101

Ogden, UT 84409

Private delivery services (PDSs). Funds can use

certain PDSs designated by the IRS to meet the “timely

mailing as timely filing” rule for tax returns. See the

Instructions for Form 1120, U.S. Corporation Income Tax

Return, for details.

Caution: PDSs can’t deliver items to P.O. boxes. The

fund must use the U.S. Postal Service to mail any item to

an IRS P.O. box address.

Extension of time to file. File Form 7004, Application for

Automatic Extension of Time To File Certain Business

Income Tax, Information, and Other Returns, to request an

extension of time to file. Generally, the fund must file Form

7004 by the regular due date of the return.

A disqualified person or trustee filing to report section

4951 taxes must also file Form 7004 to request an

extension of time to file. See the Instructions for Form

7004.

Who Must Sign

The return must be signed and dated by an authorized

trustee. The return of any person who engaged in any act

of self-dealing must be signed and dated by that person or

the individual authorized to sign on behalf of that person.

Paid Preparer Use Only section. If an employee of the

fund completes Form 1120-ND, the paid preparer section

should remain blank. Anyone who prepares Form

1120-ND but doesn’t charge the fund shouldn’t complete

that section. Generally, anyone who is paid to prepare the

return must sign and complete the section.

The paid preparer must complete the required preparer

information and:

• Sign the return in the space provided for the preparer’s

signature,

• Include their Preparer Tax Identification Number (PTIN),

and

• Give a copy of the return to the taxpayer.

A paid preparer may sign original or amended returns

by rubber stamp, mechanical device, or computer

software program.

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Paid Preparer Authorization

If the fund wants to allow the IRS to discuss its tax return

with the paid preparer who signed it, check the “Yes” box

in the signature area of the return. This authorization

applies only to the individual whose signature appears in

the Paid Preparer Use Only section of the fund’s return. It

doesn’t apply to the firm, if any, shown in that section.

If the “Yes” box is checked, the fund is authorizing the

IRS to call the paid preparer to answer any questions that

may arise during the processing of its return. The fund is

also authorizing the paid preparer to:

• Give the IRS any information that is missing from the

return;

• Call the IRS for information about the processing of the

return or the status of any related refund or payment(s);

and

• Respond to certain IRS notices about math errors,

offsets, and return preparation.

The fund isn’t authorizing the paid preparer to receive

any refund check, bind the fund to anything (including any

additional tax liability), or otherwise represent the fund

before the IRS.

The authorization will automatically end no later than

the due date (excluding extensions) for filing the fund’s

subsequent tax return. If the fund wants to expand the

paid preparer’s authorization or revoke authorization

before it ends, see Pub. 947, Practice Before the IRS and

Power of Attorney.

Assembling the Return

To ensure that the fund’s tax return is correctly processed,

attach all schedules after page 2 of Form 1120-ND in

alphabetical order followed by other forms in numerical

order.

Complete every applicable entry space on Form

1120-ND. Don’t enter “See Attached” or “Available Upon

Request” instead of completing the entry spaces. If more

space is needed on the forms or schedules, attach

separate sheets using the same size and format as the

printed forms.

If there are supporting statements and attachments,

arrange them in the same order as the schedules or forms

they support and attach them last. Show the totals on the

printed forms. Enter the fund’s name and employer

identification number (EIN) on each supporting statement

or attachment.

Tax Payments

Generally, the fund must pay the tax due in full no later

than the due date for filing its tax return (not including

extensions). See the instructions for line 16, later. If the

due date falls on a Saturday, Sunday, or legal holiday, the

payment is due on the next day that isn’t a Saturday,

Sunday, or legal holiday.

Electronic Deposit Requirement

Nuclear decommissioning funds must use electronic

funds transfer (EFT) to make all federal tax deposits (such

as deposits of employment, excise, and corporate income

taxes). An EFT can be made using the Electronic Federal

Tax Payment System (EFTPS) or the fund’s IRS business

Instructions for Form 1120-ND (Rev. 12-2025)

tax account. However, if the fund doesn’t want to use one

of these methods, it can arrange for its tax professional,

financial institution, payroll service, or other trusted third

party to make deposits on its behalf. Also, it may arrange

for its financial institution to submit a same-day wire

payment (discussed below) on its behalf. EFTPS is a free

service provided by the Department of the Treasury.

Payments made using the fund’s IRS business tax

account are also free. Services provided by a tax

professional, financial institution, payroll service, or other

third party may have a fee.

To get more information about EFTPS or to enroll in

EFTPS, go to EFTPS.gov or call 800-555-4477. To

contact EFTPS using Telecommunications Relay Services

(TRS) for people who are deaf, hard of hearing, or have a

speech disability, dial 711 and then provide the TRS

assistant the 800-555-4477 number above or

800-733-4829. Additional information about EFTPS is also

available in Pub. 966.

For more information about making an EFT through the

fund’s IRS business tax account, go to IRS.gov/

BusinessAccount.

Depositing on time. EFTPS accepts same day

payments of $1 million or less if the payment is submitted

before 3:00 p.m. Eastern time on a business day. If the

fund’s payment is more than $1 million, the fund must

submit the deposit by 8:00 p.m. Eastern time the day

before the date the deposit is due. If the fund uses a third

party to make deposits on its behalf, they may have

different cutoff times.

Same-day wire payment option. If the fund fails to

submit a timely deposit transaction on EFTPS, it can still

make its deposit on time by using the Federal Tax

Collection Service (FTCS).To use the same-day wire

payment method, the fund will need to make

arrangements with its financial institution ahead of time

regarding availability, deadlines, and costs. Financial

institutions may charge a fee for payments made this way.

To learn more about the information the fund will need to

provide to its financial institution to make a same-day wire

payment, go to IRS.gov/SameDayWire.

Estimated Tax Payments

Generally, the following rules apply to the fund’s payments

of estimated tax.

• The fund must make installment payments of estimated

tax if it expects its total tax for the year (less applicable

credits) to be $500 or more.

• The installments are due by the 15th day of the 4th, 6th,

9th, and 12th months of the tax year. If any date falls on a

Saturday, Sunday, or legal holiday, the installment is due

on the next regular business day.

• The fund must use EFTs to make installment payments

of estimated tax.

• Figure the fund’s expected modified gross income for

the tax year. Then multiply the fund’s expected modified

gross income by 20% (0.20).

• If, after the fund figures and deposits estimated tax, it

finds that its tax liability for the year will be more or less

than originally estimated, it may have to refigure its

required installments. If earlier installments were

Instructions for Form 1120-ND (Rev. 12-2025)

underpaid, the fund may owe a penalty. See the

instructions for line 15, later.

• If the fund overpaid estimated tax, it may be able to get

a quick refund by filing Form 4466, Corporation

Application for Quick Refund of Overpayment of

Estimated Tax.

See section 6655 for more information on how to figure

estimated taxes.

Interest and Penalties

Interest. Interest is charged on taxes paid late even if an

extension of time to file is granted. Interest is also charged

on penalties imposed for failure to file, negligence, fraud,

substantial valuation misstatements, substantial

understatements of tax, and reportable transaction

understatements from the due date (including extensions)

to the date of payment. The interest charge is figured at a

rate determined under section 6621.

Late filing of return. A fund that doesn’t file its tax return

by the due date, including extensions, may be penalized

5% of the unpaid tax for each month or part of a month the

return is late, up to a maximum of 25% of the unpaid tax.

The minimum penalty for a tax return that is more than 60

days late is the lesser of the tax due or $525 (adjusted for

inflation). Go to IRS.gov/Newsroom/Inflation-Adjusted-TaxItems-by-Tax-Year for adjusted failure-to-file penalty

amounts for the applicable tax year. The penalty won’t be

imposed if the fund can show that the failure to file on time

was due to reasonable cause. See Reasonable-cause

determinations, later.

Late payment of tax. A fund that doesn’t pay the tax

when due may generally be penalized 1/2 of 1% of the

unpaid tax for each month or part of a month the tax is not

paid, up to a maximum of 25% of the unpaid tax. See

Reasonable-cause determinations, later.

Other penalties. Other penalties can be imposed for

negligence, substantial understatements of tax, reportable

transaction understatements, and fraud. See sections

6662, 6662A, and 6663.

Reasonable-cause determinations. If the fund receives

a notice about penalties after it files its return, send the

IRS an explanation and we will determine if the fund

meets reasonable-cause criteria. Do not attach an

explanation when the fund files its return.

Accounting Method

The fund must use the same method of accounting as the

electing taxpayer.

Rounding Off to Whole Dollars

The fund may enter decimal points and cents when

completing its return. However, the fund should round off

cents to whole dollars on its return and schedules to make

completing its return easier. The fund must either round

off all amounts on its return to whole dollars, or use cents

for all amounts. To round, drop amounts under 50 cents

and increase amounts from 50 to 99 cents to the next

dollar. For example, $1.39 rounds to $1 and $2.50 rounds

to $3.

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If two or more amounts must be added to figure the

amount to enter on a line, include cents when adding the

amounts and round off only the total.

Recordkeeping

Keep the fund’s records for as long as they may be

needed for the administration of any provision of the

Internal Revenue Code. Usually, records that support an

item of income, deduction, or credit on the return must be

kept for 3 years from the date the return is due or filed,

whichever is later. Keep records that verify the fund’s basis

in property for as long as they are needed to figure the

basis of the original or replacement property.

The fund should keep copies of all filed returns. They

help in preparing future and amended returns.

Additional Information

See the Instructions for Form 1120 and Pub. 542,

Corporations, for more information about corporations,

including additional forms the fund may need to file and

how to get forms and publications.

Definitions

Self-dealing. When determining if an act is an act of

self-dealing, treat the transfer of personal property by a

disqualified person to the fund as a sale or exchange if the

property is subject to a mortgage or similar lien.

Otherwise, the term “self-dealing” means any direct or

indirect:

• Sale, exchange, or leasing of real or personal property

between the fund and a disqualified person;

• Lending of money or other extensions of credit between

the fund and a disqualified person;

• Furnishing of goods, services, or facilities between the

fund and a disqualified person;

• Payment of compensation (or payment or

reimbursement of expenses) by the fund to a disqualified

person; and

• Transfers to, or use by or for the benefit of, a disqualified

person of the income or assets of the fund.

Exceptions. Acts of self-dealing don’t include the

following.

1. The payment by the fund for the purposes of

satisfying, in whole or in part, the liability of the electing

taxpayer for decommissioning costs of the nuclear power

plant.

2. The withdrawal of excess contributions by the

electing taxpayer in accordance with Regulations section

1.468A-5(c)(2).

3. The withdrawal of amounts that have been treated

as distributions to the electing taxpayer under Regulations

section 1.468A-5(c)(3).

4. The payment of amounts remaining in the fund to

the electing taxpayer after the termination of the fund upon

the substantial completion of decommissioning as

determined under 1.468A-5(d).

5. The furnishing of goods, services, or facilities by a

disqualified person to the fund if the furnishing is without

charge and if the goods, services, or facilities so furnished

are exclusively used for the purposes specified in section

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501(c)(21)(A). For more information, see Regulations

section 1.468A-5(b)(2)(v) and section 4951(d)(2)(B).

6. The payment of compensation (and the payment or

reimbursement of expenses) by the fund to a disqualified

person for personal services that are reasonable and

necessary to carry out the purposes of the fund and the

compensation (or payment or reimbursement of

expenses) isn’t excessive. The fact that the amount of

such payments that are not excessive are also more than

the disqualified person’s actual expenses for such

personal services doesn’t cause the payments to

constitute acts of self-dealing, even if the difference is

properly characterized as profit, or direct or indirect

overhead. For more information, see Regulations section

1.468A-5(b)(2)(v) and section 4951(d)(2)(C).

7. Any time or demand deposit made with a bank or

credit union that is a disqualified person, if undertaken to

facilitate the temporary investment of assets or the

payment of reasonable administrative expenses of the

fund. For more information, see Regulations sections

1.468A-5(b)(2)(vi) and 53.4951-1(c).

8. A payment by the fund for the performance of trust

functions and certain general banking services by a bank

or trust company that is a disqualified person, if the

banking services are reasonable and necessary to carry

out the purposes of the fund and the compensation paid

to the bank or trust company isn’t excessive (considering

the fair market interest rate for the use of the funds by the

bank or trust company).

The allowable general banking services are:

• Checking accounts, as long as the bank doesn’t charge

interest on any overwithdrawals;

• Savings accounts, as long as the fund may withdraw its

money after giving no more than 30 days notice, without

losing interest for the period the money was on deposit;

and

• Safekeeping activities (for example, rental of a safe

deposit box).

Tax period. For an act of self-dealing, the term “tax

period” means the period beginning on the date of the act

of self-dealing and ending on the date of the earliest of:

• The date of mailing of a notice of deficiency under

section 6212 for the section 4951 tax,

• The date on which the tax imposed by section 4951 is

assessed, or

• The date correction of the act of self-dealing is

completed.

Amount involved. The term “amount involved” means

the greater of the amount of money given (or received)

and the FMV of the other property given (or received).

When services described in section 4951(d)(2)(C) are

involved, the amount involved is only the excess

compensation.

Note: FMV is determined as of the date on which the act

of self-dealing occurs and at the highest market value

during the tax period.

Correction and correct. The terms “correction” and

“correct” mean the undoing of an act of self-dealing, to the

extent possible, but in any case returning the fund to a

financial position no worse than it would have been if the

Instructions for Form 1120-ND (Rev. 12-2025)

disqualified person acted under the highest fiduciary

relationship.

Disqualified person. The term “disqualified person”

means a person who is any of the following.

1. A contributor to the fund.

2. A trustee of the fund.

3. An owner of more than 10% of (a) the total

combined voting power of a corporation, (b) the profits

interest of a partnership, or (c) the beneficial interest of a

trust or unincorporated business that is a contributor to the

fund.

4. An officer, a director, or an employee of a person

who is a contributor to the fund.

5. The spouse, an ancestor, or a lineal descendant, or

a spouse of a lineal descendant of an individual described

in (1) through (4) above.

6. A corporation of which persons described in (1)

through (5) above own more than 35% of the total

combined voting power.

7. A partnership of which persons described in (1)

through (5) above own more than 35% of the profits

interests.

8. A trust or estate of which persons described in (1)

through (5) above own more than 35% of the beneficial

interest.

For purposes of (3(a)) and (6) above, indirect

stockholders would be taken into account under section

267(c), except that, for purposes of this paragraph,

section 267(c)(4) will be treated as providing that the

members of the family of an individual are only those

individuals described in (5) above. For purposes of (3(b)),

(3(c)), (7), and (8) above, the ownership of profits or

beneficial interests will be determined by the rules of

constructive ownership of stock provided in section 267(c)

(other than paragraph (3) thereof), except that section

267(c)(4) will be treated as providing that the members of

the family of an individual are only those individuals

described in (5) above.

Dispositions of an Interest in a Nuclear Power

Plant

There are federal income tax consequences when there is

a transfer of assets of a nuclear decommissioning fund in

connection with the sale, exchange, or other disposition of

a transferor of all or a portion of its qualifying interest in a

nuclear power plant to another taxpayer (transferee). If the

requirements of Regulations section 1.468A-6(b) are met,

the federal income tax consequences are the following.

1. No gain or loss. If there is a disposition of an

interest (wholly or partially) in a nuclear power plant,

neither the transferor nor the transferee (or either’s fund)

will recognize gain, loss, or otherwise take any income or

deduction into account because of the transfer of all or

some of the assets of the transferor’s fund. Also, the

transfer isn’t considered a payment or contribution of

assets by the transferor’s fund (or by the transferee to its

fund).

2. Basis. Transfers of assets of a fund to which

Regulations section 1.468A-6 applies don’t affect basis.

Instructions for Form 1120-ND (Rev. 12-2025)

The transferee’s fund will have a basis in the assets

received from the transferor equal to the transferor’s basis

in those assets immediately prior to the transfer.

3. Tax year of disposition.

A. Transferee. If a transferee doesn’t file a request for a

schedule of ruling amounts by the deemed payment

deadline (21/2 months after the end of the tax year of the

disposition), the transferee’s ruling amount for the interest

acquired is determined by taking the amount contained in

the transferor’s current schedule of ruling amounts for that

tax year and that plant multiplied by the product of:

(1) The portion of the transferor’s qualifying interest that

is transferred; and

(2) A fraction, the numerator of which is the number of

days in the tax year of the transferor including and

following the date of the disposition, and the denominator

of which is the number of days in that tax year.

B. Transferor. If a transferor doesn’t file a request for a

revised schedule of ruling amounts on or before the

deemed payment deadline for the tax year of the

transferor in which the disposition of its interest in the

nuclear power plant occurred (that is, the date that is 21/2

months after the close of that tax year), the transferor’s

ruling amount with respect to that plant for that year will

equal the sum of:

(1) The ruling amount contained in the transferor’s

current schedule of ruling amounts with respect to that

plant for that tax year multiplied by the portion of qualifying

interest that is retained, if any; and

(2) The ruling amount contained in the transferor’s

current schedule of ruling amounts with respect to that

plant for that tax year multiplied by the product of:

(a) The portion of the transferor’s qualifying interest that

is disposed of; and

(b) A fraction, the numerator of which is the number of

days in the tax year that precede the date of the

disposition, and the denominator of which is the number

of days in that tax year.

4. Tax year after the year of disposition. A

transferee of, or a transferor who retains, a qualifying

interest in a nuclear power plant must file a request for a

revised schedule of ruling amounts for the interest by the

deemed payment deadline (defined above). If the

transferee (or the transferor) doesn’t timely file such a

request, the transferee’s (or the transferor’s) ruling

amounts for the interest for that tax year will be zero

unless the IRS is shown a good cause for the delay.

For more information, see Regulations section

1.468A-6.

Specific Instructions

Period Covered

Enter the tax year in the space provided at the top of the

form. For a calendar year, enter the last two digits of the

calendar year in the first entry space. For a fiscal tax year

return, fill in the tax year space at the top of the form.

5

Name and Address

Enter the fund’s true name (as set forth in the charter or

other legal document creating it), address, and EIN on the

appropriate lines. Enter the address of the fund’s principal

office or place of business. Include the suite, room, or

other unit number on the “Room or suite no.” line. If the

post office doesn’t deliver mail to the street address and

the fund has a P.O. box, enter the box number instead.

Don’t use the address of the registered agent for the

state in which the fund is incorporated. For example, if a

fund is incorporated in Delaware or Nevada and the fund’s

principal office is located in Little Rock, Arkansas, the fund

should enter the Little Rock address.

If the return is filed by a trustee or disqualified person to

report section 4951 taxes, enter that person’s name and

address in the address section.

If the fund receives its mail in care of a third party (such

as an accountant or an attorney), enter on the street

address line “C/O” followed by the third party’s name and

street address or P.O. box.

If the fund has a foreign address, enter the city or town,

state or province, country, and foreign postal code in the

spaces provided. Don’t abbreviate the country name.

Follow the country’s practice for entering the name of the

state or province and postal code.

Item A. Employer Identification

Number (EIN)

Enter the fund’s EIN. If the fund doesn’t have an EIN, it

must apply for one. An EIN can be applied for in the

following ways.

• Online—Go to IRS.gov/EIN. The EIN is issued

immediately once the application information is validated.

• By faxing or mailing Form SS-4, Application for

Employer Identification Number.

If the fund hasn’t received its EIN by the time the return

is due, enter “Applied for” and the date the fund applied in

the space for the EIN. For more information, see the

Instructions for Form SS-4.

Item B. Identifying Number of Trustee

or Disqualified Person

If the return is filed by a trustee or disqualified person to

report section 4951 taxes, enter the identifying number of

the trustee or disqualified person. For an individual trustee

or disqualified person, enter the individual’s social security

number. If the trustee or disqualified person isn’t an

individual, enter the EIN.

Note: Don’t complete item B if Form 1120-ND is filed to

report the income, deductions, and income tax liability of

the fund.

Item C. Fund, Trustee, or Disqualified

Person

Check only the box that applies.

1. When filed to report the income, deductions, and

income tax liability of the fund, check the “Fund” box.

6

2. When filed by a trustee who is liable for taxes under

section 4951, check the “Trustee” box.

3. When filed by a disqualified person who is liable for

section 4951 tax, check the “Disqualified person” box.

Item D. Final Return, Name Change,

Address Change, or Amended Return

Indicate a final return, name change, address change, or

amended return by checking the appropriate box. If you

are a trustee or disqualified person reporting section 4951

taxes, omit item D.

Note: If a change in address occurs after the return is

filed, use Form 8822-B, Change of Address or

Responsible Party—Business, to notify the IRS. See the

instructions for Form 8822-B for details.

Part I. Computation of Fund Income

Tax

Income

Line 1. Taxable interest. Enter the total taxable interest

income received or accrued for the year, including any

original issue discount. Don’t include tax-exempt interest

on line 1, but report it as an item of information on

Schedule M, line 2d.

Line 2. Capital gain net income. Every sale, exchange,

or actual or deemed distribution of assets held by the fund

must be reported in detail on Schedule D (Form 1120),

Capital Gains and Losses (and Form 8949, Sales and

Other Dispositions of Capital Assets, if applicable), even if

there is no gain or loss. The amount realized on an actual

or deemed distribution is the fair market value (FMV) of

the assets as of the date of distribution.

Line 3. Other income. Enter any other taxable income

not reported on line 1 or line 2 and explain its nature on an

attached schedule. If the fund had only one item of other

income, describe it in parentheses on line 3.

Deductions

Note: A deduction isn’t allowed for certain expenses

allocable to tax-exempt income. See section 265. In

addition, a deduction isn’t allowed for distributions made

to electing taxpayers. Report such payments as an item of

information on Schedule M, line 2c. Liabilities aren’t

treated as incurred prior to the time economic

performance takes place. See section 461(h).

Line 5. Trustee fees. Enter the total deductible fees paid

or incurred to the trustee(s) for administering the fund

during the tax year.

Line 6. Taxes. Enter deductible taxes paid or incurred

during the tax year, including state and local income taxes.

Don’t deduct federal income taxes or taxes not imposed

on the fund.

Line 8. Other deductions. Attach a schedule listing by

type and amount all allowable deductions that aren’t

deducted elsewhere on Form 1120-ND. Include

investment advisory fees, actuarial expenses, and other

Instructions for Form 1120-ND (Rev. 12-2025)

administrative expenses paid or incurred during the tax

year, but don’t include decommissioning costs.

Line 11. Net operating loss (NOL) deduction. Enter

the amount of any NOL deduction allowed by Regulations

section 1.468A-4(b)(4), and explain its computation on an

attached schedule.

Note: The 2-year carryback rule doesn’t apply to NOLs

arising in tax years ending after 2017. An exception

applies to farmers and non-life insurance companies. See

section 172(b), as amended by P.L. 115-97, section

13302.

Line 13b. First installment of section 1062 applicable

net tax liability. Complete and attach Form 1062,

Schedule(s) A (Form 1062), and a copy of the covenant if

electing to defer the payment of the net income tax

attributable to the gain from the sale or exchange of

qualified farmland property during this tax year under

section 1062. Enter the amount from Form 1062, Part III,

line 15. See the Instructions for Form 1062 for more

information. Also, see section 1062.

Line 14. Payments. Generally, no payments are allowed

other than those on lines 14a through 14d and the credit

for backup withholding.

Backup withholding. If the fund had federal income tax

withheld from any payments it received because, for

example, it failed to give the payer its correct EIN, include

the amount withheld in the total for line 14z. Enter the

amount withheld and “Backup Withholding” in the blank

space above line 14z.

Line 14f. Section 1062 applicable net tax liability. If

the fund is electing to defer the payment of the net income

tax attributable to the gain from the sale or exchange of

qualified farmland property, complete and attach Form

1062 and Schedule(s) A (Form 1062). Enter the amount

from Form 1062, Part III, line 14. See the Instructions for

Form 1062 for more information. Also, see section 1062.

Line 15. Estimated tax penalty. A fund that doesn’t

make estimated tax payments when due may be subject

to an underpayment penalty for the period of

underpayment. Use Form 2220, Underpayment of

Estimated Tax by Corporations, to see if the fund owes a

penalty and to figure the amount of the penalty. If Form

2220 is attached, check the box on line 15 and enter the

amount of the penalty on that line.

Line 16. Tax due. Generally, the fund must pay any tax

due in full no later than the due date for filing its tax return

(excluding extensions). Payment of the tax due must be

made electronically. See Electronic Deposit Requirement,

earlier, for the payment options for the fund. Also, go to

IRS.gov/Payments for more detailed information.

If the fund cannot pay the full amount of tax owed, it can

apply for an installment agreement online. The fund can

apply for an installment agreement online if:

• It cannot pay the full amount shown on line 16,

• The total amount owed is $25,000 or less, and

• The fund can pay the liability in full in 24 months.

To apply using the Online Payment Agreement

Application, go to IRS.gov/OPA.

Instructions for Form 1120-ND (Rev. 12-2025)

Under an installment agreement, the fund can pay what

it owes in monthly installments. There are certain

conditions that must be met to enter into and maintain an

installment agreement, such as paying the liability within

24 months and making all required deposits and timely

filing tax returns during the length of the agreement.

If the installment agreement is accepted, the fund will

be charged a fee and it will be subject to penalties and

interest on the amount of tax not paid by the due date of

the return.

Line 17. Overpayment. If there is an overpayment on

line 17, enter the amount the fund wants refunded on

line 18b. See the instructions for line 18b, later. The fund

can also choose to have all or part of the overpayment

credited to next year’s estimated tax by completing

line 18a. See the instructions for line 18a next.

Line 18a. Credited to next year’s estimated tax. The

fund can elect to apply all or part of the fund’s

overpayment to next year’s estimated tax. Enter the

amount from line 17 that the fund wants applied to next

year’s estimated tax.

Line 18b. Refunded. Enter the amount to be refunded to

the fund on line 18b. If the fund has access to U.S.

banking services, it should use direct deposit for any

refunds, whenever possible.

The benefits of a direct deposit include a faster refund,

the added security of a paperless payment, and the

savings of tax dollars associated with the reduced

processing costs.

Direct deposit of refund. If the fund wants its refund

directly deposited into its checking or savings account at

any U.S. bank or other financial institution, complete lines

18c through 18e. See the instructions for lines 18c, 18d,

and 18e, later.

The fund is not eligible to request a direct deposit if:

• The receiving financial institution is a foreign bank or a

foreign branch of a U.S. bank, or

• The fund has applied for an EIN but is filing its tax return

before receiving one.

Line 18c. Routing number. The routing number must be

nine digits. The first two digits must be 01 through 12 or 21

through 32. Enter the financial institution’s routing number

and verify that the institution will accept a direct deposit.

Ask the fund’s financial institution for the correct routing

number to enter on line 18c if:

• The routing number on a deposit slip is different from

the routing number on the fund’s checks,

• The deposit is to a savings account that doesn’t allow

the fund to write checks, or

• The fund’s checks state they are payable through a

financial institution different from the one at which the

account is located.

Line 18d. Type of account. Check the appropriate box

for the type of account. Don’t check more than one box.

The fund must check the correct box to ensure the fund’s

deposit is accepted.

Line 18e. Account number. The account number can

be up to 17 characters (both numbers and letters). Include

hyphens but omit spaces and special symbols. Enter the

7

number from left to right and leave any unused boxes

blank. Don’t include the check number.

If the direct deposit to the fund’s account is different

from the amount it expected, the fund will receive an

explanation in the mail about 2 weeks after the refund is

deposited.

Conditions resulting in a refund by check. If the IRS

is unable to process the request for a direct deposit, a

refund by check will be generated instead. Reasons for

not processing a request include the following.

• The name of the fund on the tax return does not match

the name on the account.

• The financial institution rejects the direct deposit

because of an incorrect routing or account number.

• The fund fails to indicate the type of account the deposit

is to be made to (that is, checking or savings).

Note: The IRS isn’t responsible for a lost refund if the

fund enters the wrong account information. Check with the

fund’s financial institution to get the correct routing and

account numbers and to make sure the direct deposit will

be accepted.

Schedule L. Balance Sheets

The balance sheets should agree with the fund’s books

and records.

Schedule M. Other Information

Line 1. The term “electing taxpayer” means an eligible

taxpayer that elects the application of section 468A to

deduct payments made to a nuclear decommissioning

fund. See Regulations section 1.468A-7 for the rules

concerning the election.

Line 5. If you are a trustee or disqualified person (defined

earlier), complete the items included in line 5 to determine

if you have engaged in an act of self-dealing.

Part II. Initial Taxes on Self-Dealing

(Section 4951)

Initial Taxes on Self-Dealers

An initial tax of 10% of the amount involved (defined

earlier) is imposed on each act of self-dealing between a

disqualified person and a nuclear decommissioning fund

for each tax year (or part of a tax year) in the tax period.

The tax is required to be paid by any disqualified person

(other than a trustee acting only as a trustee of the trust)

who participates in the act of self-dealing.

Initial Taxes on Trustee

A tax of 21/2% of the amount involved is imposed on a

trustee who participates in the act of self-dealing. The tax

isn’t imposed if the trustee unwillingly or due to

reasonable cause participated in the act. The tax is

computed on all acts of self-dealing that occur within the

tax period. The tax is required to be paid by the trustee

who participates in the act.

8

Exceptions. The initial tax on the act of self-dealing of

a disqualified person or a trustee isn’t imposed if the acts

of self-dealing are corrected within the tax period.

Privacy Act and Paperwork Reduction Act Notice. We

ask for the information on this form to carry out the Internal

Revenue laws of the United States. You are required to

give us the information. We need it to ensure that you are

complying with these laws and to allow us to figure and

collect the right amount of tax.

Section 4951 of the Internal Revenue Code requires

disqualified taxpayers engaged in self-dealing with a trust

to pay over to the IRS an initial tax. This form is used to

report the initial amount of tax that you owe. Sections

6001 and 6011 require you to provide the requested

information if the tax applies to you. Section 6109 and its

regulations require you to provide your identifying number.

Routine uses of this information include disclosing it to the

Department of Justice for civil and criminal litigation and to

other federal agencies, as provided by law. We may

disclose the information to cities, states, the District of

Columbia, and U.S. commonwealths or territories to

administer their tax laws. We may disclose the information

to foreign governments pursuant to tax treaties. We may

disclose the information to contractors for tax

administration purposes. We may also disclose this

information to federal and state agencies to enforce

federal nontax criminal laws and to combat terrorism. If

you don't provide this information, or you provide false or

fraudulent information, you may be subject to penalties.

You aren’t required to provide the information requested

on a form that is subject to the Paperwork Reduction Act

unless the form displays a valid OMB control number.

Books or records relating to a form or its instructions must

be retained as long as their contents may become

material in the administration of any Internal Revenue law.

Generally, tax returns and return information are

confidential, as required by section 6103.

The time needed to complete and file this form will vary

depending on individual circumstances. The estimated

burden for business taxpayers filing this form is approved

under OMB control number 1545-0123 and is included in

the estimates shown in the instructions for their business

income tax return.

If you have comments concerning the accuracy of the

time estimates or suggestions for making this form

simpler, we would be happy to hear from you. You can

send us comments through IRS.gov/FormComments. Or

you can write to the Internal Revenue Service, Tax Forms

and Publications, 1111 Constitution Ave. NW, IR-6526,

Washington, DC 20224.

Don’t send the tax form to this address. Instead, see

Where To File, earlier.

Instructions for Form 1120-ND (Rev. 12-2025)