Instructions for Form 1120-C - Introductory Material


Future Developments

For the latest information about developments related to Form 1120-C and its instructions, such as legislation enacted after they were published, go to www.irs.gov/form1120c.

What's New

Deduction and capitalization of expenditures related to tangible property.   Final regulations under sections 162(a) and 263(a) provide guidance for taxpayers that acquire, produce or improve tangible property. The final regulations clarify and expand the standards of previous regulations under sections 162(a) and 263(a). The regulations generally apply to tax years beginning after 2013. However, certain provisions may be retroactively applied to tax years beginning after 2011. See TD 9636, 2013-43 I.R.B. 331, at www.irs.gov/irb/2013-43_IRB/ar05.html.

Schedule M-3.   For tax years ending December 31, 2014, and later, Form 1120-C filers that (a) are required to file Schedule M-3 (Form 1120) and have less than $50 million total assets at the end of the tax year, or (b) are not required to file Schedule M-3 (Form 1120) and voluntarily file Schedule M-3 (Form 1120), must either complete Schedule M-3 (Form 1120) entirely or complete Form 1120-C, Schedule M-1, instead of completing Parts II and III of Schedule M-3 (Form 1120). These filers are also not required to file Form 8916-A, Supplemental Attachment to Schedule M-3. If these filers choose to complete Form 1120-C, Schedule M-1, instead of completing Parts II and III of Schedule M-3 (Form 1120), line 1 of Form 1120-C, Schedule M-1, must equal line 11 of Part I of Schedule M-3 (Form 1120). See Schedule M-3 (Form 1120) and Schedule M-1, Reconciliation of Income (Loss) per Books With Income per Return, later.

Online payment agreement.   The cooperative may be able to apply for an installment agreement online if it has a balance due when the cooperative's return is filed. See the instructions for line 31.

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

The Taxpayer Advocate Service (TAS) is your voice at the IRS. Its job is to ensure that every taxpayer is treated fairly and that you know and understand your rights. TAS offers free help to guide you through the often-confusing process of resolving tax problems that you haven't been able to solve on your own. Remember, the worst thing you can do is nothing at all.

As a taxpayer, the cooperative has rights that the IRS must abide by in its dealings with the cooperative. The TAS tax toolkit at www.taxpayeradvocate.irs.gov/ can help the cooperative understand these rights.

TAS can help the cooperative if:

  • Problems are causing financial difficulty for the business,

  • The business is facing an immediate threat of adverse act.

  • The cooperative have tried repeatedly to contact the IRS but no one has responded, or the IRS hasn't responded by the date promised.

TAS have offices in every state, the District of Columbia, and Puerto Rico. The cooperative's local advocate's number is in its local directory and at www.irs.gov/Advocate/Local-Taxpayer-Advocate. The cooperative can also call TAS at 1-877-777-4778.

TAS also handles large-scale or systemic problems that affect many taxpayers. If the cooperative knows of one of these broad issues, please report it to us through the Systemic Advocacy Management System at www.irs.gov/sams.

For more information go to www.taxpayeradvocate.irs.gov

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 the cooperative can enclose a check with its income tax return. Do not add the contributions to any tax the cooperative 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 IRS.gov to:
  • Download forms, instructions, and publications;

  • Order IRS products online;

  • Research your tax questions online;

  • Search publications online by topic or keyword;

  • Use the online Internal Revenue Code, regulations, or other official guidance;

  • View Internal Revenue Bulletins (IRBs) published in the last few years; and

  • Sign up to receive local and national tax news by email.

Tax forms and publications.   The cooperative can download or print all of the forms and publications it may need on www.irs.gov/formspubs . Otherwise, the cooperative can:
  • Go to www.irs.gov/orderforms to place an order and have forms mailed to it, or

  • Call 1-800-829-3676 to order current year forms, instructions, publications and prior year forms and instructions (limited to 5 years).

  The cooperative should receive its order within 10 business days.


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