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Form 5452 (Rev. 10-2018) Page 2
Instructions • If the corporation was required to complete Schedule L (Form
1120) for the tax year, a tax basis balance sheet. Show the
Section references are to the Internal Revenue Code, unless application of the net differences to the balance sheet items as
otherwise noted. shown on Schedule L. Explain any further adjustments
Future Developments necessary to figure the balance sheet on a tax basis. If the
corporation used an accelerated method of depreciation, attach
For the latest information about developments related to Form a schedule of the depreciation (and any amortization) figured
5452 and its instructions, such as legislation enacted after they under the straight line method. Also attach a reconciliation of
were published, go to www.irs.gov/Form5452. any difference between that amount and the amount deducted
Purpose of Form on Form 1120 or other comparable return. See Exhibits B and C
in Rev. Proc. 75-17.
Complete Form 5452 if the corporation made nondividend
distributions to shareholders under section 301, section 2. The parent of a consolidated group must also attach the
1368(c)(3), section 1371(e), or section 1371(f). following information.
• A schedule that shows the allocation of the consolidated tax
Who Must File liability and identifies the method used. (Indicate if an
All corporations that have made nondividend distributions to intercompany agreement is in effect.)
their shareholders must file Form 5452. If the corporation is a • A schedule that shows the taxable income or loss of each
member of a consolidated group, the parent corporation must member of the consolidated group.
file Form 5452. • For each member of a consolidated group that made
An S corporation should file this form when distributions are nondividend distributions, provide the information requested in
made under section 1371(e), 1371(f), or in the year when item 1 above.
distributions fully exhaust accumulated earnings and profits.
F. Corporate Distributions
How and When To File Complete Part F, showing the taxable and nontaxable status of
A calendar tax year corporation must attach Form 5452 and the distributions reported to shareholders. The percentage of
items listed under Supporting Information to its income tax distributions that is taxable and the percentage that is
return due for the tax year in which the nondividend nontaxable are based on the amounts shown on each line in the
distributions were made. column labeled “Total Amount Paid.” If noncash distributions
A fiscal tax year corporation must attach Form 5452 and the were made, attach a statement and show both the tax bases
items listed under Supporting Information to its income tax and fair market values.
return due for the first fiscal year ending after the calendar year
in which the nondividend distributions were made. Paperwork Reduction Act Notice.We ask for theinformation
Nondividend Distributions on this form to carry out the Internal Revenuelaws of the United
States. You are required to give us theinformation. We need it
Nondividend distributions are distributions made to to ensure that you are complying with these laws and to allow
shareholders in the normal course of business. us to figure and collect the rightamount of tax.
They are considered fully or partially nontaxable as dividends You are not required to provide the information requested on
only because the paying corporation’s current and a form that is subject to the Paperwork Reduction Act unless
accumulated earnings and profits are less than the the form displays a valid OMB control number. Books or
distributions. Nondividend distributions do not include tax-free records relating to a form or its instructions must be retained as
stock dividends or distributions exchanged for stock in long as their contents may become material in the
liquidations or redemptions. administration of any Internal Revenue law. Generally, tax
Supporting Information returns and return information are confidential, as required by
section 6103.
1. Attach the following information to Form 5452. See Rev.
Proc. 75-17, 1975-1 C.B. 677. The time needed to complete and file this form will vary
depending on individual circumstances. The estimated burden
• A computation of earnings and profits for the tax year (see the for business taxpayers filing this form is approved under OMB
example of a filled-in worksheet and a blank worksheet below). control number 1545-0123 and is included in the estimates
If the corporation was required to complete Schedule M-1 (Form shown in the instructions for their business income tax return.
1120) or Schedule M-3 (Form 1120) for the tax year, also attach
a schedule of the differences between the earnings and profits If you have comments concerning the accuracy of these time
computation and the Schedule M-1 or Schedule M-3. estimates or suggestions for making this form simpler, we would
be happy to hear from you. See the instructions for the tax
• A year-by-year computation of the accumulated earnings and return with which this form is filed.
profits, and a schedule of differences since the origin of the
company, February 28, 1913, or the last year that information
was furnished, whichever is later.
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