Changes for Form 1120-L

IMPLEMENTATION PLAN for 1120L INST
Run by User MRCYRU00

December 5, 2008

Page 2 of 4

P.L. 110-343, Tax Extenders and Alternative Minimum Tax Relief Act of 2008 (Division C)
Action
Number

Act
Section

IRC
Section

Description of Action

Date Type Effective Date Target Date Actual Date

66.00022

321

Extension of the enhanced deduction for qualified computer
contributions to 12/31/09

TYBA

31-DEC-2007 26-DEC-2008

66.00024

323(a)

Extension of the enhanced charitable deduction for contributions of
food inventory to 12/31/09

TYEA DOE

03-OCT-2008 26-DEC-2008

66.00027

323(a)

Expiration of the enhanced charitable deduction for contributions of
food inventory

TYBA

31-DEC-2009 26-DEC-2008

66.00029

324

Extension of enhanced charitable deduction for contributions of book
inventory

A

31-DEC-2007 26-DEC-2008

P.L. 110-343, Emergency Economic Stabilization Act of 2008 (Division A)
Action
Number
65.00001

Act
Section
302

IRC
Section
108

Description of Action
Special rules for tax treatment of executive compensation of employers
participating in the troubled assets relief program

Date Type Effective Date Target Date Actual Date
TYEOA

03-OCT-2008 26-DEC-2008

P.L. 110-289, Housing and Economic Recovery Act of 2008
Action
Number

Act
Section

IRC
Section

Description of Action

Date Type Effective Date Target Date Actual Date

66.00068

3022

38
42
47

Revise product to reflect repeal of AMT limitations on the low-income
housing credit and rehabilitation credit.

A

31-DEC-2007 26-DEC-2008

66.00070

3081

168(k)

Revise product to reflect the election to accelerate the AMT and
research credits in lieu of bonus depreciation.

TYEA

31-MAR-2008 26-DEC-2008

P.L. 110-246, Food, Conservation, and Energy Act of 2008
Action
Number

Act
Section

IRC
Section

Description of Action

Date Type Effective Date Target Date Actual Date

66.00126

15316

54A
54B

Revise product to reflect the credit to holders of qualified tax credit
bonds (qualified forestry conservation bonds).

A

22-MAY-2008 26-DEC-2008

66.00128

15321

40

Revise product to reflect credit for production of cellulosic biofuel.

A

31-DEC-2008 26-DEC-2008

IMPLEMENTATION PLAN for 1120L INST
Run by User MRCYRU00

December 5, 2008

Page 3 of 4

P.L. 110-245, Heroes Earnings Assistance and Relief Tax Act of 2008
Action
Number

Act
Section

IRC
Section

Description of Action

Date Type Effective Date Target Date Actual Date

66.00048

111

45P

Revise product to reflect the credit for employer differential wage
payments to employees who are active duty members of the uniformed
services.

A

17-JUN-2008 26-DEC-2008

66.00056

111

45P

Revise product to reflect the termination of the credit for employer
differential wage payments to employees who are active duty
members of the uniformed services.

A

17-JUN-2008 26-DEC-2010

66.00060

303

6651

Revise product to reflect the increase in the minimum penalty for
failure to file a return.

RFA

31-DEC-2008 26-DEC-2008

P.L. 109-280, Pension Protection Act of 2006
Action
Number

Act
Section

IRC
Section

Description of Action

Date Type Effective Date Target Date Actual Date

66.00028

1202

170

Revise product to reflect that the modification of charitable deduction of
food inventory ended at the end of 2007.

A

31-DEC-2007 31-DEC-2008

66.00096

1204

170

Revise product to reflect that the modification of charitable deduction of
book inventory ended at the end of 2007.

A

31-DEC-2007 31-DEC-2008

IMPLEMENTATION PLAN for 1120L INST
Run by User MRCYRU00

December 5, 2008

Page 4 of 4

P.L. 109-58, Energy Policy Act of 2005
Action
Number

Act
Section

IRC
Section

Description of Action

Date Type Effective Date Target Date Actual Date

66.00026

1303

54(l)(5)

Revise product to reflect the treatment of the credit to holders of clean
renewable energy bonds as an estimated tax payment for purposes of
IRC section 6655.

A

31-DEC-2005 28-DEC-2007

66.00068

1301(a)

45

Revise the product to reflect 2-year extension from 2006 to 2008 of the
renewable electricity production credit for certain facilities.

DOE

08-AUG-2005 28-DEC-2007

66.00258

1331

179D

Revise product to reflect the termination of the energy efficient
commercial buildings deduction.

PPSA

31-DEC-2005 01-DEC-2007

66.00264

1332

45L

Revise product to reflect the termination of the energy efficient home
credit.

A

31-DEC-2005 31-DEC-2007

66.00294

1342

30C

Revise product to reflect the termination of the alternative fuel vehicle
refueling property credit.

PPSA

31-DEC-2005 31-DEC-2014

66.00301

1344

40A

Revise product to reflect the termination of the biodiesel and
renewable diesel credit.

DOE

08-AUG-2005 01-DEC-2008

P.L. 108-357, American Jobs Creation Act of 2004
Action
Number
66.00394

Act
Section
705(a)

IRC
Section
815(g)

Description of Action
Reinstatement of policyholders surplus account provisions after
12/31/06.

Date Type Effective Date Target Date Actual Date
TYBA

31-DEC-2006 01-DEC-2007

P.L. 106-554, Community Renewal Tax Relief Act of 2000
Action
Number
66.00973

Act
Section
101(a)

IRC
Section
1400F

Total Action Items: 22

Description of Action
Revise the 2014 Form 1120L instructions to reflect that gross income
does not include capital gain from the sale of qualified community
assets held more than five years and acquired after 2001 and before
2010.

Date Type Effective Date Target Date Actual Date
A

03-DEC-2001 01-DEC-2014

Major Changes to the Instructions for 2008 Form 1120-L
p.1
The What’s New area is rewritten re the following.
• The filing address for Georgia and Tennessee filers is changed. (Director,
Submission Processing, SE:W:CAS:SP:PMO, IRS Memo 6/5/2008)
• New line 29j and the election to claim additional research and minimum
tax credits in lieu of claiming any additional first-year special depreciation
allowance. (P. L. 100-289, sec. 3081)
• Start-up and organizational costs for the election under sections 195(b) or
248(a). (Temporary Regulations sec. 1.195-1T and 1.248-1T)
• Temporary tax relief in Kiowa County, Kansas, and surrounding disaster
areas. (Publication 4492-A)
• Four new credits for 2008. (Inst. for Forms 6478, 8912, 8931, and 8932)
• Rev. Rul. 2008-37 requires life insurance companies to indicate statutory
reserves differently.
p. 2
The IRS Tax Products DVD area is rewritten with new prices and other info.
(National Technical Information Service)
The IRS E-Services Make Taxes Easier area is rewritten, indicating the names
of products, including the new name of Form 7004.
p. 3
In the Where to File table, Georgia and Tennessee filers are changed from
Ogden to Cincinnatti. (Director, Submission Processing, SE:W:CAS:SP:PMO,
IRS Memo 6/5/2008)
p. 4
The text under Statements is rewritten because Rev. Rul. 2008-37 requires life
insurance companies to indicate statutory reserves differently. Similarly, the text
under Reconciliation is rewritten.
p. 5
Under Late filing of return, the minimum penalty is changed from $100 to $135.
(IRC 6651(a)(3); P.L. 110-245, sec. 303)
p. 6
Under Accounting Methods (begins on p. 5), a statement is added re a
procedure for automatic consent to change to certain accounting methods. (Rev.
Proc. 2008-52; Announcement 2008-84)
Under Other Forms and Statements That May Be Required, the listing for
certain transactions resulting in a tax credit of more than $250,000, if the
corporation held an asset generating the credit for 45 days or less, is deleted as
it was valid only before August 3, 2007. (T.D. 9350; Reg. 1.6011-4; Form 8886
Inst.) Also, a reference to the Form 8886 Inst. is added.

Under Reportable transactions by material advisors, a statement is added re
material advisors must file Form 8918. (Reg. 301.6111-3)
Under Transfers to a corporation controlled by the transferor, a statement is
added re every significant transferor (under Reg. 1.351-3(d)) receiving stock of a
corporation in exchange for property in a nonrecognition event must attach the
statement required under Reg. 1.351-3(a) to its return for the tax year of the
exchange. (requested by Chief Counsel)
A new section, Distributions under section 355, is added. (Reg. 1.355-5; T.D.
9329)
A statement is added under Election to Reduce Basis under Section
362(e)(2)(C), re (1) if the election is made by a controlled foreign
corporation, its controlling U.S. shareholders may also make the election and (2)
the common parent of a consolidated group can make the election for its
members. (requested by Chief Counsel)
p. 8
Under Item B. Employer Identification Number (EIN) (begins on p. 7), a
Caution is added re only corporations located in the United States or U.S.
possessions can use the online application. (Form SS-4 inst.)
p. 9
Under Transactions between related taxpayers, a reference to the Instructions
for Form 8926 is added.
The section, Business start-up and organizational costs, is rewritten for costs
before and after September 8, 2008. (Prop. Reg. 1.195-1T; 1.248-1T; T.D. 9411)
p. 10
Under Reducing certain expenses for which credits are allowable, the
agricultural chemicals security credit and the credit for employer differential
wage payments are added (IRC 45O and 45P).
p. 11
Under Other deductions (begins on p. 10):
• The bullet for the deduction for certain energy efficient commercial
building property is updated with a reference to Notice 2008-40, which
amplifies Notice 2006-52.
•

A bullet is added for certain environmental remediation costs for the
Midwestern disaster areas. (IRC 1400N(g); P.L. 110-343, secs. 702(d)(4)
and 318, Div. C)

•

A bullet is added for a deduction for qualified disaster expenses. (IRC
198A; P.L. 110-343, sec. 707, Div. C)

A section, Limitations on tax benefits for executive compensation under a
Treasury troubled asset relief program, is added. (P.L. 110-343, Div. A, sec.
302).
p. 12
Under Employment credits, new Form 8932 (IRC 45P) and old form
5884-A (with a new name) (PL 110-343, Div. C, sec. 702(d)(11)), are added.
Under Charitable contributions, a section, Temporary suspension of 10%
limit for contributions to Midwestern disaster areas, is added. (P.L. 110-343,
Div. C, sec. 702(d)(12)
p. 14
Under Operations loss deduction (begins on p. 13):
• A statement is added re guidance in Notice 2008-100 re applying section
382 to loss corporations whose instruments were acquired by Treasury.
•

A paragraph is added re (a) a five-year period to replace converted
property in the Kansas Disaster Zone that is compulsorily or involuntarily
converted on or after May 4, 2007, and (b) public utility property casualty
losses attributable to storms and tornados in the Kansas Disaster Zone,
and (c) qualified Disaster Recovery Disaster losses that may be eligible for
a 5-year carryback. (IRC 1400N(k) and (o); P.L. 110-234, sec. 15345(b)
and (g))

•

A paragraph is added re certain qualified disaster losses related to
federally declared disasters that are eligible for a 5-year carryback period.
(IRC 172(b)(1)(J) and 172(j); P.L. 110-343, Div. C, sec. 708)

•

References to “GO Zone losses,” are changed to “Disaster Recovery
Assistance losses.” (IRC 1400N(k); P.L. 110-343, Div. C, 702(d)(6)).

New line 29j instructions are added re an election to claim additional research
and minimum tax credits in lieu of claiming additional first-year depreciation.
(P. L. 100-289, sec. 3081) Subsequent line number references are renumbered
as necessary.
p. 17
A Note is added re a statement must be attached re reconciliation of lines 1 – 6
of Sch. F (re statutory reserves). (Rev. Rul. 2008-37; LMSB team)

p. 21
The line 5b instructions are retitled to include the names of the forms, for clarity,
since both form names do not appear on line 5b of the 1120-L. (P.L. 110-343,
Div.C, sec. 309 extends the American Samoa economic development credit)
The line 5c references to Forms 5884, 6478, 8835, 8844, and 8846 are removed
because those forms are now re-incorporated on the Form 3800 and no longer
have to be considered separately.
On line 5e, the reference to Form 8860 is removed because the form is obsolete
for 2008. The name of Form 8912 is changed per its latest WRN.
The section, Minimum effectively connected investment income, is updated
with a reference to Rev. Proc. 2008-53.