Form 1120-ND Return for Nuclear Decommissioning Funds and Certain Rel

2010 Form 1120-ND,
Return for Nuclear Decommissioning Funds and
Certain Related Persons
Purpose: This is the first circulated draft of the 2010 Form 1120-ND for your
review and comments.
TPCC Meeting: None, but one may be arranged if requested.
Prior Version: The 2007 is available at:
http://www.irs.gov/pub/irs-pdf/f1120nd.pdf
Instructions: The 2010 Instructions for Form 1120-ND will be circulated at a
later date. The 2007 instructions are available at:
http://www.irs.gov/pub/irs-pdf/i1120nd.pdf
Other Products: Circulations of draft tax forms, instructions, notices, and publications
are posted at: http://taxforms.web.irs.gov/Circulations/index.htm
Comments: Please email, fax, call, or mail any comments by July 14, 2010, to me at
the address below and email the form’s reviewer, Doris Williams, at
[email protected].
Kelli Slaton
Tax Law Specialist
SE:W:CAR:MP:T:B:P
Phone: 202-283-2734 (NCFB)
Email: [email protected]

Changes to 2010 Form 1120-ND
•

We updated the tax years as appropriate.

•

We deleted the reference to the preparer's social security number (SSN) in the
Paid Preparer’s Use Only section on page 1. (Proposed Treasury
Regulations 1.6109-2)

Version A, Cycle 1

Form

1120-ND

Return for Nuclear Decommissioning Funds and
Certain Related Persons

(Rev. December 2010)

OMB No. 1545-0954

Department of the Treasury
Internal Revenue Service

Please Type or Print

For calendar year 20
Name of fund

, or fiscal year beginning

, 20

, and ending

, 20
A

Employer identification number of fund
(see instructions)

B

Identifying number of trustee or
disqualified person (see instructions)

Name of trustee or disqualified person (complete if filing to report section 4951 taxes)
Address of filer. Number, street, and room or suite no. If a P.O. box, see instructions.
City or town, state, and ZIP code

C Return filed for (see Specific Instructions, check applicable box):
(1)

D Check applicable boxes:

Final return

(2)

Fund

Trustee
(3)

Name change

E The books are in care of ▶
Located at ▶

Disqualified person
(4)

Address change

Amended return

Phone no. ▶

Tax and Payments

Deductions

Income

Part I—Computation of Fund Income Tax
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a

Taxable interest . . . . . . . . . . . . . . . . . . . . . . .
Capital gain net income (attach Schedule D (Form 1120)) . . . . . . . . . .
Other income (attach schedule) . . . . . . . . . . . . . . . . . .
Gross income. Add lines 1 through 3 . . . . . . . . . . . . . . . .
Trustees fees . . . . . . . . . . . . . . . . . . . . . . . .
Taxes . . . . . . . . . . . . . . . . . . . . . . . . . . .
Accounting and legal services . . . . . . . . . . . . . . . . . . .
Other deductions (attach schedule) . . . . . . . . . . . . . . . . .
Total deductions. Add lines 5 through 8 . . . . . . . . . . . . . . .
Modified gross income before net operating loss deduction. Subtract line 9 from line 4
Net operating loss deduction (see instructions) . . . . . . . . . . . . .
Modified gross income. Subtract line 11 from line 10 . . . . . . . . . . .
Total tax. Multiply line 12 by 20% . . . . . . . . . . . . . . . . .
Payments:
Overpayment from prior year
allowed as a credit . . .
14a
b Current year estimated tax
payments . . . . . .
14b
c Refund applied for on Form
4466 . . . . . . . .
)
14c (
d Subtract line 14c from the total of lines 14a and 14b . . .
14d
e Tax deposited with Form 7004
. . . . . . . . . .
14e
f Total payments. Add lines 14d and 14e . . . . . . . . . . . . . . . .
15
Estimated tax penalty. Check if Form 2220 is attached
. . . . . . . . .

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14f
15

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Tax due. If line 14f is smaller than the total of lines 13 and 15, enter amount owed

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17

Overpayment. If line 14f is larger than the total of lines 13 and 15, enter amount overpaid

17

Enter amount of line 17 you want: Credited to next year’s estimated tax ▶

18

18

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Refunded ▶

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.

Preparer’s
signature

Check if
self-employed

▲

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

For Paperwork Reduction Act Notice, see separate instructions.

May the IRS discuss this return with
the preparer shown below (see
instructions)?
Yes
No

Title

Date

▲

Paid
Preparer’s
Use Only

Date

Signature of officer

▲

▲

Sign
Here

DRAFT AS OF
June 15, 2010

Preparer’s PTIN

EIN
Phone no.
Cat. No. 11507K

Form 1120-ND (Rev. 12-2010)

Delete.

Version A, Cycle 1
Page 2

Form 1120-ND (Rev. 12-2010)

Schedule L

Balance Sheets

(a) Beginning of year

Assets
Cash . . . . . . . . . . . . . . .
Certificates of deposit . . . . . . . . . .
U.S. government obligations . . . . . . .
State and local government obligations . . . .
Other assets (attach schedule) . . . . . . .
Total assets. Add lines 1 through 5 . . . . .
Liabilities and Fund Balance
Liabilities . . . . . . . . . . . . . .
Fund balance . . . . . . . . . . . .
Total liabilities and fund balance. Add lines 7 and 8

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Schedule M

Other Information

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(b) End of year

Yes No

1a
b
2a
b
c
d
3
4

Enter name of the electing taxpayer
Enter the employer identification number of the electing taxpayer ▶
Enter the amount of contributions the fund received during the year under section 468A(a) .
Enter the ruling amount for the tax year under section 468A(d)(2)
. . . . . . .

5

Self-dealing (see instructions):
Has the fund engaged in any of the following acts during the year, either directly or indirectly, with one or more
disqualified persons?

▶

▶
▶

Enter the amount of distributions includible in income by the electing taxpayer under section 468A(c)(1) ▶

Enter the amount of tax-exempt interest received or accrued for the year .

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▶

$
$
$
$

During the year were any contributions received other than cash payments deductible by the electing taxpayer under section 468A?

During the year were fund assets used for any purpose other than paying the fund’s administrative or incidental
expenses (including taxes), for making investments, or for direct or indirect payment of decommissioning costs of
a nuclear power plant owned or leased by the electing taxpayer? If “Yes,” attach an explanation . . . . . .

DRAFT AS OF
June 15, 2010

a

(i) Sale, exchange, or leasing of property . . . . . . . . . . . . . . . . . . . . . . .
(ii) Borrowing or lending of money or other extension of credit . . . . . . . . . . . . . . . . .
(iii) Furnishing of goods, services, or facilities . . . . . . . . . . . . . . . . . . . . . .
(iv) Payment of compensation (or payment or reimbursement of expenses)
. . . . . . . . . . . .
(v) Transfer to, or use by or for the benefit of, a disqualified person of any part of the fund’s income or assets .
b If any of lines 5a(i) through 5a(v) are answered “Yes,” were all of the acts self-dealing exceptions? (see inst.) . .
c If the answer to line 5b is “No,” attach a schedule listing the act; the date of the act; and the name, address, and
identifying number of each trustee and/or disqualified person who engaged in the act.
d Has any self-dealer or trustee taken any action to “correct” any act of self-dealing? See instructions for the
definition of “correct.” . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
If “Yes,” attach complete details of the corrective action. Also explain any uncorrected acts.

Part II—Initial Taxes on Self-Dealing (Section 4951)
Section A.—Acts of Self-Dealing and Tax Computation
(a) Act number

(b) Date of act

(c) Description of act

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2
(d) Names of disqualified persons liable for tax

(f) Amount involved in act

Total .
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3
4
5
6

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(g) Initial tax on self-dealing disqualified person (10% of column (f))

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(e) Names of trustees liable for tax

(h) Tax on trustee (if applicable) (21/2% of column (f))

©

Section B.—Summary of Initial Taxes

Enter section 4951 tax on disqualified person (Section A, column (g)) . . . . .
Enter section 4951 tax on trustee (Section A, column (h)) . . . . . . . . .
Total section 4951 taxes (add lines 1 and 2) . . . . . . . . . . . . .
Tax paid with Form 7004 . . . . . . . . . . . . . . . . . . . .
Tax due. Enter the excess, if any, of line 3 over line 4. (Do not enter this amount in
full with return. (Make check or money order payable to “United States Treasury.”)
Overpayment. Enter the excess, if any, of line 4 over line 3 . . . . . . . .

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Part I.) Pay
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in
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Form 1120-ND (Rev. 12-2010)