Instructions for Form

Instructions for Form

1120-IC-DISC

(Rev. December 2025)

(Use with December 2025 revision of Form 1120-IC-DISC, November 2018 revision

of separate Schedule K, September 2017 revision of separate Schedule P, and

September 2016 revision of separate Schedule Q)

Interest Charge Domestic International Sales Corporation Return

Section references are to the Internal Revenue Code

unless otherwise noted.

Future Developments

For the latest information about developments related to

Form 1120-IC-DISC and its instructions, such as

legislation enacted after they were published, go to

IRS.gov/Form1120ICDISC.

What’s New

Direct deposit added to Form 1120-IC-DISC. If you

have access to U.S. banking services or electronic

payment systems, you should use direct deposit for any

refunds.

Name changes for Global Intangible Low-Taxed Income (GILTI) and Foreign-Derived Intangible Income

(FDII) after 2025. Effective January 1, 2026, GILTI and

FDII have been renamed Net CFC Tested Income (NCTI)

and Foreign-Derived Deduction Eligible Income (FDDEI).

New lines on Form 1120-IC-DISC. Line 8 has been

expanded by adding lines 8b, 8c, and 8d for direct deposit

information.

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The IRS is a proud partner with the National Center for

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missing children selected by the Center may appear in

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can help bring these children home by looking at the

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(1-800-843-5678) if you recognize a child.

General Instructions

Purpose of Form

Form 1120-IC-DISC is an information return filed by

interest charge domestic international sales corporations

(IC-DISCs), former DISCs, and former IC-DISCs.

What Is an IC-DISC?

An IC-DISC is a domestic corporation that has elected to

be an IC-DISC and its election is still in effect. The

IC-DISC election is made by filing Form 4876-A, Election

To Be Treated as an Interest Charge DISC, available at

IRS.gov/Form4876A.

Dec 31, 2025

Generally, an IC-DISC is not taxed on its income.

Shareholders of an IC-DISC are taxed on its income when

the income is actually (or deemed) distributed. In addition,

section 995(f) imposes an interest charge on shareholders

for their share of DISC-related deferred tax liability. See

Form 8404, Interest Charge on DISC-Related Deferred

Tax Liability, available at IRS.gov/Form8404, for details.

To be an IC-DISC, a corporation must be organized

under the laws of a state or the District of Columbia and

meet the following tests.

• At least 95% of its gross receipts during the tax year are

qualified export receipts.

• At the end of the tax year, the adjusted basis of its

qualified export assets is at least 95% of the sum of the

adjusted basis of all of its assets.

• It has only one class of stock, and its outstanding stock

has a par or stated value of at least $2,500 on each day of

the tax year (or, for a new corporation, on the last day to

elect IC-DISC status for the year and on each later day).

• It maintains separate books and records.

• Its tax year must conform to the tax year of the principal

shareholder who has the highest percentage of voting

power. If two or more shareholders have the highest

percentage of voting power, the IC-DISC must elect a tax

year that conforms to that of any one of the principal

shareholders. See section 441(h) and its regulations for

more information.

• Its election to be treated as an IC-DISC is in effect for

the tax year.

See Definitions, later, and section 992 and related

regulations for details.

Distribution to meet qualification requirements.

• An IC-DISC that does not meet the gross receipts test

or qualified export asset test during the tax year will still be

considered to have met them if, after the tax year ends,

the IC-DISC makes a pro rata property distribution to its

shareholders and specifies at the time that this is a

distribution to meet the qualification requirements.

• If the IC-DISC did not meet the gross receipts test, the

distribution equals the part of its taxable income

attributable to gross receipts that are not qualified export

gross receipts.

• If the IC-DISC did not meet the qualified export asset

test, the distribution equals the fair market value (FMV) of

the assets that are not qualified export assets on the last

day of the tax year.

Instructions for Form 1120-IC-DISC (Rev. 12-2025) Catalog Number 11476W

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

• If the IC-DISC did not meet either test, the distribution

generally equals the sum of both amounts.

Regulations section 1.992-3 explains how to figure the

distribution.

Interest on late distribution. If the IC-DISC makes a

distribution after Form 1120-IC-DISC is due, interest must

be paid to the United States Treasury. The interest charge

is 41/2% of the distribution times the number of tax years

that begin after the tax year to which the distribution

relates until the date the IC-DISC made the distribution.

If the IC-DISC must pay this interest, make the payment

within 30 days of making the distribution. Provide the

IC-DISC’s employer identification number (EIN), tax year,

and notate that the payment represents the interest

charge under Regulations section 1.992-3(c)(4).

Who Must File

The corporation must file Form 1120-IC-DISC if it elected,

by filing Form 4876A, to be treated as an IC-DISC and its

election is in effect for the tax year.

If the corporation is a former DISC or former IC-DISC, it

must file Form 1120-IC-DISC in addition to any other

return required.

A former DISC is a corporation that was a DISC on or

before December 31, 1984, but failed to qualify as a DISC

after December 31, 1984, or did not elect to be an

IC-DISC after 1984; and at the beginning of the current tax

year, it had undistributed income that was previously taxed

or it had accumulated DISC income.

A former IC-DISC is a corporation that was an IC-DISC

in an earlier year but did not qualify as an IC-DISC for the

current tax year; and at the beginning of the current tax

year, it had undistributed income that was previously taxed

or accumulated IC-DISC income. See section 992 and

related regulations.

A former DISC or former IC-DISC need not complete

lines 1 through 8 on page 1 and the schedules for figuring

taxable income, but must complete Schedules J, L, and M

of Form 1120-IC-DISC and Schedule K (Form

1120-IC-DISC). Write “Former DISC” or “Former IC-DISC”

across the top of the return.

When To File

File Form 1120-IC-DISC by the 15th day of the 9th month

after the IC-DISC’s tax year ends. No extensions are

allowed. If the due date falls on a Saturday, Sunday, or a

legal holiday, the corporation may file on the next business

day.

Where To File

If you are using the U.S. Postal Service, see Where to file

tax returns - Addresses listed by return type.

To find the address:

1. Go to Examples for returns beginning with a

number,

2. Under Find forms that begin with numbers, click on

1, and

3. Look for the form number.

Private delivery services (PDSs). Corporations may

use certain PDSs designated by the IRS to meet the

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“timely mailing as timely filing” rule for tax returns. Go to

IRS.gov/PDS.

The PDS can tell you how to get written proof of the

mailing date.

For the IRS mailing address to use if you’re using a

PDS, go to IRS.gov/PDSstreetAddresses.

Caution: Private delivery services cannot deliver items to

P.O. boxes. You must use the U.S. Postal Service to mail

any item to an IRS P.O. box address.

Who Must Sign

The return must be signed and dated by:

• The president, vice president, treasurer, assistant

treasurer, chief accounting officer; or

• Any other corporate officer (such as tax officer)

authorized to sign.

If a return is filed on behalf of a corporation by a

receiver, trustee, or assignee, the fiduciary must sign the

return, instead of the corporate officer. Returns and forms

signed by a receiver or trustee in bankruptcy on behalf of

a corporation must be accompanied by a copy of the order

or instructions of the court authorizing signing of the return

or form.

If an employee of the corporation completes Form

1120-IC-DISC, the paid preparer’s space should remain

blank. Anyone who prepares Form 1120-IC-DISC but

does not charge the corporation should not complete that

section. Generally, anyone who is paid to prepare Form

1120-IC-DISC must sign it and fill in the “Paid Preparer

Use Only” area.

The paid preparer must complete the required preparer

information and:

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

signature, and

• Give a copy of the return to the taxpayer.

Note: A paid preparer may sign original or amended

returns by rubber stamp, mechanical device, or computer

software program.

Other Forms and Statements That

May Be Required

Informing Shareholders

Shareholders who are foreign persons. The

corporation should inform shareholders who are

nonresident alien individuals or foreign corporations,

trusts, or estates that if they have gains from disposal of

stock in the IC-DISC, former DISC, or former IC-DISC, or

distributions from accumulated IC-DISC income, including

deemed distributions, they must treat these amounts as

effectively connected with the conduct of a trade or

business conducted through a permanent establishment

in the United States and derived from sources within the

United States.

Election to reduce basis under section 362(e)(2)(C).

If property is transferred to a corporation subject to section

362(e)(2), the transferor and the acquiring corporation

may elect, under section 362(e)(2)(C), to reduce the

transferor’s basis in the stock received instead of reducing

Instructions for Form 1120-IC-DISC (Rev. 12-2025)

the acquiring corporation’s basis in the property

transferred. Once made, the election is irrevocable. For

more information, see section 362(e)(2) and Regulations

section 1.362-4. If an election is made, a statement must

be filed in accordance with Regulations section 1.362-4(d)

(3).

Form 8992. Use Form 8992, available at IRS.gov/

Form8992, to figure the domestic corporation’s Net CFC

Tested Income (NCTI), formerly Global Intangible

Low-Taxed Income (GILTI) prior to 2026, under section

951A and attach it to Form 1120-IC-DISC.

Form 8993. Use Form 8993, available at IRS.gov/

Form8993, to figure the amount of the eligible deduction

for Foreign-Derived Deduction Eligible Income (FDDEI),

formerly Foreign-Derived Intangible Income (FDII) prior to

2026, and NCTI under section 250 and attach it to Form

1120-IC-DISC.

Other forms and statements. See the Instructions for

Form 1120, available at IRS.gov/Form1120, and

Publication 542, available at IRS.gov/Pub542, for a list of

other forms and statements a corporation may need to file

in addition to the forms and statements discussed

throughout these instructions.

Assembling the Return

To ensure that the corporation's tax return is correctly

processed, attach all schedules and other forms after the

last page of Form 1120-IC-DISC, and in the following

order.

1. Schedule N (Form 1120).

2. Form 4136.

3. Schedule D (Form 1120).

4. Form 8992.

5. Form 8993.

6. Additional schedules in alphabetical order.

7. Additional forms in numerical order.

Complete every applicable entry space on Form

1120-IC-DISC. Do not 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 statements 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

corporation’s name and EIN on each supporting

statement or attachment.

Accounting Methods

Figure taxable income using the method of accounting

regularly used in keeping the IC-DISC’s books and

records. In all cases, the method used must clearly reflect

taxable income. Permissible methods include cash,

accrual, or any other method authorized by the Internal

Revenue Code.

Generally, the following rules apply. For more

information, see Publication 538, available at IRS.gov/

Pub538.

Instructions for Form 1120-IC-DISC (Rev. 12-2025)

• A corporation, or a partnership that has a corporation as

a partner, cannot use the cash method of accounting

unless it is a small business taxpayer (defined later).

However, see Nonaccrual experience method for service

providers, later.

• A member of a controlled group may not use an

accounting method that would distort any group member’s

income, including its own. For example, an IC-DISC acts

as a commission agent for property sales by a related

corporation that uses an accrual method and pays the

IC-DISC its commission more than 2 months after the

sale. In this case, the IC-DISC should not use the cash

method of accounting because that method materially

distorts its income.

Small business taxpayer. A corporation is a small

business taxpayer if (a) its average annual gross receipts

for the 3-taxable-year period ending with the taxable year

which precedes the taxable year for which the return is

filed does not exceed the annual threshold amount listed

in the “Limitation on Use of Cash Method of Accounting”

subsection of the inflation-adjustments Revenue

Procedure for the year for which the return is filed, and (b)

it is not a tax shelter (as defined in section 448(d)(3)). See

IRS.gov/InflationAdjustment.

Gross receipts include the aggregate gross receipts

from all persons treated as a single employer, such as a

controlled group of corporations, commonly controlled

partnerships, or proprietorships, and affiliated service

groups. See section 448(c) and the Instructions for Form

8990 for additional information.

A small business taxpayer can account for inventories

(a) in the same manner as materials and supplies that are

non-incidental, or (b) to conform to its treatment of

inventories in an applicable financial statement (as

defined in section 451(b)(3)). If it does not have an

applicable financial statement, it can use the method of

accounting used in its books and records prepared

according to its accounting procedures. See section

471(c)(1).

Change in accounting method. Generally, the

IC-DISC must get IRS consent to change either an overall

method of accounting or the accounting treatment of any

material item for income tax purposes. To obtain consent,

the IC-DISC must file Form 3115, Application for Change

in Accounting Method, available at IRS.gov/Form3115,

during the tax year for which the change is requested.

See the Instructions for Form 3115 and Pub. 538 for

more information and exceptions. Also, see Rev. Proc.

2015-13, 2015-5 I.R.B. 419, and Rev. Proc. 2025-23,

2025-24 I.R.B. 1476 (or any successor(s)).

Section 481(a) adjustment. If the IC-DISC’s taxable

income for the current tax year is figured under a method

of accounting different from the method used in the

preceding tax year, the IC-DISC may have to make an

adjustment under section 481(a) to prevent amounts of

income or expense from being duplicated or omitted. The

section 481(a) adjustment period is generally 1 year for a

net negative adjustment and 4 years for a net positive

adjustment. Exceptions to the general section 481(a)

adjustment period may apply. Also, in some cases, an

IC-DISC can elect to modify the section 481(a) adjustment

period. The IC-DISC may have to complete the

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appropriate lines of Form 3115 to make an election. See

the Instructions for Form 3115 for more information and

exceptions.

Include any net positive section 481(a) adjustment on

Schedule B, line 2j or 3f (depending on whether the

inventory, when sold, will generate qualified export

receipts). If the net section 481(a) adjustment is negative,

report it on Schedule E, line 2g.

Accounting Periods

An IC-DISC must figure its taxable income on the basis of

a tax year. A tax year is the annual accounting period an

IC-DISC uses to keep its records and report its income

and expenses. Generally, IC-DISCs may use a calendar

year or a fiscal year.

Note: The tax year of an IC-DISC must be the same as

the tax year of the principal shareholder which, at the

beginning of the IC-DISC tax year, has the highest

percentage of voting power. If two or more shareholders

have the highest percentage of voting power, the IC-DISC

must have a tax year that conforms to the tax year of any

such shareholder. See section 441(h).

See Pub. 538 for more information on accounting

periods and tax years.

Rounding Off to Whole Dollars

The IC-DISC may round off cents to whole dollars on its

return and schedules. If the IC-DISC does round to whole

dollars, it must round 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 becomes $1 and

$2.50 becomes $3).

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 IC-DISC’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 IC-DISC’s

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

the basis of the original or replacement property.

The IC-DISC should keep copies of all filed returns.

They help in preparing future and amended returns and in

the calculation of earnings and profits.

Definitions

The following definitions are based on sections 993 and

994.

Note: “United States,” as used in the following

instructions, includes Puerto Rico and other U.S.

territories, as well as the 50 states and the District of

Columbia.

Section 993

Qualified export receipts. Qualified export receipts are

any of the following.

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1. Gross receipts from selling, exchanging, or

otherwise disposing of export property.

2. Gross receipts from leasing or renting export

property that the lessee uses outside the United States.

3. Gross receipts from supporting services related to

any qualified sale, exchange, lease, rental, or other

disposition of export property by the IC-DISC.

4. Gross receipts from selling, exchanging, or

otherwise disposing of qualified export assets that are not

export property, but only if there is a recognized gain.

5. Dividends (or amounts includible in gross income

under section 951) with respect to stock of a related

foreign export corporation (defined later).

6. Interest on any obligation that is a qualified export

asset.

7. Gross receipts for engineering or architectural

services for construction projects outside the United

States.

8. Gross receipts for the performance of managerial

services in furtherance of the production of other qualified

export receipts of an IC-DISC.

For more information, see Regulations section 1.993-1.

Qualified export assets. Qualified export assets are any

of the following.

1. Export property (defined later).

2. Assets used primarily in connection with the sale,

lease, rental, storage, handling, transportation, packaging,

assembly, or servicing of export property, or the

performance of engineering or architectural services

described in item 7 of Qualified export receipts, earlier, or

managerial services in furtherance of the production of

qualified export receipts described in items 1, 2, 3, and 7,

earlier.

3. Accounts receivable and evidences of

indebtedness produced by transactions listed under

Qualified export receipts, items 1–4, 7, and 8, earlier.

4. Temporary investments, such as money and bank

deposits, in an amount reasonable to meet the IC-DISC’s

needs for working capital.

5. Obligations related to A producer’s loan (defined

later).

6. Stock or securities of a related foreign export

corporation (defined later).

7. Certain obligations that are issued, guaranteed or

insured by the U.S. Export-Import Bank or the Foreign

Credit Insurance Association and that the IC-DISC

acquires from such bank or association or from the person

who sold or bought the goods or services from which the

obligations arose.

8. Certain obligations held by the IC-DISC that were

issued by a domestic corporation organized to finance

export property sales under an agreement with the

Export-Import Bank under which the domestic corporation

makes export loans that the Export-Import Bank

guarantees.

9. Amounts (other than reasonable working capital) on

deposit in the United States used to acquire qualified

Instructions for Form 1120-IC-DISC (Rev. 12-2025)

export assets within the time provided by Regulations

section 1.993-2(j).

See Regulations section 1.993-2 for more information.

Export property. Export property must be:

1. Made, grown, or extracted in the United States by a

person other than an IC-DISC;

2. Neither excluded under section 993(c)(2) nor

declared in short supply under section 993(c)(3);

3. Held mainly for sale, lease, or rent in the ordinary

course of a trade or business, by or to an IC-DISC for

direct use, consumption, or disposition outside the United

States;

4. Property not more than 50% of the FMV of which is

attributable to articles imported into the United States; and

5. Neither sold nor leased by or to another IC-DISC

that, immediately before or after the transaction, either

belongs to the same controlled group (defined in section

993(a)(3)) as your IC-DISC or is related to your IC-DISC in

a way that would result in losses being denied under

section 267.

See Regulations section 1.993-3 for details.

A producer’s loan. A producer’s loan must meet all the

following terms.

1. Satisfy the requirements of sections 993(d)(2) and

(3).

2. Not raise the unpaid balance due the IC-DISC on all

of its producer’s loans above the level of accumulated

IC-DISC income it had at the start of the month in which it

made the loan.

3. Be evidenced by a note, or other written evidence of

indebtedness, with a stated maturity date no more than 5

years after the date of the loan.

4. Be made to a person engaged in a U.S. trade or

business of making, growing, or extracting export

property.

5. Be designated as a producer’s loan when made.

For more information, see Schedule Q (Form

1120-IC-DISC), Borrower’s Certificate of Compliance With

the Rules for Producer’s Loans, and Regulations section

1.993-4.

A related foreign export corporation. A related foreign

export corporation includes the following.

1. A foreign international sales corporation is a

related foreign export corporation if:

• The IC-DISC directly owns more than 50% of the total

voting power of the foreign corporation’s stock;

• For the tax year that ends with or within the IC-DISC's

tax year, at least 95% of the foreign corporation’s gross

receipts consists of the qualified export receipts described

in items 1–4 of Qualified export receipts, earlier, and

interest on the qualified export assets listed in items 3 and

4 of Qualified export assets, earlier; and

• The adjusted basis of the qualified export assets in

items 1–4 of Qualified export assets, earlier, that the

foreign corporation held at the end of the tax year is at

least 95% of the adjusted basis of all assets it held at the

end of such tax year.

Instructions for Form 1120-IC-DISC (Rev. 12-2025)

2. A real property holding company is a related

foreign export corporation if:

• The IC-DISC directly owns more than 50% of the total

voting power of the foreign corporation’s stock, and

• Its exclusive function is to hold title to real property

located outside the United States for the exclusive use

(under lease or otherwise) of the IC-DISC, and applicable

foreign law forbids the IC-DISC to hold title to the property.

3. An associated foreign corporation is a related

foreign export corporation if:

• The IC-DISC or a controlled group of corporations to

which the IC-DISC belongs owns less than 10% of the

total voting power of the foreign corporation’s stock

(section 1563 defines a controlled group in this sense, and

sections 1563(d) and (e) define ownership), and

• The IC-DISC’s ownership of the foreign corporation’s

stock or securities reasonably furthers transactions that

lead to qualified export receipts for the IC-DISC.

See Regulations section 1.993-5 for more information

about related foreign export corporations.

Gross receipts. Gross receipts are the IC-DISC’s total

receipts from selling, leasing, or renting property that the

corporation holds for sale, lease, or rent in the ordinary

course of its trade or business and gross income from all

other sources. For commissions on selling, leasing, or

renting property, include gross receipts from selling,

leasing, or renting the property on which the commissions

arose. See Regulations section 1.993-6 for more

information.

Section 994, Intercompany Pricing Rules

If a related person described in section 482 sells export

property to the IC-DISC, use the intercompany pricing

rules to figure taxable income for the IC-DISC and the

seller. These rules generally do not permit the related

person to price at a loss. Under intercompany pricing, the

IC-DISC’s taxable income from the sale (regardless of the

price actually charged) may not exceed the greatest of:

1. 4% of qualified export receipts on the IC-DISC’s

sale of the property plus 10% of the IC-DISC’s export

promotion expenses attributable to the receipts;

2. 50% of the IC-DISC’s and the seller’s combined

taxable income from qualified export receipts on the

property, derived from the IC-DISC’s sale of the property

plus 10% of the IC-DISC’s export promotion expenses

attributable to the receipts; or

3. Taxable income based on the sale price actually

charged, provided that under section 482 the price

actually charged clearly reflects the taxable income of the

IC-DISC and the related person.

Schedule P (Form 1120-IC-DISC), Intercompany

Transfer Price or Commission, explains the intercompany

pricing rules in more detail.

Section 994(c), Export Promotion Expenses

These are expenses incurred to help distribute or sell

export property for use or distribution outside the United

States. These expenses do not include income tax, but do

include 50% of the cost of shipping the export property on

U.S.-owned and U.S.-operated aircraft or ships in those

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cases where U.S. law or regulations do not require that the

export property be shipped on such aircraft or ships.

Specific Instructions

Deficits in Earnings and Profits

Entity Information

A deficit in earnings and profits is chargeable in the

following order.

1. First, to any earnings and profits other than

accumulated IC-DISC income or previously taxed income.

2. Second, to any accumulated IC-DISC income.

3. Third, to previously taxed income.

Do not apply any deficit in earnings and profits against

accumulated IC-DISC income that, as a result of the

corporation’s revoking its election to be treated as an

IC-DISC (or other disqualification), is deemed distributed

to the shareholders. See section 995(b)(2)(A).

Penalties

The IC-DISC may have to pay the following penalties

unless it can show that it had reasonable cause for not

providing information or not filing a return.

• $100 for each instance of not providing required

information, up to $25,000 during the calendar year.

• $1,000 for not filing a return.

See section 6686 for other details.

If you receive a notice about penalty and interest after

you file Form 1120-IC-DISC, send us an explanation and

we will determine if you meet reasonable-cause criteria.

Do not attach an explanation when you file Form

1120-IC-DISC.

Trust fund recovery penalty. This penalty may apply if

certain excise, income, social security, and Medicare

taxes that must be collected or withheld are not collected

or withheld, or these taxes are not paid. These taxes are

generally reported on:

• Form 720, Quarterly Federal Excise Tax Return,

available at IRS.gov/Form720,

• Form 941, Employer’s Quarterly Federal Tax Return,

available at IRS.gov/Form941,

• Form 944, Employer’s Annual Federal Tax Return,

available at IRS.gov/Form944, or

• Form 945, Annual Return of Withheld Federal Income

Tax, available at IRS.gov/Form945.

The trust fund recovery penalty may be imposed on all

persons who are determined by the IRS to have been

responsible for collecting, accounting for, and paying over

these taxes, and who acted willfully in not doing so. The

penalty is equal to the full amount of the unpaid trust fund

tax. See the Instructions for Form 720 or Publication 15

(Circular E), Employer’s Tax Guide, available at IRS.gov/

Pub15, for details, including the definition of responsible

persons.

Other penalties. Other penalties may be imposed for

negligence, substantial understatement of tax, reportable

transaction understatements, and fraud. See sections

6662, 6662A, and 6663.

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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 or short tax year return, fill in the tax year space at

the top of the form.

Name and address. Include the suite, room, or other unit

number after the street address. If the post office does not

deliver mail to the street address and the corporation has

a P.O. box, show the box number instead.

Foreign address. If the corporation has a foreign

address, include the city or town, state or province,

country, and foreign postal code. Do not abbreviate the

country name. Follow the country’s practice for entering

the name of the state or province and postal code.

Country. For a list of country codes, go to IRS.gov/

CountryCodes.

Item B—Business activity code number. Enter the

principal business activity code for the specific industry

group from which the largest percentage of total gross

receipts is derived from the Form 1120-IC-DISC Codes for

Principal Business Activity list at the end of the

instructions.

Item C—Employer identification number (EIN). Enter

the corporation’s EIN. If the corporation does not have an

EIN, it must apply for one. An EIN may 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. See the Instructions for

Form SS-4.

Note: Corporations located in the United States or U.S.

territories can use the online application. Foreign

corporations should call 267-941-1099 (not a toll free

number) for more information on obtaining an EIN.

EIN applied for but not received. If the corporation has

not received its EIN by the time the return is due, enter

“Applied For” and the date the corporation applied in the

space for the EIN. However, if the corporation is filing its

return electronically, an EIN is required at the time the

return is filed. An exception applies to subsidiaries of

corporations whose returns are filed with the parent’s

electronically filed consolidated Form 1120. These

subsidiaries should enter “Applied For” in the space for the

EIN on their returns. The subsidiaries’ returns are

identified under the parent corporation’s EIN.

For more information, see the Instructions for Form

SS-4.

Item E—Total assets. Enter the IC-DISC’s total assets

(as determined by the accounting method regularly used

in keeping the IC-DISC’s books and records) at the end of

the tax year. If there are no assets at the end of the tax

year, enter -0-.

Instructions for Form 1120-IC-DISC (Rev. 12-2025)

If the corporation is required to complete Schedule L,

enter the total assets from Schedule L, line 3, column (b),

on page 1, Item E of Form 1120-IC-DISC.

Item F—Initial return, Final return, Name change, Address change, or Amended return.

• If this is the IC-DISC’s initial or final return, check the

applicable box in item F at the top of the form.

• If the IC-DISC has changed its address since it last filed

a return, check the box for “Address change.”

• If the IC-DISC changed its name since it last filed a

return, check the box for “Name change.” Generally, an

IC-DISC must also have amended its articles of

incorporation and filed the amendment with the state in

which it was incorporated.

• To correct an error on a Form 1120-IC-DISC already

filed, file an amended Form 1120-IC-DISC and check the

“Amended return” box. If the amended return changes the

income or distributions of income to shareholders, an

amended Schedule K (Form 1120-IC-DISC) must be filed

with the amended Form 1120-IC-DISC and given to each

shareholder. Write “AMENDED” across the top of the

corrected Schedule K you give to each shareholder.

Note: If a change in address or responsible party occurs

after the return is filed, use Form 8822-B, Change of

Address or Responsible Party—Business, available at

IRS.gov/Form8822B, to notify the IRS. See the

instructions for Form 8822-B for details.

Question G(1). For rules of stock attribution, see section

267(c). If the owner of the voting stock of the IC-DISC was

an alien individual or a foreign corporation, partnership,

trust, or estate, check the “Yes” box in the “Foreign owner”

column and enter the name of the owner's country, in

parentheses, in the address column. “Owner’s country” for

individuals is their country of residence; for other foreign

entities, it is the country in which organized or otherwise

created, or in which administered.

Taxable Income

An IC-DISC must figure its taxable income although it

does not pay most taxes. An IC-DISC is exempt from the

corporate income tax and accumulated earnings tax.

An IC-DISC may not claim the general business credit

or the credit for fuel produced from a nonconventional

source. In addition, these credits may not be passed

through to shareholders of the corporation.

Line 6a. Net operating loss (NOL) deduction. The

NOL deduction is the amount of the NOL carryover and

NOL carryback. The 2-year carryback rule does not apply

to NOLs arising in tax years ending after December 31,

2017. Exceptions apply to NOLs of certain farming losses

and NOLs of insurance companies (other than life

insurance companies). See section 172(b) for details.

The following special rules apply. The corporation may

elect under section 965(n) to reduce the amount of the

NOL for a tax year and the amount of taxable income

reduced by NOL carryovers or carrybacks to such tax

year. See section 965(n) for more information.

Line 7. Taxable income. If the IC-DISC uses either the

gross receipts method or combined taxable income

method to figure the IC-DISC’s taxable income attributable

Instructions for Form 1120-IC-DISC (Rev. 12-2025)

to any transactions involving products or product lines,

attach Schedule P (Form 1120-IC-DISC). Show in detail

the IC-DISC’s taxable income attributable to each such

transaction or group of transactions.

Net operating loss. If line 7 (figured without regard to

the items listed above under minimum taxable income) is

zero or less, the corporation may have an NOL that can be

carried back or forward as a deduction to other tax years.

Generally, a corporation first carries back an NOL

attributable to farming losses 2 tax years. However, the

corporation can elect to waive the carryback period and

instead carry the farming NOL forward to future tax years.

See the Instructions for Form 1139, Corporation

Application for Tentative Refund, available at IRS.gov/

Form1139, for other special rules and elections.

Note: The NOL is limited to 80% of taxable income

(determined without regard to the net operating loss) for

losses arising in tax years beginning after December 31,

2017.

Line 8a. Refundable credit for federal tax paid on

fuels. Enter the credit from Form 4136, Credit for Federal

Tax Paid on Fuels, available at IRS.gov/Form4136.

Lines 8b Through 8d

Direct deposit of refund. If the corporation wants its

refund directly deposited into its checking or savings

account at any U.S. bank or other financial institution

instead of having a check sent to the corporation,

complete lines 8b through 8d.

Line 8b. The routing number must be nine digits.

Line 8c. Check the appropriate box for the type of

account. Do not check more than one box. If unknown,

leave blank.

Line 8d. The account number can be up to 17 characters

(both numbers and letters). Include hyphens but omit

spaces and special symbols. Enter the number from left to

right and leave any unused boxes blank.

Schedule A—Cost of Goods Sold

Generally, inventories are required at the beginning and

end of each tax year if the production, purchase or sale of

merchandise is an income-producing factor. See

Regulations section 1.471-1. If inventories are required,

you must generally use an accrual method of accounting

for sales and purchases of inventory items.

Exceptions for certain taxpayers. A small business

taxpayer can account for inventories in the same manner

as materials and supplies that are non-incidental, or

conform to its treatment of inventories in an applicable

financial statement (as defined in section 451(b)(3)) (or

the method of accounting used in its books and records

prepared in accordance with its accounting procedures, if

applicable financial statements are not used). See section

471(c)(1).

See the discussion on Small business taxpayer, earlier.

Also, see sections 448(c) and 471(c).

For additional guidance on methods of accounting, see

Pub. 538. For guidance on changing methods of

accounting, see Form 3115 and its instructions.

7

Uniform capitalization rules. The uniform

capitalization rules of section 263A generally require you

to capitalize, or include in inventory, certain costs incurred

in connection with the following.

• The production of real property and tangible personal

property held in inventory or held for sale in the ordinary

course of business.

• Real property or personal property (tangible and

intangible) acquired for resale.

• The production of real property and tangible personal

property for use in your trade or business or in an activity

engaged in for profit.

A small business taxpayer is not required to capitalize

costs under section 263A. See section 263A(i).

For more details on the uniform capitalization rules, see

Regulations sections 1.263A-1 through 1.263A-3 and

Pub. 538.

Enter amounts paid for merchandise during the tax year

on line 2. The amount the IC-DISC may deduct for the tax

year is figured on line 8.

All filers not using the cash method of accounting

should see Uniform capitalization rules, later, before

completing Schedule A.

If the IC-DISC uses intercompany pricing rules (for

purchases from a related supplier), use the transfer price

figured in Part II of Schedule P (Form 1120-IC-DISC).

If the IC-DISC acts as another person’s commission

agent on a sale, do not enter any amount in Schedule A

for the sale. See Schedule P (Form 1120-IC-DISC).

Line 1. Inventory at beginning of the year. If the

IC-DISC is changing its method of accounting for the

current tax year, it must refigure last year’s closing

inventory using the new method of accounting and enter

the result on line 1. If there is a difference between last

year’s closing inventory and the refigured amount, attach

an explanation and take it into account when figuring the

IC-DISC’s section 481(a) adjustment.

Line 4. Additional section 263A costs. Enter on line 4

the balance of section 263A costs paid or incurred during

the tax year not includible on lines 2, 3, and 5.

An entry is required on this line only for IC-DISCs that

have elected a simplified method of accounting.

For IC-DISCs that have elected the simplified

production method or the modified simplified production

method, additional section 263A costs are generally those

costs, other than interest, that were not included in the

IC-DISC’s section 471 costs but are required to be

capitalized under section 263A. For details, see

Regulations sections 1.263A-1(d)(2) and 1.263A-2(b) and

Pub. 538.

For IC-DISCs that have elected the simplified resale

method, additional section 263A costs are generally those

costs incurred with respect to the following categories.

• Off-site storage or warehousing.

• Purchasing.

• Handling, such as processing, assembling,

repackaging, and transporting.

• General and administrative costs (mixed service costs).

For details, see Regulations section 1.263A-3(d).

8

Line 5. Other costs. Enter on line 5 any costs paid or

incurred during the tax year not entered on lines 2 through

4.

Line 7. Inventory at end of the year. See Regulations

sections 1.263A-1 through 1.263A-3 for details on figuring

the amount of additional section 263A costs to be

included in ending inventory. If the IC-DISC accounts for

inventoriable items in the same manner as nonincidental

materials and supplies, enter on line 7 the portion of your

raw materials and merchandise purchased for resale that

was included in the total on line 6 but was not sold during

the year.

Lines 9a through 9f. Inventory valuation methods.

Inventories may be valued at:

• Cost,

• Cost or market value (whichever is lower), or

• Any other method approved by the IRS that conforms to

the requirements of the applicable regulations cited later.

However, if the IC-DISC is using the cash method of

accounting, it is required to use cost.

On line 9a, check the method(s) used for valuing

inventories. Under lower of cost or market, the term

“market” (for normal goods) means the current bid price

prevailing on the inventory valuation date for the particular

merchandise in the volume usually purchased by the

taxpayer. If section 263A applies to the taxpayer, the basic

elements of cost must reflect the current bid price of all

direct costs and all indirect costs properly allocable to

goods on hand at the inventory date.

Inventory may be valued below cost when the

merchandise is unsalable at normal prices or unusable in

the normal way because the goods are subnormal due to

damage, imperfections, shopwear, etc., within the

meaning of Regulations section 1.471-2(c). The goods

may be valued at the current bona fide selling price, minus

direct cost of disposition (but not less than scrap value).

Bona fide selling price means actual offering of goods

during a period ending not later than 30 days after

inventory date.

Lines 9c and 9d. LIFO method. If this is the first year

the Last-in, First-out (LIFO) inventory method was either

adopted or extended to inventory goods not previously

valued under the LIFO method provided in section 472,

attach Form 970, Application To Use LIFO Inventory

Method, available at IRS.gov/Form970, or a statement

with the information required by Form 970. Also, check the

LIFO box on line 9c. On line 9d, enter the amount or the

percent of total closing inventories computed under

section 472. Estimates are acceptable.

If the IC-DISC changed or extended its inventory

method to LIFO and had to write up the opening inventory

to cost in the year of election, report the effect of the

write-up as other income (Schedule B, line 2j or 3f),

proportionately over a 3-year period that begins with the

year of the LIFO election.

Schedule B—Gross Income

If an income item falls into two or more categories, report

each part on the applicable line. For example, if interest

income consists of qualified interest from a foreign

international sales corporation and nonqualifying interest

Instructions for Form 1120-IC-DISC (Rev. 12-2025)

from a domestic obligation, enter the qualified interest on

an attached statement for line 2g and the nonqualifying

interest on an attached statement for line 3f.

For gain from selling qualified export assets, attach a

separate statement in addition to the forms required for

lines 2h and 2i.

Nonaccrual experience method for service providers.

Accrual method corporations are not required to accrue

certain amounts to be received from the performance of

services that, on the basis of their experience, will not be

collected, if:

• The services are in the fields of health, law,

engineering, architecture, accounting, actuarial science,

performing arts, or consulting; or

• The corporation’s average annual gross receipts for

every prior 3-taxable-year period, ending with the taxable

year which precedes the taxable year for which the return

is filed, does not exceed the annual threshold amount

listed in the “Limitation on Use of Cash Method of

Accounting” subsection of the inflation-adjustments

Revenue Procedure for the year for which the return is

filed. For more details, see section 448(d)(5), and

IRS.gov/InflationAdjustment for the annual threshold

amount.

This provision does not apply to any amount if interest

is required to be paid on the amount or if there is any

penalty for failure to timely pay the amount. See

Regulations section 1.448-3 for information on the

nonaccrual experience method, including information on

safe harbor methods. For information on a book safe

harbor method of accounting for corporations that use the

nonaccrual experience method of accounting, see Rev.

Proc. 2011-46, 2011-42 I.R.B. 518, as modified by Rev.

Proc. 2016-29, 2016-21 I.R.B. 880, or any successor(s).

Also, see the Instructions for Form 3115 for procedures to

obtain automatic consent to change to this method or

make certain changes within this method.

Corporations that qualify to use the nonaccrual

experience method should attach a statement showing

total gross receipts, the amount not accrued as a result of

the application of section 448(d)(5), and the net amount

accrued. Enter the amount on the applicable line of

Schedule B.

Commissions: Special rule.

Note: “United States,” as used in the following

instructions, includes Puerto Rico and other U.S.

territories, as well as the 50 states and the District of

Columbia.

If the IC-DISC received commissions on selling or

renting property or furnishing services, list in column (b)

the gross receipts from the sales, rentals, or services on

which the commissions arose, and in column (c), list the

commissions earned. In column (d), report receipts from

noncommissioned sales or rentals of property or

furnishing of services, as well as all other receipts.

For purposes of completing lines 1a and 1b, related

purchasers are members of the same controlled group (as

defined in section 993(a)(3)) as the IC-DISC. All other

purchasers are unrelated.

Instructions for Form 1120-IC-DISC (Rev. 12-2025)

A qualified export sale or lease must meet a use test

and a destination test in order to qualify.

The use test applies at the time of the sale or lease. If

the property is used predominantly outside the United

States and the sale or lease is not for ultimate use in the

United States, it is a qualified export sale or lease.

Otherwise, if a reasonable person would believe that the

property will be used in the United States, the sale or

lease is not a qualified export sale or lease. For example,

if property is sold to a foreign wholesaler and it is known in

trade circles that the wholesaler, to a substantial extent,

supplies the U.S. retail market, the sale would not be a

qualified export sale, and the receipts would not be

qualified export receipts.

Regardless of where title or risk of loss shifts from the

seller or lessor, the property must be delivered under one

of the following conditions to meet the destination test.

1. Within the United States to a carrier or freight

forwarder for ultimate delivery outside the United States to

a buyer or lessee.

2. Within the United States to a buyer or lessee who,

within 1 year of the sale or lease, delivers it outside the

United States or delivers it to another person for ultimate

delivery outside the United States.

3. Within or outside the United States to an IC-DISC

that is not a member of the same controlled group (as

defined in section 993(a)(3)) as the seller or lessor.

4. Outside the United States by means of the seller’s

delivery vehicle (ship, plane, etc.).

5. Outside the United States to a buyer or lessee at a

storage or assembly site if the property was previously

shipped from the United States by the seller or lessor.

6. Outside the United States to a purchaser or lessee

if the property was previously shipped by the seller or

lessor from the United States and if the property is located

outside the United States pursuant to a prior lease by the

seller or lessor, and either (a) the prior lease terminated at

the expiration of its term (or by the action of the prior

lessee acting alone), (b) the sale occurred or the term of

the subsequent lease began after the time at which the

term of the prior lease would have expired, or (c) the

lessee under the subsequent lease is not a related person

(a member of the same controlled group as defined in

section 993(a)(3) or a relationship that would result in a

disallowance of losses under section 267 or section

707(b)) immediately before or after the lease with respect

to the lessor, and the prior lease was terminated by the

action of the lessor (acting alone or together with the

lessee).

Line 1a. Enter the IC-DISC’s qualified export receipts

from export property sold to foreign, unrelated buyers for

delivery outside the United States. Do not include

amounts entered on line 1b.

Line 1b. Enter the IC-DISC’s qualified export receipts

from export property sold for delivery outside the United

States to a related foreign entity for resale to a foreign,

unrelated buyer, or an unrelated buyer when a related

foreign entity acts as commission agent.

9

Line 2a. Enter the gross amount received from leasing or

subleasing export property to unrelated persons for use

outside the United States.

Receipts from leasing export property may qualify in

some years and not in others, depending on where the

lessee uses the property. Enter only receipts that qualify

during the tax year. (Use Schedule E to deduct expenses

such as repairs, interest, taxes, and depreciation.)

Line 2b. A service connected to a sale or lease is related

to it if the service is usually furnished with that type of sale

or lease in the trade or business where it took place. A

service is subsidiary if it is less important than the sale or

lease.

Line 2c. Include receipts from engineering or

architectural services on foreign construction projects

abroad or proposed for location abroad. These services

include feasibility studies, design and engineering, and

general supervision of construction, but do not include

services connected with mineral exploration.

Line 2d. Include receipts for export management

services provided to unrelated IC-DISCs.

Line 2e. Qualified dividends and inclusions from

Schedule C, line 19a.

Line 2f. Include interest received on any loan that

qualifies as a producer’s loan.

Line 2g. Enter interest on any qualified export asset other

than interest on producer’s loans. For example, include

interest on accounts receivable from sales in which the

IC-DISC acted as a principal or agent and interest on

certain obligations issued, guaranteed, or insured by the

Export-Import Bank or the Foreign Credit Insurance

Association.

Line 2h. On Schedule D (Form 1120), Capital Gains and

Losses, available at IRS.gov/Form1120, report in detail

every sale or exchange of a capital asset, even if there is

no gain or loss.

In addition to Schedule D (Form 1120), attach a

separate statement figuring gain from the sale of qualified

export assets.

Line 2i. Enter the net gain or loss from line 18, Part II,

Form 4797, Sales of Business Property, available at

IRS.gov/Form4797.

In addition to Form 4797, attach a separate statement

figuring gain from the sale of qualified export assets.

Line 2j. Enter any other qualified export receipts for the

tax year not reported on lines 2a through 2i.

Include any ratable portion of any net positive section

481(a) adjustment (if the adjustment relates to qualified

export receipts). See Section 481(a) adjustment, earlier,

for additional information.

Line 3b. Enter receipts from selling products subsidized

under a U.S. program if they have been designated as

excluded receipts.

Line 3c. Enter receipts from selling or leasing property or

services for use by any part of the U.S. government if law

or regulations require U.S. products or services to be

used.

10

Line 3d. Enter receipts from any IC-DISC that belongs to

the same controlled group (as defined in section 993(a)

(3)).

Line 3e. Nonqualified dividends and inclusions from

Schedule C, line 20a.

Line 3f. Include in an attached statement any

nonqualifying gross receipts not reported on lines 3a

through 3e. Do not offset an income item against a similar

expense item.

Include any ratable portion of any net positive section

481(a) adjustment (if the adjustment relates to

nonqualifying gross receipts) on line 3f. See Section

481(a) adjustment, earlier, for additional information.

Schedule C—Dividends, Inclusions,

and Special Deductions

For purposes of the 20% ownership test on lines 1 through

7, the percentage of stock owned by the corporation is

based on voting power and value of the stock. Preferred

stock described in section 1504(a)(4) is not taken into

account.

Line 1, column (a). Enter dividends (except those

received on certain debt-financed stock acquired after

July 18, 1984—see section 246A) that:

• Are received from less-than-20%-owned domestic

corporations subject to income tax, and

• Qualify for the 50% deduction under section 243(a)(1).

Also, include the following on line 1.

• Taxable distributions from an IC-DISC or former DISC

that are designated as being eligible for the 50%

deduction and certain dividends of Federal Home Loan

Banks. See section 246(a)(2).

• Dividends received (except those received on certain

debt-financed stock acquired after July 18, 1984) from a

regulated investment company (RIC). The amount of

dividends eligible for the dividends-received deduction

under section 243 is limited by section 854(b). The

corporation should receive a notice from the RIC

specifying the amount of dividends that qualify for the

deduction.

Report so-called dividends or earnings received from

mutual savings banks, etc., as interest. Do not treat them

as dividends.

Line 2, column (a). Enter on line 2:

• Dividends (except those received on certain

debt-financed stock acquired after July 18, 1984) that are

received from 20%-or-more-owned domestic corporations

subject to income tax and that are eligible for the 65%

deduction under section 243(c), and

• Taxable distributions from an IC-DISC or former DISC

that are considered eligible for the 65% deduction.

Line 3, column (a). Enter the following.

• Dividends received on certain debt-financed stock

acquired after July 18, 1984, from domestic and foreign

corporations subject to income tax and that would

otherwise be subject to the dividends-received deduction

under section 243(a)(1), 243(c), or 245(a). Generally,

debt-financed stock is stock that the corporation acquired

by incurring a debt (for example, it borrowed money to buy

the stock).

Instructions for Form 1120-IC-DISC (Rev. 12-2025)

• Dividends received from a RIC on debt-financed stock.

The amount of dividends eligible for the

dividends-received deduction is limited by section 854(b).

The corporation should receive a notice from the RIC

specifying the amount of dividends that qualify for the

deduction.

Line 3, columns (b) and (c). Dividends received on

certain debt-financed stock acquired after July 18, 1984,

are not entitled to the full 50% or 65% dividends-received

deduction. The 50% or 65% deduction is reduced by a

percentage that is related to the amount of debt incurred

to acquire the stock. See section 246A. Also, see section

245(a) before making this computation for an additional

limitation that applies to dividends received from foreign

corporations. Attach a statement to Form 1120-IC-DISC

showing how the amount on line 3, column (c), was

figured.

Line 4, column (a). Enter dividends received on the

preferred stock of a less-than-20%-owned public utility

that is subject to income tax and is allowed the deduction

provided in section 247 for dividends paid.

Line 5, column (a). Enter dividends received on

preferred stock of a 20%-or-more-owned public utility that

is subject to income tax and is allowed the deduction

under section 247 for dividends paid.

Line 6, column (a). Enter the U.S.-source portion of

dividends that:

• Are received from less-than-20%-owned foreign

corporations, and

Instructions for Form 1120-IC-DISC (Rev. 12-2025)

• Qualify for the 50% deduction under section 245(a). To

qualify for the 50% deduction, the corporation must own at

least 10% of the stock of the foreign corporation by vote

and value.

Line 7, column (a). Enter the U.S.-source portion of

dividends that are received from 20%-or-more-owned

foreign corporations and that qualify for the 65%

deduction under section 245(a).

Line 8, column (a). Enter dividends received from wholly

owned foreign subsidiaries that are eligible for the 100%

deduction under section 245(b).

In general, the deduction under section 245(b) applies

to dividends paid out of the earnings and profits of a

foreign corporation for a tax year during which:

• All of its outstanding stock is owned (directly or

indirectly) by the domestic corporation receiving the

dividends, and

• All of its gross income from all sources is effectively

connected with the conduct of a trade or business within

the United States.

Line 9, column (c). Generally, line 9, column (c), may

not exceed the amount from line 29 of the worksheet for

Schedule C, Lines 9 and 17. However, in a year in which

an NOL occurs, this limitation does not apply even if the

loss is created by the dividends-received deduction. See

sections 172(d) and 246(b).

11

Worksheet for Schedule C, Lines 9 and 17

Keep for Your Records

Use this worksheet to figure the dividends-received deduction after the section 246(b) limitation, including the section

250 deduction. Also, use this worksheet to figure the section 250 deduction after the section 246(b) limitation. Before

completing this worksheet, complete Form 1120-IC-DISC, page 1, line 5, and Schedule C, lines 1 through 8 and 10. Also,

complete Form 8993, Part III, lines 28 and 29.

1. Refigure Form 1120-IC-DISC, page 1, line 5, without any adjustment under section 1059 and without

any capital loss carryback to the tax year under section 1212(a)(1) . . . . . . . . . . . . . . . . . . . . . . . . .

1.

2. Complete Schedule C, line 10, column (c), and enter the total here

.........................

2.

3. Subtract line 2 from line 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

3.

4. Multiply line 3 by 65% (0.65) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

4.

5. Add Schedule C, lines 2, 5, 7, and 8, column (c), and the part of the deduction on Schedule C, line 3,

column (c), that is attributable to dividends from 20%-or-more-owned corporations . . . . . . . . . . . . . .

5.

6. Enter the sum of the amounts on Form 8993, Part III, lines 28 and 29 . . . . . . . . . . . . . . . . . . . . . . . .

6.

7. Add lines 5 and 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

7.

8. Subtract line 7 from line 4. If zero or more, enter this amount on line 5, skip lines 9 through 15, and go

to line 16. If less than zero, leave line 8 blank and go to line 9 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

8.

9. Divide line 5 by line 7. Enter the result as a decimal (rounded to at least three places) . . . . . . . . . . . .

9.

10. Subtract line 4 from line 7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

10.

11. Multiply line 10 by line 9 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

11.

12. Subtract line 11 from line 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

12.

13. Subtract line 9 from 1.000

.......................................................

13.

14. Multiply line 13 by line 10 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

14.

15. Subtract line 14 from line 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

15.

16. Add the total amount of dividends from 20%-or-more-owned corporations that are included on

Schedule C, lines 2, 3, 5, 7, and 8, column (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

16.

17. Subtract line 16 from line 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

17.

18. Multiply line 17 by 50% (0.50) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

18.

19. Add Schedule C, lines 1, 4, and 6, column (c), and the part of the deduction on Schedule C, line 3,

column (c), that is not attributable to dividends from 20%-or-more-owned corporations . . . . . . . . . . .

19.

20. Add line 15 (or, if line 15 is blank, line 6) and line 19 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

20.

21. Subtract line 20 from line 18. If zero or more, enter this amount on line 19, skip lines 22 through 28,

and go to line 29. If less than zero, leave line 21 blank and go to line 22 . . . . . . . . . . . . . . . . . . . . . .

21.

22. Divide line 19 by line 20. Enter the result as a decimal (rounded to at least three places) . . . . . . . . . .

22.

23. Subtract line 18 from line 20 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

23.

24. Multiply line 23 by line 22 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

24.

25. Subtract line 24 from line 19 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

25.

26. Subtract line 22 from 1.000 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

26.

27. Multiply line 23 by line 26 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

27.

28. Subtract line 27 from line 15 (or, if line 15 is blank, line 6) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

28.

29. Dividends-received deduction after limitation (sec. 246(b)). Add line 12 (or, if line 12 is blank,

line 8) and line 25 (or if line 25 is blank, line 19). Enter the result here and on Schedule C, line 9,

column (c) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

29.

30. Section 250 deduction after limitation (sec. 246(b)). Enter the amount on line 28 (or, if line 28 is

blank, line 15, or, if line 28 and line 15 are blank, line 6) here and on Schedule C, line 17, column

(c) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

30.

Line 10, column (a). Enter the foreign-source portion of

dividends that:

• Are received from specified 10%-owned foreign

corporations (as defined in section 245A(b)), including

gain from the sale of stock of a foreign corporation that is

12

treated as a dividend for purposes of applying section

245A under section 1248(a) and (j); and

• Qualify for the 100% deduction under section 245A

excluding any hybrid dividends.

Instructions for Form 1120-IC-DISC (Rev. 12-2025)

Line 11, column (a). Enter foreign dividends not

reportable on line 3, 6, 7, 8, or 10 of column (a).

• Include on line 11 any hybrid dividends from a

controlled foreign corporation (CFC). Hybrid dividends are

generally dividends received from a CFC that would

otherwise be reported on line 10 except the CFC receives

a deduction (or other tax benefit) with respect to any

income, war profits, or excess profits taxes imposed by

any foreign country or territory of the United States.

• Also, include on line 11 the corporation’s share of

distributions from a section 1291 fund from Form 8621, to

the extent that the amounts are taxed as dividends under

section 301. See Form 8621, Information Return by a

Shareholder of a Passive Foreign Investment Company or

Qualified Electing Fund, available at IRS.gov/Form8621,

and its instructions.

Lines 12a, 12b, and 12c, column (a). Enter Subpart F

inclusions derived from the sale by a CFC.

• Line 12a: Enter the foreign-source portion of any

Subpart F inclusions attributable to the sale or exchange

by a CFC of stock in another foreign corporation

described in section 964(e)(4). This should equal the U.S.

shareholder’s pro rata share of the amount reported on

Form 5471, Information Return of U.S. Persons With

Respect to Certain Foreign Corporations, available at

IRS.gov/Form5471, Schedule I, line 1a.

• Line 12b: Enter the pro rata share of Subpart F

inclusions attributable to hybrid dividends of tiered

corporations under section 245A(e)(2). This should equal

the U.S. shareholder’s pro rata share of the amount

reported on Form(s) 5471, Schedule I, line 1b.

• Line 12c: Enter all other amounts included in income

under section 951, which should equal the U.S.

shareholder’s pro rata share of the sum of the amounts on

lines 1(c), 1(d), 1(e), 1(f), 2, 3, and 4 of Schedule I of

Form(s) 5471.

Line 13, column (a). Enter amounts included in income

under the section 951A NCTI provision from Form 8992,

Part II, line 5. If you also have a Form 5471 reporting

requirement, please attach Form 5471.

Line 15, column (a). Include the following.

• Dividends (other than capital gain distributions reported

on Schedule D (Form 1120) and exempt-interest

dividends) that are received from RICs and that are not

subject to the 50% deduction.

• Dividends from tax-exempt organizations.

• Dividends (other than capital gain distributions)

received from a real estate investment trust that, for the

tax year of the trust in which the dividends are paid,

qualifies under sections 856 through 860.

• Dividends not eligible for a dividends-received

deduction, which include the following.

1. Dividends received on any share of stock held for

less than 46 days during the 91-day period beginning 45

days before the ex-dividend date. When counting the

number of days the corporation held the stock, you may

not count certain days during which the corporation's risk

of loss was diminished. See section 246(c)(4) and

Regulations section 1.246-5 for more details.

2. Dividends attributable to periods totaling more than

366 days that the IC-DISC received on any share of

Instructions for Form 1120-IC-DISC (Rev. 12-2025)

preferred stock held for less than 91 days during the

181-day period that began 90 days before the ex-dividend

date. When counting the number of days the IC-DISC held

the stock, you may not count certain days during which

the IC-DISC’s risk of loss was diminished. See section

246(c)(4) and Regulations section 1.246-5 for more

details. Preferred dividends attributable to periods totaling

less than 367 days are subject to the 46-day holding

period rule in item 1.

3. Dividends on any share of stock to the extent the

IC-DISC is under an obligation (including a short sale) to

make related payments with respect to positions in

substantially similar or related property.

• Any other taxable dividend income not properly

reported elsewhere on Schedule C.

Line 17, column (c). Generally, line 17, column (c),

cannot exceed the amount on line 30 of the Worksheet for

Schedule C, Lines 9 and 27. See the worksheet, earlier.

However, in a year in which an NOL occurs, the limitation

in section 246(b)(1) does not apply. See sections 172(d)

and 246(b).

Line 19, column (a). Qualified dividends are dividends

that qualify as qualified export receipts. They include all

dividends (or amounts) includible in gross income (under

section 951) that are attributable to stock of related foreign

export corporations. See Qualified export receipts and A

related foreign export corporation under Section 993,

earlier, for more details.

Schedule E—Deductions

Limitations on Deductions

Uniform capitalization rules. The uniform capitalization

rules of section 263A require corporations to capitalize, or

include in inventory, certain costs.

IC-DISCs subject to the section 263A uniform

capitalization rules are required to capitalize:

1. Direct costs of assets produced or acquired for

resale, and

2. Certain indirect costs (including taxes) that are

properly allocable to property produced or property

acquired for resale.

The costs required to be capitalized under section

263A are not deductible until the property (to which the

costs relate) is sold, used, or otherwise disposed of by the

corporation. The corporation recovers these costs through

depreciation, amortization, or cost of goods sold.

Note: A small business taxpayer (defined earlier) is not

required to capitalize costs under section 263A. A small

business taxpayer that wants to discontinue capitalizing

costs under section 263A must change its method of

accounting. See section 263A(i). Also, see change in

accounting method, earlier.

For more details on the uniform capitalization rules, see

Regulations sections 1.263A-1 through 1.263A-3 and

Pub. 538.

Transactions between related taxpayers. Generally,

an accrual basis taxpayer may only deduct business

expenses and interest owed to a related party in the year

13

the payment is included in the income of the related party.

See sections 163(e)(3) and 267(a)(2) for limitations on

deductions for unpaid interest and expenses.

Golden parachute payments. A portion of the

payments made by a corporation to key personnel that

exceeds their usual compensation may not be deductible.

This occurs when the corporation has an agreement

(golden parachute) with these key employees to pay them

these excess amounts if control of the corporation

changes. See section 280G and Regulations section

1.280G-1. Also, see Line 1i. Compensation of Officers,

later.

Election to deduct business start-up and organizational costs. A corporation can elect to deduct a limited

amount of start-up and organizational costs it paid or

incurred. Any remaining costs must generally be

amortized over a 180-month period. See sections 195 and

248 and the related regulations.

Time for making an election. The corporation

generally elects to deduct start-up or organizational costs

by claiming the deduction on its income tax return filed by

the due date (including extensions) for the tax year in

which the active trade or business begins. However, for

start-up or organizational costs paid or incurred before

September 9, 2008, the corporation is required to attach a

statement to its return to elect to deduct such costs.

For more details, including special rules for costs paid

or incurred before September 9, 2008, see the

Instructions for Form 4562. Also, see the Guide to

Business Expense Resources, available at IRS.gov/

Forms-Pubs/Guide-to-Business-Expense-Resources.

If the corporation timely filed its return for the year

without making an election, it can still make an election by

filing an amended return within 6 months of the due date

of the return (excluding extensions). Clearly indicate the

election on the amended return and write“Filed pursuant

to section 301.9100-2” at the top of the amended return.

File the amended return at the same address the

corporation filed its original return. The election applies

when figuring taxable income for the current tax year and

all subsequent years.

The corporation can choose to forgo the elections

above by affirmatively electing to capitalize its start-up or

organizational costs on its income tax return filed by the

due date (including extensions) for the tax year in which

the active trade or business begins.

Note: The election to either amortize or capitalize start-up

costs is irrevocable and applies to all start-up costs that

are related to the trade or business.

Report the deductible amount of start-up and

organizational costs and any amortization on line 2g of

Schedule E. For amortization that begins during the

current tax year, complete and attach Form 4562,

Depreciation and Amortization (Including Information on

Listed Property), available at IRS.gov/Form4562.

Limitations on deductions related to property leased

to tax-exempt entities. If an IC-DISC leases property to

a governmental or other tax-exempt entity, it may not claim

deductions related to the property to the extent that they

exceed the IC-DISC’s income from the lease payments

14

(tax-exempt-use loss). Amounts disallowed may be

carried over to the next tax year and treated as a

deduction with respect to the property for that tax year.

See section 470 for exceptions.

Contributions. See the Instructions for Form 1120 and

Pub. 542 for limitations that apply to contributions.

Fines or similar penalties. Generally, no deduction is

allowed for fines or similar penalties paid or incurred to, or

at the direction of, a government or governmental entity for

violating any law, or for the investigation or inquiry into the

potential violation of a law, except:

• Amounts that constitute restitution or remediation of

property,

• Amounts paid to come into compliance with the law,

• Amounts paid or incurred as the result of orders or

agreements in which no government or governmental

entity is a party, and

• Amounts paid or incurred for taxes due.

No deduction is allowed unless the amounts are

specifically identified in the order or agreement and the

corporation establishes that the amounts were paid for

that purpose. Also, any amount paid or incurred as

reimbursement to the government for the costs of any

investigation or litigation are not eligible for the exceptions

and are nondeductible. See section 162(f).

Line 1. Export promotion expenses. Enter export

promotion expenses on lines 1a through 1m. Export

promotion expenses are an IC-DISC's ordinary and

necessary expenses paid or incurred to obtain qualified

export receipts. Do not include income taxes. Enter on

lines 2a through 2g any part of an expense not incurred to

obtain qualified export receipts.

Line 1d. Salaries and wages. Enter the total salaries

and wages paid for the tax year. Do not include salaries

and wages deductible elsewhere on the return, such as

amounts included in officers’ compensation, cost of goods

sold, elective contributions to a section 401(k) cash or

deferred arrangement, or amounts contributed under a

salary reduction SEP agreement or a SIMPLE IRA plan.

Caution: If the corporation provided taxable fringe

benefits to its employees, such as personal use of a car,

do not deduct as wages amounts allocated for

depreciation and other expenses claimed on lines 1c and

1m.

Line 1h. Freight. Enter 50% of the freight expenses

(except insurance) for shipping export property aboard

U.S. flagships and U.S.-owned and U.S.-operated aircraft

in those cases where you are not required to use U.S.

ships or aircraft by law or regulations.

Line 1i. Compensation of officers. Enter deductible

officers’ compensation on line 1i. Attach a statement

showing the name, social security number, and amount of

compensation paid to all officers. Do not include

compensation deductible elsewhere on the return, such

as amounts included in cost of goods sold, elective

contributions to a section 401(k) cash or deferred

arrangement, or amounts contributed under a salary

reduction SEP agreement or a SIMPLE IRA plan.

Instructions for Form 1120-IC-DISC (Rev. 12-2025)

See the Instructions for Form 1125E for more

information on officers’ compensation, including any

special rules and limitations that may apply.

The IC-DISC determines who is an officer under the

laws of the state where it is incorporated.

Line 1m. Other—export promotion expenses. Enter

any other allowable export promotion expenses not

claimed elsewhere on the return.

Line 2b. Taxes and licenses. Enter taxes paid or

accrued during the tax year, but do not include the

following.

• Taxes not imposed on the corporation.

• Taxes, including state or local sales taxes, that are paid

or incurred in connection with an acquisition or disposition

of property (these taxes must be treated as part of the

cost of the acquired property or, in the case of a

disposition, as a reduction in the amount realized on the

disposition).

• Taxes assessed against local benefits that increase the

value of the property assessed (such as for paving, etc.).

• Taxes deducted elsewhere on the return, such as those

reflected in cost of goods sold.

See section 164(d) for apportionment of taxes on real

property between seller and purchaser.

Line 2c. Interest. Do not deduct the following interest.

• Interest on indebtedness incurred or continued to

purchase or carry obligations if the interest is wholly

exempt from income tax. For exceptions, see section

265(b).

• For cash basis taxpayers, prepaid interest allocable to

years following the current tax year (for example, a cash

basis calendar year taxpayer who in the current tax year

prepaid interest allocable to any period after the current

tax year may deduct only the amount allocable to the

current tax year).

• Interest on debt allocable to the production of

designated property by a corporation for its own use. The

corporation must capitalize this interest. Also, capitalize

any interest on debt allocable to an asset used to produce

the property. See section 263A(f) and Regulations

sections 1.263A-8 through 1.263A-15 for definitions and

more information.

Special rules apply to the following.

• Forgone interest on certain below-market-rate loans

(see section 7872).

• Original issue discount on certain high-yield discount

obligations. See section 163(e) to figure the disqualified

portion.

• Interest which is allocable to unborrowed policy cash

values of life insurance, endowment, or annuity contracts

issued after June 8, 1997. See section 264(f). Attach a

statement showing the computation of the deduction.

Line 2d. Charitable contributions. For more

information on charitable contributions, including

substantiation and recordkeeping requirements, see

section 170 and the related regulations and Pub. 526. For

limitations on deduction and other special rules that apply

to corporations, see the Instructions for Form 1120 and

Pub. 542.

Instructions for Form 1120-IC-DISC (Rev. 12-2025)

Line 2e. Freight. Enter freight expense not deducted on

line 1h as export promotion expense.

Line 2g. Other expenses. Enter any other allowable

deduction not claimed on line 1 or lines 2a through 2f.

The IC-DISC may have to report a negative section

481(a) adjustment on line 2g. See Section 481(a)

adjustment earlier, for additional information.

Generally, a deduction may not be taken for any

amount that is allocable to a class of exempt income. See

section 265(b) for exceptions.

For more information on other deductions that may

apply to corporations, see the Guide to Business Expense

Resources, available at IRS.gov/Forms-Pubs/Guide-toBusiness-Expense-Resources.

Schedule J—Deemed and Actual

Distributions and Deferred DISC

Income for the Tax Year

Part I—Deemed Distributions Under Section

995(b)(1)

Line 2. Recognized gain on section 995(b)(1)(B)

property. Enter gain recognized during the tax year on

the sale or exchange of property, other than property

which in the hands of the IC-DISC was a qualified export

asset, previously transferred to the IC-DISC in a

transaction in which the transferor realized gain but did not

recognize the gain in whole or in part. See section 995(b)

(1)(B). Show the computation of the gain on a separate

statement. Include no more of the IC-DISC's gain than the

amount of gain the transferor did not recognize on the

earlier transfer.

Line 3. Recognized gain on section 995(b)(1)(C)

property. Enter gain recognized on the sale or exchange

of property described in section 995(b)(1)(C). Show the

computation of the gain on a separate statement. Do not

include any gain included in the computation of line 2.

Include only the amount of the IC-DISC’s gain that the

transferor did not recognize on the earlier transfer and that

would have been treated as ordinary income if the

property had been sold or exchanged rather than

transferred to the IC-DISC. Do not include gain on the sale

or exchange of IC-DISC stock-in-trade or other property

that either would be included in inventory if on hand at the

end of the tax year or is held primarily for sale in the

normal course of business.

Line 4. Income attributable to military property. Enter

50% of taxable income attributable to military property

(section 995(b)(1)(D)). Show the computation of this

income. To figure taxable income attributable to military

property, use the gross income attributable to military

property for the year and the deductions properly

allocated to that income. See Regulations section

1.995-6.

Line 9. Deemed distributions to C corporations.

Line 9 provides for the computation of the

one-seventeenth deemed distribution of section 995(b)(1)

(F)(i). Line 9 only applies to shareholders of the IC-DISC

that are C corporations.

15

Line 10. International boycott income. An IC-DISC is

deemed to distribute any income that resulted from

cooperating with an international boycott (section 995(b)

(1)(F)(ii)). See Form 5713, International Boycott Report,

available at IRS.gov/Form5713, to figure this deemed

distribution and for reporting requirements for any IC-DISC

with operations related to a boycotting country.

Line 11. Illegal bribes, etc. An IC-DISC is deemed to

distribute the amount of any illegal payments, such as

bribes or kickbacks, that it pays, directly or indirectly, to

government officials, employees, or agents (section

995(b)(1)(F)(iii)).

Line 14. Earnings and profits. Attach a computation

showing the earnings and profits for the tax year. See

section 312 for rules on figuring earnings and profits for

the purpose of the section 995(b)(1) limitation.

Line 17. Foreign investment attributable to producer’s loans. For purposes of lines 17a and 17b, foreign

investment in producer’s loans is the smallest of (1) the

net increase in foreign assets by members of the

controlled group (defined in section 993(a)(3)) to which

the IC-DISC belongs, (2) the actual foreign investment by

the group's domestic members, or (3) the IC-DISC’s

outstanding producer’s loans to members of the controlled

group.

Net increase in foreign assets and actual foreign

investment are defined in sections 995(d)(2) and (3).

See Regulations section 1.995-5 for additional

information on figuring foreign investment attributable to

producer’s loans.

Line 17a. For shareholders other than C

corporations. To figure the amount for line 17a, attach a

computation showing (1) the IC-DISC’s foreign investment

in producer’s loans during the tax year; (2) accumulated

earnings and profits (including earnings and profits for the

current tax year) minus the amount on Part I, line 15; and

(3) accumulated IC-DISC income. Enter the smallest of

these amounts (but not less than zero) on line 17a.

Line 17b. For C corporation shareholders. To figure

the amount for line 17b, attach a computation showing (1)

the IC-DISC’s foreign investment in producer's loans

during the tax year; (2) accumulated earnings and profits

(including earnings and profits for the current tax year)

minus the amount on Part I, line 16; and (3) accumulated

IC-DISC income. Enter the smallest of these amounts (but

not less than zero) on line 17b.

Lines 20 and 21. The percentages on lines 20 and 21

must add up to 100%.

Line 22. Allocate the line 22 amount to shareholders that

are individuals, partnerships, S corporations, trusts, and

estates.

Part II—Section 995(b)(1)(E) Taxable Income

Generally, any taxable income of the IC-DISC attributable

to qualified export receipts that exceed $10 million will be

deemed distributed.

Line 1. Export receipts. If there were no commission

sales, leases, rentals, or services for the tax year, enter on

Part II, line 1, the total of lines 1c and 2k, column (e), of

Schedule B.

16

If there were commission sales, leases, rentals, or

services for the tax year, the total qualified export receipts

to be entered on Part II, line 1, are figured as follows

(section 993(f)):

Line 1, Export Receipts Worksheet

1. Add lines 1c and 2k, column (b), Schedule B .

2. Add lines 1c and 2k, column (d), Schedule B .

3. Add lines 1 and 2. Enter on Schedule J, Part II,

line 1 . . . . . . . . . . . . . . . . . . . . . . . . . .

Line 3. Controlled group allocation. If the IC-DISC is a

member of a controlled group (as defined in section

993(a)(3)) that includes more than one IC-DISC, only one

$10 million limit is allowed to the group. If an allocation is

required, a statement showing each member's portion of

the $10 million limit must be attached to Form

1120-IC-DISC. See Proposed Regulations section

1.995-8(f) for details.

Lines 4 and 5. Proration of $10 million limit. The $10

million limit (or the controlled group member's share) is

prorated on a daily basis. Thus, for example, if, for its 2019

calendar tax year, an IC-DISC has a short tax year of 73

days, and it is not a member of a controlled group, the limit

that would be entered on Part II, line 5, is $2 million

(73/365 × $10 million).

Line 7. Taxable income. Enter the taxable income

attributable to line 6, qualified export receipts. The

IC-DISC may select the qualified export receipts to which

the line 5 limitation is allocated.

See Proposed Regulations section 1.995-8 for details

on determining the IC-DISC’s taxable income attributable

to qualified export receipts in excess of the $10 million

amount. Special rules are provided for allocating the

taxable income attributable to any related and subsidiary

services, and for the ratable allocation of the taxable

income attributable to the first transaction selected by the

IC-DISC that exceeds the $10 million amount. Deductions

must be allocated and apportioned according to the rules

of Regulations section 1.861-8. The selection of the

excess receipts by the IC-DISC is intended to permit the

IC-DISC to allocate the $10 million limitation to the

qualified export receipts of those transactions occurring

during the tax year that permit the greatest amount of

taxable income to be allocated to the IC-DISC under the

intercompany pricing rules of section 994.

To avoid double counting of the deemed distribution, if

an amount of taxable income for the tax year attributable

to excess qualified export receipts is also deemed

distributed under either line 1, 2, 3, or 4 of Part I, such

amount of taxable income is only includible on that line of

Part I, and must be subtracted from the amount otherwise

reportable on Part II, line 7, and carried to Part I, line 5.

See Proposed Regulations section 1.995-8(d).

After filing the IC-DISC’s current year tax return, the

allocation of the $10 million limitation and the computation

of the line 7 deemed distribution may be changed by filing

an amended Form 1120-IC-DISC only under the

conditions specified in Proposed Regulations section

1.995-8(b)(1).

Instructions for Form 1120-IC-DISC (Rev. 12-2025)

Part III—Deemed Distributions Under Section

995(b)(2)

If the corporation is a former DISC or a former IC-DISC

that revoked IC-DISC status or lost IC-DISC status for

failure to satisfy one or more of the conditions specified in

section 992(a)(1) for the current tax year, each

shareholder is deemed to have received a distribution

taxable as a dividend on the last day of the current tax

year. The deemed distribution equals the shareholder’s

prorated share of the DISC’s or IC-DISC’s income

accumulated during the years just before DISC or IC-DISC

status ended. The shareholder will be deemed to receive

the distribution in equal parts on the last day of each of the

10 tax years of the corporation following the year of the

termination or disqualification of the IC-DISC (but in no

case over more than twice the number of years the

corporation was a DISC or IC-DISC).

Part IV—Actual Distributions

Line 1. Distributions to meet qualification requirements under section 992(c). If the corporation is

required to pay interest under section 992(c)(2)(B) on the

amount of a distribution to meet the qualification

requirements of section 992(c), report this interest on

Schedule E, line 2c. Also, include the amount on

Schedule J, Part IV, line 1, and show the computation of

the interest on an attached statement.

Line 4a. Previously taxed income. Report on line 4a all

actual distributions of previously taxed income. Also,

include any distributions of pre-1985 accumulated DISC

income that are nontaxable (see Schedule L, Line 12.

Accumulated Pre-1985 DISC Income, later). Enter on the

dotted line to the left of the line 4a amount the dollar

amount of the distribution that is nontaxable pre-1985

DISC income and identify it as such. Do not include

distributions of pre-1985 DISC income that are made

under section 995(b)(2) because of prior-year revocations

or disqualifications.

Part V—Deferred DISC Income Under Section

995(f)(3)

In general, deferred DISC income is:

1. Accumulated IC-DISC income (for periods after

1984) of the IC-DISC as of the close of the computation

year, over

2. The amount of distributions-in-excess-of-income for

the tax year of the IC-DISC following the computation

year.

Note: For purposes of item 2,

distributions-in-excess-of-income means the excess (if

any) of:

• Actual distributions to shareholders out of accumulated

IC-DISC income, over

• The amount of IC-DISC income (as defined in section

996(f)(1)) for the tax year following the computation year.

Note: For purposes of items 1 and 2, see section 995(f)

and Proposed Regulations section 1.995(f)-1 for a

definition of computation year, examples, and other details

on figuring deferred DISC income.

Instructions for Form 1120-IC-DISC (Rev. 12-2025)

The amount on Part V, line 3, is allocated to each

shareholder on Part III, line 10, of Schedule K (Form

1120-IC-DISC).

Shareholders of an IC-DISC must file Form 8404 if the

IC-DISC reports deferred DISC income on Schedule K,

Part III, line 10.

Schedule K (Form

1120-IC-DISC)—Shareholder’s

Statement of IC-DISC Distributions

Attach a separate Copy A, Schedule K (Form

1120-IC-DISC), to Form 1120-IC-DISC for each

shareholder who received an actual or deemed

distribution during the tax year or to whom the corporation

reported deferred DISC income for the tax year.

For more information, see the Instructions for IC-DISC

on the back of Copy C, Schedule K (Form 1120-IC-DISC).

Schedule L—Balance Sheets per

Books

The balance sheet should agree with the IC-DISC's books

and records. Include certificates of deposits as cash on

line 1.

Line 12. Accumulated pre-1985 DISC income. If the

corporation was a qualified DISC as of December 31,

1984, the accumulated pre-1985 DISC income will

generally be treated as previously taxed income (exempt

from tax) when distributed to DISC shareholders after

December 31, 1984.

Exception. The exemption does not apply to distributions

of accumulated pre-1985 DISC income of an IC-DISC or

former DISC that was made taxable under section 995(b)

(2) because of a prior revocation of the DISC election or

disqualification of the DISC. For more details on these

distributions, see Temporary Regulations section

1.921-1T(a)(7).

Line 13. Accumulated IC-DISC income. Accumulated

IC-DISC income (for periods after 1984) is accounted for

this line. The balance of this account is used in figuring

deferred DISC income in Part V of Schedule J.

Schedule N—Export Gross Receipts

of the IC-DISC and Related U.S.

Persons

Line 1. Product code and percentage. Enter on line 1a

the code number and percentage of total export gross

receipts (defined under Line 2, Export gross receipts for

the current tax year, later) for the product or service that

accounts for the largest portion of the IC-DISC’s export

gross receipts. The product codes are at the end of these

instructions. On line 1b, enter the same information for the

IC-DISC’s next largest product or service.

Example. An IC-DISC has export gross receipts of

$10 million. Selling agricultural chemicals accounts for

$4.5 million (45% (0.45)) of that amount, which is the

IC-DISCs largest product or service. The IC-DISC should

enter “287” (the product code for agricultural chemicals)

and “45%” on line 1a.

17

Selling industrial chemicals accounts for $2 million

(20% (0.20) of the $10 million total) and is the IC-DISC’s

second-largest product or service. The IC-DISC should

enter “281” (the product code for industrial inorganic and

organic chemicals) and “20%” on line 1b.

Line 2. Export gross receipts for the current tax year.

Export gross receipts are receipts from any of the

following.

• Providing engineering or architectural services for

construction projects located outside the United States.

• Selling for direct use, consumption, or disposition

outside the United States, property (such as inventory)

produced in the United States.

• Renting this property to unrelated persons for use

outside the United States.

• Providing services involved in such a sale or rental.

• Providing export management services.

For commission sales, export gross receipts include the

total receipts on which the IC-DISC earned the

commission.

For purposes of line 2, Schedule N only, no reduction is

to be made for receipts attributable to military property.

Therefore, an IC-DISC’s export gross receipts for

purposes of line 2 include the total of the amounts from

Schedule B, columns (b) and (d) of lines 1c, 2a, 2b, 2c,

and 2d.

Related persons are:

• An individual, partnership, estate, or trust that controls

the IC-DISC;

• A corporation that controls the IC-DISC or is controlled

by it; or

• A corporation controlled by the same person or persons

who control the IC-DISC.

Control means direct or indirect ownership of more

than 50% of the total voting power of all classes of stock

entitled to vote. See section 993(a)(3).

U.S. person is:

• A citizen or resident of the United States, which

includes the Commonwealth of Puerto Rico and other

territories of the United States;

• A domestic corporation or partnership; or

• An estate or trust (other than a foreign estate or trust as

defined in section 7701(a)(31)).

Column (a). Export gross receipts of the IC-DISC. All

IC-DISCs should complete column (a) in line 2. If two or

more IC-DISCs are related persons, only the IC-DISC with

the largest export gross receipts should complete

columns (b) and (c). If an IC-DISC acts as a commission

agent for a related person, attribute the total amount of the

transaction to the IC-DISC.

Complete column (a) to report the IC-DISC’s export

gross receipts from all sources (including the United

States) for the current tax year.

Column (b). Related IC-DISCs. Complete column (b) to

report related IC-DISCs’ export gross receipts from all

sources (including the United States).

Column (c). All other related U.S. persons. Complete

column (c) to report other related U.S. persons’ export

gross receipts from all sources except the United States.

18

Line 3. Related U.S. persons. Enter on line 3 the name,

address, and identifying number of related U.S. persons in

your controlled group.

Schedule O—Other Information

Question 6. Boycott of Israel. If question 6a, 6b, or 6c

is checked “Yes,” the IC-DISC must file Form 5713 and is

also deemed to distribute part of its income. See Form

5713 for more information.

Question 7. Limitation on business interest expense.

For tax years beginning after 2017, the limitation on

business interest expense applies to every taxpayer with a

trade or business, unless the taxpayer meets certain

specified exceptions. A taxpayer may elect out of the

limitation for certain businesses otherwise subject to the

business interest expense limitation.

Certain real property trades or businesses and farming

businesses qualify to make an election not to limit

business interest expense. This is an irrevocable election.

If you make this election, you are required to use the

alternative depreciation system to depreciate any property

with a recovery period of 10 years or more. Also, you are

not entitled to the special depreciation allowance for that

property. For a taxpayer with more than one qualifying

business, the election is made with respect to each

business.

Check “Yes ” if the taxpayer has an election in effect to

exclude a real property trade or business or a farming

business from section 163(j). For more information, see

section 163(j) and the Instructions for Form 8990.

Question 8. Form 8990. Generally, a taxpayer with a

trade or business must file Form 8990, Limitation on

Business Interest Expense Under Section 163(j), available

at IRS.gov/Form8990, to claim a deduction for business

interest. In addition, Form 8990 must be filed by any

taxpayer that owns an interest in a partnership with current

year, or prior year carryover, excess business interest

expense allocated from the partnership.

Exclusions from filing. A taxpayer is not required to

file Form 8990 if the taxpayer is a small business taxpayer

and does not have excess business interest expense from

a partnership. A taxpayer is also not required to file Form

8990 if the taxpayer only has business interest expense

from these excepted trades or businesses:

• An electing real property trade or business,

• An electing farming business, or

• Certain utility businesses.

Small business taxpayer. A small business taxpayer

is not subject to the business interest expense limitation

and is not required to file Form 8990. See small business

taxpayer, earlier, for the definition of a small business

taxpayer.

Question 9. Tax-exempt interest. Report any

tax-exempt interest received or accrued. Include any

exempt-interest dividends received as a shareholder in a

mutual fund or other RIC.

Question 10. Foreign owner. If the answer to question

10(a) or 10(b) is “Yes,” enter on line 10(b)a, the

percentage owned. On line 10(b)b, enter the owner’s

country, and on line 10(b)c, if Form 5472, Information

Instructions for Form 1120-IC-DISC (Rev. 12-2025)

Return of a 25% Foreign-Owned U.S. Corporation

Engaged in a U.S. Trade or Business, available at

IRS.gov/Form5472, is filed by the corporation, enter the

number of Forms 5472 attached.

Schedule P (Form

1120-IC-DISC)—Intercompany

Transfer Price or Commission

transactions to which you apply the intercompany pricing

rules of section 994(a)(1) and (2).

For more information, see the instructions for

Schedule P (Form 1120-IC-DISC).

Complete and attach a separate Schedule P (Form

1120-IC-DISC) for each transaction or group of

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.

You are not 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 Form 1120-IC-DISC, Schedule K (Form 1120-IC-DISC), and Schedule P (Form

1120-IC-DISC), will vary depending on individual circumstances. The estimated burden for business taxpayers filing

these forms is approved under OMB control number 1545-0123.

If you have comments concerning the accuracy of these time estimates or suggestions for making these forms

simpler, we would be happy to hear from you. You can send us comments through IRS.gov/FormComments. Or you can

write to: Internal Revenue Service, Tax Forms and Publications, 1111 Constitution Ave. NW, IR-6526, Washington, DC

20224. Don’t send the tax forms to this address. Instead, see Where To File, earlier, near the beginning of these

instructions.

Instructions for Form 1120-IC-DISC (Rev. 12-2025)

19

activity codes are based on the North American

Industry Classification System. Certain activities,

such as manufacturing, do not apply to an

IC-DISC.

Form 1120-IC-DISC

Principal Business Activity Codes

This list of principal business activities and their

associated codes is designed to classify an

enterprise by the type of activity in which it is

engaged to facilitate the administration of the

Internal Revenue Code. These principal business

Wholesale Trade

Merchant Wholesalers, Durable

Goods

423100 Motor Vehicle & Motor Vehicle

Parts & Supplies

423200 Furniture & Home Furnishings

423300 Lumber & Other Construction

Materials

423400 Professional & Commercial

Equipment & Supplies

423500 Metal & Mineral (except

Petroleum)

423600 Household Appliances &

Electrical & Electronic Goods

423700 Hardware, Plumbing &

Heating Equipment, &

Supplies

423800 Machinery, Equipment, &

Supplies

423910 Sporting & Recreational

Goods & Supplies

423920 Toy & Hobby Goods &

Supplies

423930 Recyclable Materials

423940 Jewelry, Watch, Precious

Stone, & Precious Metals

423990 Other Miscellaneous Durable

Goods

Merchandise Wholesalers,

Nondurable Goods

424100 Paper & Paper Products

Using the list below, enter on page 1, item B,

the code number for the specific industry group

from which the largest percentage of total gross

424210 Drugs & Druggists’ Sundries

424300 Apparel, Piece Goods, &

Notions

424400 Grocery & Related Products

424500 Farm Product Raw Materials

424600 Chemical & Allied Products

424700 Petroleum & Petroleum

Products

424800 Beer, Wine, & Distilled

Alcoholic Beverage

424910 Farm Supplies

424920 Book, Periodical, &

Newspapers

424930 Flower, Nursery Stock, &

Florists’ Supplies

424940 Tobacco & Tobacco Products

424950 Paint, Varnish, & Supplies

424990 Other Miscellaneous

Nondurable Goods

Information

Publishing Industries (except

Internet)

511110 Newspaper Publishers

511120 Periodical Publishers

511130 Book Publishers

511140 Directory & Mailing List

Publishers

511190 Other Publishers

511210 Software Publishers

Principal Business Activity Codes

(These codes are used only with Schedule P

(Form 1120-IC-DISC)).

Transportation, Communication,

Electric, Gas, & Sanitary

Services

Transportation

4400

Water transportation

4700

Other transportation services

Electric, gas, & sanitary services

4910

Electric services

4920

Gas production & distribution

4930

Combination utility services

Wholesale Trade

Durable

5008

Machinery, equipment, &

supplies

5010

Motor vehicles & automotive

equipment

5020

Furniture & home furnishings

5030

Lumber & construction

materials

5040

Sporting, recreational,

photographic, & hobby

goods, toys, & supplies

5050

Metals & minerals, except

petroleum & scrap

5060

Electrical goods

5070

Hardware, plumbing &

heating equipment

5098

Other durable goods

Nondurable

5110

Paper & paper products

5129

Drugs, drug proprietaries, &

druggists’ sundries

5130

Apparel, piece goods, &

notions

5140

Groceries & related products

5150

Farm-product raw materials

5160

Chemicals & allied products

5170

Petroleum & petroleum

products

5180

Alcoholic beverages

5190

Miscellaneous nondurable

goods

Retail Trade

Building materials, hardware,

garden supply, mobile home

Schedule N Product Code System

(These codes are used only with

Schedule N, page 6, Form 1120-IC-DISC.)

Nonmanufactured Product

Groups & Services

015

019

011

012

013

014

021

022

023

Grains, including soybeans

Vegetables & melons

Fruit & tree nuts

Greenhouse, nursery, &

floriculture

20

Rental and Leasing

Rental and Leasing Services

532100 Automotive Equipment Rental

& Leasing

024

029

101

102

103

110

532210 Consumer Electronics &

Appliances Rental

532281 Formal Wear & Costume

Rental

532282 Video Tape & Disc Rental

532283 Home Health Equipment

Rental

532284 Recreational Goods Rental

532289 All Other Consumer Goods

Rental

532310 General Rental Centers

532400 Commercial & Industrial

Machinery & Equipment

Rental & Leasing

Professional Services

Architectural, Engineering, &

Related Services

541310 Architectural Services

541320 Landscape Architecture

Services

541330 Engineering Services

541340 Drafting Services

541350 Building Inspection Services

541360 Geophysical Surveying &

Mapping Services

541370 Surveying & Mapping (except

Geophysical) Services

541380 Testing Laboratories

Other Professional Services

541600 Management, Scientific, &

Technical Consulting

Services

Certain activities such as manufacturing do not

apply to an IC-DISC.

Using the list below, enter the code for the

specific industry group and product or product line

for each Schedule P completed.

dealers, general merchandise, &

food stores

5220

Building materials dealers

5251

Hardware stores

5265

Garden supplies & mobile

home dealers

5300

General merchandise stores

5410

Grocery stores

5490

Other food stores

Automotive dealers & service

stations

5515

Motor vehicle dealers

5541

Gasoline service stations

5598

Other automotive dealers

5600

Apparel & accessory stores

5700

Furniture & home furnishings

stores

5800

Eating & drinking places

Miscellaneous retail stores

5912

Drug stores & proprietary

stores

5921

Liquor stores

5995

Other miscellaneous retail

stores

Using the list below, enter on line 1 of Schedule N

the product code number and percent of export

gross receipts as explained in the Specific

Instructions.

Cotton

Other crops (including sugar

beets, peanuts, spices, hops,

& vegetable seeds)

Livestock

Poultry & eggs

Fishery products & services

(including shellfish)

On page 6, Schedule O, line 1, enter the

principal business activity and principal product or

service that account for the largest percentage of

total receipts. For example, if the principal activity

is “Wholesale Trade Durable Goods: Machinery,

Equipment, & Supplies,” the principal product or

service may be “Engines and Turbines.”

Motion Picture & Sound Recording

Industries

512100 Motion Picture & Video

Industries (except video

rental)

512200 Sound Recording Industries

Broadcasting (except Internet)

515100 Radio & Television

Broadcasting

515210 Cable & Other Subscription

Programming

Telecommunications

517000 Telecommunications

(including paging, cellular,

satellite, cable & other

program distribution,

resellers, other

telecommunications, &

internet service providers)

Data Processing Services

518210 Data Processing, Hosting, &

Related Services

Other Information Services

519100 Other Information Services

(including news syndicates,

libraries, internet publishing,

& broadcasting)

These codes for the Principal Business Activity

are designed to classify enterprises by the type of

activity in which they are engaged to facilitate the

administration of the Internal Revenue Code.

Schedule P (Form 1120-IC-DISC)

receipts is derived. Total receipts means all

income (line 1, page 1).

Finance, Insurance, & Real

Estate

Credit agencies other than banks

6199

Other credit agencies

Services

Business services

7389

Export management services

Auto repair & services;

miscellaneous repair services

7500

Lease or rental of motor

vehicles

Amusement & recreation services

7812

Motion picture production,

distribution, & services

Other services

8911

Architectural & engineering

services

8930

Accounting, auditing, &

bookkeeping

8980

Miscellaneous services

This product code system is divided into two

categories—nonmanufactured product groups and

services, and manufactured product groups.

Fur-bearing animals &

unfinished hides

Other animal products

Iron ores

Precious metals (including

gold & silver)

Other ores

Coal mining products

130

147

148

730

737

Secondary petroleum &

natural gas products

Nonmetallic mineral products

& services (including

limestone, sulfur, & fertilizer)

Sand, gravel, & clay

Export management services

Computer software

Schedule N Product Code System (Continued)

780

850

988

990

Motion picture distribution

Engineering & architectural

services

Leasing–other property

(except aircraft)

Other nonmanufactured

products

Manufactured Product Groups

Ordnance & accessories

191

Guns, howitzers, mortars, &

related equipment

192

Ammunition (except small

arms)

194

Sighting & fire control

equipment

195

Small arms

196

Small arms ammunition

199

Other ordnance &

accessories

Food & kindred products

201

Meat products

202

Dairy products

203

Fruits, vegetables, & seafood

204

Grain mill products

205

Bakery products

206

Sugar

207

Confectionery & related

products

208

Beverages

209

Other food & kindred

products

Tobacco products

211

Cigarettes

212

Cigars

213

Tobacco (chewing &

smoking) & snuff

Textile mill products

221

Broad woven cotton fabrics

222

Broad woven synthetic fibers

& silk fabrics

223

Broad woven wool fabrics

224

Narrow fabrics

225

Knit fabrics

226

Dyed & finished textiles

227

Carpets & rugs

228

Yarns & threads

229

Other textile goods

Apparel & other finished goods

231

Men’s & boys’ clothing &

furnishings

233

Women’s, children’s, &

infants’ clothing &

accessories (including fur

goods & millinery)

238

Footwear (except rubber &

leather)

239

Other apparel & accessories

Lumber & wood products (except

furniture)

241

Logs & log products

243

Lumber construction

materials (including millwork,

veneer, plywood, &

prefabricated structural wood

products)

244

Wooden containers

249

Other lumber & wood

products

Furniture & fixtures

251

Household furniture

252

Office furniture

253

Public building & related

furniture

259

Other furniture & fixtures

Paper & allied products

261

Pulp

262

Newsprint

263

Business machine paper

264

Stationery & office supplies

(including pens & pencils)

265

Paperboard (including

containers & boxes)

266

Paper bags & coated &

treated paper (including

wallpaper & gift wrap)

269

Other paper & allied products

Printed media

271

Newspapers

272

Periodicals

273

Books

274

Greeting cards

275

Manifold business forms

279

Other printed media

Chemicals & allied products

281

Industrial inorganic & organic

chemicals

282

Plastics materials, synthetic

resins, synthetic rubber, &

synthetic fibers

283

Drugs

284

Soap, detergents, cleaning

preparations, perfumes,

cosmetics, & toiletries

285

Paints, varnishes, lacquers,

enamels, & allied products

286

Gum & wood chemicals

287

Agricultural chemicals

289

Other chemicals & allied

products

Refined petroleum & related

products

291

Refined petroleum

295

Paving & roofing materials

299

Other petroleum & related

products

Rubber & plastics products

301

Tires & inner tubes

302

Rubber footwear

303

Reclaimed rubber

306

Fabricated rubber products

309

Other rubber & plastics

products

Leather & leather products

311

Tanned & finished leather

312

Industrial leather belting &

packing

313

Boot & shoe cut stock &

findings

314

Leather footwear

315

Leather gloves & mittens

316

Leather luggage

317

Leather handbags & other

personal leather goods

319

Other leather & leather

products

Stone, clay, glass, & concrete

products

321

Flat glass

322

Glass & glassware, pressed

or blown

323

Glass products, made or

purchased glass

324

Cement, hydraulic

325

Structural clay products

326

Pottery & related products

327

Concrete, gypsum, & plaster

products

328

Cut stone & stone products

329

Abrasive, asbestos, & other

nonmetallic mineral products

Primary & secondary nonfabricated

metal products

331

Iron & steel products

332

Nonferrous metal products

339

Other primary & secondary

nonfabricated metal products

Fabricated metal products (except

ordnance, machinery, &

transportation)

341

Metal cans

342

Cutlery, hand tools, & general

hardware

343

Heating apparatus (except

electric) & plumbing fixtures

344

Fabricated structural metal

products

345

Screw machine products &

bolts, nuts, screws, rivets, &

washers

346

Metal stampings

347

Coated & engraved metal

products

349

Other fabricated metal

products

Machinery (except electrical &

electronic)

351

Engines & turbines

352

Farm machinery & equipment

353

Construction, mining, &

materials handling machinery

& equipment

354

Metalworking machinery &

equipment

355

Special industry machinery

(except metalworking

machinery)

356

General industrial machinery

& equipment

357

Service industry machinery

359

Other machinery (except

electrical & electronic)

Electrical & electronic machinery,

equipment, & supplies

361

Electric power transmission &

distribution equipment

(including transformers,

motors, & generators)

362

Electrical office equipment

(including photocopying

machines & calculators)

363

Household appliances

364

Electric lighting & wiring

equipment

365

Audio & video equipment

(except communication

types)

366

Communication equipment

367

Semiconductors, capacitors,

resistors, & other electronic

components

368

Computer & peripheral

equipment

369

Other electrical & electronic

machinery, equipment, &

supplies

Transportation equipment

371

Motor vehicles & motor

vehicle equipment

372

Aircraft & aircraft parts &

equipment

373

Leased aircraft

374

Ships & nautical equipment

375

Railroad equipment

376

Motorcycles, bicycles, & parts

378

Tanks & tank components

379

Other transportation

equipment

Professional, scientific, &

controlling instruments;

photographic & optical goods;

watches & clocks

381

Engineering, laboratory,

scientific & research

instruments, & associated

equipment

382

Instruments for measuring,

controlling, & indicating

physical characteristics

383

Optical instruments, lenses,

binoculars, microscopes,

telescopes, & prisms

384

Surgical, medical, & dental

instruments & supplies

385

Ophthalmic goods

386

Photographic equipment &

supplies

387

Watches & clocks

Other manufactured products

391

Jewelry, silverware, & plated

ware

393

Musical instruments

394

Toys, amusement, sporting, &

athletic goods

395

Artists’ materials

396

Costume jewelry, costume

novelties, buttons, & other

notions (except precious

metal)

399

Other manufactured products

21