1120-IC-DISC Sch. K

Shareholder's Statement of IC-DISC Distributions

Agency
IRS
Revision
Rev. November 2018
Fillable fields
60
Pages
5
Official source
IRS form page
Checked
October 21, 2026
Fill 1120-IC-DISC Sch. K online
Page 1 of form 1120-IC-DISC Sch. K

Schedule K (Form 1120-IC-DISC): Shareholder's Statement of IC-DISC Distributions

Schedule K (Form 1120-IC-DISC), Shareholder's Statement of IC-DISC Distributions, is completed by an interest charge domestic international sales corporation (IC-DISC), a former DISC or a former IC-DISC, one schedule for each shareholder. The IRS says it reports an actual or deemed distribution from an IC-DISC, former IC-DISC or former DISC, and also reports deferred DISC income from an IC-DISC.

The schedule comes in three copies. The instructions for the IC-DISC say to attach Copy A to Form 1120-IC-DISC, give Copy B to the shareholder, and keep Copy C for the corporation's records. The instructions for the shareholder, printed on the back of Copy B, say to keep it for your records and not to file it with your income tax return.

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What's on Schedule K (Form 1120-IC-DISC)

Header

The calendar or tax year, the shareholder's name, identifying number and address, and the name, EIN and address of the IC-DISC, former DISC or former IC-DISC.

Part I, lines 1 to 3: taxable distributions

Deemed distributions under section 995(b)(1) and the annual installment under section 995(b)(2), their total, actual taxable distributions, and total taxable distributions on line 3.

Section A, lines 4a and 4b

For C corporations: the part of line 3 entitled to the section 243 dividends-received deduction and the part not entitled to it.

Section B, line 5

For shareholders other than C corporations: the amount of taxable dividends included on line 3.

Part II, lines 6 to 8: nontaxable distributions

Actual distributions from previously taxed income and accumulated pre-1985 DISC income, other actual nontaxable distributions, and their total.

Part III, lines 9 and 10: other information

Accumulated IC-DISC income attributable to stock sold during the year, and deferred DISC income.

How to fill out Schedule K (Form 1120-IC-DISC)

  1. 1

    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 pro rata share of the annual installment under section 995(b)(2). The instructions say the totals for all shareholders should equal what the corporation reports in Parts I and III of Schedule J, Form 1120-IC-DISC.

  2. 2

    Lines 2 and 3

    On line 2, enter the actual distributions taxable to the shareholder, which come from accumulated IC-DISC income and other earnings and profits. Line 3 adds line 1c and line 2, and the total also goes in Section A or B.

  3. 3

    Line 4a or line 5

    Line 4a holds dividends out of other earnings and profits eligible for the section 243 deduction. The instructions list three kinds of dividend with no deduction: paid out of accumulated IC-DISC or pre-1985 DISC income, paid out of previously taxed income, or a deemed distribution under section 995(b)(1). Line 5 is for individuals, partnerships, S corporations, estates or trusts.

  4. 4

    Lines 6 and 7

    Line 6 is the shareholder's share of actual distributions from previously taxed income and accumulated pre-1985 DISC income; the total for all shareholders should equal Schedule J, Part IV, line 4a. Line 7 is other actual nontaxable distributions; that total should equal Schedule J, Part IV, line 4d.

  5. 5

    Lines 9 and 10

    Line 9 applies when a shareholder disposes of stock, or the stock is disposed of in a transaction that ends the corporation's separate existence: enter the accumulated IC-DISC income from the period the shareholder held the stock. Line 10 is the shareholder's share of deferred DISC income at year end; the total should equal Schedule J, Part V, line 3.

  6. 6

    Send the copies

    Attach Copy A to Form 1120-IC-DISC, give Copy B to the shareholder, and keep Copy C.

These steps follow the Instructions for IC-DISC printed on the back of Copy C.

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Where the copies go and deadlines

Copy A

Attached to Form 1120-IC-DISC, one for each shareholder.

Copy B and its deadline

The instructions say to give Copy B to the shareholder by the last day of the second month after the corporation's tax year ends.

Copy C

Kept for the IC-DISC's records.

Not on Form 1099-DIV

The instructions say not to report actual and deemed distributions or deferred DISC income on Form 1099-DIV.

For the shareholder

The shareholder keeps Copy B and does not file it with the income tax return. If line 10 shows deferred DISC income, the instructions point to Form 8404 to figure the interest charge under section 995(f).

Related forms

Who fills out Schedule K (Form 1120-IC-DISC)?

  • IC-DISCs

    The instructions say to complete a Schedule K 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.

  • Former DISCs and former IC-DISCs

    The schedule also reports distributions from a former DISC or former IC-DISC. Its corporation box asks for the name, EIN and address of the IC-DISC, former DISC or former IC-DISC.

  • C corporation shareholders

    Section A, lines 4a and 4b, splits the taxable distribution into the part entitled to the section 243 dividends-received deduction and the part not entitled to it.

  • Other shareholders

    Section B, line 5, is for shareholders that are individuals, partnerships, S corporations, estates or trusts. It shows the part of line 3 taxable to them as a dividend.

  • Tax-exempt and foreign shareholders

    The shareholder instructions have separate notes on how a tax-exempt entity and a foreign shareholder treat these distributions and gains, citing sections 995 and 996.

The corporation completes the schedule. The shareholder receives Copy B and keeps it.

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Questions about Form 1120-IC-DISC Sch. K

Who completes Schedule K (Form 1120-IC-DISC)?

The IC-DISC, former DISC or former IC-DISC completes one for each shareholder who had an actual or deemed distribution during the tax year, or to whom it reports deferred DISC income.

Does a shareholder file Copy B with a tax return?

No. The shareholder instructions say to keep Copy B for your records and not file it with your income tax return.

When does the shareholder get Copy B?

The instructions say by the last day of the second month after the corporation's tax year ends.

Are these distributions reported on Form 1099-DIV?

No. The instructions say not to report actual and deemed distributions or deferred DISC income on Form 1099-DIV.

What does line 4a show a C corporation shareholder?

The shareholder instructions say line 4a shows the part of the line 3 total that qualifies for the 50% or 65% dividends-received deduction under section 243, and line 4b the part that does not.

What is deferred DISC income on line 10?

It is the shareholder's share of the IC-DISC's deferred income for the year. The instructions say section 995(f) imposes an interest charge on it, figured on Form 8404.