Instructions for 
Form 1120-F - Introductory Material


Future Developments

For the latest information about developments related to Form 1120-F and its instructions, such as legislation enacted after they were published, go to 
www.irs.gov/form1120f .

What's New

Information reporting requirements under the Affordable Care Act (ACA).   Under the ACA, foreign corporations that employ 50 or more full-time employees (including full-time equivalent employees) use Forms 1094-C and 1095-C to report the information required under sections 6055 and 6056 about offers of health coverage and enrollment in health coverage for their employees. In addition, these forms are used in determining whether an employer owes payments under the employer shared responsibility provisions under section 4980H. These forms are required for calendar years beginning after December 31, 2014, but may voluntarily be filed with the IRS and provided to individuals for 2014. For more information, see Forms 1094-C and 1095-C on page 5. Also, for information related to the Affordable Care Act, visit www.irs.gov/ACA.

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 retroactively be applied to tax years beginning after 2011. See TD 9636, 2013-43 I.R.B. 331, at www.irs.gov/irb/2013-43_IRB.

Schedules M-1 and M-3.   For tax years ending December 31, 2014, and later, Form 1120-F filers that (a) are required to file Schedule M-3 (Form 1120-F) 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-F) and voluntarily file Schedule M-3 (Form 1120-F), must either complete Schedule M-3 (Form 1120-F) entirely or complete Schedule M-3 (Form 1120-F) through Part I, and complete Schedule M-1 instead of completing Parts II and III of Schedule M-3 (Form 1120-F). If these filers choose to complete Schedule M-1 instead of completing Parts II and III of Schedule M-3 (Form 1120-F), line 1 of Schedule M-1 must equal line 11 of Part I of Schedule M-3 (Form 1120-F). See Schedule M-3 attached on page 11 and Schedules M-1 and M-3 on page 30.

Form W-8BEN-E.    As the withholding requirements of chapter 4 (FATCA) generally begin as of July 1, 2014, the Form W-8 series has been revised in 2014 to incorporate the requirements for withholding agents to document the status of persons for chapter 4 purposes. Form W‐8BEN has been revised so that it is only used by individuals to provide information to the withholding agent or payer. The IRS has developed new Form W‐8BEN‐E for entities to provide information to the withholding agent or payer. See refunds of U.S. withholding tax, later, and the instructions for Form W-8BEN-E for more details.

Online payment agreement.   The corporation may be able to apply for an installment agreement online if it has a balance due when the corporation's return is filed. See the instructions for line 7.

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

TAS can help the corporation if:

  • A problem is causing financial difficulty for the business,

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

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

TAS has offices in every state, the District of Columbia, and Puerto Rico. Local advocates' numbers are in their local directories and at www.irs.gov/Advocate/Local-Taxpayer-Advocate. The corporation can also call TAS at 1-877-777-4778.

TAS also handles large-scale or systemic problems that affect many taxpayers. If the corporation 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.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 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 the last few years; and

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

Tax forms and publications.   The corporation can download or print all of the forms and publications it may need on www.irs.gov/formspubs. Otherwise the corporation can:
  • Call 1-800-829-3676 to order current year forms, instructions, publications and prior year forms and instructions (limited to 5 years).

   The corporation should receive its order within 10 business days.


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