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Formulier 1120-ND Instructies

Instructies voor formulier 1120-ND, terugkeer voor nucleaire ontmantelingsfondsen en bepaalde aanverwante personen

November 2022

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Department of the Treasury  
Internal Revenue Service  
Instructions for  
Form 1120-ND  
(Rev. November 2022)  
(Use with the October 2013 revision of Form 1120-ND)  
Return for Nuclear Decommissioning Funds and Certain Related Persons  
Section references are to the Internal Revenue Code  
unless otherwise noted.  
4951), later, to determine if an individual has  
engaged in self-dealing as a trustee or  
disqualified person.  
PDSs cannot deliver items to P.O.  
boxes. The fund must use the U.S.  
Postal Service to mail any item to an  
!
CAUTION  
IRS P.O. box address.  
Future Developments  
Note. Each person liable for filing a return to  
pay any tax reportable on this form must file  
a separate return.  
For the latest information about  
Extension of time to file. File Form 7004,  
Application for Automatic Extension of Time  
To File Certain Business Income Tax,  
Information, and Other Returns, to request  
an extension of time to file. Generally, file  
Form 7004 by the regular due date of the  
return.  
A disqualified person or trustee filing to  
report section 4951 taxes must also file Form  
7004 to request an extension of time to file.  
developments affecting Form 1120-ND and  
its instructions, such as legislation enacted  
after they were published, go to IRS.gov/  
When To File  
Generally, a fund must file its income tax  
return by the 15th day of the 4th month after  
the end of its tax year. The return of a trustee  
or self-dealer who owes tax under section  
4951 must be filed by the 15th day of the 4th  
month after the end of the tax year of the  
trustee or self-dealer.  
What’s New  
Form 1120-ND. Form 1120-ND is not being  
revised. Continue to use the October 2013  
revision of the Form 1120-ND with these  
updated instructions.  
Who Must Sign  
However, a fund with a fiscal tax year  
ending on June 30 must file by the 15th day  
of the 3rd month after the end of its tax year.  
A fund with a short tax year ending in June  
will be treated as if the short year ended on  
June 30, and must file by the 15th day of the  
3rd month after the end of its tax year.  
Increase in penalty for failure to file. For  
returns required to be filed after December  
31, 2022, the minimum penalty for failure to  
file a return that is over 60 days late has  
increased to the smaller of the tax due or  
$450. See Late filing of return, later.  
The return must be signed and dated by an  
authorized trustee. The return of any person  
who engaged in any act of self-dealing must  
be signed and dated by that person or the  
individual authorized to sign on behalf of that  
person.  
Form 1120-W now historical. Form  
1120-W, Estimated Tax for Corporations,  
and the Instructions for Form 1120-W are  
now historical. The 2022 Form 1120-W  
(released in 2021) and the 2022 Instructions  
for Form 1120-W (released in 2021) will be  
the last revision of both the form and its  
instructions. Prior versions will be available  
on IRS.gov.  
If an employee of the fund completes  
Form 1120-ND, the paid preparer space  
should remain blank. Anyone who prepares  
Form 1120-ND but does not charge the fund  
should not complete that section. Generally,  
anyone who is paid to prepare the return  
must sign it and fill in the “Paid Preparer Use  
Only” area.  
If the due date falls on a Saturday,  
Sunday, or legal holiday, the fund may file on  
the next business day.  
Where To File  
File the fund's or disqualified person's or  
trustee's return at the applicable IRS address  
listed below.  
The paid preparer must complete the  
required preparer information and:  
If the fund's principal business, office, or  
agency is located in the United States, file  
Form 1120-ND at the following address:  
General Instructions  
Purpose of Form  
Sign the return in the space provided for  
the preparer's signature, and  
Give a copy of the return to the taxpayer.  
Department of the Treasury  
Internal Revenue Service Center  
Ogden, UT 84201-0012  
Nuclear decommissioning funds use Form  
1120-ND to report contributions received,  
income earned, the administrative expenses  
of operating the fund, and the tax on  
modified gross income. The return is also  
used to report the section 4951 initial taxes  
on self-dealing.  
Note. A paid preparer may sign original or  
amended returns by rubber stamp,  
mechanical device, or computer software  
program.  
If the fund's principal business, office, or  
agency is located in a foreign country or a  
U.S. possession, file Form 1120-ND at the  
following address:  
Paid Preparer Authorization  
If the fund wants to allow the IRS to discuss  
its tax return with the paid preparer who  
signed it, check the “Yes” box in the  
signature area of the return. This  
Taxpayers, electing under section 468A,  
are allowed deductions for amounts  
Internal Revenue Service Center  
P.O. Box 409101  
contributed to a qualified fund, up to 100% of  
the present value of the nuclear power  
plant's decommissioning costs. Taxpayers  
can apply for a new ruling amount if the  
nuclear power plant is granted a license  
Ogden, UT 84409  
authorization applies only to the individual  
whose signature appears in the “Paid  
Preparer Use Only” section of the fund's  
return. It does not apply to the firm, if any,  
shown in that section.  
Private delivery services (PDSs). Funds  
renewal, extending its useful life. See section can use certain PDSs designated by the IRS  
468A for more information.  
to meet the “timely mailing as timely filing/  
paying” rule for tax returns and payments.  
See the Instructions for Form 1120, U.S.  
Corporation Income Tax Return, for details.  
If the “Yes” box is checked, the fund is  
authorizing the IRS to call the paid preparer  
to answer any questions that may arise  
during the processing of its return. The fund  
is also authorizing the paid preparer to:  
Who Must File  
All section 468A nuclear decommissioning  
funds must file Form 1120-ND. A disqualified  
person engaging in self-dealing must file  
Form 1120-ND to report the initial tax. See  
Give the IRS any information that is  
missing from the return;  
Dec 1, 2022  
Cat. No. 11508V  
 
Call the IRS for information about the  
have a speech disability, dial 711 and then  
provide the TRS assistant the 800-555-4477  
number above or 800-733-4829. Additional  
information about EFTPS is also available in  
Pub. 966.  
figured at a rate determined under section  
6621.  
processing of the return or the status of any  
related refund or payment(s); and  
Late filing of return. A fund that doesn’t file  
its tax return by the due date, including  
extensions, may be penalized 5% of the  
unpaid tax for each month or part of a month  
the return is late, up to a maximum of 25% of  
Respond to certain IRS notices about  
math errors, offsets, and return preparation.  
Depositing on time. For any deposit made  
The fund is not authorizing the paid  
preparer to receive any refund check, bind  
the fund to anything (including any additional  
tax liability), or otherwise represent the fund  
before the IRS.  
by EFTPS to be on time, the fund must  
submit the deposit by 8 p.m. Eastern time the the unpaid tax. The minimum penalty for a  
day before the date the deposit is due. If the  
fund uses a third party to make deposits on  
its behalf, they may have different cutoff  
times.  
return that is over 60 days late is the smaller  
of the tax due or $450. The penalty won’t be  
imposed if the fund can show that the failure  
to file on time was due to reasonable cause.  
The authorization will automatically end  
no later than the due date (excluding  
extensions) for filing the fund's subsequent  
tax return. If the fund wants to expand the  
paid preparer's authorization or revoke  
authorization before it ends, see Pub. 947,  
Practice Before the IRS and Power of  
Attorney.  
Same-day wire payment option. If the  
fund fails to submit a deposit transaction on  
EFTPS by 8 p.m. Eastern time the day  
before the date a deposit is due, it can still  
make its deposit on time by using the  
Federal Tax Collection Service (FTCS).To  
use the same-day wire payment method, the  
fund will need to make arrangements with its  
financial institution ahead of time regarding  
availability, deadlines, and costs. Financial  
institutions may charge a fee for payments  
made this way. To learn more about the  
information the fund will need to provide to  
its financial institution to make a same-day  
wire payment, go to the IRS website at  
Late payment of tax. A fund that doesn’t  
pay the tax when due may generally be  
penalized 1/2 of 1% of the unpaid tax for each  
month or part of a month the tax is not paid,  
up to a maximum of 25% of the unpaid tax.  
The penalty won’t be imposed if the fund can  
show that the failure to pay on time was due  
to reasonable cause.  
Assembling the Return  
To ensure that the fund's tax return is  
correctly processed, attach all schedules  
after page 2, Form 1120-ND, in alphabetical  
order followed by other forms in numerical  
order.  
Reasonable-cause determinations. If the  
fund receives a notice about penalties after it  
files its return, send the IRS an explanation,  
and we will determine if the fund meets the  
reasonable-cause criteria. Do not attach an  
explanation when the fund files its return.  
Complete every applicable entry space  
on Form 1120-ND. Do not write “See  
Attached” instead of completing the entry  
spaces. If more space is needed on the  
forms or schedules, attach separate sheets  
using the same size and format as the  
printed forms. If there are supporting  
statements and attachments, arrange them  
in the same order as the schedules or forms  
they support and attach them last. Show the  
totals on the printed forms. Enter the fund's  
name and employer identification number  
(EIN) on each supporting statement or  
attachment.  
Other penalties. Other penalties can be  
imposed for negligence, substantial  
understatement of tax, reportable transaction  
understatements, and fraud. See sections  
6662, 6662A, and 6663.  
Estimated Tax Payments  
Generally, the following rules apply to the  
fund's payments of estimated tax.  
The fund must make installment  
Accounting Method  
payments of estimated tax if it expects its  
total tax for the year (less applicable credits)  
to be $500 or more.  
The fund must use the same method of  
accounting as the electing taxpayer.  
The installments are due by the 15th day  
Rounding Off to Whole Dollars  
of the 4th, 6th, 9th, and 12th months of the  
tax year. If any date falls on a Saturday,  
Sunday, or legal holiday, the installment is  
due on the next regular business day.  
The fund may round off cents to whole  
dollars on its return and schedules. If the  
fund does round to whole dollars, it must  
round all amounts. To round, drop amounts  
under 50 cents and increase amounts from  
50 to 99 cents to the next dollar. For  
example, $1.39 becomes $1 and $2.50  
becomes $3.  
Tax Payments  
The fund must use electronic funds  
The fund must pay the tax due in full no later  
than the due date for filing its tax return (not  
including extensions).  
transfers to make installment payments of  
estimated tax.  
Figure the fund's expected modified gross  
income for the tax year. Then multiply the  
fund's expected modified gross income by  
20%.  
Electronic Deposit  
Requirement  
If two or more amounts must be added to  
figure the amount to enter on a line, include  
cents when adding the amounts and round  
off only the total.  
If, after the fund figures and deposits  
Nuclear decommissioning funds must use  
electronic funds transfers to make all federal  
tax deposits (such as deposits of  
estimated tax, it finds that its tax liability for  
the year will be more or less than originally  
estimated, it may have to refigure its required  
installments. If earlier installments were  
Recordkeeping  
employment, excise, and corporate income  
Keep the fund's records for as long as they  
may be needed for the administration of any  
provision of the Internal Revenue Code.  
Usually, records that support an item of  
income, deduction, or credit on the return  
must be kept for 3 years from the date the  
return is due or filed, whichever is later. Keep  
records that verify the fund's basis in  
property for as long as they are needed to  
figure the basis of the original or replacement  
property.  
tax). Generally, electronic funds transfers are underpaid, the fund may owe a penalty. See  
made using the Electronic Federal Tax  
Payment System (EFTPS). However, if the  
fund does not want to use EFTPS, it can  
arrange for its tax professional, financial  
institution, payroll service, or other trusted  
third party to make deposits on its behalf.  
Also, it may arrange for its financial institution  
to submit a same-day wire payment  
the instructions for line 15.  
If the fund overpaid estimated tax, it may  
be able to get a quick refund by filing Form  
4466, Corporation Application for Quick  
Refund of Overpayment of Estimated Tax.  
See section 6655 for more information on  
how to figure estimated taxes.  
(discussed below) on its behalf. EFTPS is a  
free service provided by the Department of  
the Treasury. Services provided by a tax  
professional, financial institution, payroll  
service, or other third party may have a fee.  
Interest and Penalties  
Interest. Interest is charged on taxes paid  
late even if an extension of time to file is  
The fund should keep copies of all filed  
granted. Interest is also charged on penalties returns. They help in preparing future and  
imposed for failure to file, negligence, fraud,  
substantial valuation misstatements,  
amended returns.  
To get more information about EFTPS or  
to enroll in EFTPS, go to EFTPS.gov or call  
800-555-4477. To contact EFTPS using  
Telecommunications Relay Services (TRS)  
for people who are deaf, hard of hearing, or  
Additional Information  
substantial understatements of tax, and  
reportable transaction understatements from  
the due date (including extensions) to the  
date of payment. The interest charge is  
See the Instructions for Form 1120 and Pub.  
542, Corporations, for more information  
about corporations, including additional  
-2-  
 
forms the fund may need to file and how to  
get forms and publications.  
individual trustee or disqualified person,  
enter the individual's social security number.  
If the trustee or disqualified person is not an  
individual, enter the EIN.  
See section 265. In addition, a deduction is  
not allowed for distributions made to electing  
taxpayers. Report such payments as an item  
of information on Schedule M, line 2c.  
Liabilities are not treated as incurred prior to  
the time economic performance takes place.  
See section 461(h).  
Specific Instructions  
Period Covered  
Note. Do not complete item B if Form  
1120-ND is filed to report the income,  
deductions, and income tax liability of the  
fund.  
Enter the tax year in the space provided at  
the top of the form. For a calendar year,  
enter the last two digits of the calendar year  
in the first entry space. For a fiscal tax year  
return, fill in the tax year space at the top of  
the form.  
Line 5. Trustee fees. Enter the total  
deductible fees paid or incurred to the  
trustee(s) for administering the fund during  
the tax year.  
Item C. Fund, Trustee, or  
Disqualified Person  
Line 6. Taxes. Enter deductible taxes paid  
or incurred during the tax year, including  
state and local income taxes. Do not deduct  
federal income taxes or taxes not imposed  
on the fund.  
Check only the box that applies.  
1. When filed to report the income,  
deductions, and income tax liability of the  
fund, check the “Fund” box.  
2. When filed by a trustee who is liable  
for taxes under section 4951, check the  
“Trustee” box.  
3. When filed by a disqualified person  
who is liable for section 4951 tax, check the  
“Disqualified person” box.  
Name and Address  
Enter the fund's true name (as set forth in the  
charter or other legal document creating it),  
address, and EIN on the appropriate lines.  
Enter the address of the fund's principal  
office or place of business. Include the suite,  
room, or other unit number after the street  
address. If the post office does not deliver  
mail to the street address and the fund has a  
P.O. box, show the box number instead.  
Line 8. Other deductions. Attach a  
schedule listing by type and amount all  
allowable deductions that are not deducted  
elsewhere on Form 1120-ND. Include  
investment advisory fees, actuarial  
expenses, and other administrative  
expenses paid or incurred during the tax  
year, but do not include decommissioning  
costs.  
Item D. Final Return, Name  
Change, Address Change, or  
Amended Return  
Note. Do not use the address of the  
registered agent for the state in which the  
fund is incorporated. For example, if a fund is  
incorporated in Delaware or Nevada and the  
fund's principal office is located in Little  
Rock, AR, the fund should enter the Little  
Rock address.  
Line 11. Net operating loss deduction.  
Enter the amount of any net operating loss  
deduction allowed by Regulations section  
1.468A-4(b)(4), and explain its computation  
on an attached schedule.  
Indicate a final return, name change,  
address change, or amended return by  
checking the appropriate box. If you are a  
trustee or disqualified person reporting  
section 4951 taxes, omit item D.  
If the return is filed by a trustee or  
disqualified person to report section 4951  
taxes, enter that person's name and address  
in the address section.  
Note. The 2-year carryback rule does not  
apply to net operating losses arising in tax  
years ending after 2017. An exception  
applies to farmers and non-life insurance  
companies. See section 172(b), as amended  
by P.L. 115-97, section 13302.  
Note. If a change in address occurs after  
the return is filed, use Form 8822-B, Change  
of Address or Responsible Party—Business,  
to notify the IRS of the new address. See the  
instructions for Form 8822-B for details.  
If the fund receives its mail in care of a  
third party (such as an accountant or an  
attorney), enter on the street address line  
“C/O” followed by the third party's name and  
street address or P.O. box.  
Line 14. Payments. Generally, no  
payments are allowed other than those on  
lines 14a through 14d and the credit for  
backup withholding.  
Part I. Computation of Fund  
Income Tax  
Income  
If the corporation has a foreign address,  
include the city or town, state or province,  
country, and foreign postal code. Do not  
abbreviate the country name. Follow the  
country's practice for entering the name of  
the state or province and postal code.  
Backup withholding. If the fund had  
federal income tax withheld from any  
payments it received because, for example,  
it failed to give the payer its correct EIN,  
include the amount withheld in the total for  
line 14f. Write the amount withheld and the  
words “Backup Withholding” in the blank  
space above line 14f.  
Line 1. Taxable interest. Enter the total  
taxable interest income received or accrued  
for the year, including any original issue  
discount. Do not include tax-exempt interest  
on line 1; but report it as an item of  
Item A. Employer Identification  
Number (EIN)  
information on Schedule M, line 2d.  
Line 2. Capital gain net income. Every  
sale, exchange, or actual or deemed  
distribution of assets held by the fund must  
be reported in detail on Schedule D (Form  
1120), Capital Gains and Losses (and Form  
8949, Sales and Other Dispositions of  
Capital Assets, if applicable), even if there is  
no gain or loss. The amount realized on an  
actual or deemed distribution is the fair  
market value of the assets as of the date of  
distribution.  
Enter the fund's EIN. If the fund does not  
have an EIN, it must apply for one. An EIN  
can be applied for in the following ways.  
Line 15. Estimated tax penalty. A fund  
that does not make estimated tax payments  
when due may be subject to an  
Online—Go to IRS.gov/EIN. The EIN is  
underpayment penalty for the period of  
underpayment. Use Form 2220,  
issued immediately once the application  
information is validated.  
Underpayment of Estimated Tax by  
Corporations, to see if the fund owes a  
penalty and to figure the amount of the  
penalty. If Form 2220 is attached, check the  
box on line 15 and enter the amount of the  
penalty on that line.  
By mailing or faxing Form SS-4,  
Application for Employer Identification  
Number.  
If the fund has not received its EIN by the  
time the return is due, write “Applied for” and  
the date the fund applied in the space for the  
EIN. For more details, see the Instructions  
for Form SS-4.  
Line 3. Other income. Enter any other  
taxable income not reported on line 1 or  
line 2 and explain its nature on an attached  
schedule. If the fund had only one item of  
other income, describe it in parentheses on  
line 3.  
Schedule L. Balance Sheets  
The balance sheets should agree with the  
fund's books and records.  
Item B. Identifying Number of  
Trustee or Disqualified Person  
Schedule M. Other Information  
If the return is filed by a trustee or  
Deductions  
Line 1. The term “electing taxpayer” means  
disqualified person to report section 4951  
taxes, enter the identifying number of the  
trustee or disqualified person. For an  
an eligible taxpayer that elects the  
Note. A deduction is not allowed for certain  
application of section 468A to deduct  
expenses allocable to tax-exempt income.  
-3-  
payments made to a nuclear  
decommissioning fund. See Regulations  
section 1.468A-7 for the rules concerning the  
election.  
2. The withdrawal of excess  
contributions by the electing taxpayer in  
accordance with Regulations section  
1.468A-5(c)(2).  
Note. Fair market value is determined as of  
the date on which the act of self-dealing  
occurs and at the highest market value  
during the taxable period.  
3. The withdrawal of amounts that have  
been treated as distributions to the electing  
taxpayer under Regulations section  
1.468A-5(c)(3).  
4. The payment of amounts remaining in  
the fund to the electing taxpayer after the  
termination of the fund upon the substantial  
completion of decommissioning.  
5. The furnishing of goods, services, or  
facilities by a disqualified person to the fund  
if the furnishing is without charge and if the  
goods, services, or facilities so furnished are  
exclusively used for the purposes specified  
in section 468A(e)(4).  
6. The payment of compensation (and  
the payment or reimbursement of expenses)  
by the fund to a disqualified person for  
personal services that are reasonable and  
necessary to carry out the purposes of the  
fund and the compensation (or payment or  
reimbursement of expenses) is not  
excessive.  
Line 5. If you are a trustee or disqualified  
person (defined later), complete the items  
included in line 5 to determine if you have  
engaged in an act of self-dealing.  
Correction and correct. The terms  
“correction” and “correct” mean the undoing  
of an act of self-dealing, to the extent  
possible, but in any case returning the fund  
to a financial position no worse than it would  
have been if the disqualified person acted  
under the highest fiduciary relationship.  
Part II. Initial Taxes on  
Self-Dealing (Section 4951)  
Initial Taxes on Self-Dealers  
Disqualified person. The term “disqualified  
person” means a person who is:  
1. A contributor to the fund.  
2. A trustee of the fund.  
An initial tax of 10% of the amount involved  
(defined later) is imposed on each act of  
self-dealing between a disqualified person  
and a nuclear decommissioning fund for  
each tax year (or part of a tax year) in the  
taxable period. The tax is required to be paid  
by any disqualified person (other than a  
trustee acting only as a trustee of the trust)  
who participates in the act of self-dealing.  
3. An owner of more than 10% of (a) the  
total combined voting power of a  
corporation, (b) the profits interest of a  
partnership, or (c) the beneficial interest of a  
trust or unincorporated business that is a  
contributor to the fund.  
4. An officer, director, or employee of a  
person who is a contributor to the fund.  
Initial Taxes on Trustee  
5. The spouse, ancestor, or a lineal  
descendant, or a spouse of a lineal  
descendant of an individual described in (1)  
through (4) above.  
6. A corporation of which persons  
described in (1) through (5) above own more  
than 35% of the total combined voting  
power.  
7. A partnership of which persons  
described in (1) through (5) above own more  
than 35% of the profits interests.  
8. A trust or estate of which persons  
described in (1) through (5) above own more  
than 35% of the beneficial interest.  
A tax of 21/2% of the amount involved is  
imposed on a trustee who participates in the  
act of self-dealing. The tax is not imposed if  
the trustee unwillingly or due to reasonable  
cause participated in the act. The tax is  
computed on all acts of self-dealing that  
occur within the taxable period. The tax is  
required to be paid by the trustee who  
participates in the act.  
7. A payment by the fund for the  
performance of trust functions and certain  
general banking services by a bank or trust  
company that is a disqualified person, if the  
banking services are reasonable and  
necessary to carry out the purposes of the  
fund and the compensation paid to the bank  
or trust company is not excessive  
(considering the fair market interest rate for  
the use of the funds by the bank or trust  
company).  
Exceptions. The initial tax on the act of  
self-dealing of a disqualified person or a  
trustee is not imposed if the acts of  
self-dealing are corrected within the taxable  
period.  
The allowable general banking services  
are:  
For purposes of (3a) and (6) above,  
indirect stockholders would be taken into  
account under section 267(c), except that,  
for purposes of this paragraph, section  
267(c)(4) will be treated as providing that the  
members of the family of an individual are  
only those individuals described in (5)  
above. For purposes of (3a), (3c), (7), and  
(8) above, the ownership of profits or  
beneficial interests will be determined by the  
rules of constructive ownership of stock  
provided in section 267(c) (other than  
paragraph (3) thereof), except that section  
267(c)(4) will be treated as providing that the  
members of the family of an individual are  
only those individuals described in (5)  
above.  
Checking accounts, as long as the bank  
does not charge interest on any  
overwithdrawals;  
Definitions  
Savings accounts, as long as the fund  
Self-dealing. When determining if an act is  
an act of self-dealing, treat the transfer of  
personal property by a disqualified person to  
the fund as a sale or exchange if the property  
is subject to a mortgage or similar lien.  
Otherwise, the term “self-dealing” means any  
direct or indirect:  
may withdraw its money after giving no more  
than 30 days notice, without losing interest  
for the period the money was on deposit; and  
Safekeeping activities (for example, rental  
of a safe deposit box).  
Taxable period. For an act of self-dealing,  
the term “taxable period” means the period  
beginning on the date of the act of  
self-dealing and ending on the date of the  
earliest of:  
Sale, exchange, or leasing of real or  
personal property between the fund and a  
disqualified person;  
Lending of money or other extensions of  
The date of mailing of a notice of  
credit between the fund and a disqualified  
person;  
deficiency under section 6212 for the section  
4951 tax,  
Furnishing of goods, services, or facilities  
The date on which the tax imposed by  
between the fund and a disqualified person;  
Dispositions of an Interest in a  
Nuclear Power Plant  
section 4951 is assessed, or  
Payment of compensation (or payment or  
The date correction of the act of  
reimbursement of expenses) by the fund to a  
disqualified person; and  
self-dealing is completed.  
Transfers to, or use by or for the benefit  
There are federal income tax consequences  
when there is a transfer of assets of a  
nuclear decommissioning fund in connection  
with the sale, exchange, or other disposition  
of a transferor of all or a portion of its  
qualifying interest in a nuclear power plant to  
another taxpayer (transferee). If the  
Amount involved. The term “amount  
involved” means the greater of the amount of  
money given (or received) and the fair  
market value of the other property given (or  
received). When services described in  
section 4951(d)(2)(C) are involved, the  
amount involved is only the excess  
compensation.  
of, a disqualified person of the income or  
assets of the fund.  
Exceptions. Acts of self-dealing do not  
include the following.  
1. The payment by the fund for the  
purposes of satisfying, in whole or in part, the  
liability of the electing taxpayer for  
decommissioning costs of the nuclear power  
plant.  
requirements of Regulations section  
1.468A-6(b) are met, the federal income tax  
consequences are the following.  
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1. No gain or loss. If there is a  
(2) The ruling amount contained in the  
transferor's current schedule of ruling  
amounts with respect to that plant for that tax  
year multiplied by the product of:  
governments pursuant to tax treaties. We  
may disclose the information to contractors  
for tax administration purposes. We may also  
disclose this information to federal and state  
agencies to enforce federal nontax criminal  
laws and to combat terrorism. If you do not  
provide this information, or you provide false  
or fraudulent information, you may be subject  
to penalties.  
disposition of an interest (wholly or partially)  
in a nuclear power plant, neither the  
transferor or the transferee (or either's fund)  
will recognize gain, loss, or otherwise take  
any income or deduction into account  
because of the transfer of all or some of the  
assets of the transferor's fund. Also, the  
transfer is not considered a payment or  
contribution of assets by the transferor's fund  
(or by the transferee to its fund).  
2. Basis. Transfers of assets of a fund  
to which Regulations section 1.468A-6  
applies do not affect basis. The transferee's  
fund will have a basis in the assets received  
from the transferor equal to the transferor's  
basis in those assets immediately prior to the  
transfer.  
(a) The portion of the transferor's  
qualifying interest that is disposed of; and  
(b) A fraction, the numerator of which is  
the number of days in the tax year that  
precede the date of the disposition, and the  
denominator of which is the number of days  
in that tax year.  
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 and return information  
are confidential, as required by section 6103.  
4. Tax year after the year of  
disposition. A transferee of, or a transferor  
who retains, a qualifying interest in a nuclear  
power plant must file a request for a revised  
schedule of ruling amounts for the interest by  
the deemed payment deadline (defined  
above). If the transferee (or the transferor)  
does not timely file such a request, the  
transferee's (or the transferor's) ruling  
3. Tax year of disposition.  
A. Transferee. If a transferee does not file  
The time needed to complete and file this  
form will vary depending on individual  
circumstances. The estimated burden for  
business taxpayers filing this form is  
approved under OMB control number  
1545-0123 and is included in the estimates  
shown in the instructions for their business  
income tax return. The estimated burden for  
all other taxpayers who file this form is  
shown below.  
a request for a schedule of ruling amounts by amounts for the interest for that tax year will  
the deemed payment deadline (21/2 months  
after the end of the tax year of the  
be zero.  
disposition), the transferee's ruling amount  
for the interest acquired is determined by  
taking the amount contained in the  
transferor's current schedule of ruling  
amounts for that tax year and that plant  
multiplied by the product of:  
For more information, see Regulations  
section 1.468A-6.  
Privacy Act and 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.  
(1) The portion of the transferor's  
qualifying interest that is transferred; and  
Recordkeeping  
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23 hr., 26 min.  
(2) A fraction, the numerator of which is  
the number of days in the tax year of the  
transferor including and following the date of  
the disposition, and the denominator of  
which is the number of days in that tax year.  
B. Transferor. If a transferor does not file  
a request for a revised schedule of ruling  
amounts on or before the deemed payment  
deadline for the tax year of the transferor in  
which the disposition of its interest in the  
nuclear power plant occurred (that is, the  
date that is 21/2 months after the close of that  
tax year), the transferor's ruling amount with  
respect to that plant for that year will equal  
the sum of:  
Learning about the law or the  
form .  
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3 hr., 7 min.  
Preparing the form  
5 hr., 30 min.  
Section 4951 of the Internal Revenue  
Code requires disqualified taxpayers  
Copying, assembling, and  
sending the form to the IRS  
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32 min.  
engaged in self-dealing with a trust to pay  
over to the IRS an initial tax. This form is  
used to report the initial amount of tax that  
you owe. Sections 6001 and 6011 require  
you to provide the requested information if  
the tax applies to you. Section 6109 and its  
regulations require you to provide your  
identifying number. Routine uses of this  
information include disclosing it to the  
Department of Justice for civil and criminal  
litigation and to other federal agencies, as  
provided by law. We may disclose the  
information to cities, states, the District of  
Columbia, and U.S. Commonwealths or  
possessions to administer their tax laws. We  
may disclose the information to foreign  
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. You can  
send us comments from IRS.gov/  
FormComments. Or you can write to the  
Internal Revenue Service, Tax Forms and  
Publications Division, 1111 Constitution Ave.  
NW, IR-6526, Washington, DC 20224. Do  
not send the tax form to this address.  
Instead, see Where To File, earlier.  
(1) The ruling amount contained in the  
transferor's current schedule of ruling  
amounts with respect to that plant for that tax  
year multiplied by the portion of qualifying  
interest that is retained, if any; and  
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