# Instructions for Form

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## Record

- **Collection:** Agency decision
- **Document type:** Agency decision

## Text

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.

Photographs of Missing Children

The IRS is a proud partner with the National Center for
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missing children selected by the Center may appear in
instructions on pages that would otherwise be blank. You
can help bring these children home by looking at the
photographs and calling 1-800-THE-LOST
(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.
4

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
5

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

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Source: Frix Law Library, https://www.frixlaw.com/law-library/documents/agency%3Airs%3A9749df5775b87ab0. Public record. Not legal advice.