1120 U.S. Corporation Income Tax Return

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I.R.S. SPECIFICATIONS
TO BE REMOVED BEFORE PRINTING
INSTRUCTIONS TO PRINTERS
FORM 1120, PAGE 1 of 4
MARGINS: TOP 13 mm (1⁄ 2 "), CENTER SIDES.
PRINTS: HEAD TO FOOT
PAPER: WHITE, WRITING, SUB. 20
INK: BLACK
FLAT SIZE: 216 mm (81⁄ 2 ") 3 559 mm (22"), FOLD TO: 216 mm (81⁄ 2 ") 3 279 mm (11")
PERFORATE: HORIZONTALLY ON FOLD
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Date

Form

1120

Tax and Payments

Deductions (See instructions for limitations on deductions.)

Income

E Check if:

(1)

Date

Revised proofs
requested

OMB No. 1545-0123

For calendar year 2006 or tax year beginning
, 2006, ending
© See separate instructions.
Name

2006

, 20

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B Employer identification number

Use IRS
label.
Number, street, and room or suite no. If a P.O. box, see instructions.
Otherwise,
print or
type.
City or town, state, and ZIP code

C Date incorporated

D Total assets (see instructions)

$

Initial return

(2)

Final return

(3)

Name change

(4)

Address change

1c

©

1a

Gross receipts or sales

2

Cost of goods sold (Schedule A, line 8)

2

3

Gross profit. Subtract line 2 from line 1c

3

4

Dividends (Schedule C, line 19)

4

5

Interest

6

Gross rents

7

Gross royalties

8

Capital gain net income (attach Schedule D (Form 1120))

8

9
10
11

Net gain or (loss) from Form 4797, Part II, line 17 (attach Form 4797)
Other income (see instructions—attach schedule)
Total income. Add lines 3 through 10

9

12

Compensation of officers (Schedule E, line 4)

12

13

Salaries and wages (less employment credits)

13

14

Repairs and maintenance

14

15

Bad debts

15

16

Rents

16

17

Taxes and licenses

17

18

Interest

18

19

Charitable contributions

19

20
21

Depreciation from Form 4562 not claimed on Schedule A or elsewhere on return (attach Form 4562)
Depletion

21

22

Advertising

22

23

Pension, profit-sharing, etc., plans

23

24

Employee benefit programs

24

25

Domestic production activities deduction (attach Form 8903)

25

26

Other deductions (attach schedule)

27

Total deductions. Add lines 12 through 26

©

27

28
29

Taxable income before net operating loss deduction and special deductions. Subtract line 27 from line 11
29a
Less: a Net operating loss deduction (see instructions)
b Special deductions (Schedule C, line 20)
29b

28
29c

30

Taxable income. Subtract line 29c from line 28 (see instructions)

30

31

Total tax (Schedule J, line 10)

31

32 a

2005 overpayment credited to 2006

32a

b Less returns and allowances

c Bal

5
6
7

10

©

11

20

26

b

2006 estimated tax payments

32b

c

2006 refund applied for on Form 4466

32c (

e

Tax deposited with Form 7004

f

Credits: (1) Form 2439

g

Credit for federal telephone excise tax paid (attach Form 8913)

) d Bal

©

32d
32e
32f
32g

(2) Form 4136

32h
33

©

33

Estimated tax penalty (see instructions). Check if Form 2220 is attached

34
35
36

Amount owed. If line 32h is smaller than the total of lines 31 and 33, enter amount owed
Overpayment. If line 32h is larger than the total of lines 31 and 33, enter amount overpaid
Enter amount from line 35 you want: Credited to 2007 estimated tax ©
Refunded

Sign
Here

Signature

O.K. to print

U.S. Corporation Income Tax Return

Department of the Treasury
Internal Revenue Service (77)

A Check if:
1 Consolidated return
(attach Form 851)
2 Personal holding co.
(attach Sch. PH)
3 Personal service corp.
(see instructions)
4 Schedule M-3 required
(attach Sch. M-3)

Action

34
35
©

36

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.
May the IRS discuss this return
with the preparer shown below
No
(see instructions)? Yes
Signature of officer
Date
Title

©

Paid
Preparer’s
Use Only

Preparer’s
signature

©

Firm’s name (or
yours if self-employed),
address, and ZIP code

©

Date

©

For Privacy Act and Paperwork Reduction Act Notice, see separate instructions.

Preparer’s SSN or PTIN

Check if
self-employed
EIN
Phone no.
Cat. No. 11450Q

(

)
Form

1120

(2006)

7
I.R.S. SPECIFICATIONS
TO BE REMOVED BEFORE PRINTING
INSTRUCTIONS TO PRINTERS
FORM 1120, PAGE 2 of 4
MARGINS: TOP 13 mm (1⁄ 2 "), CENTER SIDES.
PRINTS: HEAD TO FOOT
PAPER: WHITE, WRITING, SUB. 20
INK: BLACK
FLAT SIZE: 216 mm (81⁄ 2 ") 3 559 mm (22"), FOLD TO: 216 mm (81⁄ 2 ") 3 279 mm (11")
PERFORATE: HORIZONTALLY ON FOLD
DO NOT PRINT — DO NOT PRINT — DO NOT PRINT — DO NOT PRINT

Form 1120 (2006)

Schedule A

Page

2

Cost of Goods Sold (see instructions)

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1

1

Inventory at beginning of year

2

Purchases

3

Cost of labor

4

Additional section 263A costs (attach schedule)

4

5
6

Other costs (attach schedule)

5

7

Inventory at end of year

8

Cost of goods sold. Subtract line 7 from line 6. Enter here and on page 1, line 2

2
3

Total. Add lines 1 through 5

6
7

9a Check all methods used for valuing closing inventory:
(i)
Cost
(ii)
Lower of cost or market
(iii)
Other (Specify method used and attach explanation.)

8

©

b Check if there was a writedown of subnormal goods
c Check if the LIFO inventory method was adopted this tax year for any goods (if checked, attach Form 970)
d If the LIFO inventory method was used for this tax year, enter percentage (or amounts) of closing
inventory computed under LIFO

©
©

9d

e If property is produced or acquired for resale, do the rules of section 263A apply to the corporation?

Yes

No

f Was there any change in determining quantities, cost, or valuations between opening and closing inventory? If “Yes,”
attach explanation

Yes

No

Schedule C

Dividends and Special Deductions (see instructions)

(a) Dividends
received

1

Dividends from less-than-20%-owned domestic corporations (other than
debt-financed stock)

2

Dividends from 20%-or-more-owned domestic corporations (other than debt-financed
stock)

3

Dividends on debt-financed stock of domestic and foreign corporations

4

Dividends on certain preferred stock of less-than-20%-owned public utilities

5

Dividends on certain preferred stock of 20%-or-more-owned public utilities

6

Dividends from less-than-20%-owned foreign corporations and certain FSCs

7
8

Dividends from 20%-or-more-owned foreign corporations and certain FSCs

9

Total. Add lines 1 through 8. See instructions for limitation

(b) %

70
80

see
instructions

42
48
70
80
100

Dividends from wholly owned foreign subsidiaries

10

Dividends from domestic corporations received by a small business investment
company operating under the Small Business Investment Act of 1958

11

Dividends from affiliated group members

12

Dividends from certain FSCs

13

Dividends from foreign corporations not included on lines 3, 6, 7, 8, 11, or 12

14

Income from controlled foreign corporations under subpart F (attach Form(s) 5471)

15

Foreign dividend gross-up

16

IC-DISC and former DISC dividends not included on lines 1, 2, or 3

17

Other dividends

18
19
20

Deduction for dividends paid on certain preferred stock of public utilities
©
Total dividends. Add lines 1 through 17. Enter here and on page 1, line 4
Total special deductions. Add lines 9, 10, 11, 12, and 18. Enter here and on page 1, line 29b

Schedule E

(c) Special deductions
(a) 3 (b)

100
100
100

©

Compensation of Officers (see instructions for page 1, line 12)
Note: Complete Schedule E only if total receipts (line 1a plus lines 4 through 10 on page 1) are $500,000 or more.

(a) Name of officer

(c) Percent of
(b) Social security number time devoted to
business

1

2
3
4

Percent of corporation
stock owned

(d) Common

(f) Amount of compensation

(e) Preferred

%

%

%

%

%

%

%

%

%

%

%

%

%

%

%

Total compensation of officers
Compensation of officers claimed on Schedule A and elsewhere on return
Subtract line 3 from line 2. Enter the result here and on page 1, line 12
Form

1120

(2006)

7
I.R.S. SPECIFICATIONS
TO BE REMOVED BEFORE PRINTING
INSTRUCTIONS TO PRINTERS
FORM 1120, PAGE 3 of 4
MARGINS: TOP 13 mm (1⁄ 2 "), CENTER SIDES.
PRINTS: HEAD TO FOOT
PAPER: WHITE, WRITING, SUB. 20
INK: BLACK
FLAT SIZE: 216 mm (81⁄ 2 ") 3 559 mm (22"), FOLD TO: 216 mm (81⁄ 2 ") 3 279 mm (11")
PERFORATE: HORIZONTALLY ON FOLD
DO NOT PRINT — DO NOT PRINT — DO NOT PRINT — DO NOT PRINT

Form 1120 (2006)

Schedule J

Page

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1

Check if the corporation is a member of a controlled group (attach Schedule O (Form 1120))

2

Income tax. Check if a qualified personal service corporation (see instructions)

3

Alternative minimum tax (attach Form 4626)

4

Add lines 2 and 3

5a

Foreign tax credit (attach Form 1118)

4

c

General business credit. Check applicable box(es):
Form 6478

5b

Form 3800

Form 8835, Section B

Credit for prior year minimum tax (attach Form 8827)

e

Bond credits from:

Form 8860

Form 8912

6

6

Total credits. Add lines 5a through 5e

7

Subtract line 6 from line 4

8

Personal holding company tax (attach Schedule PH (Form 1120))

9

Other taxes. Check if from:

Check accounting method:
Accrual

c

Business activity

Form 8611

©

©

Yes No

Form 8697

9

Other (attach schedule)

10

7 At any time during the tax year, did one foreign person
own, directly or indirectly, at least 25% of (a) the total
voting power of all classes of stock of the corporation
entitled to vote or (b) the total value of all classes of stock
of the corporation?

©

If “Yes,” enter: (a) Percentage owned

Product or service ©
At the end of the tax year, did the corporation own,
directly or indirectly, 50% or more of the voting stock of
a domestic corporation? (For rules of attribution, see
section 267(c).)

8

Is the corporation a subsidiary in an affiliated group or a
parent-subsidiary controlled group?

9

name

and

of

Check this box if the corporation issued publicly offered
©
debt instruments with original issue discount
If checked, the corporation may have to file Form 8281,
Information Return for Publicly Offered Original Issue
Discount Instruments.
Enter the amount of tax-exempt interest received or
accrued during the tax year © $

10

Enter the number of shareholders at the end of the tax
year (if 100 or fewer) ©

At the end of the tax year, did any individual, partnership,
corporation, estate, or trust own, directly or indirectly,
50% or more of the corporation’s voting stock? (For rules
of attribution, see section 267(c).)
If “Yes,” attach a schedule showing name and identifying
number. (Do not include any information already entered
in 4 above.) Enter percentage owned ©
During this tax year, did the corporation pay dividends (other
than stock dividends and distributions in exchange for stock)
in excess of the corporation’s current and accumulated
earnings and profits? (See sections 301 and 316.)

11

If the corporation has an NOL for the tax year and is
electing to forego the carryback period, check here ©

Corporate

the

©

parent

If “Yes,” file Form 5452,
Nondividend Distributions.

EIN

Report

of

If this is a consolidated return, answer here for the parent
corporation and on Form 851, Affiliations Schedule, for
each subsidiary.

Yes No

and (b) Owner’s country ©
c The corporation may have to file Form 5472, Information
Return of a 25% Foreign-Owned U.S. Corporation or a
Foreign Corporation Engaged in a U.S. Trade or Business.
Enter number of Forms 5472 attached ©

If “Yes,” attach a schedule showing: (a) name and
employer identification number (EIN), (b) percentage
owned, and (c) taxable income or (loss) before NOL and
special deductions of such corporation for the tax year
ending with or within your tax year.

If “Yes,” enter
corporation ©

6

Cash

Other (specify)

Business activity code no.

5

a

See the instructions and enter the:

b

4

Form 4255

8

Other Information (see instructions)

a
c
3

7

Form 8866
Form 8902
Total tax. Add lines 7 through 9. Enter here and on page 1, line 31

b
2

5c
5d
5e

Form 8844

d

1

2

©

5a

Qualified electric vehicle credit (attach Form 8834)

Schedule K

©

3

b

10

3

Tax Computation (see instructions)

If the corporation is filing a consolidated return, the statement
required by Temporary Regulations section 1.1502-21T(b)(3)
must be attached or the election will not be valid.
12

13

Enter the available NOL carryover from prior tax years
(Do not reduce it by any deduction on line
29a.) © $
Are the corporation’s total receipts (line 1a plus lines 4
through 10 on page 1) for the tax year and its total assets
at the end of the tax year less than $250,000?
If “Yes,” the corporation is not required to complete
Schedules L, M-1, and M-2 on page 4. Instead, enter the
total amount of cash distributions and the book value of
property distributions (other than cash) made during the
tax year. © $

Note: If the corporation, at any time during the tax year, had assets or operated a business in a foreign country or U.S. possession, it may be
required to attach Schedule N (Form 1120), Foreign Operations of U.S. Corporations, to this return. See Schedule N for details.
Form

1120

(2006)

7
I.R.S. SPECIFICATIONS
TO BE REMOVED BEFORE PRINTING
INSTRUCTIONS TO PRINTERS
FORM 1120, PAGE 4 of 4
MARGINS: TOP 13 mm (1⁄ 2 "), CENTER SIDES.
PRINTS: HEAD TO FOOT
PAPER: WHITE, WRITING, SUB. 20
INK: BLACK
FLAT SIZE: 216 mm (81⁄ 2 ") 3 559 mm (22"), FOLD TO: 216 mm (81⁄ 2 ") 3 279 mm (11")
PERFORATE: HORIZONTALLY ON FOLD
DO NOT PRINT — DO NOT PRINT — DO NOT PRINT — DO NOT PRINT

Form 1120 (2006)

Schedule L

Page

Balance Sheets per Books

Cash

2a Trade notes and accounts receivable
b Less allowance for bad debts
3

Inventories

4

U.S. government obligations

5

Tax-exempt securities (see instructions)

6

Other current assets (attach schedule)

7

Loans to shareholders

8

Mortgage and real estate loans

9

Other investments (attach schedule)

10a Buildings and other depreciable assets
b Less accumulated depreciation
11a Depletable assets
b Less accumulated depletion
12

Land (net of any amortization)

13a Intangible assets (amortizable only)
b Less accumulated amortization
14
Other assets (attach schedule)
15
Total assets

Liabilities and Shareholders’ Equity
16

Accounts payable

17

Mortgages, notes, bonds payable in less than 1 year

18

Other current liabilities (attach schedule)

19

Loans from shareholders

20

Mortgages, notes, bonds payable in 1 year or more

21

Other liabilities (attach schedule)

22

Capital stock:

23

Additional paid-in capital

24

Retained earnings—Appropriated (attach schedule)

25

Retained earnings—Unappropriated

26
27
28

Adjustments to shareholders’ equity (attach schedule)
Less cost of treasury stock
Total liabilities and shareholders’ equity

4

End of tax year

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(a)

Assets
1

Beginning of tax year

(b)

(c)

(

)

(

)

(

)

(

)

(

)

(

)

(

)

(

)

(d)

a Preferred stock
b Common stock

Schedule M-1

(

)

(

)

Reconciliation of Income (Loss) per Books With Income per Return
Note: Schedule M-3 required instead of Schedule M-1 if total assets are $10 million or more—see instructions

1

Net income (loss) per books

2

Federal income tax per books

7

Income recorded on books this year not
included on this return (itemize):

3

Excess of capital losses over capital gains

Tax-exempt interest $

4

Income subject to tax not recorded on books
this year (itemize):

5

Expenses recorded on books this year not
deducted on this return (itemize):

8

a Depreciation

$

b Charitable contributions

$

Deductions on this return not charged
against book income this year (itemize):
a Depreciation

$

b Charitable contributions

$

c Travel and entertainment $
6

Add lines 1 through 5

Schedule M-2

Add lines 7 and 8
Income (page 1, line 28)—line 6 less line 9

Analysis of Unappropriated Retained Earnings per Books (Line 25, Schedule L)

1

Balance at beginning of year

2

Net income (loss) per books

3

Other increases (itemize):

4

9
10

Add lines 1, 2, and 3

5

Distributions:

a Cash
b Stock
c Property

6
7
8

Other decreases (itemize):
Add lines 5 and 6
Balance at end of year (line 4 less line 7)
Form

Printed on recycled paper

1120

(2006)