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Form 4876-A (Rev. 9-2016) Page 2
Future Developments Specific Instructions the transfer takes place more than 90 days after the
tax year began, an extension can be granted only if
For the latest information about developments the transferor was eligible for one.
related to Forms 4876-A and 1120-IC-DISC, such as Part I
Separate statement. Any shareholder who does
legislation enacted after they were published, go to Address. Include the suite, room, or other unit not sign the consent in Part II of Form 4876-A must
www.irs.gov/form1120icdisc. number after the street address. If the post office sign a separate consent statement for the election to
does not deliver mail to the street address and the be valid. The statement must say: “I, (shareholder’s
General Instructions corporation has a P.O. box, show the box number name), a shareholder of (corporation’s name),
Section references are to the Internal Revenue Code instead. consent to the election of (corporation’s name) to be
unless otherwise noted. Item B—Principal business classification.Use the treated as an IC-DISC. The consent so made by me
list of Codes for Principal Business Activity in the is irrevocable and is binding on all transferees of my
Purpose of Form Instructions for Form 1120-IC-DISC to enter the shares in (corporation’s name).”
corporation’s business code number, principal In addition, the statement must show (a) the names,
A corporation files Form 4876-A to elect to be business activity, and principal product or service. addresses, and identification numbers of both the
treated as an interest charge domestic international If a corporation electing corporation and the shareholder; (b) the number of
sales corporation (IC-DISC). Item C—Tax year change.
to be an IC-DISC has to change its tax year to meet shares the shareholder owned (or expects to own) at
Once the election is made, it remains in effect until the tax year requirements of section 441(h), the the beginning of the tax year the election takes effect;
terminated or revoked. See Regulations section corporation generally does not need IRS consent to and (c) the number of shares the shareholder owns
1.992-2(e). The election applies to each shareholder make the change. A tax year change by a when making the consent.
who owns stock in the corporation while the election shareholder requires IRS consent. A subsequent For transferred stock, also show the name and
is in effect. change by the corporation to meet the tax year address of the person who held the shares at the
requirements of section 441(h) may require IRS beginning of the tax year and the number of shares
What Is an IC-DISC? consent. See section 442 and the regulations under to which this consent applies.
An IC-DISC is a domestic corporation that meets sections 441, 442, and 921 for more information. Supplemental Form 4876-A. If, between the date
certain conditions regarding its organization and Also see Rev. Proc. 2002-37, 2002-22 I.R.B. 1030, the election is filed and the date it takes effect, the
international sales and that elects to be treated as an and Rev. Proc. 2002-39, 2002-22 I.R.B. 1046, as corporation issues more shares of stock or the share
IC-DISC. The corporation must be organized under clarified and modified by Notice 2002-72, 2002-46 ownership changes, it must file a supplemental Form
the laws of a state or the District of Columbia and I.R.B. 843. 4876-A, with “SUPPLEMENTAL” written across the
meet the following tests. Columns Ha and Hb. Number of shares of stock. top of the form. The form must be filed within the
• At least 95% of its gross receipts during the tax Enter the number of shares of stock held on the first first 90 days of the tax year the election takes effect.
year are qualified export receipts. day of the year of election and the number held on On the supplemental form, include all the
• At the end of the tax year, the adjusted basis of its the date of consent to make the election. Complete information from the earlier form except for the list of
qualified export assets is at least 95% of the sum of both columns for each shareholder. owners contained in Parts I and II. Report only the
the adjusted basis of all its assets. Column I—Identifying number. The identifying owners of the new or additional shares in Part I, and
• It has only one class of stock, and its outstanding number for an individual is the social security in Part II obtain their consents only. Each new
stock has a par or stated value of at least $2,500 on number. For all others, it is the employer shareholder or holder of additional shares must
each day of the tax year (or, for a new corporation, identification number. consent to the IC-DISC election for the
on the last day to elect IC-DISC status for the year Signature. Form 4876-A must be signed by the Supplemental Form 4876-A to be valid.
and on each later day). president, vice president, treasurer, assistant
• It keeps separate books and records. treasurer, chief accounting officer, or other officer Paperwork Reduction Act Notice. We ask for the
(such as tax officer) authorized to sign for the information on this form to carry out the Internal
• Its tax year must conform to the tax year of the corporation. Revenue laws of the United States. You are required
shareholder (or shareholder group) who has the to give us the information. We need it to ensure that
highest percentage of voting power. If two or more Part II you are complying with these laws and to allow us to
shareholders (or shareholder groups) have the same Shareholders’ Consent Statement. An election for figure and collect the right amount of tax.
highest percentage of voting power, the IC-DISC’s IC-DISC treatment will be valid only if all You are not required to provide the information
tax year may be the same as that of any such shareholders sign either the consent statement in requested on a form that is subject to the Paperwork
shareholder (or group). See section 441(h) and its Part II or a separate statement as described below. Reduction Act unless the form displays a valid OMB
regulations for more information. Several shareholders may combine their consents in control number. Books or records relating to a form
• Its election to be treated as an IC-DISC is in effect one statement. or its instructions must be retained as long as their
for the tax year. If legally married spouses jointly own the stock or contents may become material in the administration
See section 992 and its regulations for details. the income from it, both must sign the consent. If of any Internal Revenue law. Generally, tax returns
Also see section 993 and its regulations for tenants in common, joint tenants, or tenants by the and return information are confidential, as required
definitions of qualified export receipts and qualified entirety own the stock, each person must sign. The by section 6103.
export assets. legal guardian should sign for a minor; if none has The time needed to complete and file this form will
Ineligible organizations. S corporations, certain been appointed, the natural guardian should sign. vary depending on individual circumstances. The
financial institutions, and other corporations listed in The executor or administrator should sign for an estimated average time is:
section 992(d) are not eligible for IC-DISC treatment. estate, and the trustee should sign for a trust. If the Recordkeeping . . . . . . 4 hr., 4 min.
estate or trust has more than one executor,
When To File administrator, or trustee, any of them who is Learning about the law
If it is the corporation’s first tax year, complete and authorized to file the returns may sign the consent. or the form . . . . . . . 1 hr., 5 min.
file Form 4876-A within 90 days after the beginning For a corporation or partnership, an officer or partner Preparing and sending
of the tax year. For any tax year that is not the who is authorized to sign the other returns may sign the form to the IRS . . . . . 1 hr., 12 min.
corporation’s first tax year, the election must be the consent for the IC-DISC election. If you have comments concerning the accuracy of
made during the 90-day period immediately A foreign person’s consent may be signed by any these time estimates or suggestions for making this
preceding the first day of that tax year. individual who would be authorized to sign if the form simpler, we would be happy to hear from you.
For the election to be valid, all of the corporation’s person were a U.S. person. You can send us comments from
www.irs.gov/formspubs. Click on “More Information”
shareholders, as of the first day of the tax year the Extension. Normally, the consents must be attached and then on “Give us feedback.” Or you can write to
election is to take effect, must consent to it. to Form 4876-A. If you establish reasonable cause the Internal Revenue Service, Tax Forms and
for not filing a consent on time, you may file the Publications, 1111 Constitution Ave. NW, IR-6526,
Where To File consent within an extended period granted by an Washington, DC 20224. Do not file your form at this
File Form 4876-A with the IRS Service Center where IRS Service Center. File the consents with the same address. Instead, see Where To File, earlier.
the corporation will file its annual return, Form service center where you filed Form 4876-A.
1120-IC-DISC. Consent by transferee shareholder. If shares are
transferred before a consent is filed, the transferee
shareholder may consent to the IC-DISC election as
long as the transfer occurs and the consent is filed
within the first 90 days of the tax year. The service
center may grant an extension beyond that date. If
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