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양식 5735 관련 기사

Form 5735, 미국 사모아 경제 개발 신용에 대한 지침

2013년 1월 개정

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Department of the Treasury  
Internal Revenue Service  
Instructions for Form 5735  
(Rev. January 2013)  
American Samoa Economic Development Credit  
Section references are to the Internal Revenue Code unless  
Alternative Minimum Tax  
otherwise noted.  
Income eligible for the American Samoa economic development  
credit is not taxed under the alternative minimum tax rules. See  
Form 4626, Alternative Minimum Tax—Corporations.  
What's New  
Section 330 of the American Taxpayer Relief Act of 2012 has  
modified and expanded the American Samoa economic  
development credit for tax years beginning after December 31,  
2011. This revision reflects those changes. For information on  
the credit for tax years beginning before January 1, 2012, see  
the March 2007 revision of Form 5735 and the separate  
instructions.  
Source of Gross Income, etc.  
See sections 638, 861-864, and 936 to determine if the source  
of gross income, deductions, and taxable income is in or outside  
American Samoa. Amounts received in American Samoa may  
be considered sourced outside American Samoa if they are from  
sources outside American Samoa and received from an  
unrelated person in the active conduct of a trade or business.  
See section 936(b).  
General Instructions  
Qualified Production  
Activities Income (QPAI)  
Purpose of Form  
Form 5735 is used to figure the American Samoa economic  
development credit under section 30A. The credit is generally  
allowed against income tax imposed by Chapter 1 (see  
Restrictions below for exceptions).  
Note. For tax years beginning in 2012, the corporation does not  
report its QPAI on Form 5735. However, the corporation must  
have positive QPAI in order to qualify for the American Samoa  
economic development credit. For tax years beginning in 2012,  
corporations should calculate their QPAI and keep it for their  
records in order to prove to the IRS (in the case of an audit) that  
they qualify for the credit.  
Who Must File  
A domestic corporation (other than an S corporation) must  
complete Form 5735 for each year the American Samoa  
economic development credit election is in effect.  
Figuring QPAI. QPAI is the excess (if any) of:  
1. Domestic production gross receipts (DPGR), over  
2. The sum of:  
Where To File  
Attach Form 5735 to the corporation's income tax return and file  
the return with the Internal Revenue Service, P.O. Box 409101,  
Ogden, UT 84409.  
a. Cost of goods sold allocable to DPGR, and  
b. Other expenses, losses, or deductions which are properly  
allocable to DPGR.  
Qualifying for the Credit  
To qualify for the American Samoa economic development  
credit, a corporation must meet the qualified production activities  
income (QPAI) requirement. A corporation meets this  
requirement if it has qualified production activities income  
(defined below).  
Oil-related qualified production activities income.  
Oil-related qualified production activities income is QPAI  
attributable to the production, refining, processing,  
transportation, or distribution of oil or gas, or any primary product  
from oil or gas (section 927(a)(2)(C), as in effect before its  
repeal).  
Primary products from oil. Primary products from oil are  
crude oil and all products derived from the destructive distillation  
of crude oil, including volatile products, light oils such as motor  
fuel and kerosene, distillates such as naphtha, lubricating oils,  
greases and waxes, and residues such as fuel oil.  
A product or commodity derived from shale oil, which would  
be a primary product from oil if derived from crude oil, is  
considered a primary product from oil.  
Primary products from gas. Primary products from gas are  
all gas and associated hydrocarbon components from gas or oil  
wells, whether recovered at the lease or upon further  
processing, including natural gas, condensates, liquefied  
petroleum gases such as ethane, propane, and butane, and  
liquid products such as natural gasoline.  
The corporation does not qualify for the American  
Samoa economic development credit unless it has a  
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CAUTION  
positive QPAI.  
Restrictions  
The credit is not allowed against the following taxes:  
1. Tax on accumulated earnings (section 531).  
2. Personal holding company tax (section 541).  
3. Additional tax for recovery of foreign expropriation losses  
(section 1351).  
4. Recapture of investment credit (section 50).  
5. Recapture of low-income housing credit  
(section 42(j)(4)(D)).  
See Temporary Regulations section 1.927(a)-1T(g)(2) for  
6. Recapture of Indian employment credit  
(section 45A).  
additional information.  
Domestic Production Gross Receipts (DPGR)  
IC-DISC or FSC  
Generally, your gross receipts (defined later) derived from the  
A corporation cannot take the American Samoa economic  
development credit for any tax year it is an IC-DISC or former  
IC-DISC, or for any tax year in which it owns stock in an IC-DISC  
or FSC, or former IC-DISC or former FSC (section 936(f)).  
following activities are DPGR.  
1. Construction of real property you perform in American  
Samoa in your construction trade or business.  
Jan 23, 2013  
Cat. No. 20920T  
2. Engineering or architectural services you perform in  
American Samoa in your engineering or architectural services  
trade or business for the construction of real property in  
American Samoa.  
than natural gas), chemical, and similar property, such as steam,  
oxygen, hydrogen, or nitrogen.  
Machinery, printing presses, transportation and office  
equipment, refrigerators, grocery counters, testing equipment,  
display racks and shelves, and neon and other signs that are  
contained in or attached to a building constitute tangible  
personal property.  
3. Any lease, rental, license, sale, exchange, or other  
disposition of the following.  
a. Qualifying production property you manufacture, produce,  
grow or extract in whole or in significant part in American  
Samoa. See Qualifying Production Property and Manufacturing,  
Producing, Growing, or Extracting, below, for details.  
Note. Local law does not control whether property is tangible  
personal property.  
See Regulations section 1.199-3(j)(2) for more information.  
b. Any qualified film you produce.  
Computer software. In general, computer software includes  
the following:  
c. Electricity, natural gas, or potable water you produce in  
American Samoa.  
Any program, routine, or sequence of machine-readable code  
that is designed to cause a computer to perform a desired  
function or set of functions, and the documentation required to  
describe or maintain that program or routine. An electronic book  
online or for download does not constitute computer software.  
Machine-readable code for (a) video games or similar  
programs, (b) equipment that is an integral part of other property,  
and (c) typewriters, calculators, adding and accounting  
machines, copiers, duplicating equipment, and similar  
equipment, even if the program is not designed to operate on a  
computer as defined in section 168(i)(2)(B).  
Computer programs including, but not limited to, operating  
systems, executive systems, monitors, compilers and  
translators, assembly routines, utility programs, and application  
programs.  
Any incidental and ancillary rights that are necessary for the  
acquisition of the title to, the ownership of, or the right to use  
computer software, and that are used only in connection with  
that specific software. These incidental and ancillary rights are  
not included in the definition of a trademark or trade name under  
Regulations section 1.197-2(b)(10)(i).  
In general, gross receipts derived from the following activities  
are not DPGR.  
Activities not attributable to the actual conduct of a trade or  
business.  
The sale of food and beverages you prepare at a retail  
establishment.  
The lease, rental, or license of property between certain  
persons treated as a single employer.  
The lease, rental, license, sale, exchange, or other disposition  
of land.  
The transmission or distribution of electricity, natural gas, or  
potable water.  
Advertising and product-placement; however, see  
Regulations section 1.199-3(i)(5)(ii) for exceptions.  
Customer and technical support, telephone and other  
telecommunications services, online services (including Internet  
access services, online banking services, providing access to  
online electronic books, newspapers, and journals) and other  
similar services; however, see Regulations section 1.199-3(i)(6)  
(iii) for exceptions.  
Exception. Computer software does not include any data or  
information base unless the data or information base is in the  
public domain and is incidental to a computer program.  
Example. If a word processing program includes a dictionary  
feature that may be used to spell-check a document, then the  
entire program (including the dictionary feature) is a computer  
software program regardless of the form in which the dictionary  
feature is maintained or stored.  
Gross receipts. Gross receipts include the following amounts  
from your trade or business activities.  
Total sales (net of returns and allowances).  
Amounts received for services, not including wages received  
as an employee.  
Income from incidental or outside sources (including sales of  
business property).  
Gross receipts are generally not reduced by the:  
Cost of goods sold, or  
Adjusted basis of property (other than capital assets) sold or  
otherwise disposed of, if such property is described in section  
1221(a)(1) through (5).  
See Regulations section 1.199-3(j)(3) for more information.  
Sound Recordings. Sound recordings include any works that  
result from the fixation of a series of musical, spoken, or other  
sounds. The definition of sound recordings is limited to the  
master copy of the recordings (or other copy from which the  
holder is licensed to make and produce copies), and if the  
medium (such as compact discs, tapes, or other  
phonorecordings) in which the sounds may be embodied is  
tangible, then the medium is considered tangible personal  
property.  
Allocation of gross receipts. You generally must allocate your  
gross receipts between DPGR and non-DPGR. Allocate gross  
receipts using a reasonable method that accurately identifies  
gross receipts that are DPGR. However, if less than 5% of your  
gross receipts are non-DPGR, you can treat all of your gross  
receipts as DPGR. Also, if less than 5% of your gross receipts  
are DPGR, you can treat all of your gross receipts as non-DPGR.  
Exception. Sound recordings do not include the creation of  
copy-righted material in a form other than a sound recording,  
such as lyrics or music composition.  
For details, see Regulations section 1.199-1(d).  
See Regulations section 1.199-3(j)(4) for more information.  
Qualifying Production Property  
Qualified film. A qualified film is any motion picture film, video  
tape, or live or delayed television programming, for which 50%  
or more of the total compensation required to produce the film is  
paid for services performed by actors, production personnel,  
directors, and producers in American Samoa.  
The following are qualifying production property.  
Tangible personal property.  
Computer software.  
Sound recordings.  
A qualified film includes the copyrights, trademarks, or other  
intangibles related to the film. Also, QPAI includes gross receipts  
from the production of a qualified film regardless of the methods  
and means by which the film is distributed.  
Tangible personal property. Tangible personal property  
includes any tangible property other than land, buildings  
(including structural components), computer software, sound  
recordings, qualified films, electricity, natural gas, or potable  
water. Tangible personal property also includes any gas (other  
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See section 199(c)(6) and Regulations section 1.199-3(k) for  
more information.  
You are engaged in the trade or business of farming and are  
not required to use the accrual method of accounting (see  
section 447).  
Your average annual gross receipts (defined below) are $5  
million or less.  
Manufacturing, Producing, Growing, or Extracting  
Manufacturing, producing, growing, and extracting (MPGE)  
generally include the following trade or business activities.  
Activities related to manufacturing, producing, growing,  
extracting, installing, developing, improving, and creating  
qualifying production property.  
You are eligible to use the cash method of accounting under  
Rev. Proc. 2002-28. You can find Rev. Proc. 2002-28 on  
page 815 of I.R.B. 2002-18 at www.irs.gov/pub/irs-irbs/  
Making qualifying production property out of scrap, salvage,  
or junk material, or from new or raw material by processing,  
manipulating, refining, or changing the form of an article, or by  
combining or assembling two or more articles.  
Cultivating soil, raising livestock, fishing, and mining minerals.  
Storage, handling, or other processing activities (other than  
transportation activities) in American Samoa related to the sale,  
exchange, or other disposition of agricultural products, provided  
the products are consumed in connection with, or incorporated  
into, manufacturing, producing, growing, or extracting qualifying  
production property whether or not by the taxpayer.  
Under the small business simplified overall method, your total  
cost of goods sold and other deductions, expenses, and losses  
are ratably apportioned between DPGR and non-DPGR based  
on relative gross receipts.  
Example. Your total cost of goods sold and other trade or  
business deductions, expenses, or losses are $400 and do not  
include a net operating loss deduction. You have $1,000 total  
gross receipts and $750 DPGR. Your DPGR equal 75% of your  
total gross receipts. Under the small business simplified overall  
method, you subtract $300 ($400 × .75) of your total cost of  
goods sold and other trade or business deductions, expenses,  
or losses from your DPGR to figure your QPAI, which is $450  
($750 minus $300).  
For details, see Regulations section 1.199-3(e).  
Cost of Goods Sold  
Average annual gross receipts. For this purpose, your  
average annual gross receipts are your average annual gross  
receipts for the preceding 3 tax years. If your business has not  
been in existence for 3 tax years, base your average on the  
period it has existed. Include any short tax years by annualizing  
the short tax year's gross receipts by (a) multiplying the gross  
receipts for the short period by 12 and (b) dividing the result by  
the number of months in the short period.  
Cost of goods sold is a component of QPAI and it includes the:  
Cost of goods sold to customers, and  
Adjusted basis of non-inventory property you sold or  
otherwise disposed of in your trade or business.  
Allocation of cost of goods sold. Generally, you must  
allocate your cost of goods sold between DPGR and non-DPGR  
using a reasonable method. If you use a method to allocate  
gross receipts between DPGR and non-DPGR, the use of a  
different method to allocate cost of goods sold will not be  
considered reasonable, unless it is more accurate. However, if  
you qualify to use the small business simplified overall method,  
you can use it to apportion both cost of goods sold and other  
deductions, expenses, and losses between DPGR and  
non-DPGR.  
Oil-related production activities. If you have oil-related  
qualified production activities income and you choose to use the  
small business simplified overall method, you must allocate part  
of these costs to DPGR from oil-related production activities to  
determine oil-related QPAI.  
Simplified Deduction Method  
For details, see Regulations section 1.199-4.  
You generally can use the simplified deduction method to  
apportion other deductions, expenses, and losses (but not cost  
of goods sold) between DPGR and non-DPGR if you meet either  
of the following tests.  
Your total trade or business assets at the end of your tax year  
are $10 million or less.  
Your average annual gross receipts (defined above) are $100  
million or less.  
Form W-2 wages. To determine the amount of Form W-2  
wages to include in cost of goods sold, see Wage expense  
included in cost of goods sold, later.  
Other Deductions, Expenses, or Losses  
Other deductions, expenses, or losses include all deductions,  
expenses, or losses (other than cost of goods sold and  
employee business expenses) from a trade or business.  
Under the simplified deduction method, your other trade or  
business deductions, expenses, or losses are ratably  
apportioned between DPGR and non-DPGR based on relative  
gross receipts.  
Example. Your total other trade or business deductions,  
expenses, or losses are $400 and do not include a net operating  
loss. You have $240 of cost of goods sold allocable to DPGR.  
You have $1,000 total gross receipts and $600 DPGR. Your  
DPGR equal 60% of your total gross receipts. Under the  
simplified deduction method, you subtract $240 ($400 × .60) of  
your total other trade or business deductions, expenses, or  
losses from your DPGR to figure your QPAI, which is $120 ($600  
minus $240 minus $240).  
Allocation and apportionment of other deductions, expen-  
ses, or losses. You can generally use one of the following  
three methods to allocate and apportion other trade or business  
deductions, expenses, or losses between DPGR and  
non-DPGR.  
Small business simplified overall method.  
Simplified deduction method.  
Section 861 method.  
However, do not allocate and apportion a net operating loss  
deduction or deductions not attributable to the conduct of a trade  
or business to DPGR under any of the methods.  
Small Business Simplified Overall Method  
Oil-related production activities. If you have oil-related  
qualified production activities income and you choose to use the  
simplified deduction method, you must allocate part of these  
costs to DPGR from oil-related production activities to determine  
oil-related QPAI.  
You generally can use the small business simplified overall  
method to apportion cost of goods sold and other deductions,  
expenses, and losses between DPGR and non-DPGR if you  
meet any of the following tests.  
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b. Supplemental unemployment compensation benefits.  
Section 861 Method  
c. Sick pay or annuity payments from which the recipient  
You do not have to meet any tests to use the section 861  
method. Under the section 861 method, you generally must  
apply the rules of the section 861 regulations to allocate and  
apportion other trade or business deductions, expenses, or  
losses between DPGR and non-DPGR. Section 199 is treated  
as an “operative section” described in Regulations section  
1.861-8(f).  
requested federal income tax withholding.  
3. Subtract (2) from (1).  
4. Add together any amounts reported in box 12 of the  
relevant Forms W-2 that are properly coded D, E, F, G, or S.  
5. Add (3) and (4).  
Tracking wages method. Under the tracking wages method,  
For details, see Regulations section 1.199-4(d).  
Form W-2 wages are figured as follows.  
1. Add the amounts reported in box 1 of the relevant Forms  
W-2 that are also wages for federal income tax withholding  
purposes.  
For guidance on automatic approval to change certain  
elections relating to the apportionment of interest expense and  
research and experimentation expenditures, see Rev. Proc.  
2006-42. You can find Rev. Proc. 2006-42 on page 931 of I.R.B.  
2. Add any amounts reported in box 1 of the relevant Forms  
W-2 that are both:  
a. Wages for federal income tax withholding purposes, and  
b. Supplemental unemployment compensation benefits.  
3. Subtract (2) from (1).  
Oil-related production activities. If you have oil-related  
qualified production activities income, apply the rules of section  
861 to determine the amount of other trade or business  
deductions, expenses, or losses to deduct for purposes of  
determining oil-related QPAI.  
4. Add together any amounts reported in box 12 of the  
relevant Forms W-2 that are properly coded D, E, F, G, or S.  
5. Add (3) and (4).  
Figuring Form W-2 Wages  
You figure Form W-2 wages in two steps. First, you must  
determine the amount of wages to classify as Form W-2 wages  
under Regulations section 1.199-2(e)(1). Second, you must  
figure Form W-2 wages that are properly allocable to DPGR.  
Form W-2 wages paid to produce a qualified film. Form W-2  
wages include compensation for services performed in  
American Samoa by actors, production personnel, directors, and  
producers to produce a qualified film. See Qualified film, earlier,  
for more information.  
You can figure Form W-2 wages that are properly allocable to  
DPGR using one of the safe harbor methods discussed under  
Form W-2 Wages Allocable to DPGR, below. Also, you can use  
any reasonable method based on all the facts and  
circumstances.  
Form W-2 Wages  
Allocable to DPGR  
After you calculate Form W-2 wages, as discussed above, you  
must figure Form W-2 wages that are properly allocable to  
DPGR.  
You can use one of the following three methods to determine  
the amount of wages to classify as Form W-2 wages under  
Regulations section 1.199-2(e)(1).  
You can figure Form W-2 wages that are properly allocable to  
DPGR under one of the following methods.  
Small business simplified overall method safe harbor.  
Wage expense safe harbor.  
Any other reasonable method based on all the facts and  
circumstances.  
Unmodified box method.  
Modified box 1 method.  
Tracking wages method.  
Relevant Forms W-2. To figure your Form W-2 wages,  
generally use the sum of the amounts you properly report for  
each employee on Form W-2, Wage and Tax Statement, for the  
calendar year ending with or within your tax year. However, do  
not use any amounts reported on a Form W-2 filed with the  
Social Security Administration more than 60 days after its due  
date (including extensions).  
Small business simplified overall method safe harbor. If  
you use the small business simplified overall method to allocate  
costs between DPGR and non-DPGR (see Small Business  
Simplified Overall Method, earlier), you can use the small  
business simplified overall method safe harbor to determine the  
amount of Form W-2 wages allocable to DPGR. Under this safe  
harbor method, the amount of Form W-2 wages that is properly  
allocable to DPGR equals the proportion of DPGR to total gross  
receipts.  
Non-duplication rule. Amounts that are treated as Form W-2  
wages for a tax year under any method cannot be treated as  
Form W-2 wages for any other tax year. Also, an amount cannot  
be treated as Form W-2 wages by more than one taxpayer.  
Unmodified box method. Under the unmodified box method,  
Wage expense safe harbor. If you are using either the section  
861 method of cost allocation under Regulations section  
1.199-4(d) or the simplified deduction method under Regulations  
section 1.199-4(e), you determine the amount of wages properly  
allocable to DPGR by multiplying the amount of wages for the  
tax year by the ratio of your wage expense included in  
Form W-2 wages are the smaller of:  
1. The sum of the amounts reported in box 1 of the relevant  
Forms W-2, or  
2. The sum of the amounts reported in box 5 of the relevant  
Forms W-2.  
calculating QPAI for the tax year to your total wage expense  
used in calculating your taxable income (or adjusted gross  
income) for the tax year without regard to any wage expenses  
disallowed by sections 465, 469, 704(d), or 1366(d).  
If you use the section 861 method or the simplified deduction  
method, you must use the same expense allocation and  
apportionment methods that you use to determine QPAI to  
allocate and apportion wage expense for purposes of the safe  
harbor.  
Modified box 1 method. Under the modified box 1 method,  
Form W-2 wages are figured as follows.  
1. Add the amounts reported in box 1 of the relevant Forms  
W-2.  
2. Add all the amounts described below and included in  
box 1 of the relevant Forms W-2.  
a. Amounts not considered wages for federal income tax  
withholding purposes.  
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Wage expense included in cost of goods sold. After you  
determine the amount of wages under the wage expense safe  
harbor, discussed earlier, you can allocate a portion of those  
wages to cost of goods sold by any reasonable method based  
on the facts and circumstances. For example, you can include  
wage expense in cost of goods sold in proportion to (a) the  
amount of direct labor included in cost of goods sold, or (b)  
section 263A labor costs (as defined in Regulations section  
1.263A-1(h) (4)(ii)) included in cost of goods sold. See  
The amount of allocable employee fringe benefit expenses  
for a tax year is equal to the total amount of employee fringe  
benefit expenses (defined above) multiplied by a fraction. The  
fraction consists of the corporation's qualified wages (defined  
above) for the tax year, divided by the aggregate amount of  
wages paid or incurred by the corporation during the tax year.  
The allocable employee fringe benefit expenses cannot  
exceed 15% of the corporation's qualified wages for the tax year.  
For more information, see section 936(i)(2).  
Regulations section 1.199-2(e)(2)(ii)(B) for more information.  
More information. For more information on figuring your Form  
W-2 wages, see Regulations section 1.199-2 and Rev. Proc.  
2006-47. You can find Rev. Proc. 2006-47 on page 869 of I.R.B.  
Lines 2–4  
Qualified tangible property means any tangible property used  
by the corporation in the active conduct of a trade or business  
within American Samoa.  
For more information on figuring Form W-2 wages properly  
Short-life qualified tangible property is qualified tangible  
property that is 3-year or 5-year property under section 168.  
allocable to DPGR, see Regulations section 1.199-2(e)(2).  
Medium-life qualified tangible property is qualified tangible  
property that is 7-year or 10-year property under section 168.  
Specific Instructions  
Note. Any wages or other expenses taken into account in  
determining the American Samoa economic development credit  
may not be taken into account in determining the research credit  
under section 41.  
Long-life qualified tangible property is qualified tangible  
property that is not short-life or medium-life qualified tangible  
property.  
For more information, see section 936(i)(4).  
Line 1  
Note. In the case of any qualified tangible property to which  
section 168 (as in effect before the date of enactment of the Tax  
Reform Act of 1986) applies, any references above to section  
168 are to that Code section as then in effect.  
Enter 60% of the sum of:  
The aggregate amount of the corporation's qualified wages for  
the tax year and  
The allocable employee fringe benefit expenses of the  
corporation for the tax year.  
For more information on depreciation, see the Instructions for  
Form 4562 and Publication 946.  
Qualified wages. Qualified wages are wages paid or incurred  
by the corporation during the tax year in connection with the  
active conduct of a trade or business in American Samoa to an  
employee for services performed in American Samoa, but only if  
the services are performed while the employee's principal place  
of employment is in American Samoa.  
The term “wages” generally means wages as defined in  
section 3306(b), but without regard to any dollar limitation  
contained in that section. For this purpose, section 3306(b) is  
applied as if the term “United States” includes American Samoa.  
See section 936(i)(1)(D)(ii) for a special rule for agricultural labor  
and railway labor.  
The wages that are taken into account for the tax year for any  
employee are limited to 85% of the old-age, survivors, and  
disability insurance (OASDI) contribution and benefit base for  
the calendar year in which that tax year begins. The OASDI  
contribution and benefit base for 2012 is $110,100 and for 2013  
is $113,700.  
Special rules apply to part-time employees and employees  
whose principal place of employment with the corporation is not  
within American Samoa at all times during the tax year.  
Line 7  
Include the line 7 credit on your income tax return on the same  
line on which the qualified electric vehicle (QEV) credit is  
reported. Enter “Form 5735” and the amount next to the entry  
space for that line. On the 2012 Form 1120, the QEV is reported  
on Schedule J, line 5b. The credit must also be included on the  
QEV line of the following forms as applicable: Form 3800, Form  
6478, Form 8835, Form 8860, Form 8910, Form 8911, and Form  
8912.  
Paperwork Reduction Act Notice. We ask for the information  
on this form to carry out the Internal Revenue laws of the United  
States. You are required to give us the information. We need it to  
ensure that you are complying with these laws and to allow us to  
figure and collect the right amount of tax.  
You are not required to provide the information requested on  
a form that is subject to the Paperwork Reduction Act unless the  
form displays a valid OMB control number. Books or records  
relating to a form or its instructions must be retained as long as  
their contents may become material in the administration of any  
Internal Revenue law. Generally, tax returns are confidential, as  
required by section 6103.  
For more information, see section 936(i)(1).  
Allocable employee fringe benefit expenses. The total  
amount of employee fringe benefit expenses taken into account  
in figuring the economic-activity limitation is the amount  
deductible by the corporation in the tax year for:  
Employer contributions to stock bonus, pensions,  
profit-sharing, or annuity plans,  
Employer-provided health or accident plan coverage for the  
employees, and  
The cost of life or disability insurance provided to employees.  
The time needed to complete and file this form will vary  
depending on individual circumstances. The estimated average  
time is: Recordkeeping, 7 hr., 53 min.; Learning about the  
law or the form, 2 hr., 17 min.; and Preparing, copying,  
assembling, and sending the form to the IRS, 2 hr., 32 min.  
If you have comments concerning the accuracy of these time  
estimates or suggestions for making this form simpler, we would  
be happy to hear from you. See the instructions for the tax return  
with which this form is filed.  
Note. Any amount treated as qualified wages may not be  
treated as an employee fringe benefit expense.  
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