SCHEDULE K 

(Form 1120-IC-DISC)

(Rev. November 2018)

Department of the Treasury 

Internal Revenue Service 

Shareholder's Statement of IC-DISC Distributions

For calendar year or tax year

(Complete for each shareholder. See instructions on back of Copy C.)

OMB No. 1545-0123

COPY A—Attach to 

Form 1120-IC-DISC

20

beginning , 20 , ending , 20

Part I Taxable Distributions

1 Deemed distributions: a Under section 995(b)(1) . . . . . . . . . . . . . . . . 1a

b Annual installment under section 995(b)(2) . . . . . . . . . . 1b

c Total. Add lines 1a and 1b . . . . . . . . . . . . . . . 1c

2 Actual taxable distributions . . . . . . . . . . . . . . . . . . . . . . . . 2

3 Total taxable distributions. Add line 1c and line 2. Enter here and in Section A or B below . . . 3

Section A—C Corporations

4a Part of line 3 above entitled to section 243 dividends-received deduction . . . . . . . . . 4a

b Part of line 3 above not entitled to section 243 dividends-received deduction . . . . . . . 4b

Section B—Shareholders Other Than C Corporations

5 Amount of taxable dividends included on line 3 . . . . . . . . . . . . . . . . . 5

Part II Nontaxable Distributions

6 Actual distributions from previously taxed income and accumulated pre-1985 DISC income . . 6

7 Other actual nontaxable distributions . . . . . . . . . . . . . . . . . . . . . 7

8 Total nontaxable distributions. Add lines 6 and 7 . . . . . . . . . . . . . . . . 8

Part III Other Information

9 Accumulated IC-DISC income attributable to stock sold during the year . . . . . . . . . 9

10 Deferred DISC income. See instructions . . . . . . . . . . . . . . . . . . . . 10

Shareholder’s name, identifying number, and address (including ZIP code)

Name, employer identification number, and address (including ZIP code) 

of IC-DISC, former DISC, or former IC-DISC

For Paperwork Reduction Act Notice, see the Instructions for Form 1120-IC-DISC. www.irs.gov/Form1120icdisc Cat. No. 11474A Schedule K (Form 1120-IC-DISC) (Rev. 11-2018)
SCHEDULE K 

(Form 1120-IC-DISC)

(Rev. November 2018)

Department of the Treasury 

Internal Revenue Service 

Shareholder's Statement of IC-DISC Distributions OMB No. 1545-0123

COPY B— 

For Shareholder's 

records

For calendar year 20 or tax year

beginning , 20 , ending , 20

Part I Taxable Distributions

1 Deemed distributions: a Under section 995(b)(1) . . . . . . . . . . . . . . . . 1a

b Annual installment under section 995(b)(2) . . . . . . . . . . 1b

c Total. Add lines 1a and 1b . . . . . . . . . . . . . . . 1c

2 Actual taxable distributions . . . . . . . . . . . . . . . . . . . . . . . . 2

3 Total taxable distributions. Add line 1c and line 2. Enter here and in Section A or B below . . . 3

Section A—C Corporations

4a Part of line 3 above entitled to section 243 dividends-received deduction . . . . . . . . . 4a

b Part of line 3 above not entitled to section 243 dividends-received deduction . . . . . . . 4b

Section B—Shareholders Other Than C Corporations

5 Amount of taxable dividends included on line 3 . . . . . . . . . . . . . . . . . 5

Part II Nontaxable Distributions

6 Actual distributions from previously taxed income and accumulated pre-1985 DISC income . . 6

7 Other actual nontaxable distributions . . . . . . . . . . . . . . . . . . . . . 7

8 Total nontaxable distributions. Add lines 6 and 7 . . . . . . . . . . . . . . . . 8

Part III Other Information

9 Accumulated IC-DISC income attributable to stock sold during the year . . . . . . . . . 9

10 Deferred DISC income. See instructions . . . . . . . . . . . . . . . . . . . . 10

Shareholder’s name, identifying number, and address (including ZIP code)

Name, employer identification number, and address (including ZIP code) 

of IC-DISC, former DISC, or former IC-DISC

www.irs.gov/Form1120icdisc Cat. No. 11474A Schedule K (Form 1120-IC-DISC) (Rev. 11-2018)
Instructions for Shareholder

Section references are to the Internal Revenue 

Code.

Purpose of forms. Copy B of Schedule K

(Form 1120-IC-DISC) reports an actual or

deemed distribution from an IC-DISC, former

IC-DISC, or former DISC. It also reports

deferred DISC income from an IC-DISC. 

Keep it for your records; do not file it with 

your income tax return.

Part I—Taxable Distributions

Report as distributions from an IC-DISC:

1. Deemed and actual taxable distributions; 

and

2. Gain, to the extent of accumulated 

IC-DISC income, on the sale of stock (see 

Disposing of IC-DISC Stock below).

Line 1—Deemed distributions. You are

treated as having received deemed

distributions (line 1c) as of the last day of the

IC-DISC tax year. You must pay tax on the

distributions in your tax year that includes that 

date.

Line 2—Actual taxable distributions. You

must pay tax on actual taxable distributions in 

the year of receipt.

Line 4. Line 4a shows the part of the total

taxable distribution on line 3 that qualifies for

the 50% or 65% dividends-received

deduction under section 243. Line 4b shows

the part that does not qualify for the

deduction.

Line 5. If you are an individual, partnership, 

S corporation, estate, or trust, line 5 shows

the amount of line 3 distributions taxable to

you as a dividend.

For a tax-exempt entity, treat any deemed 

distribution or actual distribution of previously 

untaxed income as derived from the conduct 

of an unrelated trade or business.

Disposing of IC-DISC stock. If you disposed

of stock in an IC-DISC, former IC-DISC, or

former DISC, you may need to include all or

part of the gain in your income. The gain,

reported as a dividend under section 995(c), is 

included to the extent of accumulated 

IC-DISC income attributable to the stock

while you held it (line 9). This dividend is not 

eligible for the section 243 deduction.

For a tax-exempt entity, treat the gain 

under section 995(c) as derived from the 

conduct of an unrelated trade or business.

Foreign shareholders treat all gains on the 

disposition of stock in an IC-DISC, former 

IC-DISC, or former DISC, and all distributions 

from accumulated IC-DISC income or 

accumulated pre-1985 DISC income, 

including deemed distributions, as effectively 

connected with the conduct of a trade or 

business through a permanent establishment 

within the United States. See section 996(g) 

for details.

Acquiring IC-DISC stock. If you acquired

stock in an IC-DISC and subsequently 

received a distribution with respect to that 

stock, you may be able to treat part of that 

distribution as a nontaxable distribution. See 

section 996(d) for details.

Part II—Nontaxable Distributions

Actual distributions from previously taxed 

income and accumulated pre-1985 DISC 

income are generally not taxable to the extent 

of your basis in the stock for which the 

distribution was made. Except for 

distributions of accumulated IC-DISC income 

and of earnings and profits from the time 

before the corporation became an IC-DISC, 

actual distributions are not taxable to the 

extent of your basis in the stock for which the 

distribution was made. Treat distributions in 

excess of your basis as a gain from the sale 

or exchange of property. See section 996(e).

Part III—Other Information

Line 10—Deferred DISC income. Line 10

shows your share of the IC-DISC’s deferred

income for the year. Section 995(f) imposes

an interest charge on the additional tax you

would pay if you included this deferred

income in your income for your tax year that

ends with or includes the IC-DISC’s tax year

end shown on Schedule K. Complete Form

8404, Interest Charge on DISC-Related

Deferred Tax Liability, to figure the interest

charge.

Future developments. For the latest 

information about developments related to 

Schedule K (Form 1120-IC-DISC) and its 

instructions, such as legislation enacted after 

they were published, go to www.irs.gov/

Form1120icdisc.

Schedule K (Form 1120-IC-DISC) (Rev. 11-2018)
SCHEDULE K 

(Form 1120-IC-DISC)

(Rev. November 2018)

Department of the Treasury 

Internal Revenue Service 

Shareholder's Statement of IC-DISC Distributions

(Complete for each shareholder. See instructions on back of Copy C.)

OMB No. 1545-0123

COPY C— 

For IC-DISC's records

For calendar year 20 or tax year

beginning , 20 , ending , 20

Part I Taxable Distributions

1 Deemed distributions: a Under section 995(b)(1) . . . . . . . . . . . . . . . . 1a

b Annual installment under section 995(b)(2) . . . . . . . . . . 1b

c Total. Add lines 1a and 1b . . . . . . . . . . . . . . . 1c

2 Actual taxable distributions . . . . . . . . . . . . . . . . . . . . . . . . 2

3 Total taxable distributions. Add line 1c and line 2. Enter here and in Section A or B below . . . 3

Section A—C Corporations

4a Part of line 3 above entitled to section 243 dividends-received deduction . . . . . . . . . 4a

b Part of line 3 above not entitled to section 243 dividends-received deduction . . . . . . . 4b

Section B—Shareholders Other Than C Corporations

5 Amount of taxable dividends included on line 3 . . . . . . . . . . . . . . . . . 5

Part II Nontaxable Distributions

6 Actual distributions from previously taxed income and accumulated pre-1985 DISC income . . 6

7 Other actual nontaxable distributions . . . . . . . . . . . . . . . . . . . . . 7

8 Total nontaxable distributions. Add lines 6 and 7 . . . . . . . . . . . . . . . . 8

Part III Other Information

9 Accumulated IC-DISC income attributable to stock sold during the year . . . . . . . . . 9

10 Deferred DISC income. See instructions . . . . . . . . . . . . . . . . . . . . 10

Shareholder’s name, identifying number, and address (including ZIP code)

Name, employer identification number, and address (including ZIP code) 

of IC-DISC, former DISC, or former IC-DISC

www.irs.gov/Form1120icdisc Cat. No. 11474A Schedule K (Form 1120-IC-DISC) (Rev. 11-2018)
Instructions for IC-DISC

Section references are to the Internal Revenue 

Code.

Future developments. For the latest 

information about developments related to 

Schedule K (Form 1120-IC-DISC) and its 

instructions, such as legislation enacted after 

they were published, go to www.irs.gov/

Form1120icdisc.

General Instructions

Complete Schedule K (Form 1120-IC-DISC) for 

each shareholder who had an actual or deemed 

distribution during the tax year or to whom the 

corporation is reporting deferred DISC income 

for the tax year. Attach Copy A to Form 1120-

IC-DISC. Give Copy B to the shareholder by the 

last day of the second month after your tax year 

ends. Keep Copy C for your records.

Note: Do not report on Form 1099-DIV actual

and deemed distributions or deferred DISC

income.

Specific Instructions

Part I—Taxable Distributions

Line 1. On line 1a, enter the shareholder’s pro 

rata share of the deemed distributions under 

section 995(b)(1). On line 1b, enter the

shareholder’s pro rata share of the annual

installment under section 995(b)(2). The sum

of the amounts on these lines for all

shareholders should equal the total the

corporation reports in Part I and Part III,

Schedule J, Form 1120-IC-DISC.

Line 2. Enter the amount of actual distributions 

that are taxable to the shareholder. These 

distributions come from accumulated IC-DISC 

income and other earnings and profits.

Line 4a. Enter on line 4a each shareholder’s

amount of dividends out of other earnings and 

profits that are eligible for the dividendsreceived deduction under section 243. No 

dividends-received deduction is allowed for a 

dividend from an IC-DISC, former IC-DISC, or 

former DISC if it is:

1. Paid out of accumulated IC-DISC income 

or accumulated pre-1985 DISC income,

2. Paid out of previously taxed income, or

3. A deemed distribution under section 

995(b)(1).

Line 5. Complete for shareholders that are

individuals, partnerships, S corporations,

estates, or trusts. Enter on line 5 each

shareholder’s pro rata share of taxable

dividends included on line 3.

Part II—Nontaxable Distributions

Line 6. Enter the shareholder’s pro rata share

of actual distributions from previously taxed

income and distributions from accumulated

pre-1985 DISC income. The total of line 6 for

all shareholders should equal the total the

corporation reports on Form 1120-IC-DISC,

Schedule J, Part IV, line 4a.

Line 7. Enter the shareholder’s pro rata share

of actual nontaxable distributions out of other

than (1) previously taxed income or

accumulated pre-1985 DISC income, (2) 

accumulated IC-DISC income, and (3) other 

earnings and profits. The total of this line for 

all shareholders should equal the total 

nontaxable income reported on Form 1120-

IC-DISC, Schedule J, Part IV, line 4d.

Part III—Other Information

Line 9. If (1) a shareholder disposes of stock

in an IC-DISC or former DISC, or (2) the stock

of an IC-DISC, former IC-DISC, or former

DISC is disposed of in a transaction that

terminates the separate corporate existence

of an IC-DISC, former IC-DISC, or former

DISC (other than a mere change in the place

of organization), enter on line 9 the

accumulated IC-DISC income attributable to

the stock that was accumulated during the

period the shareholder held the stock.

Line 10. Enter the shareholder’s share of the

corporation’s deferred DISC income at tax

year end. See section 995(f) and the

instructions for Schedule J, Part V, in the

Instructions for Form 1120-IC-DISC for

information on figuring deferred DISC income.

The total of this line for all shareholders

should equal the total amount reported on

Form 1120-IC-DISC, Schedule J, Part V, 

line 3.

Schedule K (Form 1120-IC-DISC) (Rev. 11-2018)