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                                                                                                                  Department of the Treasury
                                                                                                                  Internal Revenue Service
Instructions for

Form 1120-ND

(Rev. November 2018)

(Use with the October 2013 revision of Form 1120-ND)
Return for Nuclear Decommissioning Funds and Certain Related Persons

Section references are to the Internal Revenue Code Note. Each person liable for filing a return to  Extension of time to file. File Form 7004, 
unless otherwise noted.                             pay any tax reportable on this form must file    Application for Automatic Extension of Time 
                                                    a separate return.                               To File Certain Business Income Tax, 
Future Developments                                                                                  Information, and Other Returns, to request 
                                                    When To File
                                                                                                     an extension of time to file. Generally, file 
For the latest information about                    Generally, a fund must file its income tax       Form 7004 by the regular due date of the 
developments affecting Form 1120-ND and             return by the 15th day of the 4th month after    return.
its instructions, such as legislation enacted       the end of its tax year. The return of a trustee 
after they were published, go to IRS.gov/           or self-dealer who owes tax under section          A disqualified person or trustee filing to 
Form1120ND.                                         4951 must be filed by the 15th day of the 4th    report section 4951 taxes must also file Form 
                                                    month after the end of the tax year of the       7004 to request an extension of time to file.
What’s New                                          trustee or self-dealer.                          Who Must Sign
Address change for filling returns.     The         However, a fund with a fiscal tax year           The return must be signed and dated by an 
filing address for Form 1120-ND has                 ending on June 30 must file by the 15th day      authorized trustee. The return of any person 
changed. See Where To File, later.                  of the 3rd month after the end of its tax year.  who engaged in any act of self-dealing must 
Increase in penalty for failure to file.    For     A fund with a short tax year ending in June      be signed and dated by that person or the 
returns required to be filed after December         will be treated as if the short year ended on    individual authorized to sign on behalf of that 
31, 2018, the minimum penalty for failure to        June 30, and must file by the 15th day of the    person.
file a return that is over 60 days late has         3rd month after the end of its tax year.
                                                                                                       If an employee of the fund completes 
increased to the smaller of the tax due or          If the due date falls on a Saturday,             Form 1120-ND, the paid preparer space 
$210. See Late filing of return, later.             Sunday, or legal holiday, the fund may file on   should remain blank. Anyone who prepares 
NOL carryback eliminated.      The 2-year           the next business day.                           Form 1120-ND but does not charge the fund 
carryback rule will generally not apply to net                                                       should not complete that section. Generally, 
operating losses (NOLs) arising in tax years        Where To File                                    anyone who is paid to prepare the return 
ending after 2017. Exceptions apply to NOLs         File the fund's or disqualified person's or      must sign it and fill in the “Paid Preparer Use 
for farmers and non-life insurance                  trustee's return at the applicable IRS address   Only” area.
companies. See section 172(b) as amended            listed below.                                      The paid preparer must complete the 
by P.L. 115-97, section 13302.
                                                    If the fund's principal business, office, or     required preparer information and:
General Instructions                                agency is located in the United States, file     • Sign the return in the space provided for 
                                                    Form 1120-ND at the following address:           the preparer's signature.
Purpose of Form                                                                                      • Give a copy of the return to the taxpayer.
Nuclear decommissioning funds use Form              Department of the Treasury
1120-ND to report contributions received,           Internal Revenue Service Center                  Note.  A paid preparer may sign original or 
income earned, the administrative expenses          Ogden, UT 84201-0012                             amended returns by rubber stamp, 
                                                                                                     mechanical device, or computer software 
of operating the fund, and the tax on                                                                program.
modified gross income. The return is also           If the fund's principal business, office, or 
used to report the section 4951 initial taxes       agency is located in a foreign country or a      Paid Preparer Authorization
on self-dealing.                                    U.S. possession, file Form 1120-ND at the        If the fund wants to allow the IRS to discuss 
Taxpayers, electing under section 468A,             following address:                               its tax return with the paid preparer who 
are allowed deductions for amounts                  Internal Revenue Service Center                  signed it, check the “Yes” box in the 
contributed to a qualified fund, up to 100% of      P.O. Box 409101                                  signature area of the return. This 
the present value of the nuclear power              Ogden, UT 84409                                  authorization applies only to the individual 
plant's decommissioning costs. Taxpayers                                                             whose signature appears in the “Paid 
can apply for a new ruling amount if the                                                             Preparer Use Only” section of the fund's 
nuclear power plant is granted a license            Private delivery services. Funds can use         return. It does not apply to the firm, if any, 
renewal, extending its useful life. See section     certain private delivery services designated     shown in that section.
468A for more information.                          by the IRS to meet the timely mailing as 
                                                    “timely filing/paying” rule for tax returns and    If the “Yes” box is checked, the fund is 
Who Must File                                       payments. See the Instructions for Form          authorizing the IRS to call the paid preparer 
All section 468A nuclear decommissioning            1120, U.S. Corporation Income Tax Return,        to answer any questions that may arise 
funds must file Form 1120-ND. A disqualified        for details.                                     during the processing of its return. The fund 
person engaging in self-dealing must file                                                            is also authorizing the paid preparer to:
Form 1120-ND to report the initial tax. See                 Private delivery services cannot         • Give the IRS any information that is 
Part II, Initial Taxes on Self-Dealing (Section     !       deliver items to P.O. boxes. The         missing from the return,
4951), later, to determine if an individual has     CAUTION fund must use the U.S. Postal 
                                                                                                     • Call the IRS for information about the 
engaged in self-dealing as a trustee or             Service to mail any item to an IRS P.O. box      processing of the return or the status of any 
disqualified person.                                address.                                         related refund or payment(s), and

Nov 06, 2018                                                      Cat. No. 11508V

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• Respond to certain IRS notices about fund uses a third party to make deposits on Late payment of tax. A fund that doesn’t
math errors, offsets, and return preparation. its behalf, they may have different cutoff pay the tax when due generally may be
times.
The fund is not authorizing the paid penalized 1/2 of 1% of the unpaid tax for
preparer to receive any refund check, bind Same-day wire payment option. If the each month or part of a month the tax is not
the fund to anything (including any additional fund fails to submit a deposit transaction on paid, up to a maximum of 25% of the unpaid
tax liability), or otherwise represent the fund EFTPS by 8 p.m. Eastern time the day tax. The penalty won’t be imposed if the fund
before the IRS. before the date a deposit is due, it can still can show that the failure to pay on time was
make its deposit on time by using the due to reasonable cause.
The authorization will automatically end Federal Tax Collection Service (FTCS).To Reasonable cause determinations. If the
no later than the due date (excluding use the same-day payment method, the fund fund receives a notice about penalties after it
extensions) for filing the fund's subsequent will need to make arrangements with its files its return, send the IRS an explanation,
tax return. If the fund wants to expand the financial institution ahead of time regarding and we will determine if the fund meets the
paid preparer's authorization or revoke availability, deadlines, and costs. Financial reasonable cause criteria. Do not attach an
authorization before it ends, see Pub. 947, institutions may charge a fee for payments explanation when the fund files its return.
Practice Before the IRS and Power of made this way. To learn more about the
Attorney. information the fund will need to provide to Other penalties. Other penalties can be
Assembling the Return its financial institution to make a same-day imposed for negligence, substantial
wire payment, visit the IRS website at understatement of tax, reportable transaction
To ensure that the fund's tax return is IRS.gov/SameDayWire. understatements, and fraud. See sections
correctly processed, attach all schedules 6662, 6662A, and 6663.
after page 2, Form 1120-ND, in alphabetical Estimated Tax Payments
order followed by other forms in numerical Generally, the following rules apply to the Accounting Method
order. fund's payments of estimated tax. The fund must use the same method of
Complete every applicable entry space • The fund must make installment accounting as the electing taxpayer.
on Form 1120-ND. Do not write “See payments of estimated tax if it expects its
Attached” instead of completing the entry total tax for the year (less applicable credits) Rounding Off to Whole Dollars
spaces. If more space is needed on the to be $500 or more. The fund may round off cents to whole
forms or schedules, attach separate sheets • The installments are due by the 15th day dollars on its return and schedules. If the
using the same size and format as the of the 4th, 6th, 9th, and 12th months of the fund does round to whole dollars, it must
printed forms. If there are supporting tax year. If any date falls on a Saturday, round all amounts. To round, drop amounts
statements and attachments, arrange them Sunday, or legal holiday, the installment is under 50 cents and increase amounts from
in the same order as the schedules or forms due on the next regular business day. 50 to 99 cents to the next dollar. For
they support and attach them last. Show the • The fund must use electronic funds example, $1.39 becomes $1 and $2.50
totals on the printed forms. Enter the fund's transfers to make installment payments of becomes $3.
name and employer identification number estimated tax. If two or more amounts must be added to
(EIN) on each supporting statement or • Figure the fund's expected modified gross figure the amount to enter on a line, include
attachment. income for the tax year. Then multiply the cents when adding the amounts and round
fund's expected modified gross income by
Tax Payments 20% and use Form 1120-W, Estimated Tax off only the total.
The fund must pay the tax due in full no later for Corporations, as a worksheet to compute Recordkeeping
than the due date for filing its tax return (not estimated tax. See the Instructions for Form Keep the fund's records for as long as they
including extensions). 1120-W. may be needed for the administration of any
• If the fund overpaid estimated tax, it may provision of the Internal Revenue Code.
be able to get a quick refund by filing Form Usually, records that support an item of
Electronic Deposit 4466, Corporation Application for Quick income, deduction, or credit on the return
Requirement Refund of Overpayment of Estimated Tax. must be kept for 3 years from the date the
Nuclear decommissioning funds must use For more information on estimated tax return is due or filed, whichever is later. Keep
electronic funds transfers to make all federal payments, see the instructions for line 15, records that verify the fund's basis in
tax deposits (such as deposits of later. property for as long as they are needed to
employment, excise, and corporate income figure the basis of the original or replacement
tax). Generally, electronic funds transfers are Interest and Penalties property.
made using the Electronic Federal Tax
Payment System (EFTPS). However, if the Interest. Interest is charged on taxes paid The fund should keep copies of all filed
fund does not want to use EFTPS, it can late even if an extension of time to file is returns. They help in preparing future and
arrange for its tax professional, financial granted. Interest is also charged on penalties amended returns.
institution, payroll service, or other trusted imposed for failure to file, negligence, fraud,
third party to make deposits on its behalf. substantial valuation misstatements, Additional Information
Also, it may arrange for its financial institution substantial understatements of tax, and See the instructions for Form 1120 and Pub.
to submit a same-day tax wire payment reportable transaction understatements from 542, Corporations, for more information
(discussed below) on its behalf. EFTPS is a the due date (including extensions) to the about corporations, including additional
free service provided by the Department of date of payment. The interest charge is forms the fund may need to file and how to
the Treasury. Services provided by a tax figured at a rate determined under section get forms and publications.
professional, financial institution, payroll 6621.
service, or other third party may have a fee. Late filing of return. A fund that doesn’t file
To get more information about EFTPS or its tax return by the due date, including Specific Instructions
to enroll in EFTPS, visit EFTPS.gov or call extensions, may be penalized 5% of the
1-800-555-4477 (TTY/TDD unpaid tax for each month or part of a month Period Covered
1-800-733-4829). the return is late, up to a maximum of 25% of Enter the tax year in the space provided at
the unpaid tax. The minimum penalty for a the top of the form. For a calendar year,
Depositing on time. For any deposit made return that is over 60 days late is the smaller enter the last two digits of the calendar year
by EFTPS to be on time, the fund must of the tax due or $210. The penalty won’t be in the first entry space. For a fiscal tax year
submit the deposit by 8 p.m. Eastern time the imposed if the fund can show that the failure return, fill in the tax year space at the top of
day before the date the deposit is due. If the to file on time was due to reasonable cause. the form.

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Name and Address 1. When filed to report the income, Line 6. Taxes. Enter deductible taxes paid
deductions, and income tax liability of the or incurred during the tax year, including
Enter the fund's true name (as set forth in the fund, check the “Fund” box. state and local income taxes. Do not deduct
charter or other legal document creating it),
address, and EIN on the appropriate lines. 2. When filed by a trustee who is liable federal income taxes or taxes not imposed
Enter the address of the fund's principal for taxes under section 4951, check the on the fund.
office or place of business. Include the suite, “Trustee” box.
Line 8. Other deductions. Attach a
room, or other unit number after the street 3. When filed by a disqualified person schedule listing by type and amount all
address. If the post office does not deliver who is liable for section 4951 tax, check the allowable deductions that are not deducted
mail to the street address and the fund has a “Disqualified person” box. elsewhere on Form 1120-ND. Include
P.O. box, show the box number instead. investment advisory fees, actuarial
Item D. Final Return, Name expenses, and other administrative
Note. Do not use the address of the Change, Address Change, or expenses paid or incurred during the tax
registered agent for the state in which the year, but do not include decommissioning
fund is incorporated. For example, if a fund is Amended Return
costs.
incorporated in Delaware or Nevada and the Indicate a final return, name change,
fund's principal office is located in Little address change, or amended return by Line 11. Net operating loss deduction.
Rock, AR, the fund should enter the Little checking the appropriate box. If you are a Enter the amount of any net operating loss
Rock address. trustee or disqualified person reporting deduction allowed by Regulations section
section 4951 taxes, omit item D. 1.468A-4(b)(4), and explain its computation
If the return is filed by a trustee or on an attached schedule.
disqualified person to report section 4951 Note. If a change in address occurs after
taxes, enter that person's name and address the return is filed, use Form 8822-B, Change Note. The 2-year carryback rule does not
in the address section. of Address or Responsible Party – Business, apply to net operating losses arising in tax
If the fund receives its mail in care of a to notify the IRS of the new address. See the years ending after 2017. An exception
third party (such as an accountant or an Instructions for Form 8822-B for details. applies to farmers and non-life insurance
companies. See section 172(b) as amended
attorney), enter on the street address line Part I. Computation of Fund by P.L. 115-97, section 13302.
“C/O” followed by the third party's name and
street address or P.O. box. Income Tax Line 14. Payments. Generally, no
If the corporation has a foreign address, Income payments are allowed other than those on
include the city or town, state or province, lines 14a through 14d and the credit for
country, and foreign postal code. Do not Line 1. Taxable interest. Enter the total backup withholding.
abbreviate the country name. Follow the taxable interest income received or accrued
country's practice for entering the name of for the year, including any original issue Backup withholding. If the fund had
the state or province and postal code. discount. Do not include tax-exempt interest federal income tax withheld from any
on line 1; but report it as an item of payments it received because, for example,
Item A. Employer Identification information on Schedule M, line 2d. it failed to give the payer its correct EIN,
include the amount withheld in the total for
Number (EIN) Line 2. Capital gain net income. Every line 14f. Write the amount withheld and the
Enter the fund's EIN. If the fund does not sale, exchange, or actual or deemed words “Backup Withholding” in the blank
have an EIN, it must apply for one. An EIN distribution of assets held by the fund must space above line 14f.
can be applied for: be reported in detail on Schedule D (Form
• Online — Click on the EIN link IRS.gov/ 1120), Capital Gains and Losses (and Form Line 15. Estimated tax penalty. A fund
EIN. The EIN is issued immediately once the 8949, Sales and Other Dispositions of that does not make estimated tax payments
application information is validated. Capital Assets, if applicable), even if there is when due may be subject to an
• By mailing or faxing Form SS-4, no gain or loss. The amount realized on an underpayment penalty for the period of
Application for Employer Identification actual or deemed distribution is the fair underpayment. Use Form 2220,
Number. market value of the assets as of the date of Underpayment of Estimated Tax by
distribution. Corporations, to see if the fund owes a
If the fund has not received its EIN by the penalty and to figure the amount of the
time the return is due, write “Applied for” and Line 3. Other income. Enter any other penalty. If Form 2220 is attached, check the
the date the fund applied in the space for the taxable income not reported on line 1 or box on line 15 and enter the amount of the
EIN. For more details, see the Instructions line 2 and explain its nature on an attached penalty on that line.
for Form SS-4. schedule. If the fund had only one item of
other income, describe it in parentheses on Schedule L. Balance Sheets
Item B. Identifying Number of line 3. The balance sheets should agree with the
Trustee or Disqualified Person fund's books and records.
If the return is filed by a trustee or Deductions Schedule M. Other Information
disqualified person to report section 4951 Note. A deduction is not allowed for certain Line 1. The term “electing taxpayer” means
taxes, enter the identifying number of the expenses allocable to tax-exempt income. an eligible taxpayer that elects the
trustee or disqualified person. For an See section 265. In addition, a deduction is application of section 468A to deduct
individual trustee or disqualified person, not allowed for distributions made to electing payments made to a nuclear
enter the individual's social security number. taxpayers. Report such payments as an item decommissioning fund. See Regulations
If the trustee or disqualified person is not an of information on Schedule M, line 2c. section 1.468A-7 for the rules concerning the
individual, enter the EIN. Liabilities are not treated as incurred prior to election.
the time economic performance takes place.
Note. Do not complete item B if Form See section 461(h). Line 5. If you are a trustee or disqualified
1120-ND is filed to report the income, person (defined later), complete the items
deductions, and income tax liability of the Line 5. Trustee fees. Enter the total included in line 5 to determine if you have
fund. deductible fees paid or incurred to the engaged in an act of self-dealing.
trustee(s) for administering the fund during
Item C. Fund, Trustee, or the tax year.
Disqualified Person
Check only the box that applies.

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Part II. Initial Taxes on 4. The payment of amounts remaining in have been if the disqualified person acted
the fund to the electing taxpayer after the under the highest fiduciary relationship.
Self-Dealing (Section 4951) termination of the fund upon the substantial
Initial taxes on self-dealers completion of decommissioning. Disqualified person. The term “disqualified
person” means a person who is:
An initial tax of 10% of the amount involved 5. The furnishing of goods, services, or
(defined later) is imposed on each act of facilities by a disqualified person to the fund 1. A contributor to the fund.
self-dealing between a disqualified person if the furnishing is without charge and if the 2. A trustee of the fund.
and a nuclear decommissioning fund for goods, services, or facilities so furnished are 3. An owner of more than 10% of (a) the
each tax year (or part of a tax year) in the exclusively used for the purposes specified total combined voting power of a
taxable period. The tax is required to be paid in section 468A(e)(4). corporation, (b) the profits interest of a
by any disqualified person (other than a 6. The payment of compensation (and partnership, or (c) the beneficial interest of a
trustee acting only as a trustee of the trust) the payment or reimbursement of expenses) trust or unincorporated business that is a
who participates in the act of self-dealing. by the fund to a disqualified person for contributor to the fund.
personal services that are reasonable and 4. An officer, director, or employee of a
Initial taxes on trustee necessary to carry out the purposes of the person who is a contributor to the fund.
fund and the compensation (or payment or 5. The spouse, ancestor, or a lineal
A tax of 2 / % of the amount involved is 1 2 reimbursement of expenses) is not descendant, or a spouse of a lineal
imposed on a trustee who participates in the excessive. descendant of an individual described in (1)
act of self-dealing. The tax is not imposed if 7. A payment by the fund for the through (4) above.
the trustee unwillingly or due to reasonable performance of trust functions and certain 6. A corporation of which persons
cause participated in the act. The tax is general banking services by a bank or trust described in (1) through (5) above own more
computed on all acts of self-dealing that company that is a disqualified person, if the than 35% of the total combined voting
occur within the taxable period. The tax is banking services are reasonable and power.
required to be paid by the trustee who necessary to carry out the purposes of the
participates in the act. fund and the compensation paid to the bank 7. A partnership of which persons
Exceptions. The initial tax on the act of or trust company is not excessive described in (1) through (5) above own more
self-dealing of a disqualified person or a (considering the fair market interest rate for than 35% of the profits interests.
trustee is not imposed if the acts of the use of the funds by the bank or trust 8. A trust or estate of which persons
self-dealing are corrected within the taxable company). described in (1) through (5) above own more
than 35% of the beneficial interest.
period. The allowable general banking services
are: For purposes of (3a) and (6) above,
Definitions • Checking accounts, as long as the bank indirect stockholders would be taken into
does not charge interest on any account under section 267(c), except that,
Self-dealing. When determining if an act is overwithdrawals; for purposes of this paragraph, section
an act of self-dealing, treat the transfer of • Savings accounts, as long as the fund 267(c)(4) will be treated as providing that the
personal property by a disqualified person to may withdraw its money after giving no more members of the family of an individual are
the fund as a sale or exchange if the property than 30 days notice, without losing interest only those individuals described in (5)
is subject to a mortgage or similar lien. for the period the money was on deposit; and above. For purposes of (3a), (3c), (7), and
Otherwise, the term “self-dealing” means any • Safekeeping activities (for example, rental (8) above, the ownership of profits or
direct or indirect: of a safe deposit box). beneficial interests will be determined by the
• Sale, exchange, or leasing of real or rules of constructive ownership of stock
personal property between the fund and a Taxable period. For an act of self-dealing,
disqualified person; the term “taxable period” means the period provided in section 267(c) (other than
• Lending of money or other extensions of beginning on the date of the act of paragraph (3) thereof), except that section
credit between the fund and a disqualified self-dealing and ending on the date of the 267(c)(4) will be treated as providing that the
person; earliest of— members of the family of an individual are
• Furnishing of goods, services, or facilities • The date of mailing of a notice of only those individuals described in (5)
between the fund and a disqualified person; deficiency under section 6212 for the section above.
• Payment of compensation (or payment or 4951 tax,
reimbursement of expenses) by the fund to a • The date on which the tax imposed by Dispositions of an Interest in a
disqualified person; and section 4951 is assessed, or Nuclear Power Plant
• Transfers to, or use by or for the benefit • The date correction of the act of
of, a disqualified person of the income or self-dealing is completed. There are federal income tax consequences
when there is a transfer of assets of a
assets of the fund. Amount involved. The term “amount nuclear decommissioning fund in connection
Exceptions. Acts of self-dealing do not involved” means the greater of the amount of with the sale, exchange, or other disposition
include: money given (or received) and the fair of a transferor of all or a portion of its
market value of the other property given (or qualifying interest in a nuclear power plant to
1. The payment by the fund for the received). When services described in another taxpayer (transferee). If the
purposes of satisfying, in whole or in part, the section 4951(d)(2)(C) are involved, the requirements of Regulations section
liability of the electing taxpayer for amount involved is only the excess 1.468A-6(b) are met, the federal income tax
decommissioning costs of the nuclear power compensation. consequences are the following:
plant.
2. The withdrawal of excess Note. Fair market value is determined as of 1. No gain or loss. If there is a
contributions by the electing taxpayer in the date on which the act of self-dealing disposition of an interest (wholly or partially)
accordance with Regulations section occurs and at the highest market value in a nuclear power plant, neither the
1.468A-5(c)(2). during the taxable period. transferor or the transferee (or either's fund)
will recognize gain, loss, or otherwise take
3. The withdrawal of amounts that have Correction and correct. The terms any income or deduction into account
been treated as distributions to the electing “correction” and “correct” mean the undoing because of the transfer of all or some of the
taxpayer under Regulations section of an act of self-dealing, to the extent assets of the transferor's fund. Also, the
1.468A-5(c)(3). possible, but in any case returning the fund transfer is not considered a payment or
to a financial position no worse than it would

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contribution of assets by the transferor's fund (b) A fraction, the numerator of which is agencies to enforce federal nontax criminal
(or by the transferee to its fund). the number of days in the tax year that laws and to combat terrorism. If you do not
2. Basis. Transfers of assets of a fund precede the date of the disposition, and the provide this information, or you provide false
to which Regulations section 1.468A-6 denominator of which is the number of days or fraudulent information, you may be subject
applies do not affect basis. The transferee's in that tax year. to penalties.
fund will have a basis in the assets received 4. Tax year after the year of You are not required to provide the
from the transferor equal to the transferor's disposition. A transferee of, or a transferor information requested on a form that is
basis in those assets immediately prior to the who retains, a qualifying interest in a nuclear subject to the Paperwork Reduction Act
transfer. power plant, must file a request for a revised unless the form displays a valid OMB control
3. Tax year of disposition. schedule of ruling amounts for the interest by number. Books or records relating to a form
the deemed payment deadline (defined or its instructions must be retained as long as
A. Transferee. If a transferee does not file above). If the transferee (or the transferor) their contents may become material in the
a request for a schedule of ruling amounts by does not timely file such a request, the administration of any Internal Revenue law.
the deemed payment deadline (2 / months 1 2
transferee's (or the transferor's) ruling Generally, tax returns and return information
after the end of the tax year of the amounts for the interest for that tax year will are confidential, as required by section 6103.
disposition), the transferee's ruling amount be zero.
for the interest acquired is determined by The time needed to complete and file this
taking the amount contained in the For more information, see Regulations form will vary depending on individual
transferor's current schedule of ruling section 1.468A-6. circumstances. The estimated burden for
amounts for that tax year and that plant business taxpayers filing this form is
multiplied by the product of: Paperwork Reduction and Privacy Act approved under OMB control number
(1) The portion of the transferor's Notice. We ask for the information on this 1545-0123 and is included in the estimates
qualifying interest that is transferred, and form to carry out the Internal Revenue laws shown in the instructions for their business
(2) A fraction, the numerator of which is of the United States. You are required to give income tax return. The estimated burden for
the number of days in the tax year of the us the information. We need it to ensure that all other taxpayers who file this form is
transferor including and following the date of you are complying with these laws and to shown below.
the disposition, and the denominator of allow us to figure and collect the right amount
which is the number of days in that tax year. of tax. Recordkeeping 23 hr., 26 min.
B.Transferor. If a transferor does not file a Section 4951 of the Internal Revenue Learning about the law or the
request for a revised schedule of ruling Code requires disqualified taxpayers form 3 hr., 7 min.
amounts on or before the deemed payment engaged in self-dealing with a trust to pay Preparing the form 5 hr., 30 min.
deadline for the tax year of the transferor in over to the IRS an initial tax. This form is Copying, assembling, and
which the disposition of its interest in the used to report the initial amount of tax that sending the form to the IRS 32 min.
nuclear power plant occurred (that is, the you owe. Sections 6001 and 6011 require
date that is 2 / months after the close of that 1 2 you to provide the requested information if
tax year), the transferor's ruling amount with the tax applies to you. Section 6109 and its
respect to that plant for that year will equal regulations require you to provide your If you have comments concerning the
the sum of: identifying number. Routine uses of this accuracy of these time estimates or
(1) The ruling amount contained in the information include disclosing it to the suggestions for making this form simpler, we
transferor's current schedule of ruling Department of Justice for civil and criminal would be happy to hear from you. You can
amounts with respect to that plant for that tax litigation and to other federal agencies, as send us comments from IRS.gov/
year multiplied by the portion of qualifying provided by law. We may disclose the FormComments. Or you can write to the
interest that is retained, if any, and information to cities, states, the District of Internal Revenue Service, Tax Forms and
Columbia, and U.S. Commonwealths or Publications Division, 1111 Constitution
(2) The ruling amount contained in the possessions to administer their tax laws. We Ave., NW, IR-6526, Washington, DC 20224.
transferor's current schedule of ruling may disclose the information to foreign Do not send the tax form to this address.
amounts with respect to that plant for that tax governments pursuant to tax treaties. We Instead, see Where To File, earlier.
year multiplied by the product of: may disclose the information to contractors
(a) The portion of the transferor's for tax administration purposes. We may also
qualifying interest that is disposed of and disclose this information to federal and state

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