Form 5452 - Corporate Report Of Nondividend Distributions 1994 (Page 2 of 4) in pdf

Form 5452 (Rev. 12-94)

Page

Instructions

Nondividend Distributions

Nondividend distributions are distributions made to

Section references are to the Internal Revenue Code.

shareholders in the normal course of business.

Paperwork Reduction Act Notice

They are considered fully or partially nontaxable as

dividends only because the paying corporation’s current and

We ask for the information on this form to carry out the

accumulated earnings and profits are less than the

Internal Revenue laws of the United States. You are required

distributions. Nondividend distributions do not include

to give us the information. We need it to ensure that you are

tax-free stock dividends or distributions exchanged for stock

complying with these laws and to allow us to figure and

in liquidations or redemptions.

collect the right amount of tax.

The time needed to complete and file this form will vary

Corporate Distributions

depending on individual circumstances. The estimated

Complete Part E, Corporate Distributions, showing the

average time is:

taxable and nontaxable status of distributions reported to

Recordkeeping

19 hr., 51 min.

shareholders. The percent of distributions that is taxable and

the percent that is nontaxable are based on the amounts

Learning about

shown on each line in the column, Total Amount Paid. If

the law or the form

1 hr., 20 min.

noncash distributions were made, attach a statement and

Preparing the form

3 hr., 35 min.

show both the tax bases and fair market values.

Copying, assembling, and

sending the form to the IRS

32 min.

Supporting Information

If you have comments concerning the accuracy of these

1. Attach the following information to Form 5452. See

time estimates or suggestions for making this form simpler,

Revenue Procedure 75-17, 1975-1 C.B. 677.

we would be happy to hear from you. You can write to the

A computation of earnings and profits for the tax year (see

IRS at the address listed in the instructions for the tax return

the example of a worksheet on page 3 and a blank

with which this form is filed.

worksheet on page 4). Also attach a schedule of the

differences between the earnings and profits computation

Purpose of Form

and the Schedule M-1 (Form 1120).

Complete Form 5452 if nondividend distributions are made to

A year-by-year computation of the accumulated earnings

shareholders under section 301 or section 1368(c)(3).

and profits, and a schedule of differences since the origin of

the company, February 28, 1913, or the last year that

Who Must File

information was furnished, whichever is later.

A tax basis balance sheet. Show application of the net

All corporations that have made nondividend distributions to

differences to the balance sheet items as shown on

their shareholders must file Form 5452.

Schedule L (Form 1120). Explain any further adjustments

A calendar tax year corporation must file Form 5452 and

necessary to figure the balance sheet on a tax basis. If the

the items listed under Supporting Information with its

corporation used an accelerated method of depreciation,

income tax return due for the tax year in which the

attach a schedule of the depreciation (and any amortization)

nondividend distributions were made.

figured under the straight line method. Also attach a

A fiscal tax year corporation must file Form 5452 and the

reconciliation of any difference between that amount and the

items listed under Supporting Information with its income

amount deducted on Form 1120 or other comparable return.

tax return due for the first fiscal year ending after the

See Exhibits B and C in Rev. Proc. 75-17.

calendar year in which the nondividend distributions were

2. A consolidated filer must also attach the following

made.

information.

If the corporation is a member of a consolidated group, the

A schedule that shows the allocation of the consolidated

parent corporation must file Form 5452. An S corporation

tax liability and identifies the method used. (Indicate if an

should file this form only for distributions made under section

intercompany agreement is in effect.)

1368(c)(3).

A schedule that shows the taxable income or loss of each

member of the consolidated group.

For each member of a consolidated group that made

nondividend distributions, provide the information requested

in Item 1 above.

Form 5452 - Corporate Report Of Nondividend Distributions 1994 Page 2

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