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Interest Charge on DISC-Related OMB No. 1545-0939
Form 8404 Deferred Tax Liability
Department of the Treasury File Form 8404 separately from your income tax return. See Where to file below. 2024
Internal Revenue Service Go to www.irs.gov/Form8404 for the latest information.
A Check applicable box to Name of shareholder B Shareholder’s identifying
show type of taxpayer. number
Corporation Address (number, street, room, suite, or P.O. box number)
Individual C IC-DISC’s identifying
Trust or City or town, state or province, country, and ZIP or foreign postal code number
Decedent’s estate
D Shareholder’s tax year for which interest charge is required to be paid (see instructions) E Name of IC-DISC

Note: See Line-by-Line Instructions , later.
1 Taxable income or loss on tax return (actual or estimated) . . . . . . . . . . . . 1
2 Deferred DISC income from line 10, Part III, Schedule K (Form 1120-IC-DISC) . . . . . 2
3 Section 995(f)(2)(B) adjustments to line 1 income or loss . . . . . . . . . . . . 3
4 Combine lines 1, 2, and 3. If zero or less, don’t file this form . . . . . . . . . . . 4
5 Tax liability on line 4 amount . . . . . . . . . . . . . . . . . . . . . 5
6 Tax liability per return (actual or estimated) . . . . . . . . . . . . . . . . . 6
7 DISC-related deferred tax liability. Subtract line 6 from line 5 . . . . . . . . . . . 7
8 Base period T-bill rate factor . . . . . . . . . . . . . . . . . . . . . 8
9 Interest charge due. Multiply line 7 by line 8. (See Paying the interest charge below.) . . 9
Under penalties of perjury, I declare that I have examined this return, including accompanying schedules and statements, and to the best of my knowledge and
belief, it is true, correct, and complete. Declaration of preparer (other than taxpayer) is based on all information of which preparer has any knowledge.
Sign
Here
Signature and title (if any) Date
Print/Type preparer’s name Preparer’s signature Date Check if PTIN
Paid self-employed
Preparer
Firm’s name Firm’s EIN
Use Only
Firm’s address Phone no.
Section references are to the Internal Revenue Where to file. File Form 8404 at the following Amended Form 8404. You are required to file
Code unless otherwise noted. address. an amended Form 8404 only if the amount of
Future Developments Department of the Treasury the DISC-related deferred tax liability (line 7)
Internal Revenue Service changes as a result of audit adjustments,
For the latest information about developments Kansas City, MO 64999 changes you make by the filing of an
amended return, or if estimates were used on
related to Form 8404 and its instructions, Paying the interest charge. You must pay your original Form 8404 and changes were
such as legislation enacted after they were the interest charge shown on line 9 by the made to these estimates when you filed your
published, go to www.irs.gov/Form8404. date your federal income tax for the tax year tax return. See Proposed Regulations section
is required to be paid. For individuals and 1.995(f)-1(j)(4) for details.
General Instructions corporations, the interest is generally due on
Purpose of form. Shareholders of Interest the 15th day of the 4th month following the
Charge Domestic International Sales close of the tax year. For corporations with a Specific Instructions
Corporations (IC-DISCs) use Form 8404 to tax year ending on June 30, see section Name and address. Enter the name and
figure and report their interest owed on 2006(a)(3)(B) of P.L. 114-41. address as shown on your tax return from
DISC-related deferred tax liability. Attach a check or money order made which the income or loss on line 1 of Form
Who must file. You must file Form 8404 if (a) payable to “United States Treasury” for the 8404 is obtained. If the return is a joint return,
you are a shareholder of an IC-DISC (or full amount of the interest charge. Don’t also enter your spouse’s name as shown on
former IC-DISC); (b) the IC-DISC reports combine the interest charge with any other Form 1040 or 1040-SR.
deferred DISC income to you on line 10, Part tax or interest due. Write your identification Item A—Type of taxpayer. Check the
III, of Schedule K (Form 1120-IC-DISC); and number and “Form 8404—Interest Due” on applicable box to indicate your status as a
(c) the addition of this income would result in your payment. taxpayer.
increased taxable income if it were included If the interest charge isn’t paid by the due Partnerships and S corporations attribute
on your tax return for the tax year. date, interest, compounded daily, at the rate their share of deferred DISC income to
When to file. File Form 8404 by the due date specified under section 6621, will be imposed partners and shareholders, and the partners
of your federal income tax return (excluding on the amount of unpaid interest from the due and shareholders complete Form 8404.
extensions) for your tax year that ends with or date until the date the interest is paid. Item B—Shareholder’s identifying number.
includes the IC-DISC’s tax year end. Payment of estimated tax isn’t required for Individuals must enter their social security
For example, you are a fiscal year the interest charge. See Proposed number. Other filers must enter their employer
corporation with an August 1, 2024, to July Regulations section 1.995(f)-1(j)(3) for other identification number.
31, 2025, tax year and you are a shareholder details. Item C—IC-DISC’s identifying number.
in an IC-DISC with an August 1, 2024, to July For corporations (other than S Enter the identifying number of the IC-DISC
31, 2025, tax year that reports deferred DISC corporations), the annual interest charge is from the Schedule K (Form 1120-IC-DISC) on
income to you for its tax year ending July 31, deductible as an interest expense for the tax which the deferred DISC income was reported
2025. Because your tax year ends with the year it is paid or accrued. See Proposed to you. If income is reported to you from more
IC-DISC’s tax year, you are required to file Regulations section 1.995(f)-1(j)(2) for details than one IC-DISC, enter each IC-DISC’s
Form 8404 on or before November 15, 2025 on the tax year of deductibility. For other identifying number in item C, each IC-DISC’s
(31/ 2months after your tax year ends). filers, this interest isn’t deductible. name in item E (or, enter “See attached” for
For Privacy Act and Paperwork Reduction Act Notice, see instructions. Cat. No. 62423Z Form 8404 (2024)

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Form 8404 (2024) Page 2
items C and E, and attach a statement of the Lines 5 and 6. “Tax liability” on lines 5 and 6 Privacy Act and Paperwork Reduction Act
IC-DISCs’ names and respective numbers), (with and without the deferred DISC income) Notice. We ask for the information on this
and report the combined income on line 2. means the amount of tax imposed on the form to carry out the Internal Revenue laws of
Item D—Tax year. Enter in item D the IC-DISC shareholder for the tax year by the United States. We need it to figure and
calendar year or the beginning and ending chapter 1 of the Internal Revenue Code (other collect the right amount of tax. Section 995(f)
dates of the tax year shown on your tax return than taxes listed below) reduced by credits requires taxpayers to pay over to the IRS
for which the interest charge is figured. allowable against such tax (other than credits interest on DISC-Related Deferred Tax
listed below). Liability. This form is used to determine the
Special Computation Rules See Special Computation Rules, earlier, for amount of tax that you owe. Sections 6001
Carrybacks. The determination of the rules for carrybacks and carryovers. These and 6011 require you to provide the
shareholder’s DISC-related deferred tax rules may affect the line 5 computation. requested information if the tax applies to
you. Section 6109 requires you to provide
liability on lines 1 through 7 shall be made The following taxes aren’t taken into your identifying number. Routine uses of this
without taking into account any capital loss account. information include disclosing it to the
carryback or credit carryback to the tax year. • Alternative minimum tax (individuals only). Department of Justice for civil and criminal
Carryovers. The determination of the • Any other provisions described in section litigation and to other federal agencies, as
shareholder’s tax liability (line 5) for the tax 26(b)(2) (relating to certain other taxes treated provided by law. We may disclose the
year is made by disregarding any loss, as not imposed by chapter 1). information to cities, states, the District of
deduction, or credit to the extent that such Columbia, and U.S. commonwealths or
loss, deduction, or credit may be carried The following credits aren’t taken into territories to administer their tax laws. We
forward by the shareholder to any other tax account. may also disclose this information to other
year. • Section 31 (taxes withheld on wages). countries under a tax treaty, to federal and
Note: If the tax year is the last tax year to • Section 32 (earned income credit). state agencies to enforce federal nontax
criminal laws, or to federal law enforcement
which the amount of carryforward (of loss, • Section 34 (fuels credit). and intelligence agencies to combat terrorism.
deduction, or credit) may be carried, the line 3
adjustments and line 5 tax shall be figured For 2024, a Form 1040 or 1040-SR filer or a If you don’t provide this information or provide
with regard to the full amount of such Form 1120 filer using the above rules will incomplete or fraudulent information, you may
carryforward. generally figure their line 6 tax liability using be subject to penalties.
the following items shown on the following You aren’t required to provide the
For example, a shareholder had an NOL lines of those forms. All other filers should use information requested on a form that is
carryover (originating before 2018) to 2024 of the corresponding lines of other income tax subject to the Paperwork Reduction Act
$12,000; $10,000 income to which $10,000 of returns. If you haven’t yet filed your return, unless the form displays a valid OMB control
the NOL can be applied; $2,000 allowable estimate the line 6 tax liability based on all number. Books or records relating to a form
NOL carryover to 2025; and $5,000 deferred information available to you. or its instructions must be retained as long as
DISC income for 2024. In this case, for
purposes of figuring line 5, the allowed NOL is 2024 2024 their contents may become material in the
$10,000. Note: If 2024 was the last tax year to Form 1040 Form 1120 administration of any Internal Revenue law.
or 1040-SR
which the $12,000 NOL (originating before Line Line Generally, tax returns and return information
are confidential, as required by section 6103.
2018) could be carried, the full $12,000 NOL Tax less nonrefundable
would be allowed for purposes of figuring line credits . . . . . . 22 7, Sch. J The time needed to complete and file this
5 tax liability. The additional $2,000 loss form will vary depending on individual
would be entered on line 3. Plus: (1) Recapture taxes * * circumstances. The estimated burden for
Other adjustments. In figuring line 3 (2) Prior year minimum business taxpayers filing this form is
adjustments, take into account any income tax credit . . . 6b, Sch. 3 5d, Sch. J approved under OMB control number
and expense adjustments that don’t result in Less: (1) Alternative minimum 1545-0123 and is included in the estimates
amounts that may be carried back or forward tax . . . . . 2, Sch. 2 shown in the instructions for their business
to other tax years. For example, in the case of (2) Additional child tax income tax return. The estimated burden for
an IC-DISC shareholder who is an individual, credit . . . . 28 individual taxpayers filing this form is
the amount of medical expenses allowable as (3) American approved under OMB control number
a deduction under section 213 must be opportunity credit 29 1545-0074 and is included in the estimates
redetermined for purposes of line 3 (4) Premium tax credit shown in the instructions for their individual
adjustments. (Form 8962) . . 9, Sch. 3 income tax return. The estimated burden for
See Proposed Regulations section (5) Credit for tax paid all other taxpayers who file this form is shown
1.995(f)-1(d) for other details regarding these on undistributed below.
and other special computation rules. capital gains (Form Recordkeeping . . . . . 4 hr., 4 min.
2439) . . . . 13a, Sch. 3 20a, Sch. J Learning about the law
Line-by-Line Instructions *Caution: Only use the portion of Form 1040 or the form . . . . . . 1 hr., 47 min.
or 1040-SR, line 24, or Form 1120, Schedule Preparing, copying, and sending
Line 1. Enter on line 1 the taxable income or J, line 10, attributable to recapture of credits the form to the IRS . . . 1 hr., 55 min.
loss from your federal income tax return for allowable against taxes treated as imposed
your tax year that ends with or includes the under chapter 1 (for example, recapture of If you have comments concerning the
IC-DISC’s tax year end. If you haven’t yet filed investment tax and low-income housing accuracy of these time estimates or
your tax return, estimate your income or loss credits). See section 26(b)(2) for a list of suggestions for making this form simpler, we
based on all information available to you. See recapture taxes to exclude. would be happy to hear from you. You can
Amended Form 8404, earlier. send us comments from
Line 8. The base period T-bill rate is defined www.irs.gov/FormComments. Or you can
Line 2. Enter the deferred DISC income from in section 995(f)(4). The base period T-bill rate write to the Internal Revenue Service, Tax
line 10, Part III, of Schedule K (Form is compounded daily based on the number of Forms and Publications, 1111 Constitution
1120-IC-DISC), for the IC-DISC tax year that days in the shareholder’s tax year to Ave. NW, IR-6526, Washington, DC 20224.
ends with or within your tax year. determine the base period T-bill rate factor.
Don’t send the form to this office. Instead,
Line 3. Enter the net amount of all section The base period T-bill rate factor for 2024 is see Where to file, earlier.
995(f)(2)(B) adjustments to taxable income. 0.050531976 for a 366-day tax year. Enter the
See Special Computation Rules , earlier, for appropriate factor on line 8 of Form 8404. See
details on the income (loss) and expense Rev. Rul. 2024-27, 2024-51 I.R.B. 1240, for a
adjustments to be made. If more than one short tax year or a 52-53-week tax year.
adjustment is involved, attach a statement
listing each item and show the computation of
the net amount.

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