Instruction 1120-ND (Rev. February 2007)
Department of the Treasury
Internal Revenue Service
Instructions for
Form 1120-ND
(Rev. February 2007)
Return for Nuclear Decommissioning Funds and Certain Related Persons
power plant is granted a license renewal,
Note. Each person liable for filing a return
Section references are to the Internal
extending its useful life.
to pay any tax reportable on this form must
Revenue Code unless otherwise noted.
file a separate return.
What's New
General Instructions
When To File
·
For tax years beginning in 2006 only, a
nuclear decommissioning fund can request
Generally, a fund must file its income tax
Purpose of Form
a credit or refund of the federal telephone
return by the 15th day of the 3rd month after
Nuclear decommissioning funds use Form
excise tax paid on long distance or bundled
the end of its tax year. The return of a
1120-ND, Return for Nuclear
services that were billed after February 28,
trustee or self-dealer who owes tax under
Decommissioning Funds and Certain
2003, and before August 1, 2006. See the
section 4951 must be filed by the 15th day
Related Persons, to report contributions
instructions for line 14.
of the 3rd month after the end of the tax
received, income earned, the administrative
·
For tax years beginning after 2005, the
year of the trustee or self-dealer.
expenses of operating the fund, and the tax
following apply to nuclear decommissioning
If the due date falls on a Saturday,
on modified gross income. The return is also
funds. For more information, see section
Sunday, or legal holiday, the fund may file
used to report the section 4951 initial taxes
468A as amended by the Energy Tax
on the next business day.
on self-dealing.
Incentives Act of 2005.
Private delivery services. Funds can use
1. There is no longer a cost of service
Who Must File
certain private delivery services designated
requirement for deductible contributions,
by the IRS to meet the timely mailing as
and all taxpayers are allowed deductions for
All section 468A nuclear decommissioning
"timely filing/paying" rule for tax returns and
amounts contributed to a qualified fund.
funds must file Form 1120-ND. A
payments. See the Instructions for Form
2. Taxpayers can accumulate up to
disqualified person engaging in self-dealing
1120, U.S. Corporation Income Tax Return,
100% of the present value of the nuclear
must file Form 1120-ND to report the initial
for details.
power plant's decommissioning costs in a
tax. See Part II, Initial Taxes on Self-Dealing
qualified plan.
(Section 4951), on page 3 to determine if an
Private delivery services cannot
3. Taxpayers can apply for a new ruling
individual has engaged in self-dealing as a
deliver items to P.O. boxes. The fund
amount if, in any tax a year, the nuclear
trustee or disqualified person.
must use the U.S. Postal Service to
CAUTION
!
mail any item to an IRS P.O. box address.
Extension of time to file. File Form 7004,
Where To File
Application for Automatic 6-Month Extension
of Time To File Certain Business Income
Tax, Information, and Other Returns, to
File the fund's or disqualified person's or trustee's return at the applicable IRS address
request a 6-Month extension of time to file.
listed below.
Generally, file Form 7004 by the regular due
date of the return.
If the fund's principal
And the total assets at the
Use the following Internal
business, office, or agency
end of the tax year (Form
Revenue Service Center
A disqualified person or trustee filing to
is located in:
1120-ND, Schedule L, line 6,
address:
report section 4951 taxes must also file
column (b)) are:
Form 7004 to request an extension of time
to file.
Connecticut, Delaware,
District of Columbia, Illinois,
Who Must Sign
Indiana, Kentucky, Maine,
The return must be signed and dated by an
Maryland, Massachusetts,
Less than $10 million
Cincinnati, OH 45999-0012
authorized trustee. The return of any person
Michigan, New Hampshire,
who engaged in any act of self-dealing must
New Jersey, New York, North
be signed and dated by that person or the
Carolina, Ohio, Pennsylvania,
individual authorized to sign on behalf of
Rhode Island, South Carolina,
$10 million or more
Ogden, UT 84201-0012
that person.
Vermont, Virginia, West
Virginia, Wisconsin
If an employee of the fund completes
Form 1120-ND, the paid preparer's space
Alabama, Alaska, Arizona,
should remain blank. Anyone who prepares
Arkansas, California,
Form 1120-ND but does not charge the fund
Colorado, Florida, Georgia,
should not complete that section. Generally,
Hawaii, Idaho, Iowa, Kansas,
anyone who is paid to prepare the return
Louisiana, Minnesota,
must sign it and fill in the "Paid Preparer's
Mississippi, Missouri,
Any amount
Ogden, UT 84201-0012
Use Only" area.
Montana, Nebraska, Nevada,
New Mexico, North Dakota,
The paid preparer must complete the
Oklahoma, Oregon, South
required preparer information and:
Dakota, Tennessee, Texas,
·
Sign the return in the space provided for
Utah, Washington, Wyoming
the preparer's signature.
·
Give a copy of the return to the taxpayer.
Cat. No. 11508V
Paid Preparer Authorization
Estimated Tax Payments
Recordkeeping
If the fund wants to allow the IRS to discuss
Generally, the following rules apply to the
Keep the fund's records for as long as they
its tax return with the paid preparer who
fund's payments of estimated tax.
may be needed for the administration of any
signed it, check the "Yes" box in the
·
The fund must make installment
provision of the Internal Revenue Code.
signature area of the return. This
payments of estimated tax if it expects its
Usually, records that support an item of
authorization applies only to the individual
total tax for the year (less applicable credits)
income, deduction, or credit on the return
whose signature appears in the "Paid
to be $500 or more.
must be kept for 3 years from the date the
Preparer's Use Only" section of the fund's
·
The installments are due by the 15th day
return is due or filed, whichever is later.
return. It does not apply to the firm, if any,
of the 4th, 6th, 9th, and 12th months of the
Keep records that verify the fund's basis in
shown in that section.
tax year. If any date falls on a Saturday,
property for as long as they are needed to
Sunday, or legal holiday, the installment is
figure the basis of the original or
The authorization will automatically end
due on the next regular business day.
replacement property.
no later that the due date (excluding
·
Figure the fund's expected modified gross
The fund should keep copies of all filed
extensions) for filing the fund's tax return. If
income for the tax year. Then multiply the
returns. They help in preparing future and
the fund wants to expand the paid
fund's expected modified gross income by
amended returns.
preparer's authorization or revoke
20% and use Form 1120-W, Estimated Tax
authorization before it ends, see Pub. 947,
for Corporations, as a worksheet to compute
Additional Information
Practice Before the IRS and Power of
estimated tax.
See the instructions for Form 1120 and Pub.
Attorney.
·
If the fund does not use EFTPS, use the
542, Corporations, for more information
deposit coupons (Forms 8109) to make
about corporations, including additional
Assembling the Return
deposits of estimated tax.
forms the fund may need to file and how to
·
If the fund overpaid estimated tax, it may
To ensure that the fund's tax return is
get forms and publications.
be able to get a quick refund by filing Form
correctly processed, attach all schedules
4466, Corporation Application for Quick
after page 2, Form 1120-ND, in alphabetical
Refund of Overpayment of Estimated Tax.
order followed by other forms in numerical
Specific Instructions
order.
For more information on estimated tax
payments, see the instructions for line 15.
Complete every applicable entry space
Period Covered
on Form 1120-ND. Do not write "See
Enter the tax year in the space provided at
Interest and Penalties
Attached" instead of completing the entry
the top of the form. For a calendar year,
spaces. If more space is needed on the
Interest. Interest is charged on taxes paid
enter the last two digits of the calendar year
forms or schedules, attach separate sheets
late even if an extension of time to file is
in the first entry space. For a fiscal tax year
using the same size and format as the
granted. Interest is also charged on
return, fill in the tax year space at the top of
printed forms. If there are supporting
penalties imposed for failure to file,
the form.
statements and attachments, arrange them
negligence, fraud, substantial valuation
in the same order as the schedules or forms
misstatements, substantial understatements
Name and Address
they support and attach them last. Show the
of tax, and reportable transaction
The fund name must be entered on every
totals on the printed forms. Also, be sure to
understatements from the due date
Form 1120-ND. If this return is filed to report
enter the fund's name and employer
(including extensions) to the date of
the income, deductions, and income tax
identification number (EIN) on each
payment. The interest charge is figured at a
liability of the fund, enter the name and
supporting statement or attachment.
rate determined under section 6621.
address of the fund in the address section.
Penalties. A fund that does not file its tax
If the return is filed by a trustee or
Depository Method of Tax
return by the due date, including extensions,
disqualified person to report section 4951
Payment
may be penalized 5% of the unpaid tax for
taxes, enter that person's name and
each month or part of a month the return is
Generally, the following apply to deposits of
address in the address section.
late, up to a maximum of 25% of the unpaid
tax payments.
Include the suite, room, or other unit
tax. A fund that does not pay the tax when
number after the street address. If the Post
·
The fund must pay the tax due in full no
due generally may be penalized
1
/
2
of 1% of
Office does not deliver mail to the street
later than the 15th day of the 3rd month
the unpaid tax for each month or part of a
address and the fund, trustee, or disqualified
after the end of the tax year.
month the tax is not paid, up to a maximum
person has a P.O. box, show the box
·
The fund must make electronic deposits
of 25% of the unpaid tax. These penalties
number instead.
of all depository taxes (such as employment
will not be imposed if the fund can show that
tax, excise tax, and fund income tax) after
the failure to pay was due to reasonable
Item A. Employer Identification
December 31 of the calendar year following
cause.
any calendar year in which the fund
Number (EIN)
Other penalties can be imposed for
deposited more than $200,000 of such
Enter the fund's EIN. If the fund does not
negligence, substantial understatement of
taxes. Once the fund is required to use the
have an EIN, it must apply for one. An EIN
tax, reportable transaction understatements,
Electronic Federal Tax Payment System
may be applied for online, by telephone, by
and fraud. See sections 6662, 6662A, and
(EFTPS), it must continue to use EFTPS in
fax, or by mail depending on how soon the
6663.
all later years.
fund needs to use the EIN. Use Form SS-4,
·
If the fund is required to use EFTPS and
Application for Employer Identification
Accounting Method
fails to do so, it may be subject to a 10%
Number.
The fund must use the same method of
penalty. If the fund is not required to use
If the fund has not received its EIN by the
accounting as the electing taxpayer.
EFTPS, it may participate voluntarily. To
time the return is due, write "Applied for" and
enroll in or get more information about
the date the fund applied in the space for
Rounding Off to Whole Dollars
EFTPS, call 1-800-555-4477. To enroll
the EIN. For more details, see the
online, visit www.eftps.gov.
The fund may round off cents to whole
Instructions for Form SS-4.
dollars on its return and schedules. If the
If the fund does not use EFTPS, deposit
fund does round to whole dollars, it must
Item B. Identifying Number of
fund income tax payments (and estimated
round all amounts. To round, drop amounts
Trustee or Disqualified Person
tax payments) with Form 8109, Federal Tax
under 50 cents and increase amounts from
Deposit Coupon. If the fund does not have a
If the return is filed by a trustee or
50 to 99 cents to the next dollar (for
preprinted Form 8109, use Form 8109-B to
disqualified person to report section 4951
example, $1.39 becomes $1 and $2.50
make deposits. Get this form by calling
taxes, enter the identifying number of the
becomes $3).
1-800-829-4933 or visiting an IRS taxpayer
trustee or disqualified person. For an
assistance center. Have the fund's EIN
If two or more amounts must be added to
individual trustee or disqualified person,
ready when calling or visiting. For more
figure the amount to enter on a line, include
enter the individual's social security number.
information, see the instructions for Form
cents when adding the amounts and round
If the trustee or disqualified person is not an
8109.
off only the total.
individual, enter the EIN.
-2-
Note. Do not complete item B if Form
federal income taxes or taxes not imposed
Schedule M. Other Information
1120-ND is filed to report the income,
on the fund.
Line 1. The term "electing taxpayer" means
deductions, and income tax liability of the
Line 8. Other deductions. Attach a
an eligible taxpayer that elects the
fund.
schedule listing by type and amount all
application of section 468A to deduct
allowable deductions that are not deducted
payments made to a nuclear
Item C. Fund, Trustee, or
elsewhere on Form 1120-ND. Include
decommissioning fund. See Regulations
investment advisory fees, actuarial
Disqualified Person
section 1.468A-7 for the rules concerning
expenses, and other administrative
Check only the box that applies.
the election.
expenses paid or incurred during the tax
1. When filed to report the income,
Line 5. If you are a trustee or disqualified
year, but do not include decommissioning
deductions, and income tax liability of the
person (defined below) complete the items
costs.
fund, check the "Fund" box.
included in line 5 to determine if you have
Line 11. Net operating loss deduction.
2. When filed by a trustee who is liable
engaged in an act of self-dealing.
Enter the amount of any net operating loss
for taxes under section 4951, check the
deduction allowed by Regulations section
"Trustee" box.
Part II. Initial Taxes on
1.468A-4(b)(4), and explain its computation
3. When filed by a disqualified person
Self-Dealing (Section 4951)
on an attached schedule.
who is liable for section 4951 tax, check the
"Disqualified person" box.
Line 14. Payments. Generally, no
Initial taxes on self-dealers
payments are allowed other than those on
An initial tax of 10% of the amount involved
lines 14a through 14d and the credit for
Item D. Final Return, Name
(defined later) is imposed on each act of
backup withholding. However, for 2006, the
Change, Address Change, or
self-dealing between a disqualified person
following apply.
and a nuclear decommissioning fund for
Amended Return
Credit for federal telephone excise tax
each tax year (or part of a tax year) in the
Indicate a final return, name change,
paid. If the fund was billed after February
taxable period. The tax is required to be
address change, or amended return by
28, 2003, and before August 1, 2006, for the
paid by any disqualified person (other than a
checking the appropriate box. If you are a
federal telephone excise tax on long
trustee acting only as a trustee of the trust)
trustee or disqualified person reporting
distance or bundled service, the fund may
who participates in the act of self-dealing.
section 4951 taxes, omit item D.
be able to request a credit for the tax paid.
The fund had bundled service if its local and
Initial taxes on trustee
Note. If a change in address occurs after
long distance service was provided under a
the return is filed, use Form 8822, Change
A tax of 2
1
/
2
% of the amount involved is
plan that does not separately state the
of Address, to notify the IRS of the new
imposed on a trustee who participates in the
charge for local service. The fund cannot
address.
act of self-dealing. The tax is not imposed if
request the credit if it has already received a
the trustee unwillingly or due to reasonable
credit or refund from its service provider. If
Part I. Computation of Fund
cause participated in the act. The tax is
the fund requests the credit, it cannot ask its
computed on all acts of self-dealing that
Income Tax
service provider for a credit or refund and
occur within the taxable period. The tax is
must withdraw any request previously
required to be paid by the trustee who
Income
submitted to its provider.
participates in the act.
Line 1. Taxable interest. Enter the total
The fund can request the credit by
Exceptions. The initial tax on the act of
taxable interest income received or accrued
attaching Form 8913, Credit for Federal
self-dealing of a disqualified person or a
for the year, including any original issue
Telephone Excise Tax Paid, showing the
trustee is not imposed if the acts of
discount. Do not include tax-exempt interest
actual amount the fund paid. Include the
self-dealing are corrected within the taxable
on line 1; but report it as an item of
amount from line 16 of Form 8913 in the
period.
information on Schedule M, line 2d.
total for line 14f of Form1120-ND. Enter
"TETR" in the space next to line 14f. Attach
Line 2. Capital gain net income. Every
Definitions
Form 8913 to the fund's 2006 Form
sale, exchange, or actual or deemed
Self-dealing. When determining if an act is
1120-ND or the fund's return for the tax year
distribution of assets held by the fund must
an act of self-dealing, treat the transfer of
that includes December 31, 2006.
be reported in detail on Schedule D (Form
personal property by a disqualified person to
1120), Capital Gains and Losses, even if
The fund also may be able to request the
the fund as a sale or exchange if the
there is no gain or loss. The amount realized
credit based on an estimate of the amount
property is subject to a mortgage or similar
on an actual or deemed distribution is the
paid. See Form 8913 for details. In either
lien. Otherwise, the term "self-dealing"
fair market value of the assets as of the date
case, the fund must keep records to
means any direct or indirect:
of distribution.
substantiate the amount of the credit
·
Sale, exchange, or leasing of real or
requested.
Line 3. Other income. Enter any other
personal property between the fund and a
taxable income not reported on line 1 or line
disqualified person;
Backup withholding. If the fund had
2 and explain its nature on an attached
·
Lending of money or other extensions of
federal income tax withheld from any
schedule. If the fund had only one item of
credit between the fund and a disqualified
payments it received because, for example,
other income, describe it in parentheses on
person;
it failed to give the payer its correct EIN,
line 3.
·
Furnishing of goods, services, or facilities
include the amount withheld in the total for
between the fund and a disqualified person;
line 14f. Write the amount withheld and the
Deductions
·
Payment of compensation (or payment or
words "Backup Withholding" in the blank
Note. A deduction is not allowed for certain
reimbursement of expenses) by the fund to
space above line 14f.
expenses allocable to tax-exempt income.
a disqualified person; and
Line 15. Estimated tax penalty. A fund
See section 265. In addition, a deduction is
·
Transfers to, or use by or for the benefit
that does not make estimated tax payments
not allowed for distributions made to electing
of, a disqualified person of the income or
when due may be subject to an
taxpayers. Report such payments as an
assets of the fund.
underpayment penalty for the period of
item of information on Schedule M, line 2c.
Exceptions. Acts of self-dealing do not
underpayment. Use Form 2220,
Liabilities are not treated as incurred prior to
include:
Underpayment of Estimated Tax by
the time economic performance takes place.
Corporations, to see if the fund owes a
1. The payment by the fund for the
See section 461(h).
penalty and to figure the amount of the
purposes of satisfying, in whole or in part,
Line 5. Trustee fees. Enter the total
penalty. If Form 2220 is attached, check the
the liability of the electing taxpayer for
deductible fees paid or incurred to the
box on line 15 and enter the amount of the
decommissioning costs of the nuclear power
trustee(s) for administering the fund during
penalty on that line.
plant.
the tax year.
2. The withdrawal of excess
Schedule L. Balance Sheets
Line 6. Taxes. Enter deductible taxes paid
contributions by the electing taxpayer in
or incurred during the tax year, including
The balance sheets should agree with the
accordance with Regulations section
state and local income taxes. Do not deduct
fund's books and records.
1.468A-5(c)(2).
-3-
3. The withdrawal of amounts that have
Disqualified person. The term "disqualified
amounts by the deemed payment deadline
been treated as distributions to the electing
person" means a person who is:
(2
1
/
2
months after the end of the tax year of
taxpayer under Regulations section
the disposition), the transferee's ruling
1. A contributor to the fund.
1.468A-5(c)(3).
amount for the interest acquired is
2. A trustee of the fund.
4. The payment of amounts remaining in
determined by taking the amount contained
3. An owner of more than 10% of (a) the
the fund to the electing taxpayer after the
in the transferor's current schedule of ruling
total combined voting power of a
termination of the fund upon the substantial
amounts for that tax year and that plant
corporation, (b) the profits interest of a
completion of decommissioning.
multiplied by the product of:
partnership, or (c) the beneficial interest of a
5. The furnishing of goods, services, or
trust or unincorporated business that is a
(1) The portion of the transferor's
facilities by a disqualified person to the fund
contributor to the fund.
qualifying interest that is transferred, and
if the furnishing is without charge and if the
4. An officer, director, or employee of a
(2) A fraction, the numerator of which is
goods, services, or facilities so furnished are
person who is a contributor to the fund.
the number of days in the tax year of the
exclusively used for the purposes specified
5. The spouse, ancestor, or a lineal
transferor including and following the date of
in section 468A(e)(4).
descendant, or a spouse of a lineal
the disposition, and the denominator of
6. The payment of compensation (and
descendant of an individual described in (1)
which is the number of days in that tax year.
the payment or reimbursement of expenses)
through (4) above.
B.Transferor. If a transferor does not file
by the fund to a disqualified person for
6. A corporation of which persons
a request for a revised schedule of ruling
personal services that are reasonable and
described in (1) through (5) above own more
amounts on or before the deemed payment
necessary to carry out the purposes of the
than 35% of the total combined voting
deadline for the tax year of the transferor in
fund and the compensation (or payment or
power.
which the disposition of its interest in the
reimbursement of expenses) is not
7. A partnership of which persons
nuclear power plant occurred (that is, the
excessive.
described in (1) through (5) above own more
date that is 2
1
/
2
months after the close of
7. A payment by the fund for the
than 35% of the profits interests.
that tax year), the transferor's ruling amount
performance of trust functions and certain
8. A trust or estate of which persons
with respect to that plant for that year will
general banking services by a bank or trust
described in (1) through (5) above own more
equal the sum of:
company that is a disqualified person, if the
than 35% of the beneficial interest.
(1) The ruling amount contained in the
banking services are reasonable and
transferor's current schedule of ruling
necessary to carry out the purposes of the
For purposes of (3a) and (6) above,
amounts with respect to that plant for that
fund and the compensation paid to the bank
indirect stockholders would be taken into
tax year multiplied by the portion of
or trust company is not excessive
account under section 267(c), except that,
qualifying interest that is retained, if any,
(considering the fair market interest rate for
for purposes of this paragraph, section
and
the use of the funds by the bank or trust
267(c)(4) will be treated as providing that
company).
(2) The ruling amount contained in the
the members of the family of an individual
transferor's current schedule of ruling
are only those individuals described in (5)
The allowable general banking services
amounts with respect to that plant for that
above. For purposes of (3a), (3c), (7), and
are:
tax year multiplied by the product of:
(8) above, the ownership of profits or
·
Checking accounts, as long as the bank
beneficial interests will be determined by the
(a) The portion of the transferor's
does not charge interest on any
rules of constructive ownership of stock
qualifying interest that is disposed of and
overwithdrawals;
provided in section 267(c) (other than
(b) A fraction, the numerator of which is
·
Savings accounts, as long as the fund
paragraph (3) thereof), except that section
the number of days in the tax year that
may withdraw its money after giving no
267(c)(4) will be treated as providing that
precede the date of the disposition, and the
more than 30 days notice, without losing
the members of the family of an individual
denominator of which is the number of days
interest for the period the money was on
are only those individuals described in (5)
in that tax year.
deposit; and
above.
4. Tax year after the year of
·
Safekeeping activities (for example, rental
disposition. A transferee of, or a transferor
of a safe deposit box).
Dispositions of an Interest in a
who retains, a qualifying interest in a nuclear
Nuclear Power Plant
Taxable period. For an act of self-dealing,
power plant, must file a request for a revised
the term "taxable period" means the period
schedule of ruling amounts for the interest
There are federal income tax consequences
beginning on the date of the act of
by the deemed payment deadline (defined
when there is a transfer of assets of a
self-dealing and ending on the date of the
above). If the transferee (or the transferor)
nuclear decommissioning fund in connection
earliest of --
does not timely file such a request, the
with the sale, exchange, or other disposition
·
The date of mailing of a notice of
transferee's (or the transferor's) ruling
of a transferor of all or a portion of its
deficiency under section 6212 for the
amounts for the interest for that tax year will
qualifying interest in a nuclear power plant
section 4951 tax,
be zero.
to another taxpayer (transferee). If the
·
The date on which the tax imposed by
requirements of Regulations section
section 4951 is assessed, or
For more information, see Regulations
1.468A-6(b) are met, the federal income tax
·
The date correction of the act of
section 1.468A-6.
consequences are the following:
self-dealing is completed.
1. No gain or loss. If there is a
Privacy Act and Paperwork Reduction
disposition of an interest (wholly or partially)
Amount involved. The term "amount
Act Notices. We ask for the information on
in a nuclear power plant, neither the
involved" means the greater of the amount
this form to carry out the Internal Revenue
transferor or the transferee (or either's fund)
of money given (or received) and the fair
laws of the United States. You are required
will recognize gain, loss, or otherwise take
market value of the other property given (or
to give us the information. We need it to
any income or deduction into account
received). When services described in
ensure that you are complying with these
because of the transfer of all or some of the
section 4951(d)(2)(C) are involved, the
laws and to allow us to figure and collect the
assets of the transferor's fund. Also, the
amount involved is only the excess
right amount of tax.
transfer is not considered a payment or
compensation.
contribution of assets by the transferor's
Section 4951 of the Internal Revenue
Note. Fair market value is determined as of
fund (or by the transferee to its fund).
Code requires disqualified taxpayers
the date on which the act of self-dealing
2. Basis. Transfers of assets of a fund
engaged in self-dealing with a trust to pay
occurs and at the highest market value
to which Regulations section 1.468A-6
over to the IRS an initial tax. This form is
during the taxable period.
applies do not affect basis. The transferee's
used to report the initial amount of tax that
fund will have a basis in the assets received
Correction and correct. The terms
you owe. Sections 6001 and 6011 require
from the transferor equal to the transferor's
"correction" and "correct" mean the undoing
you to provide the requested information if
basis in those assets immediately prior to
of an act of self-dealing, to the extent
the tax applies to you. Section 6109 and its
the transfer.
possible, but in any case returning the fund
regulations require you to provide your
3. Tax year of disposition.
to a financial position no worse than it would
social security number or other identifying
have been if the disqualified person acted
A. Transferee. If a transferee does not
number. Routine uses of this information
under the highest fiduciary relationship.
file a request for a schedule of ruling
include disclosing it to the Department of
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Justice for civil and criminal litigation and to
subject to the Paperwork Reduction Act
Preparing the form . . . . . . . . .
5 hr., 30 min.
other federal agencies, as provided by law.
unless the form displays a valid OMB control
Copying, assembling, and
We may disclose the information to cities,
number. Books or records relating to a form
sending the form to the IRS . . .
32 min.
states, the District of Columbia, and U.S.
or its instructions must be retained as long
Commonwealths or possessions to
as their contents may become material in
If you have comments concerning the
administer their tax laws. We may disclose
the administration of any Internal Revenue
accuracy of these time estimates or
the information to foreign governments
law. Generally, tax returns and return
suggestions for making this form simpler, we
pursuant to tax treaties. We may disclose
information are confidential, as required by
would be happy to hear from you. You can
the information to contractors for tax
section 6103.
write to the Internal Revenue Service, Tax
administration purposes. We may also
The time needed to complete and file this
Products Coordinating Committee,
disclose this information to federal and state
form will vary depending on individual
SE:W:CAR:MP:T:T:SP, 1111 Constitution
agencies to enforce federal nontax criminal
circumstances. The estimated average time
Ave., NW, IR-6406, Washington, DC 20224.
laws and to combat terrorism. If you do not
is:
Do not send the tax form to this address.
provide this information, or you provide false
Instead, see Where To File, on page 1.
Recordkeeping . . . . . . . . . . . . 23 hr., 26 min.
or fraudulent information, you may be
subject to interest, penalties, and/or criminal
Learning about the law or the
prosecution.
form . . . . . . . . . . . . . . . . . . .
3 hr., 7 min.
You are not required to provide the
information requested on a form that is
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