Instructions for Form 1120-FSC (2006)

Instructions for Form 1120-FSC - Introductory Material

This is archived information that pertains only to the 2006 Tax Year. If you
are looking for information for the current tax year, go to the Tax Prep Help Area.

Table of Contents

What's New

The IRS has changed the filing address for Form 1120-FSC. See Where To File on page 4.
The Tax Increase Prevention and Reconciliation Act of 2005 repealed the foreign sales corporation (FSC) binding contract exception. See Binding contract exception on page 2 for details.
Cash contributions made in tax years beginning after August 17, 2006, must be supported by a dated bank record or receipt. See section 170 for additional information.
The larger deductions for contributions of certain food inventory and qualified book contributions to certain schools have been extended through December 31, 2007. See section 170 for additional information.
Corporations that paid the federal telephone excise tax on long distance or bundled service may be able to request a credit. See the instructions for line 2h on page 7.
Controlled groups must complete new Schedule O (Form 1120), Consent Plan and Apportionment Schedule for a Controlled Group, before completing Schedule J. See the Instructions for Schedule O.

Photographs of Missing Children

The Internal Revenue Service is a proud partner with the National Center for Missing and Exploited Children. Photographs of 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.

Unresolved Tax Issues

If the FSC has attempted to deal with an IRS problem unsuccessfully, it should contact the Taxpayer Advocate. The Taxpayer Advocate independently represents the FSC's interests and concerns within the IRS by protecting its rights and resolving problems that have not been fixed through normal channels.

While Taxpayer Advocates may not change the tax law or make a technical tax decision, they may clear up problems that resulted from previous contacts and ensure that the FSC's case is given a complete and impartial review.

The FSC's assigned personal advocate will listen to its point of view and will work with the FSC to address its concerns. The FSC can expect the advocate to provide:

A “fresh look” at a new or on-going problem,
Timely acknowledgment,
The name and phone number of the individual assigned to its case,
Updates on progress,
Timeframes for action,
Speedy resolution, and
Courteous service.

When contacting the Taxpayer Advocate, the FSC should be prepared to provide the following information:

The FSC's name, address, and employer identification number.
The name and telephone number of an authorized contact person and the hours he or she can be reached.
The type of tax return and year(s) involved.
A detailed description of the problem.
Previous attempts to solve the problem and the office that was contacted.
A description of the hardship the FSC is facing and supporting documentation (if applicable).

The FSC can contact a Taxpayer Advocate as follows:

Call the Taxpayer Advocate's toll-free number: 1-877-777-4778.
Call, write, or fax the Taxpayer Advocate office in its area (see Pub. 1546 for addresses and phone numbers).
TTY/TDD help is available by calling 1-800-829-4059.
Visit the website at www.irs.gov/advocate.

How To Get Forms and Publications

Internet. You can access the IRS website 24 hours a day, 7 days a week, at www.irs.gov to:

Download forms, instructions, and publications;
Order IRS products online;
Research your tax questions online;
Search publications online by topic or keyword; and
Sign up to receive local and national tax news by email.

IRS Tax Products CD. You can order Pub. 1796, IRS Tax Products CD, and obtain:

Current year forms, instructions, and publications,
Prior year forms, instructions, and publications,
Bonus: Historical Tax Products DVD — Ships with the final release,
Tax Map: an electronic research tool and finding aid,
Tax law frequently asked questions (FAQs),
Tax topics from the IRS telephone response system,
Fill-in, print, and save features for most tax form,
Internal Revenue Bulletins, and
Information on how to access toll-free and email technical support.

This CD is released twice during the year.

The first release ships in the beginning of January 2007.
The final release will ship the beginning of March 2007.

Purchase the CD from the National Technical Information Service at www.irs.gov/cdorders for $25 (no handling fee) or call 1-877-CDFORMS (1-877-233-6767) toll-free to buy the CD for $25 (plus a $5 handling fee). Price is subject to change.

By phone and in person. You can order forms and publications by calling 1-800-TAX-FORM (1-800-829-3676). You can also get most forms and publications at your local IRS office.