Instructions for Form 1120 (2009)

What's New

The corporation can elect to defer income from cancellation of debt in connection with an applicable debt instrument reacquired after December 31, 2008, and before January 1, 2011, and include the deferred income over a 5-year period. In addition, any applicable accrued original issue discount (OID) is allowed as a deduction ratably over the 5-year period that the income from cancellation of debt is includible in income. See section 108(i). Also, see the instructions for lines 10 and 26.
The American Recovery and Reinvestment Act of 2009 expanded the rules that apply to limitations on deductions for executive compensation. These rules now apply to any entity that receives or has received financial assistance under the Troubled Asset Relief Program (TARP). See the instructions for line 12.
The limitations on net operating loss (NOL) carryforward following an ownership change do not apply to certain ownership changes after February 17, 2009, made according to a restructuring plan under the Emergency Economic Stabilization Act of 2008. See the instructions for line 29a.
The Worker, Homeownership, and Business Assistance Act of 2009 allows most corporations to elect a 3, 4, or 5-year carryback period for an applicable NOL for a tax year ending after December 31, 2007, and beginning before January 1, 2010. However, this relief is not available for a corporation that received payments under TARP. Other special rules apply. See Rev. Proc. 2009-52, 2009-49 I.R.B. 744. Also see the instructions for line 30.
The election to accelerate the minimum tax and research credits in lieu of claiming any additional first year special depreciation allowance for eligible qualified property has been extended to eligible qualified extension property. See the instructions for line 32g.
The maximum 15% alternative tax does not apply to qualified timber gain after May 22, 2009. See the instructions for Schedule J, line 2.
New Schedule G (Form 1120), Information on Certain Persons Owning the Corporation's Voting Stock, is required if the corporation checked “Yes” to Schedule K, question 4a or 4b. See the instructions for Schedule K, question 4.
Certain tax benefits for Midwestern disaster areas, including special charitable contribution benefits, have expired. See Pub. 4492-B, Information for Affected Taxpayers in the Midwestern Disaster Areas.

For the latest information, see
www.irs.gov/formspubs.

Photographs ofMissing 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

The Taxpayer Advocate Service (TAS) is an independent organization within the IRS whose employees assist taxpayers who are experiencing economic harm, who are seeking help in resolving tax problems that have not been resolved through normal channels, or who believe that an IRS system or procedure is not working as it should. The service is free, confidential, tailored to meet your needs, and is available for businesses, as well as individuals.

The corporation can contact the TAS as follows.

Call the TAS toll-free line at 1-877-777-4778 or TTY/TDD 1-800-829-4059 to see if the corporation is eligible for assistance.
Call or write the corporation's local taxpayer advocate, whose phone number and address are listed in the local telephone directory and in Pub. 1546, Taxpayer Advocate Service – Your Voice at the IRS.
File Form 911, Request for Taxpayer Advocate Service Assistance (And Application for Taxpayer Assistance Order), or ask an IRS employee to complete it on the corporation's behalf.

For more information, go to www.irs.gov/advocate.

Direct Deposit of Refund

To request a direct deposit of the corporation's income tax refund into an account at a U.S. bank or other financial institution, attach Form 8050, Direct Deposit of Corporate Tax Refund. See the instructions for line 36 on page 15.

How To Make a Contribution To Reduce Debt Held by the Public

To help reduce debt held by the public, make a check payable to “Bureau of the Public Debt.” Send it to: Bureau of the Public Debt, Department G, P.O. Box 2188, Parkersburg, WV 26106-2188. Or, enclose a check with the income tax return. Do not add the contributions to any tax the corporation may owe. Contributions to reduce debt held by the public are deductible subject to the rules and limitations for charitable contributions.

How To Get Formsand 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;
View Internal Revenue Bulletins (IRBs) published in recent years; and
Sign up to receive local and national tax news by email.

IRS Tax Products DVD. You can order Pub. 1796, IRS Tax Products DVD, and obtain the following.

Current-year forms, instructions, and publications.
Prior-year forms, instructions, and publications.
Tax Map: an electronic research tool and finding aid.
Tax law frequently asked questions (FAQs).
Tax Topics from the IRS telephone response system.
Internal Revenue Code – Title 26 of the U.S. Code.
Fill-in, print, and save features for most tax forms.
Internal Revenue Bulletins.
Toll-free and email technical support.
Two releases during the year.
– The first release will ship early in January.
– The final release will ship early in March.

Buy the DVD from the National Technical Information Service (NTIS) at www.irs.gov/cdorders for $30 (no handling fee) or call 1-877-233-6767 toll free to buy the DVD for $30 (plus a $6 handling fee).

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.

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