Header
Name of corporation and EIN, name of QDD and its QI-EIN.
1120-F
Tax Liability of Qualified Derivatives Dealer (QDD)
- Agency
- IRS
- Revision
- 2025
- Fillable fields
- 45
- Pages
- 1
- Official source
- IRS form page
- Checked
- October 21, 2026
Schedule Q (Form 1120-F): Tax Liability of Qualified Derivatives Dealer (QDD)
Schedule Q (Form 1120-F) is the 2025 schedule that summarizes the tax liability of a qualified derivatives dealer (QDD). The form says that if a foreign corporation or any branch of it was a QDD during the tax year, Schedule Q is completed and filed for each of those QDDs, even if the QDD has zero tax liability.
The form defines a QDD as a home office or branch that, in accordance with the qualified intermediary agreement (QIA), qualifies and has been approved for QDD status and satisfies the requirements of the QIA. The QIA is section 6 of Rev. Proc. 2022-43. The schedule lists the section 871(m) amount, dividends received in equity derivatives dealer capacity and the QDD tax liability under sections 3.09(A), (B) and (C) of the QIA, each with a gross amount, a withholding tax rate and the resulting liability. Its instructions are printed on the schedule itself.
The form says to attach it to Form 1120-F. You can fill out Schedule Q free in your browser on this page and download it without an account.
What's on Schedule Q (Form 1120-F)
Periods and count
The QDD taxable year, the year or portion of the year the schedule covers, and the Schedule ___ of ___ boxes.
Columns (a) to (c)
Gross amount, withholding tax rate, and amount of tax liability, which is column (a) multiplied by column (b).
Lines 1 and 2
Total section 871(m) amount, and total dividends received in equity derivatives dealer capacity.
Lines 3 and 4
Total QDD tax liability under sections 3.09(A) and 3.09(B) of the QIA.
Lines 5 and 6
QDD tax liability under section 3.09(C) of the QIA by income type on lines 5a to 5d, and their total on line 6.
How to fill out Schedule Q (Form 1120-F)
- 1
Name of QDD
The form says the name of the QDD should follow the naming protocol used for applying to be a QDD. Enter the QI-EIN beside it.
- 2
Number of schedules
Indicate the number of each Schedule Q filed and the total number of Schedules Q the corporation is filing.
- 3
Line 1
Column (a) is the sum of each section 871(m) amount for the QDD for the period. The form notes that for calendar years 2019 through 2026 this information is not required.
- 4
Line 2
The form says that for calendar years 2019 through 2026 only the gross amount in column (a) and the tax rate in column (b) are required.
- 5
Lines 3 and 4
Line 3, column (c) is the sum of each section 3.09(A) amount, not required for calendar years 2019 through 2026. On line 4 enter columns (a), (b) and (c).
- 6
Line 5
Name each income type, such as dividends or interest, and fill columns (a) to (c) for each. The form says that for calendar years 2019 through 2026, dividends included on line 2 are not included here.
Why fill Form 1120-F on indox
You get the real form, filled in a browser tab, with nothing standing between you and the finished PDF.
- Fill the form right in your browser, no software to install
- Free to fill and free to download, with no account
- The official blank straight from the IRS, not a copy someone retyped
- Works on a phone, tablet or computer
Where it goes and what to watch
Where to send it
The form says to attach it to Form 1120-F. A separate Schedule Q goes with the return for each QDD.
Fiscal years
The form's example: a QDD with a fiscal year from September 1 to August 31 completes one schedule for September 1, 2025 through December 31, 2025 and one for January 1, 2026 through August 31, 2026.
Column (c) and withholding
The form says column (c) is not reduced by any withholding that has occurred.
Fiscal year 2026 to 2027
The form says a fiscal year that begins in 2026 and ends in 2027 needs the information for any amounts paid or accrued on or after January 1, 2027.
Latest changes
The form says Schedule Q was amended to reflect Notice 2024-44 and points to www.irs.gov/Form1120F for the latest information.
Related forms
1120-F
U.S. Income Tax Return of a Foreign Corporation
527 fields, 9 pages
1120-F
Interest Expense Allocation Under Regulations Section 1.882-5
113 fields, 3 pages
1120-F
List of Foreign Partner's Interests in Partnerships
173 fields, 3 pages
1120-F
Deductions Allocated to Effectively Connected Income Under Regulations Section 1.861-8
77 fields, 2 pages
1120-F
Net Income (Loss) Reconciliation for Foreign Corporations With Reportable Assets of $10 Million or More
439 fields, 4 pages
1120-F Sch. S
Exclusion of Income From the International Operation of Ships or Aircraft Under Section 883
68 fields, 2 pages
Who files Schedule Q (Form 1120-F)?
The form says a corporation completes Schedule Q if it, or any branch of it, was a QDD during the tax year, and attaches it to Form 1120-F. It is a corporate schedule, not a form for individuals.
Official sources and the blank
Do it all with indox
No tool matches that search.
Questions about Form 1120-F
What is a qualified derivatives dealer (QDD)?
The form says it is a home office or branch that, under the qualified intermediary agreement, qualifies and has been approved for QDD status and satisfies the requirements of the agreement.
Is a separate Schedule Q needed for each QDD?
Yes. The form says a separate Schedule Q is required for each QDD, and fiscal year corporations file one for each calendar year portion.
Is Schedule Q filed if the QDD owes nothing?
Yes. The form says the corporation files Schedule Q with Form 1120-F even if the QDD has zero tax liability.
Which lines are not required for calendar years 2019 through 2026?
The form says line 1 and line 3 are not required, and on line 2 only columns (a) and (b) are required.
Where are the instructions for Schedule Q?
They are printed on the schedule itself: who must file, general instructions and line instructions.