Instructions for Form 1120-ND (Rev. December 2005)

Transcription

1 Instructions for Form 1120-ND (Rev. December 2005) Return for Nuclear Decommissioning Funds and Certain Related Persons Section references are to the Internal Revenue Code unless otherwise noted. Department of the Treasury Internal Revenue Service late December and the final release ships in What s New late February; General Instructions Self-dealers or trustees who are reporting Current year forms, instructions, and section 4591 taxes now use Form 7004 to publications; Purpose of Form request an extension of time to file. See Prior year forms, instructions, and Nuclear decommissioning funds use Form Extension of time to file on page 2. publications; 1120-ND, Return for Nuclear For tax years beginning after December Tax Map: an electronic research tool and Decommissioning Funds and Certain 31, 2005, the special rules for deducting finding aid; Related Persons, to report contributions nuclear decommissioning cost have been received, income earned, the administrative modified. See section 468A. Tax law frequently asked questions expenses of operating the fund, and the tax (FAQs); on modified gross income. The return is also How To Get Forms and Tax Topics from the IRS telephone used to report the section 4951 initial taxes response system; on self-dealing. Publications Fill-in, print and save features for most tax Internet. You can access the IRS website forms; Who Must File 24 hours a day, 7 days a week, at The Internal Revenue Bulletin; and All section 468A nuclear decommissioning to: Toll-free and technical support. funds must file Form 1120-ND. A Download forms, instructions, and disqualified person engaging in self-dealing publications; Buy the CD-ROM from the National must file Form 1120-ND to report the initial Order IRS products online; Technical Information Service (NTIS) at tax. See Part II, Initial Taxes on Self-Dealing Research your tax questions online; for $25 (no handling (Section 4951), on page 4 to determine if an Search publications online by topic or fee) or call CDFORMS individual has engaged in self-dealing as a keyword; and ( ) toll free to buy the trustee or disqualified person. Sign up to receive local and national tax CD-ROM for $25 (plus a $5 handling fee). Note. Each person liable for filing a return news by . By phone and in person. You can order to pay any tax reportable on this form must CD-ROM. You can order Publication 1796, forms and publications by calling file a separate return. IRS Tax Products CD-ROM and obtain: TAX-FORM ( ). You A CD that is released twice so you have can also get most forms and publications at When To File the latest products. The first release ships in your local IRS office. Generally, a fund must file its income tax return by the 15th day of the 3rd month after the end of its tax year. The return of a trustee or self-dealer who owes tax under Where To File section 4951 must be filed by the 15th day of the 3rd month after the end of the tax year of the trustee or self-dealer. File the fund s or disqualified person s or trustee s return at the applicable IRS address listed below. If the due date falls on a Saturday, Sunday, or legal holiday, the fund may file If the fund s principal And the total assets at the Use the following Internal on the next business day. business, office, or agency end of the tax year (Form Revenue Service Center Private delivery services. Funds can use is located in: 1120-ND, Schedule L, line 6, address: column (b)) are: Connecticut, Delaware, District of Columbia, Illinois, Indiana, Kentucky, Maine, Maryland, Massachusetts, Less than $10 million Cincinnati, OH Michigan, New Hampshire, New Jersey, New York, North Carolina, Ohio, Pennsylvania, Rhode Island, South Carolina, $10 million or more Ogden, UT Vermont, Virginia, West Virginia, Wisconsin Alabama, Alaska, Arizona, Arkansas, California, Colorado, Florida, Georgia, Hawaii, Idaho, Iowa, Kansas, Louisiana, Minnesota, Mississippi, Missouri, Any amount Ogden, UT Montana, Nebraska, Nevada, New Mexico, North Dakota, Oklahoma, Oregon, South Dakota, Tennessee, Texas, Utah, Washington, Wyoming Cat. No V certain private delivery services designated by the IRS to meet the timely mailing as timely filing/paying rule for tax returns and payments. These private delivery services include only the following. DHL Express (DHL): DHL Same Day Service, DHL Next Day 10:30 am, DHL Next Day 12:00 pm, DHL Next Day 3:00 pm, and DHL 2nd Day Service. Federal Express (FedEx): FedEx Priority Overnight, FedEx Standard Overnight, FedEx 2Day, FedEx International Priority, and FedEx International First. United Parcel Service (UPS): UPS Next Day Air, UPS Next Day Air Saver, UPS 2nd Day Air, UPS 2nd Day Air A.M., UPS Worldwide Express Plus, and UPS Worldwide Express. The private delivery service can tell you how to get written proof of the mailing date. Private delivery services cannot! deliver items to P.O. boxes. You CAUTION must use the U.S. Postal Service to mail any item to an IRS P.O. box address.

2 Extension of time to file. File Form 7004, Complete every applicable entry space 8109) and Pub. 583, Starting a Business Application for Automatic 6-month Extension on Form 1120-ND. Do not write See and Keeping Records. of Time To File Certain Business Income Attached instead of completing the entry Tax, Information, and Other Returns, to spaces. If more space is needed on the If the fund owes tax when it files request a 6-month extension of time to file. forms or schedules, attach separate sheets! Form 1120-ND, do not include the CAUTION Generally file Form 7004 by the regular due using the same size and format as the payment with the tax return. Instead, date of the return. printed forms. If there are supporting mail or deliver the payment with Form 8109 statements and attachments, arrange them to an authorized depositary, or use EFTPS, A disqualified person or trustee filing to in the same order as the schedules or forms if applicable. report section 4951 taxes must also file Form 7004 to request an extension of time they support and attach them last. Show the Estimated Tax Payments to file. totals on the printed forms. Also, be sure to enter the fund s name and EIN on each Generally, the following rules apply to the supporting statement or attachment. fund s payments of estimated tax. Who Must Sign The fund must make installment The return must be signed and dated by an Depository Method of Tax payments of estimated tax if it expects its authorized trustee. The return of any person total tax for the year (less applicable credits) who engaged in any act of self-dealing must Payment to be $500 or more. be signed and dated by that person or the The fund must pay the tax due in full no later The installments are due by the 15th day individual authorized to sign on behalf of than the 15th day of the 3rd month after the of the 4th, 6th, 9th, and 12th months of the that person. end of the tax year. The two methods of tax year. If any date falls on a Saturday, If an employee of the fund completes depositing taxes are discussed below. Sunday, or legal holiday, the installment is Form 1120-ND, the paid preparer s space due on the next regular business day. should remain blank. Anyone who prepares Electronic Deposit Requirement Figure the fund s expected modified gross Form 1120-ND but does not charge the fund The fund must make electronic deposits of income for the tax year. Then multiply the should not complete that section. Generally, all depository taxes (such as employment fund s expected modified gross income by anyone who is paid to prepare the return tax, excise tax, and fund income tax) after 20% and use Form 1120-W, Estimated Tax must sign it and fill in the Paid Preparer s December 31 of the calendar year following for Corporations, as a worksheet to compute Use Only area. any calendar year in which the fund estimated tax. The paid preparer must complete the deposited more than $200,000 of such If the fund does not use EFTPS, use the required preparer information and: taxes. Once the fund is required to use the deposit coupons (Forms 8109) to make Sign the return in the space provided for Electronic Federal Tax Payment System deposits of estimated tax. the preparer s signature. (EFTPS), it must continue to use EFTPS in For more information on estimated tax Give a copy of the return to the taxpayer. all later years. payments, including penalties that apply if If the fund is required to use EFTPS and the fund fails to make required payments, Paid Preparer Authorization fails to do so, it may be subject to a 10% see the instructions for line 15. If the fund wants to allow the IRS to discuss penalty. If the fund is not required to use Overpaid estimated tax. If the fund its tax return with the paid preparer who EFTPS, it may participate voluntarily. To overpaid estimated tax, it may be able to get signed it, check the Yes box in the enroll in or get more information about a quick refund by filing Form 4466, signature area of the return. This EFTPS, call To enroll Corporation Application for Quick Refund of authorization applies only to the individual online, visit Overpayment of Estimated Tax. The whose signature appears in the Paid Depositing on time. For EFTPS deposits overpayment must be at least 10% of the Preparer s Use Only section of the fund s to be made timely, the fund must initiate the fund s expected income tax liability and at return. It does not apply to the firm, if any, transaction at least 1 business day before least $500. File Form 4466 after the end of shown in that section. the date the deposit is due. the fund s tax year, and no later than the If the Yes box is checked, the fund is 15th day of the third month after the end of authorizing the IRS to call the paid preparer Deposits With Form 8109 the tax year. Form 4466 must be filed before to answer any questions that may arise If the fund does not use EFTPS, deposit the fund files its tax return. during the processing of its return. The fund fund income tax payments (and estimated is also authorizing the paid preparer to: tax payments) with Form 8109, Federal Tax Interest and Penalties Give the IRS any information that is Deposit Coupon. If you do not have a Interest. Interest is charged on taxes paid missing from the return, preprinted Form 8109, use Form 8109-B to late even if an extension of time to file is Call the IRS for information about the make deposits. You can get this form by granted. Interest is also charged on processing of the return or the status of any calling or visiting an IRS penalties imposed for failure to file, related refund or payment(s), and taxpayer assistance center. Have your EIN negligence, fraud, substantial valuation Respond to certain IRS notices that the ready when you call or visit. misstatements, substantial understatements fund has shared with the preparer about Do not send deposits directly to an IRS of tax, and reportable transaction math errors, offsets, and return preparation. office; otherwise, the fund may have to pay understatements from the due date The notices will not be sent to the preparer. a penalty. Mail or deliver the completed (including extensions) to the date of The fund is not authorizing the paid Form 8109 with the payment to an payment. The interest charge is figured at a preparer to receive any refund check, bind authorized depository (for example, a rate determined under section the fund to anything (including any commercial bank or other financial institution Penalty for late filing of return. A fund additional tax liability), or otherwise authorized to accept federal tax deposits). that does not file its tax return by the due represent the fund before the IRS. Make checks or money orders payable to date, including extensions, may be The authorization will automatically end that depositary. penalized 5% of the unpaid tax for each no later than the due date (excluding If the fund prefers, it can mail the coupon month or part of a month the return is late, extensions) for filing the fund s tax return. If and payment to: Financial Agent, Federal up to a maximum of 25% of the unpaid tax. the fund wants to expand the paid Tax Deposit Processing, P.O. Box , The minimum penalty for a return that is preparer s authorization or revoke St. Louis, MO Make the check or over 60 days late is the smaller of the tax authorization before it ends, see Pub. 947, money order payable to Financial Agent. due or $100. The penalty will not be Practice Before the IRS and Power of imposed if the fund can show that the failure Attorney. To help ensure proper crediting, write the to file on time was due to reasonable cause. fund s EIN, the tax period to which the Funds that file late must attach a statement Assembling the Return deposit applies, and Form 1120-ND on the explaining the reasonable cause. To ensure that the fund s tax return is check or money order. Darken the 1120 Penalty for late payment of tax. A fund correctly processed, attach all schedules box on the coupon. Records of these that does not pay the tax when due after page 2, Form 1120-ND, in alphabetical deposits will be sent to the IRS. generally may be penalized 1 /2 of 1% of the order followed by other forms in numerical For more information on deposits, see unpaid tax for each month or part of a month order. the instructions in the coupon booklet (Form the tax is not paid, up to a maximum of 25% -2-

3 of the unpaid tax. The penalty will not be Online Click on the EIN link at Line 3. Other income. Enter any other imposed if the fund can show that the failure The EIN is taxable income not reported on line 1 or line to pay was due to reasonable cause. issued immediately once the application 2 and explain its nature on an attached Other penalties. Other penalties can be information is validated. schedule. If the fund had only one item of imposed for negligence, substantial By telephone at from other income, describe it in parentheses on understatement of tax, reportable 7:00 a.m. to 10:00 p.m. in the fund s local line 3. transaction understatements, and fraud. See time zone. By mailing or faxing Form SS-4, Deductions sections 6662, 6662A, and Application for Employer Identification Note. A deduction is not allowed for certain Accounting Method Number. expenses allocable to tax-exempt income. The fund must use the same method of If the fund has not received its EIN by the See section 265. In addition, a deduction is accounting as the electing taxpayer. time the return is due, write Applied for in not allowed for distributions made to electing the space for the EIN. For more details, see taxpayers. Report such payments as an Rounding Off to Whole Dollars Pub item of information on Schedule M, line 2d. Liabilities are not treated as incurred prior to The fund may round off cents to whole Item B Identifying Number of the time economic performance takes place. dollars on its return and schedules. If the See section 461(h). fund does round to whole dollars, it must Trustee or Disqualified Person round all amounts. To round, drop amounts Line 5. Trustee fees. Enter the total If the return is filed by a trustee or under 50 cents and increase amounts from deductible fees paid or incurred to the disqualified person to report section to 99 cents to the next dollar (for trustee(s) for administering the fund during taxes, enter the identifying number of the example, $1.39 becomes $1 and $2.50 the tax year. trustee or disqualified person. For an becomes $3). individual trustee or disqualified person, Line 6. Taxes. Enter deductible taxes paid If two or more amounts must be added to enter the individual s social security number. or incurred during the tax year, including figure the amount to enter on a line, include If the trustee or disqualified person is not an state and local income taxes. Do not deduct cents when adding the amounts and round individual, enter the EIN. federal income taxes or taxes not imposed off only the total. Note. Do not complete item B if Form on the fund ND is filed to report the income, Line 8. Other deductions. Attach a Recordkeeping deductions, and income tax liability of the schedule listing by type and amount all Keep the fund s records for as long as they fund. allowable deductions that are not deducted may be needed for the administration of any elsewhere on Form 1120-ND. Include provision of the Internal Revenue Code. Item C Fund, Trustee, or investment advisory fees, actuarial Usually, records that support an item of Disqualified Person expenses, and other administrative income, deduction, or credit on the return expenses paid or incurred during the tax must be kept for 3 years from the date the Check only the box that applies. year, but do not include decommissioning return is due or filed, whichever is later. 1. When filed to report the income, costs. Keep records that verify the fund s basis in deductions, and income tax liability of the fund, check the Fund box. Line 11. Net operating loss deduction. property for as long as they are needed to 2. When filed by a trustee who is liable Enter the amount of any net operating loss figure the basis of the original or for taxes under section 4951, check the deduction allowed by Regulations section replacement property. Trustee box A-4(b)(4), and explain its computation The fund should keep copies of all filed 3. When filed by a disqualified person on an attached schedule. returns. They help in preparing future and amended returns. Specific Instructions who is liable for section 4951 tax, check the Disqualified person box. Item D Final Return, Name Change, Address Change, or Amended Return Line 14. Payments. No payments are allowed other than those on lines 14a through 14d and the credit for backup withholding. Backup withholding. If the fund had federal income tax withheld from any Period Covered payments it received because, for example, Enter the tax year in the space provided at Indicate a final return, name change, it failed to give the payer its correct EIN, the top of the form. For a calendar year, address change, or amended return by include the amount withheld in the total for enter the last two digits of the calendar year checking the appropriate box. If you are a line 14f. Write the amount withheld and the in the first entry space. For a fiscal tax year trustee or disqualified person reporting words Backup Withholding in the blank return, fill in the tax year space at the top of section 4951 taxes omit item D. space above line 14f. the form. Note. If a change in address occurs after Line 15. Estimated tax penalty. A fund the return is filed, use Form 8822, Change that does not make estimated tax payments Name and Address of Address, to notify the IRS of the new when due may be subject to an The fund name must be entered on every address. underpayment penalty for the period of Form 1120-ND. If this return is filed to report underpayment. Generally, a fund is subject the income, deductions, and income tax Part I. Computation of Fund to the penalty if its tax liability is $500 or liability of the fund, enter the name and Income Tax more, and it did not timely pay the smaller address of the fund in the address section. of: If the return is filed by a trustee or Income Its current year tax liability or disqualified person to report section 4951 Its prior year tax. Line 1. Taxable interest. Enter the total taxes, enter that person s name and taxable interest income received or accrued See section 6655 for details and address in the address section. for the year, including any original issue exceptions, including special rules for large Include the suite, room, or other unit discount. Do not include tax-exempt interest corporations. number after the street address. If the Post on line 1; but report it as an item of Use Form 2220, Underpayment of Office does not deliver mail to the street information on Schedule M, line 2e. Estimated Tax by Corporations, to see if the address and the fund, trustee, or disqualified Line 2. Capital gain net income. Every fund owes a penalty and to figure the person has a P.O. box, show the box sale, exchange, or actual or deemed amount of the penalty. Generally, the fund number instead. distribution of assets held by the fund must does not have to file this form because the Item A Employer be reported in detail on Schedule D (Form IRS can figure the amount of any penalty 1120), Capital Gains and Losses, even if and bill the fund for it. However, even if the Identification Number (EIN) there is no gain or loss. The amount realized fund does not owe the penalty, complete Enter the fund s EIN. If the fund does not on an actual or deemed distribution is the and attach Form 2220 if: have an EIN, it must apply for one. An EIN fair market value of the assets as of the date The annualized income or adjusted may be applied for: of distribution. seasonal installment method is used or -3-

4 The fund is a large corporation computing Exceptions. Acts of self-dealing do not Note. Fair market value is determined as of its first required installment based on the include: the date on which the act of self-dealing prior year s tax. (See the Instructions for 1. The payment by the fund for the occurs and at the highest market value Form 2220 for a definition of a large purposes of satisfying, in whole or in part, during the taxable period. corporation.) the liability of the electing taxpayer for Correction and correct. The terms If Form 2220 is attached, check the box decommissioning costs of the nuclear power correction and correct mean the undoing on line 15 and enter the amount of the plant. of an act of self-dealing, to the extent penalty on that line. 2. The withdrawal of excess possible, but in any case returning the fund contributions by the electing taxpayer in to a financial position no worse than it would Schedule L Balance Sheets accordance with Regulations section have been if the disqualified person acted The balance sheets should agree with the fund s books and records A-5(c)(2). 3. The withdrawal of amounts that have been treated as distributions to the electing under the highest fiduciary relationship. Disqualified person. The term disqualified person means a person who is: Schedule M Other Information taxpayer under Regulations section 1. A contributor to the fund. Line 1. The term electing taxpayer means 1.468A-5(c)(3). an eligible taxpayer that elects the 4. The payment of amounts remaining in 2. A trustee of the fund. application of section 468A to deduct the fund to the electing taxpayer after the 3. An owner of more than 10% of (a) the payments made to a nuclear termination of the fund upon the substantial total combined voting power of a decommissioning fund. See Regulations completion of decommissioning. corporation, (b) the profits interest of a section 1.468A-7 for the rules concerning 5. The furnishing of goods, services, or partnership, or (c) the beneficial interest of a the election. facilities by a disqualified person to the fund trust or unincorporated business that is a if the furnishing is without charge and if the contributor to the fund. Line 5. If you are a trustee or disqualified goods, services, or facilities so furnished are 4. An officer, director, or employee of a person (defined below) complete the items exclusively used for the purposes specified person who is a contributor to the fund. included in line 5 to determine if you have in section 468A(e)(4). 5. The spouse, ancestor, or a lineal engaged in an act of self-dealing. 6. The payment of compensation (and descendant, or a spouse of a lineal Part II. Initial Taxes on the payment or reimbursement of expenses) descendant of an individual described in (1) by the fund to a disqualified person for through (4) above. Self-Dealing (Section 4951) personal services that are reasonable and 6. A corporation of which persons necessary to carry out the purposes of the described in (1) through (5) above own more Initial taxes on self-dealers fund and the compensation (or payment or than 35% of the total combined voting An initial tax of 10% of the amount involved reimbursement of expenses) is not power. (defined later) is imposed on each act of excessive. 7. A partnership of which persons self-dealing between a disqualified person 7. A payment by the fund for the described in (1) through (5) above own more and a nuclear decommissioning fund for performance of trust functions and certain than 35% of the profits interests. each tax year (or part of a tax year) in the general banking services by a bank or trust 8. A trust or estate of which persons taxable period. The tax is required to be company that is a disqualified person, if the described in (1) through (5) above own more paid by any disqualified person (other than a banking services are reasonable and than 35% of the beneficial interest. trustee acting only as a trustee of the trust) necessary to carry out the purposes of the who participates in the act of self-dealing. fund and the compensation paid to the bank For purposes of (3a) and (6) above, Initial taxes on trustee or trust company is not excessive indirect stockholders would be taken into (considering the fair market interest rate for A tax of 2 1 /2% of the amount involved is account under section 267(c), except that, the use of the funds by the bank or trust imposed on a trustee who participates in the for purposes of this paragraph, section company). act of self-dealing. The tax is not imposed if 267(c)(4) will be treated as providing that the trustee unwillingly or due to reasonable the members of the family of an individual cause participated in the act. The tax is The allowable general banking services are only those individuals described in (5) computed on all acts of self-dealing that are: above. For purposes of (3a), (3c), (7), and occur within the taxable period. The tax is Checking accounts, as long as the bank (8) above, the ownership of profits or required to be paid by the trustee who does not charge interest on any beneficial interests will be determined by the participates in the act. overwithdrawals; rules of constructive ownership of stock Savings accounts, as long as the fund provided in section 267(c) (other than Exceptions. The initial tax on the act of may withdraw its money after giving no paragraph (3) thereof), except that section self-dealing of a disqualified person or a more than 30 days notice, without losing 267(c)(4) will be treated as providing that trustee is not imposed if the acts of interest for the period the money was on the members of the family of an individual self-dealing are corrected within the taxable deposit; and are only those individuals described in (5) period. Safekeeping activities (for example, rental above. Definitions of a safe deposit box). Dispositions of an Interest in a Self-dealing. When determining if an act is Taxable period. For an act of self-dealing, Nuclear Power Plant an act of self-dealing, treat the transfer of the term taxable period means the period personal property by a disqualified person to beginning on the date of the act of There are federal income tax consequences the fund as a sale or exchange if the self-dealing and ending on the date of the when there is a transfer of assets of a property is subject to a mortgage or similar earliest of nuclear decommissioning fund in connection lien. Otherwise, the term self-dealing with the sale, exchange, or other disposition The date of mailing of a notice of means any direct or indirect: of a transferor of all or a portion of its deficiency under section 6212 for the Sale, exchange, or leasing of real or qualifying interest in a nuclear power plant section 4951 tax, personal property between the fund and a to another taxpayer (transferee). If the The date on which the tax imposed by disqualified person; requirements of Regulations section section 4951 is assessed, or Lending of money or other extensions of 1.468A-6(b) are met, the federal income tax The date correction of the act of credit between the fund and a disqualified consequences are the following: self-dealing is completed. person; 1. No gain or loss. If there is a Furnishing of goods, services, or facilities Amount involved. The term amount disposition of an interest (wholly or partially) between the fund and a disqualified person; involved means the greater of the amount in a nuclear power plant, neither the Payment of compensation (or payment or of money given (or received) and the fair transferor or the transferee (or either s fund) reimbursement of expenses) by the fund to market value of the other property given (or will recognize gain, loss, or otherwise take a disqualified person; and received). When services described in any income or deduction into account Transfers to, or use by or for the benefit section 4951(d)(2)(C) are involved, the because of the transfer of all or some of the of, a disqualified person of the income or amount involved is only the excess assets of the transferor s fund. Also, the assets of the fund. compensation. transfer is not considered a payment or -4-

5 contribution of assets by the transferor s (a) The portion of the transferor s administer their tax laws. We may disclose fund (or by the transferee to its fund). qualifying interest that is disposed of and the information to foreign governments 2. Basis. Transfers of assets of a fund (b) A fraction, the numerator of which is pursuant to tax treaties. We may disclose to which Regulations section 1.468A-6 the number of days in the tax year that the information to contractors for tax applies do not affect basis. The transferee s precede the date of the disposition, and the administration purposes. We may also fund will have a basis in the assets received denominator of which is the number of days disclose this information to federal and state from the transferor equal to the transferor s in that tax year. agencies to enforce federal nontax criminal basis in those assets immediately prior to 4. Tax year after the year of laws and to combat terrorism. If you do not the transfer. disposition. A transferee of, or a transferor provide this information, or you provide false 3. Tax year of disposition. who retains, a qualifying interest in a nuclear or fraudulent information, you may be A. Transferee. If a transferee does not power plant, must file a request for a revised subject to interest, penalties, and/or criminal file a request for a schedule of ruling schedule of ruling amounts for the interest prosecution. amounts by the deemed payment deadline by the deemed payment deadline (defined You are not required to provide the (2 1 /2 months after the end of the tax year of above). If the transferee (or the transferor) information requested on a form that is the disposition), the transferee s ruling does not timely file such a request, the subject to the Paperwork Reduction Act amount for the interest acquired is transferee s (or the transferor s) ruling unless the form displays a valid OMB control determined by taking the amount contained amounts for the interest for that tax year will number. Books or records relating to a form in the transferor s current schedule of ruling be zero. or its instructions must be retained as long amounts for that tax year and that plant as their contents may become material in multiplied by the product of: For more information, see Regulations the administration of any Internal Revenue section 1.468A-6. (1) The portion of the transferor s law. Generally, tax returns and return qualifying interest that is transferred, and information are confidential, as required by Privacy Act and Paperwork Reduction section (2) A fraction, the numerator of which is the number of days in the tax year of the Act Notices. We ask for the information on The time needed to complete and file this transferor including and following the date of this form to carry out the Internal Revenue form will vary depending on individual the disposition, and the denominator of laws of the United States. You are required circumstances. The estimated average time which is the number of days in that tax year. to give us the information. We need it to is: ensure that you are complying with these B.Transferor. If a transferor does not file Recordkeeping hr., 26 min. laws and to allow us to figure and collect the a request for a revised schedule of ruling right amount of tax. Learning about the law or the amounts on or before the deemed payment form... 3 hr., 7 min. deadline for the tax year of the transferor in Section 4951 of the Internal Revenue which the disposition of its interest in the Code requires disqualified taxpayers Preparing the form... 5 hr., 30 min. nuclear power plant occurred (that is, the engaged in self-dealing with a trust to pay Copying, assembling, and date that is 2 1 /2 months after the close of over to the IRS an initial tax. This form is sending the form to the IRS min. that tax year), the transferor s ruling amount used to report the initial amount of tax that with respect to that plant for that year will you owe. Sections 6001 and 6011 require If you have comments concerning the equal the sum of: you to provide the requested information if accuracy of these time estimates or the tax applies to you. Section 6109 and its (1) The ruling amount contained in the suggestions for making this form simpler, we regulations require you to provide your transferor s current schedule of ruling would be happy to hear from you. You can social security number or other identifying amounts with respect to that plant for that write to the Internal Revenue Service, Tax number. Routine uses of this information tax year multiplied by the portion of Products Coordinating Committee, include disclosing it to the Department of qualifying interest that is retained, if any, SE:W:CAR:MP:T:T:SP, 1111 Constitution Justice for civil and criminal litigation and to and Ave., NW, IR-6406, Washington, DC other federal agencies, as provided by law. Do not send the tax form to this address. (2) The ruling amount contained in the We may disclose the information to cities, Instead, see Where To File, on page 1. transferor s current schedule of ruling states, the District of Columbia, and U.S. amounts with respect to that plant for that Commonwealths or possessions to tax year multiplied by the product of: -5-