Form 4876-A Election to be treated as an Interest Charge DISC

Form

4876-A

Election To Be Treated as an
Interest Charge DISC

(Rev. December 2009)
Department of the Treasury
Internal Revenue Service

Part I

OMB No. 1545-0190

The corporation named below elects to be treated as an interest charge domestic international sales corporation
(IC-DISC) for income tax purposes. All of the corporation’s shareholders must consent to this election.

Name of corporation

A Employer identification number

Number, street, and room or suite no. (or P.O. box if mail is not delivered to street address)

B Principal business classification (see
instructions)

City or town, state, and ZIP code
C

Tax year of IC-DISC: Must use tax year of shareholder (or shareholder group) with the highest
percentage of voting power (see instructions). Enter ending month and day 䊳

E

Election is to take effect for the tax year beginning
(month, day, year)

G

F Date corporation began doing business

D Name of person who may be called for
information: (optional)
Telephone number:
(

Name and address (including ZIP code) of each shareholder (or expected
shareholder) at the beginning of the tax year the election takes effect and when
the election is filed.

)

H Number of shares of stock held on—
(Complete both columns for each shareholder.)
First day of year
of election

Date consent
is made

I Identifying number
(see instructions)

1
2
3
4
5
6
7
8
9
10
Total. Enter total shares for all shareholders (include shares of shareholders listed on
any attachments)
Under penalties of perjury, I declare that the corporation named above has authorized me to make this election for the corporation to be treated as an IC-DISC and
that the statements made are to the best of my knowledge and belief true, correct, and complete.
Signature and Title of Officer

Part II

䊳

Date

,

Shareholders’ Consent Statement. Part II may be used instead of attachments. For this election to be valid, each
shareholder must sign and date below or attach a separate consent to this form (see instructions).

We, the undersigned shareholders, consent to the election of the corporation named above to be treated as an IC-DISC. Our consent is irrevocable and is binding
upon all transferees of our shares in this corporation.
Signature of shareholder and date. (If consent involves transferred shares, attach a schedule showing the name and address of the holder of the shares at the
beginning of the tax year and the number of shares for which the consent is made.)

1

6

2

7

3

8

4

9

5

10

For Paperwork Reduction Act Notice, see page 2.

Cat. No. 62075X

Form

4876-A

(Rev. 12-2009)

Form 4876-A (Rev. 12-2009)

Page

General Instructions

Specific Instructions

Section references are to the Internal Revenue
Code unless otherwise noted.

Part I

Purpose of Form
A corporation files Form 4876-A to elect to be
treated as an interest charge domestic
international sales corporation (IC-DISC).
Once the election is made, it remains in effect
until terminated or revoked. See Regulations
section 1.992-2(e). The election applies to each
shareholder who owns stock in the corporation
while the election is in effect.

What Is an IC-DISC?
An IC-DISC is a domestic corporation that meets
certain conditions regarding its organization and
international sales and that elects to be treated
as an IC-DISC. The corporation must be
organized under the laws of a state or the
District of Columbia and meet the following
tests:
● At least 95% of its gross receipts during the
tax year are qualified export receipts.
● At the end of the tax year, the adjusted basis
of its qualified export assets is at least 95% of
the sum of the adjusted basis of all its assets.
● It has only one class of stock, and its
outstanding stock has a par or stated value of at
least $2,500 on each day of the tax year (or, for
a new corporation, on the last day to elect
IC-DISC status for the year and on each later
day).
● It keeps separate books and records.
● Its tax year must conform to the tax year of
the shareholder (or shareholder group) who has
the highest percentage of voting power. If two or
more shareholders (or shareholder groups) have
the same highest percentage of voting power,
the IC-DISC’s tax year may be the same as that
of any such shareholder (or group). See section
441(h) and its regulations for more information.
● Its election to be treated as an IC-DISC is in
effect for the tax year.
See section 992 and its regulations for details.
Also see section 993 and its regulations for
definitions of qualified export receipts and
qualified export assets.
Ineligible organizations. S corporations, certain
financial institutions, and other corporations
listed in section 992(d) are not eligible for
IC-DISC treatment.

When To File
If it is the corporation’s first tax year, complete
and file Form 4876-A within 90 days after the
beginning of the tax year. For any tax year that
is not the corporation’s first tax year, the election
must be made during the 90-day period
immediately preceding the first day of that tax
year.
For the election to be valid, all of the
corporation’s shareholders, as of the first day of
the tax year the election is to take effect, must
consent to it.

Where To File
File Form 4876-A with the IRS Service Center
where the corporation will file its annual return,
Form 1120-IC-DISC, Interest Charge Domestic
International Sales Corporation Return.

Address. Include the suite, room, or other unit
number after the street address. If the post office
does not deliver mail to the street address and
the corporation has a P.O. box, show the box
number instead.
Item B—Principal business classification. Use
the list of Codes for Principal Business Activity in
the Instructions for Form 1120-IC-DISC to enter
the corporation’s business code number,
principal business activity, and principal product
or service.
Item C—Tax year change. If a corporation
electing to be an IC-DISC has to change its tax
year to meet the tax year requirements of
section 441(h), the corporation generally does
not need IRS consent to make the change. A tax
year change by a shareholder requires IRS
consent. A subsequent change by the
corporation to meet the tax year requirements of
section 441(h) may require IRS consent. See
section 442 and the regulations under sections
441, 442, and 921 for more information. Also see
Rev. Proc. 2002-37, 2002-22 I.R.B. 1030, and
Rev. Proc. 2002-39, 2002-22 I.R.B. 1046, as
clarified and modified by Notice 2002-72,
2002-46 I.R.B. 843.
Column I—Identifying number. The identifying
number for an individual is the social security
number. For all others, it is the employer
identification number.
Signature. Form 4876-A must be signed by the
president, vice president, treasurer, assistant
treasurer, chief accounting officer, or other
officer (such as tax officer) authorized to sign for
the corporation.

Part II
Shareholders’ Consent Statement. An election
for IC-DISC treatment will be valid only if all
shareholders sign either the consent statement
in Part II or a separate statement as described
below. Several shareholders may combine their
consents in one statement.
If a husband and wife jointly own the stock or
the income from it, both must sign the consent.
If tenants in common, joint tenants, or tenants by
the entirety own the stock, each person must
sign. The legal guardian should sign for a minor;
if none has been appointed, the natural guardian
should sign.
The executor or administrator should sign for
an estate, and the trustee should sign for a trust.
If the estate or trust has more than one
executor, administrator, or trustee, any of them
who is authorized to file the returns may sign the
consent. For a corporation or partnership, an
officer or partner who is authorized to sign the
other returns may sign the consent for the
IC-DISC election.
A foreign person’s consent may be signed by
any individual who would be authorized to sign if
the person were a U.S. person.
Extension. Normally, the consents must be
attached to Form 4876-A. If you establish
reasonable cause for not filing a consent on
time, you may file the consent within an
extended period granted by an Internal Revenue
Service Center. File the consents with the same
service center where you filed Form 4876-A.
Consent by transferee shareholder. If shares
are transferred before a consent is filed, the
transferee shareholder may consent to the
IC-DISC election as long as the transfer occurs
and the consent is filed within the first 90 days
of the tax year. The service center may grant an

2

extension beyond that date. If the transfer takes
place more than 90 days after the tax year
began, an extension can be granted only if the
transferor was eligible for one.
Separate statement. Any shareholder who does
not sign the consent in Part II of Form 4876-A
must sign a separate consent statement for the
election to be valid. The statement must say: “I,
(shareholder’s name), a shareholder of
(corporation’s name), consent to the election of
(corporation’s name) to be treated as an
IC-DISC. The consent so made by me is
irrevocable and is binding on all transferees of
my shares in (corporation’s name).”
In addition, the statement must show
(a) the names, addresses, and identification
numbers of both the corporation and the
shareholder; (b) the number of shares the
shareholder owned (or expects to own) at the
beginning of the tax year the election takes
effect; and (c) the number of shares the
shareholder owns when making the consent.
For transferred stock, also show the name
and address of the person who held the shares
at the beginning of the tax year and the number
of shares to which this consent applies.
Supplemental Form 4876-A. If, between the
date the election is filed and the date it takes
effect, the corporation issues more shares of
stock or the share ownership changes, it must
file a supplemental Form 4876-A, with
“SUPPLEMENTAL” written across the top of the
form. The form must be filed within the first 90
days of the tax year the election takes effect.
On the supplemental form, include all the
information from the earlier form except for the
list of owners contained in Parts I and II. Report
only the owners of the new or additional shares
in Part I, and in Part II obtain their consents only.
Each new shareholder or holder of additional
shares must consent to the IC-DISC election for
the Supplemental Form 4876-A to be valid.
Paperwork Reduction Act Notice. We ask for
the information on this form to carry out the
Internal Revenue laws of the United States. You
are required to give us the information. We need
it to ensure that you are complying with these
laws and to allow us to figure and collect the
right amount of tax.
You are not required to provide the
information requested on a form that is subject
to the Paperwork Reduction Act unless the form
displays a valid OMB control number. Books or
records relating to a form or its instructions must
be retained as long as their contents may
become material in the administration of any
Internal Revenue law. Generally, tax returns and
return information are confidential, as required
by section 6103.
The time needed to complete and file this
form will vary depending on individual
circumstances. The estimated average time is:
Recordkeeping
4 hr., 4 min.
Learning about the law
or the form
1 hr., 5 min.
Preparing and sending
the form to the IRS
1 hr., 12 min.
If you have comments concerning the
accuracy of these time estimates or suggestions
for making this form simpler, we would be happy
to hear from you. You can write to the Internal
Revenue Service, Tax Products Coordinating
Committee, SE:W:CAR:MP:T:T:SP, 1111
Constitution Ave. NW, IR-6526, Washington,
D.C. 20224. Do not send the form to this
address. Instead, see Where To File above.