US Internal Revenue Service: i1120 a--1999

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1999 Department of the TreasuryInternal Revenue ServiceInstructions forForms 1120 and 1120-ASection references are to the Internal Revenue Code unless otherwise noted.

Paperwork Reduction Act Notice. We ask for the information on these forms to carryout the Internal Revenue laws of the United States. You are required to give us theinformation. We need it to ensure that you are complying with these laws and to allowus to figure and collect the right amount of tax.

You are not required to provide the information requested on a form that is subjectto 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 theircontents may become material in the administration of any Internal Revenue law.Generally, tax returns and return information are confidential, as required by section6103.

The time needed to complete and file the following forms will vary depending onindividual circumstances. The estimated average times are:

If you have comments concerning the accuracy of these time estimates orsuggestions for making this form and related schedules simpler, we would be happyto hear from you. You can write to the Tax Forms Committee, Western Area DistributionCenter, Rancho Cordova, CA 95743-0001. DO NOT send the tax form to this address.Instead, see Where To File on page 3.

Pending LegislationAt the time of printing, Congress wasconsidering legislation affecting theseinstructions. Included in the pendinglegislation are provisions that wouldchange the definition of a capital asset,modify the treatment of gains fromconstructive ownership transactions,repeal the use of the installment methodfor certain taxpayers, and limit the use ofthe nonaccrual experience method ofaccounting. See Pub. 553, Highlights of1999 Tax Changes, to find out if thislegislation was enacted, and details onthe changes.

A Change To NoteNew rules for determining whether thecorporation must use the ElectronicFederal Tax Payment System (EFTPS) tomake Federal tax deposits are effectivebeginning January 1, 2000. For details,see Electronic Deposit Requirement onpage 4.

Photographs ofMissing ChildrenThe Internal Revenue Service is a proudpartner with the National Center forMissing and Exploited Children.

Photographs of missing children selectedby the Center may appear in instructionson pages that would otherwise be blank.You can help bring these children homeby looking at the photographs and calling1-800-THE-LOST (1-800-843-5678) if yourecognize a child.

Unresolved Tax ProblemsMost problems can be resolved with onecontact by calling, writing, or visiting anIRS office. But if the corporation has triedunsuccessfully to resolve a problem withthe IRS, it should contact the TaxpayerAdvocate's office. The corporation will beassigned a personal advocate who is in

the best position to try to resolve theproblem.Contact the Taxpayer Advocate if the

corporation:q Is suffering or about to suffer asignificant hardship.q Is facing an immediate threat ofadverse action.q Will incur significant costs if relief is notgranted (including fees for professionalrepresentation).q Will suffer irreparable injury orlong-term adverse impact if relief is notgranted.

Form Recordkeeping

Learning aboutthe law or the

form

Preparing the

form

Copying,assembling, andsending the form

to the IRS1120 71 hr., 59 min. 41 hr., 10 min. 71 hr., 8 min. 7 hr., 47 min.1120-A 44 hr., 14 min. 23 hr., 33 min. 41 hr., 7 min. 4 hr., 34 min.Sch. D (1120) 6 hr., 56 min. 3 hr., 31 min. 5 hr., 39 min. 32 min.Sch. H (1120) 5 hr., 59 min. 35 min. 43 min. - - - - -Sch. PH (1120) 15 hr., 19 min. 6 hr., 12 min. 8 hr., 35 min. 32 min.

Contents PageContents PageEstimated Tax Payments . . . . . . 5Pending Legislation . . . . . . . . . 1Interest and Penalties . . . . . . . . 5A Change To Note . . . . . . . . . 1

Specific Instructions . . . . . . . 5Photographs of Missing Children . . 1Period Covered . . . . . . . . . . . 5Unresolved Tax Problems . . . . . 1Name, Address, and Employer

Identification Number (EIN) . . . . 5How To Make a Contribution To Reduce

the Public Debt . . . . . . . . . . 2Personal Service Corporation . . . . 6How To Get Forms and Publications 2Total Assets . . . . . . . . . . . . . 6General Instructions . . . . . . . . 2Initial Return, Final Return, or Change

of Address . . . . . . . . . . . . 6Purpose of Form . . . . . . . . . . 2

Who May File Form 1120-A . . . . . 2Income . . . . . . . . . . . . . . . 6

Who Must File . . . . . . . . . . . 2Deductions . . . . . . . . . . . . 7-12

When To File . . . . . . . . . . . . 3Schedule A and Cost of Goods

Sold Worksheet . . . . . . . . 12-13Who Must Sign . . . . . . . . . . . 3

Where To File . . . . . . . . . . . . 3 Schedule C and Worksheet forSchedule C . . . . . . . . . . 13-15Other Forms, Returns, and Statements

That May Be Required . . . . . . 3 Schedule J and Worksheet forMembers of a Controlled Group 15-17Consolidated Return . . . . . . . . 3

Farm Return . . . . . . . . . . . . 3 Schedule K . . . . . . . . . . . 17-18Amended Return . . . . . . . . . . 3 Schedule L . . . . . . . . . . . . . 18Statements . . . . . . . . . . . . . 3 Schedule M-1 . . . . . . . . . . . . 18Attachments . . . . . . . . . . . . . 4 Codes for Principal Business

Activity . . . . . . . . . . . . 19-21Accounting Methods . . . . . . . . 4Other Forms That May Be

Required . . . . . . . . . . . 22-23Accounting Periods . . . . . . . . . 4

Rounding Off to Whole Dollars . . . 4Index . . . . . . . . . . . . . . . . 24

Recordkeeping . . . . . . . . . . . 4

Depository Method of Tax Payment 4

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q Has experienced a delay of more than30 calendar days to resolve a tax problemor inquiry.q Has not received a response orresolution to the problem by the datepromised.

The corporation may contact aTaxpayer Advocate by calling a toll-freeassistance number, 1-877-777-4778.Persons who have access to TTY/TDDequipment may call 1-800-829-4059 andask for the Taxpayer Advocate. If thecorporation prefers, it may write to theTaxpayer Advocate at the IRS office thatlast contacted the corporation.

While Taxpayer Advocates cannotchange the tax law or make a technicaltax decision, they can clear up problemsthat resulted from previous contacts andensure that the corporation's case is givena complete and impartial review. For moreinformation about the Taxpayer Advocate,see Pub. 1546, The Taxpayer AdvocateService of the IRS.

How To Make a ContributionTo Reduce the Public DebtTo help reduce the public debt, send a

check made payable to the: Bureau ofthe Public Debt to Bureau of the PublicDebt, Department G, P.O. Box 2188,Parkersburg, WV 26106-2188. Or,enclose a check with the income taxreturn. Contributions to reduce the publicdebt are deductible subject to the rulesand limitations for charitable contributions.

How To Get Formsand PublicationsPersonal computer. You can access theIRS's Internet Web Site 24 hours a day,7 days a week at www.irs.gov to:q Download forms, instructions, andpublications.

q See answers to frequently asked taxquestions.q Search publications on-line by topic orkeyword.q Send us comments or request help bye-mail.q Sign up to receive local and national taxnews by e-mail.

You can also reach us using filetransfer protocol at ftp.irs.gov.CD-ROM. Order Pub. 1796, Federal TaxProducts on CD-ROM, and get:q Current year forms, instructions, andpublications.q Prior year forms, instructions, andpublications.

q Popular tax forms that may be filled inelectronically, printed out for submission,and saved for recordkeeping.q The Internal Revenue Bulletin.

Buy the CD-ROM on the Internet atwww.irs.gov/cdorders from the NationalTechnical Information Service (NTIS) for$16 (plus a $5 handling fee) and save30%, or call 1-877-CDFORMS(1-877-233-6767) toll free to buy theCD-ROM for $23 (plus a $5 handling fee).By phone and in person. You can orderforms and publications 24 hours a day, 7days a week, by calling

Who May File Form 1120-A

A corporation may file Form 1120-A if it meets all of the following requirements:

All of the following amounts are under $500,000:

Gross receipts (line 1a)

Total income (line 11)

Its only dividend income is from domestic corporations, and the dividends:

Qualify for the 70% deduction and

Are not from debt-financed securities

It does not have any of the write-in additions to tax listed on pages 16 and 17 in theinstructions for:

Form 1120, Schedule J, line 3

Form 1120, Schedule J, line 12

It has no nonrefundable tax credits (other than the general business credit or the creditfor prior year minimum tax)

Total assets (Form 1120, Schedule L, line 15)

It is not:

A member of a controlled group

A personal holding company

Filing a consolidated return

Filing its final return

Dissolving or liquidating Electing to forego the carryback period of an NOL

Required to file one of the returns listed under Special Returns for CertainOrganizations below

It does not have:

Any ownership in a foreign corporation

Foreign shareholders that directly or indirectly own 25% or more of its stock

1-800-TAX-FORM (1-800-829-3676). Youcan also get most forms and publicationsat your local IRS office.

General Instructions

Purpose of FormUse Form 1120, U.S. Corporation IncomeTax Return, and Form 1120-A, U.S.Corporation Short-Form Income TaxReturn, to report the income, gains,losses, deductions, credits, and to figurethe income tax liability of a corporation.Also see Pub. 542, Corporations, formore information.

Who Must FileUnless exempt under section 501, alldomestic corporations (includingcorporations in bankruptcy) must file

whether or not they have taxable income.Domestic corporations must file Form1120, or, if they qualify, Form 1120-A,unless they are required to file a specialreturn (see Special Returns for CertainOrganizations below).Limited liability companies. If an entitywas formed as a limited liability companyunder state law and is treated as apartnership for Federal income taxpurposes, it should not file Form 1120 or1120-A. Instead, it should file Form 1065,U.S. Partnership Return of Income. Forthe definition of a limited liability company,see the Instructions for Form 1065.

Special Returns forCertain OrganizationsInstead of filing Form 1120 or Form1120-A, certain organizations, as shownbelow, have to file special returns.

If the organization is a File Form

Farmers' cooperative (sec. 1381) 990-C

Exempt organization with unrelatedtrade or business income 990-T

Religious or apostolic organizationexempt under section 501(d) 1065

Entity formed as a limited liabilitycompany under state law and treatedas a partnership for Federal incometax purposes

1065

Entity that elects to be treated as areal estate mortgage investmentconduit (REMIC) under sec. 860D

1066

Interest charge domestic internationalsales corporation (sec. 992) 1120-IC-DISC

Foreign corporation (other than lifeand property and casualty insurancecompany filing Form 1120-L or Form1120-PC)

1120-F

Foreign sales corporation (sec. 922) 1120-FSC

Condominium managementassociation or residential real estatemanagement association that electsto be treated as a homeownersassociation under sec. 528

1120-H

Life insurance company (sec. 801) 1120-L

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Ownership Interest in a FASITIf a corporation holds an ownershipinterest in a financial assetsecuritization investment trust (FASIT),it must report all items of income, gain,deductions, losses, and credits on thecorporation's income tax return (exceptas provided in section 860H). Show abreakdown of the items on an attachedschedule. For more information, seesections 860H and 860L.

When To FileGenerally, a corporation must file its

income tax return by the 15th day of the3rd month after the end of the tax year.A new corporation filing a short-periodreturn must generally file by the 15th dayof the 3rd month after the short periodends. A corporation that has dissolvedmust generally file by the 15th day of the3rd month after the date it dissolved.

If the due date falls on a Saturday,Sunday, or legal holiday, the corporationmay file on the next business day.Private delivery services. You can usecertain private delivery servicesdesignated by the IRS to meet the timelymailing as timely filing/paying rule for taxreturns and payments. The most recentlist of designated private delivery serviceswas published by the IRS in August 1999.The list includes only the following:q Airborne Express (Airborne): OvernightAir Express Service, Next AfternoonService, Second Day Service.q DHL Worldwide Express (DHL): DHLSame Day Service, DHL USAOvernight.q Federal Express (FedEx): FedExPriority Overnight, FedEx StandardOvernight, FedEx 2 Day.q United Parcel Service (UPS): UPS NextDay Air, UPS Next Day Air Saver, UPS2nd Day Air, UPS 2nd Day Air A.M.

The private delivery service can tell youhow to get written proof of the mailing

date.Extension. File Form 7004, Applicationfor Automatic Extension of Time To FileCorporation Income Tax Return, torequest a 6-month extension of time tofile.

Who Must SignThe return must be signed and dated by:q The president, vice president,treasurer, assistant treasurer, chiefaccounting officer, or

q Any other corporate officer (such as taxofficer) authorized to sign.

Receivers, trustees, or assignees mustalso sign and date any return filed onbehalf of a corporation.

If a corporate officer completes Form1120 or Form 1120-A, the Paid Preparer'sspace should remain blank. Anyone whoprepares Form 1120 or Form 1120-A butdoes not charge the corporation shouldnot sign the return. Generally, anyonewho is paid to prepare the return mustsign it and fill in the Paid Preparer's UseOnly area.

The paid preparer must complete therequired preparer information andq Sign the return, by hand, in the spaceprovided for the preparer's signature(signature stamps and labels are notacceptable).q Give a copy of the return to thetaxpayer.

Where To FileFile your return at the applicable IRSaddress listed below.

Corporations with their principal placeof business outside the United States orclaiming a possessions tax credit(sections 936 and 30A) must file with theInternal Revenue Service Center,Philadelphia, PA 19255-0012.

A group of corporations located inseveral service center regions will oftenkeep all the books and records at theprincipal office of the managingcorporation. In this case, the income taxreturns of the corporations may be filedwith the service center for the region inwhich the principal office is located.

Other Forms, Returns,and Statements ThatMay Be Required

FormsTo find out what other forms thecorporation may have to file, see OtherForms That May Be Required on page22.

Consolidated ReturnThe parent corporation of an affiliatedgroup of corporations must attach Form851, Affiliations Schedule, to theconsolidated return. For the first year aconsolidated return is filed, eachsubsidiary must attach Form 1122,Authorization and Consent of SubsidiaryCorporation to be Included in a

Consolidated Income Tax Return.File supporting statements for eachcorporation included in the consolidatedreturn. Do not use Form 1120 as asupporting statement. On the supportingstatement, use columns to show thefollowing, both before and afteradjustments:q Items of gross income and deductions.q A computation of taxable income.q Balance sheets as of the beginning andend of the tax year.q A reconciliation of income per bookswith income per return.q A reconciliation of retained earnings.

Enter the totals for the consolidatedgroup on Form 1120. Attach consolidatedbalance sheets and a reconciliation ofconsolidated retained earnings. For moreinformation on consolidated returns, seethe regulations under section 1502.

Farm ReturnDo not file Schedule F (Form 1040),Profit or Loss From Farming. Instead,enter income on lines 1a through 10, andread the related instructions. Forms 1120and 1120-A have entry lines for many ofthe expenses deducted by farmingcorporations. Expenses not listed on theform should be entered on the line for"Other deductions." Attach a schedule,listing by type and amount, all deductions

shown on this line. Also, see theinstructions for lines 12 through 26 andline 29a, Form 1120 (lines 12 through 22and line 25a, Form 1120-A).

Amended ReturnUse Form 1120X, Amended U.S.Corporation Income Tax Return, tocorrect any error in a previously filed Form1120 or Form 1120-A.

Statements

Stock ownership in foreigncorporations. Attach the statementrequired by section 551(c) if:

Fund set up to pay for nucleardecommissioning costs (sec. 468A) 1120-ND

Property and casualty insurancecompany (sec. 831) 1120-PC

Political organization (sec. 527) 1120-POL

Real estate investment trust (sec.856) 1120-REIT

Regulated investment company (sec.851) 1120-RIC

S corporation (sec. 1361) 1120S

Settlement fund (sec. 468B) 1120-SF

If the corporation'sprincipal business,

office, or agency islocated in

Use the followingInternal Revenue

Service Center address

Florida, Georgia, SouthCarolina

Atlanta, GA39901-0012

Kansas, New Mexico,Oklahoma, Texas

Austin, TX73301-0012

Indiana, Kentucky, Michigan,Ohio, West Virginia

Cincinnati, OH45999-0012

New Jersey, New York (NewYork City and counties ofNassau, Rockland, Suffolk,and Westchester)

Holtsville, NY00501-0012

New York (all othercounties), Connecticut,Maine, Massachusetts, NewHampshire, Rhode Island,

Vermont

Andover, MA05501-0012

Illinois, Iowa, Minnesota,Missouri, Wisconsin

Kansas City, MO64999-0012

Alabama, Arkansas,Louisiana, Mississippi, NorthCarolina, Tennessee

Memphis, TN37501-0012

Alaska, Arizona, California(counties of Alpine, Amador,Butte, Calaveras, Colusa,Contra Costa, Del Norte, ElDorado, Glenn, Humboldt,Lake, Lassen, Marin,Mendocino, Modoc, Napa,Nevada, Placer, Plumas,Sacramento, San Joaquin,Shasta, Sierra, Siskiyou,Solano, Sonoma, Sutter,Tehama, Trinity, Yolo, andYuba), Colorado, Idaho,Montana, Nebraska, Nevada,

North Dakota, Oregon, SouthDakota, Utah, Washington,Wyoming

Ogden, UT84201-0012

California (all other counties),Hawaii

Fresno, CA93888-0012

Delaware, District ofColumbia, Maryland,Pennsylvania, Virginia

Philadelphia, PA19255-0012

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q The corporation owned 5% or more invalue of the outstanding stock of a foreignpersonal holding company, andq The corporation was required toinclude in its gross income anyundistributed foreign personal holdingcompany income from a foreign personalholding company.Transfers to a corporation controlledby the transferor. If a person receivesstock of a corporation in exchange forproperty, and no gain or loss isrecognized under section 351, the person(transferor) and the transferee must eachattach to their tax returns the informationrequired by Regulations section 1.351-3.Dual consolidated losses. If a domesticcorporation incurs a dual consolidatedloss (as defined in Regulations section1.1503-2(c)(5)), the corporation (orconsolidated group) may need to attachan elective relief agreement and/or anannual certification as provided inRegulations section 1.1503-2(g)(2).

AttachmentsAttach Form 4136, Credit for Federal TaxPaid on Fuels, after page 4, Form 1120,or page 2, Form 1120-A. Attach

schedules in alphabetical order and otherforms in numerical order after Form 4136.Complete every applicable entry space

on Form 1120 or Form 1120-A. Do notwrite See attached instead of completingthe entry spaces. If you need more spaceon the forms or schedules, attachseparate sheets, using the same size andformat as the printed forms. Show thetotals on the printed forms. Attach theseseparate sheets after all the schedulesand forms. Be sure to put thecorporation's name and EIN on eachsheet.

Accounting MethodsAn accounting method is a set of rulesused to determine when and how incomeand expenses are reported.

Figure taxable income using themethod of accounting regularly used inkeeping the corporation's books andrecords. Generally, permissible methodsinclude:q Cash,q Accrual, orq Any other method authorized by theInternal Revenue Code.

In all cases, the method used mustclearly show taxable income.

Generally, a corporation (other than aqualified personal service corporation)must use the accrual method of

accounting if its average annual grossreceipts exceed $5 million. See section448(c). A corporation engaged in farmingoperations must also use the accrualmethod. For exceptions, see section 447.

Under the accrual method, an amountis includible in income when:q All the events have occurred that fixthe right to receive the income, andq The amount can be determined withreasonable accuracy.

See Regulations section 1.451-1(a) fordetails.

Generally, an accrual basis taxpayercan deduct accrued expenses in the taxyear when:q All events that determine the liabilityhave occurred,q The amount of the liability can befigured with reasonable accuracy, andq Economic performance takes place withrespect to the expense.

There are exceptions to the economicperformance rule for certain items,including recurring expenses. See section

461(h) and the related regulations for therules for determining when economicperformance takes place.

Long-term contracts (except for certainreal property construction contracts) mustgenerally be accounted for using thepercentage of completion methoddescribed in section 460. See section 460for general rules on long-term contracts.Mark-to-market accounting method.Generally, dealers in securities must usethe mark-to-market accounting methoddescribed in section 475. Under thismethod, any security that is inventory tothe dealer must be included in inventoryat its fair market value. Any security heldby a dealer that is not inventory and that

is held at the close of the tax year istreated as sold at its fair market value onthe last business day of the tax year. Anygain or loss must be taken into account indetermining gross income. The gain orloss taken into account is generallytreated as ordinary gain or loss. Fordetails, including exceptions, see section475, the related regulations, and Rev. Rul.94-7, 1994-1 C.B. 151.

Dealers in commodities and tradersin securities and commoditiesmayelect to use the mark-to-marketaccounting method. To make the electionfor tax years beginning on or afterJanuary 1, 1999, the corporation must filea statement describing the election, the

first tax year the election is to be effective,and, in the case of an election for tradersin securities or commodities, the trade orbusiness for which the election is made.Except for new taxpayers, the statementmust be filed by the due date (notincluding extensions) of the income taxreturn for the tax year immediatelypreceding the election year and attachedto that return, or if applicable, to a requestfor an extension of time to file that return.For more details, see Rev. Proc. 99-17,1999-7 I.R.B. 52 and sections 475(e) and(f).Change in accounting method.Generally, the corporation may changethe method of accounting used to report

taxable income (for income as a whole orfor any material item) only by gettingconsent on Form 3115, Application forChange in Accounting Method. For moreinformation, get Pub. 538, AccountingPeriods and Methods.

Accounting PeriodsA corporation must figure its taxableincome on the basis of a tax year. The taxyear is the annual accounting period thecorporation uses to keep its records andreport its income and expenses.Generally, corporations can use a

calendar year or a fiscal year. Personalservice corporations, however, must usea calendar year unless they meet one ofthe exceptions discussed in Accountingperiod under Item A on page 6.

For more information about accountingperiods, see Temporary Regulationssections 1.441-1T, 1.441-2T, and Pub.538.Calendar year. If the calendar year isadopted as the annual accounting period,the corporation must maintain its booksand records and report its income andexpenses for the period from January 1through December 31 of each year.Fiscal year. A fiscal year is 12consecutive months ending on the lastday of any month except December. A52-53-week year is a fiscal year thatvaries from 52 to 53 weeks.Adoption of tax year. A corporationadopts a tax year when it files its firstincome tax return. It must adopt a tax yearby the due date (not including extensions)of its first income tax return.Change of tax year. Generally, acorporation must get the consent of theIRS before changing its tax year by filingForm 1128, Application To Adopt,

Change, or Retain a Tax Year. However,under certain conditions, a corporation(other than a personal servicecorporation) may change its tax yearwithout getting the consent. SeeRegulations section 1.442-1 and Pub.538.

Rounding Off toWhole DollarsThe corporation may show amounts onthe return and accompanying schedulesas whole dollars. To do so, drop amountsless than 50 cents and increase amountsfrom 50 cents through 99 cents to the nexthigher dollar.

RecordkeepingKeep the corporation's records for as longas they may be needed for theadministration of any provision of theInternal Revenue Code. Usually, recordsthat support an item of income, deduction,or credit on the return must be kept for 3years from the date the return is due orfiled, whichever is later. Keep records thatverify the corporation's basis in propertyfor as long as they are needed to figurethe basis of the original or replacementproperty.

The corporation should keep copies ofall filed returns. They help in preparing

future returns and amended returns.

Depository Methodof Tax PaymentThe corporation must pay the tax due infull no later than the 15th day of the 3rdmonth after the end of the tax year. Thetwo methods of depositing corporateincome taxes are discussed below.

Electronic Deposit RequirementThe corporation must make electronicdeposits of all depository tax liabilities thatoccur after 1999 if it deposited, in 1998,

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more than $200,000 in all Federaldepository taxes (such as employmenttax, excise tax, or corporate income tax).If the corporation is already depositingelectronically but its deposits did notexceed $200,000, the corporation maycontinue to do so, or it may make depositswith Form 8109, Federal Tax DepositCoupon (below). Corporations thatexceed the new $200,000 threshold mustcontinue to deposit electronically in alllater years.

The Electronic Federal Tax PaymentSystem (EFTPS) must be used to makeelectronic deposits. If the corporation isrequired to make electronic deposits andfails to do so, it may be subject to a 10%penalty.

A corporation that is not required tomake electronic deposits may voluntarilyparticipate in EFTPS. To enroll in EFTPS,call 1-800-555-4477 or 1-800-945-8400.For general information about EFTPS, call1-800-829-1040.

Deposits With Form 8109If the corporation does not use EFTPS,deposit corporation income tax payments(and estimated tax payments) with Form

8109. Do not send deposits directly to anIRS office. Mail or deliver the completedForm 8109 with the payment to a qualifieddepositary for Federal taxes or to theFederal Reserve bank (FRB) servicing thecorporation's geographic area. Makechecks or money orders payable to thatdepositary or FRB. To help ensure propercrediting, write the corporation's EIN, thetax period to which the deposit applies,and Form 1120 on the check or moneyorder. Be sure to darken the 1120 boxon the coupon. Records of these depositswill be sent to the IRS.

A penalty may be imposed if thedeposits are mailed or delivered to an IRSoffice rather than to an authorized

depositary or FRB. For more informationon deposits, see the instructions in thecoupon booklet (Form 8109) and Pub.583, Starting a Business and KeepingRecords.

CAUTION

!If the corporation owes tax when itfiles Form 1120 or Form 1120-A,do not include the payment with thetax return. Instead, mail or deliver

the payment with Form 8109 to a qualifieddepositary or FRB, or use EFTPS, ifapplicable.

Estimated Tax PaymentsGenerally, the following rules apply to thecorporation's payments of estimated tax.

q The corporation must make installmentpayments of estimated tax if it expects itsestimated tax (income tax minus credits)to be $500 or more.q The installments are due by the 15thday of the 4th, 6th, 9th, and 12th monthsof the tax year. If any date falls on aSaturday, Sunday, or legal holiday, theinstallment is due on the next regularbusiness day.

q Use Form 1120-W, Estimated Tax forCorporations, as a worksheet to computeestimated tax.q If the corporation does not use EFTPS,use the deposit coupons (Forms 8109) tomake deposits of estimated tax.

For more information on estimated taxpayments, including penalties that applyif the corporation fails to make requiredpayments, see the instructions for line 33on page 12.Overpaid estimated tax. If the

corporation overpaid estimated tax, it maybe able to get a quick refund by filingForm 4466, Corporation Application forQuick Refund of Overpayment ofEstimated Tax. The overpayment must beat least 10% of the corporation's expectedincome tax liability and at least $500. FileForm 4466 before the 16th day of the 3rdmonth after the end of the tax year, butbefore the corporation files its income taxreturn. Do not file Form 4466 before theend of the corporation's tax year.

Interest and PenaltiesInterest. Interest is charged on taxespaid late even if an extension of time tofile is granted. Interest is also charged onpenalties imposed for failure to file,negligence, fraud, gross valuationoverstatements, and substantialunderstatements of tax from the due date(including extensions) to the date ofpayment. The interest charge is figuredat a rate determined under section 6621.Penalty for late filing of return. Acorporation that does not file its tax returnby the due date, including extensions,may be penalized 5% of the unpaid tax foreach month or part of a month the returnis late, up to a maximum of 25% of theunpaid tax. The minimum penalty for areturn that is over 60 days late is thesmaller of the tax due or $100. Thepenalty will not be imposed if thecorporation can show that the failure tofile on time was due to reasonable cause.Corporations that file late must attach astatement explaining the reasonablecause.Penalty for late payment of tax. Acorporation that does not pay the taxwhen due generally may be penalized 1/2of 1% of the unpaid tax for each monthor part of a month the tax is not paid, upto a maximum of 25% of the unpaid tax.The penalty will not be imposed if thecorporation can show that the failure topay on time was due to reasonable cause.Trust fund recovery penalty. Thispenalty may apply if certain excise,

income, social security, and Medicaretaxes that must be collected or withheldare not collected or withheld, or thesetaxes are not paid. These taxes aregenerally reported on Forms 720, 941,943, or 945 (see Other Forms That MayBe Required on page 22). The trust fundrecovery penalty may be imposed on allpersons who are determined by the IRSto have been responsible for collecting,accounting for, and paying over thesetaxes, and who acted willfully in not doing

so. The penalty is equal to the unpaidtrust fund tax. See the instructions forForm 720, Pub. 15 (Circular E),Employer's Tax Guide, or Pub. 51(Circular A), Agricultural Employer's TaxGuide, for details, including the definitionof responsible persons.Other penalties. Other penalties can beimposed for negligence, substantialunderstatement of tax, and fraud. Seesections 6662 and 6663.

Specific Instructions

Period CoveredFile the 1999 return for calendar year1999 and fiscal years that begin in 1999and end in 2000. For a fiscal year, fill inthe tax year space at the top of the form.Note: The 1999 Form 1120 may also beused if:q The corporation has a tax year of lessthan 12 months that begins and ends in2000, andq The 2000 Form 1120 is not availableat the time the corporation is required tofile its return.

The corporation must show its 2000 taxyear on the 1999 Form 1120 and take intoaccount any tax law changes that areeffective for tax years beginning afterDecember 31, 1999.

Name, Address, andEmployer IdentificationNumber (EIN)Use the label on the postcard (Form8160-A) or the Form 1120 package thatwas mailed to the corporation. Cross outany errors and print the correctinformation on the label. If the corporationdoesn't have a label, print or type the

corporation's true name (as set forth inthe charter or other legal documentcreating it), address, and EIN on theappropriate lines.Address. Include the suite, room, orother unit number after the street address.If a preaddressed label is used, includethis information on the label.

If the Post Office does not deliver mailto the street address and the corporationhas a P.O. box, show the box numberinstead.Note: If achange in addressoccursafter the return is filed, useForm 8822,Change of Address, to notify the IRS ofthe new address.Employer identification number (EIN).

Show the correct EIN in item B on page1 of Form 1120 or Form 1120-A. If thecorporation does not have an EIN, itshould apply for one on Form SS-4,Application for Employer IdentificationNumber. Form SS-4 can be obtained atSocial Security Administration (SSA)offices, or by calling 1-800-TAX-FORM. Ifthe corporation has not received its EINby the time the return is due, writeApplied for in the space for the EIN. SeePub. 583 for details.

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Item APersonalService CorporationA personal service corporation is acorporation whose principal activity(defined below) for the testing period forthe tax year is the performance ofpersonal services. The services must besubstantially performed byemployee-owners. Employee-ownersmust own more than 10% of the fairmarket value of the corporation'soutstanding stock on the last day of thetesting period.Testing period. Generally, the testingperiod for a tax year is the prior tax year.The testing period for a new corporationstarts with the first day of its first tax yearand ends on the earlier of:q The last day of its first tax year, orq The last day of the calendar year inwhich the first tax year began.Principal activity. The principal activityof a corporation is considered to be theperformance of personal services if,during the testing period, the corporation'scompensation costs for the performanceof personal services (defined below) aremore than 50% of its total compensation

costs.Performance of personal services.Personal services are those performed inthe health, law, engineering, architecture,accounting, actuarial science, performingarts, or consulting fields (as defined inTemporary Regulations section1.448-1T(e)). The term performance ofpersonal services includes any activityinvolving the performance of personalservices in these fields.Substantial performance byemployee-owners. Personal servicesare substantially performed byemployee-owners if, for the testing period,more than 20% of the corporation'scompensation costs for the performance

of personal services are for servicesperformed by employee-owners.Employee-owner. A person isconsidered to be an employee-owner ifthe person:q Is an employee of the corporation onany day of the testing period, andq Owns any outstanding stock of thecorporation on any day of the testingperiod.Stock ownership is determined under theattribution rules of section 318, exceptthat any is substituted for 50% insection 318(a)(2)(C).Accounting period. A personal servicecorporation must use a calendar tax year

unless:q It can establish a business purpose fora different tax year (see Rev. Proc. 87-32,1987-2 C.B. 396, and Rev. Rul. 87-57,1987-2 C.B. 117), orq It elects under section 444 to have a taxyear other than a calendar year. To makethe election, get Form 8716, Election ToHave a Tax Year Other Than a RequiredTax Year.

Personal service corporations that wantto change their tax year must also fileForm 1128.

If a corporation makes the section 444election, its deduction for certain amountspaid to employee-owners may be limited.Get Schedule H (Form 1120), Section280H Limitations for a Personal ServiceCorporation (PSC), to figure the maximumdeduction.

If a section 444 election is terminatedand the termination results in a short taxyear, type or print at the top of the firstpage of Form 1120 or 1120-A for the shorttax year SECTION 444 ELECTIONTERMINATED. See TemporaryRegulations section 1.444-1T(a)(5) formore information.

For more information about personalservice corporations, see TemporaryRegulations section 1.441-4T.Other rules. For other rules that apply topersonal service corporations, seePassive activity limitations on page 7and Contributions of property otherthan cash on page 9.

Item DTotal AssetsEnter the corporation's total assets (asdetermined by the accounting methodregularly used in keeping thecorporation's books and records) at the

end of the tax year. If there are no assetsat the end of the tax year, enter the totalassets as of the beginning of the tax year.

Item EInitial Return,Final Return, orChange of Addressq If this is the corporation's first return,check the Initial return box.q If the corporation ceases to exist, fileForm 1120 and check the Final returnbox. Do not file Form 1120-A.q If the corporation has changed itsaddress since it last filed a return, checkthe box for Change of address.

IncomeNote: Generally, income from allsources, whether U.S. or foreign, must beincluded.

Line 1

Gross Receipts

Enter gross receipts or sales from allbusiness operations except those thatmust be reported on lines 4 through 10.For reporting advance payments, seeRegulations section 1.451-5. To reportincome from long-term contracts, seesection 460.

Installment sales. Generally, theinstallment method cannot be used fordealer dispositions of property. A dealerdisposition means any disposition ofpersonal property by a person whoregularly sells or otherwise disposes ofproperty of the same type on theinstallment plan. The disposition ofproperty used or produced in the farmingbusiness is not included as a dealerdisposition. See section 453(l) for detailsand exceptions.

Enter on line 1 (and carry to line 3), thegross profit on collections from installmentsales for any of the following:

q Dealer dispositions of property beforeMarch 1, 1986.q Dispositions of property used orproduced in the trade or business offarming.q Certain dispositions of timeshares andresidential lots reported under theinstallment method.

Attach a schedule showing thefollowing information for the current andthe 3 preceding years: (a) gross sales, (b)cost of goods sold, (c) gross profits, (d)

percentage of gross profits to gross sales,(e) amount collected, and (f) gross profiton the amount collected.

For sales of timeshares and residentiallots reported under the installmentmethod, the corporation's income tax isincreased by the interest payable undersection 453(l)(3). To report this additionto the tax, see the instructions for line 12,Schedule J, Form 1120.Nonaccrual experience method.Accrual method taxpayers need notaccrue certain amounts to be receivedfrom the performance of services that, onthe basis of their experience, will not becollected (section 448(d)(5)). Thisprovision does not apply to any amount if

interest is required to be paid on theamount or if there is any penalty for failureto timely pay the amount. Corporationsthat fall under this provision should attacha schedule showing total gross receipts,the amount not accrued as a result of theapplication of section 448(d)(5), and thenet amount accrued. Enter the net amounton line 1a. For more information andguidelines on this nonaccrual experiencemethod, see Temporary Regulationssection 1.448-2T.

Line 2

Cost of Goods Sold

Enter the cost of goods sold on line 2,

page 1. Before making this entry, a Form1120 filer must complete Schedule A onpage 2 of Form 1120. See the ScheduleA instructions on page 12. Form 1120-Afilers may use the worksheet on page 12to figure the amount to enter on line 2.

Line 4

Dividends

Form 1120 filers. See the instructions forSchedule C on page 13. Then, completeSchedule C and enter on line 4 theamount from Schedule C, line 19.Form 1120-A filers. Enter the totaldividends received (that are not fromdebt-financed stock) from domestic

corporations that qualify for the 70%dividends-received deduction.

Line 5

Interest

Enter taxable interest on U.S. obligationsand on loans, notes, mortgages, bonds,bank deposits, corporate bonds, taxrefunds, etc.

Do not offset interest expense againstinterest income.

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Special rules apply to interest incomefrom certain below-market-rate loans. Seesection 7872 for more information.

Line 6

Gross Rents

Enter the gross amount received for therental of property. Deduct expenses suchas repairs, interest, taxes, anddepreciation on the proper lines fordeductions. A rental activity held by aclosely held corporation or a personal

service corporation may be subject to thepassive activity loss rules. See Form 8810and its instructions.

Line 8

Capital Gain Net Income

Every sale or exchange of a capital assetmust be reported in detail on ScheduleD (Form 1120), Capital Gains andLosses, even though no gain or loss isindicated.

Line 9

Net Gain or (Loss)

Enter the net gain or (loss) from line 18,

Part ll, Form 4797, Sales of BusinessProperty.

Line 10

Other Income

Enter any other taxable income notreported on lines 1 through 9. List the typeand amount of income on an attachedschedule. If the corporation has only oneitem of other income, describe it inparentheses on line 10. Examples of otherincome to report on line 10 are:q Any adjustment under section 481(a)required to be included in income duringthe current tax year due to a change in amethod of accounting.q Recoveries of bad debts deducted inprior years under the specific charge-offmethod.q The amount of credit for alcohol usedas fuel (determined without regard to thelimitation based on tax) entered on Form6478, Credit for Alcohol Used as Fuel.q Refunds of taxes deducted in prioryears to the extent they reduced incomesubject to tax in the year deducted (seesection 111). Do not offset current yeartaxes against tax refunds.q The amount of any deduction previouslytaken under section 179A that is subjectto recapture. The corporation mustrecapture the benefit of any allowable

deduction for clean-fuel vehicle property(or clean-fuel vehicle refueling property),if the property later ceases to qualify. SeeRegulations section 1.179A-1 for details.q Ordinary income from trade or businessactivities of a partnership (from ScheduleK-1 (Form 1065 or 1065-B)).q Any LIFO recapture amount undersection 1363(d). The corporation mayhave to include a LIFO recapture amountin income if it:

1. Used the LIFO inventory method forits last tax year before the first tax year forwhich it elected to become an Scorporation, or

2. Transferred LIFO inventory assets toan S corporation in a nonrecognitiontransaction in which those assets weretransferred basis property.

The LIFO recapture amount is theamount by which the C corporation'sinventory under the FIFO methodexceeds the inventory amount under theLIFO method at the close of thecorporation's last tax year as a Ccorporation (or for the year of the transfer,if 2 above applies). For more information,see Regulations section 1.1363-2 andRev. Proc. 94-61, 1994-2 C.B. 775. Alsosee the instructions for Schedule J, line12.

Deductions

Limitations on DeductionsSection 263A uniform capitalizationrules. The uniform capitalization rules ofsection 263A require corporations tocapitalize, or include in inventory costs,certain costs incurred in connection with:q The production of real property andtangible personal property held ininventory or held for sale in the ordinarycourse of business.q Real property or personal property(tangible and intangible) acquired forresale.q The production of real property andtangible personal property by acorporation for use in its trade or businessor in an activity engaged in for profit.

Tangible personal property producedby a corporation includes a film, soundrecording, videotape, book, or similarproperty.

Corporations subject to the section263A uniform capitalization rules arerequired to capitalize:

1. Direct costs, and2. An allocable part of most indirect

costs (including taxes) that (a) benefit theassets produced or acquired for resale,or (b) are incurred by reason of theperformance of production or resaleactivities.

For inventory, some of the indirectexpenses that must be capitalized are:q Administration expenses.q Taxes.q Depreciation.q Insurance.q Compensation paid to officersattributable to services.q Rework labor.q Contributions to pension, stock bonus,and certain profit-sharing, annuity, or

deferred compensation plans.Regulations section 1.263A-1(e)(3)specifies other indirect costs that relate toproduction or resale activities that mustbe capitalized and those that may becurrently deductible.

Interest expense paid or incurredduring the production period ofdesignated property must be capitalizedand is governed by special rules. Formore details, see Regulations sections1.263A-8 through 1.263A-15.

The costs required to be capitalizedunder section 263A are not deductibleuntil the property to which the costs relate

is sold, used, or otherwise disposed of bythe corporation.Exceptions. Section 263A does notapply to:q Personal property acquired for resale ifthe corporation's average annual grossreceipts for the 3 prior tax years were $10million or less.q Timber.q Most property produced under along-term contract.q Certain property produced in a farming

business.q Research and experimental costs undersection 174.q Intangible drilling costs for oil, gas, andgeothermal property.q Mining exploration and developmentcosts.

For more details on the uniformcapitalization rules, see Regulationssections 1.263A-1 through 1.263A-3.Transactions between relatedtaxpayers. Generally, an accrual basistaxpayer may only deduct businessexpenses and interest owed to a relatedparty in the year the payment is includedin the income of the related party. Seesections 163(e)(3), 163(j), and 267 forlimitations on deductions for unpaidinterest and expenses.Section 291 limitations. Corporationsmay be required to adjust deductions fordepletion of iron ore and coal, intangibledrilling and exploration and developmentcosts, certain deductions for financialinstitutions, and the amortizable basis ofpollution control facilities. See section 291to determine the amount of adjustment.Also see section 43.Golden parachute payments. A portionof the payments made by a corporation tokey personnel that exceeds their usualcompensation may not be deductible.This occurs when the corporation has an

agreement (golden parachute) with thesekey employees to pay them theseexcessive amounts if control of thecorporation changes. See section 280G.Business startup expenses. Businessstartup expenses must be capitalizedunless an election is made to amortizethem over a period of 60 months. Seesection 195 and Regulations section1.195-1.Passive activity limitations. Limitationson passive activity losses and creditsunder section 469 apply to personalservice corporations as defined inTemporary Regulations section 1.441-4T(see Item APersonal ServiceCorporation on page 5 and Closely held

corporations on page 8).Generally, the two kinds of passive

activities are:q Trade or business activities in whichthe corporation did not materiallyparticipate for the tax year (seeTemporary Regulations section1.469-1T(g)(3)), andq Rental activities regardless of itsparticipation.

For exceptions, see Form 8810.An activity is a trade or business activityif it is not a rental activity, and

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q The activity involves the conduct of atrade or business (i.e., deductions fromthe activity would be allowable undersection 162 if other limitations, such asthe passive loss rules, did not apply), orq The activity involves research andexperimental costs that are deductibleunder section 174 (or would be deductibleif the corporation chose to deduct ratherthan capitalize them).

Corporations subject to the passiveactivity limitations must complete Form8810 to compute their allowable passiveactivity loss and credit. Before completingForm 8810, see Temporary Regulationssection 1.163-8T, which provides rules forallocating interest expense amongactivities. If a passive activity is alsosubject to the earnings stripping rules ofsection 163(j) or the at-risk rules ofsection 465, those rules apply before thepassive loss rules. For more information,see section 469, the related regulations,and Pub. 925, Passive Activity andAt-Risk Rules.

Closely held corporations. For thispurpose, a corporation is a closely heldcorporation if:q At any time during the last half of the

tax year more than 50% in value of itsoutstanding stock is owned, directly orindirectly, by or for not more than fiveindividuals, andq The corporation is not a personalservice corporation.

Certain organizations are treated asindividuals for purposes of this test. (Seesection 542(a)(2).) For rules ofdetermining stock ownership, see section544 (as modified by section 465(a)(3)).Reducing certain expenses for whichcredits are allowable. For each creditlisted below, the corporation must reducethe otherwise allowable deductions forexpenses used to figure the credit by theamount of the current year credit:q Work opportunity credit.q Research credit.q Enhanced oil recovery credit.q Disabled access credit.q Empowerment zone employment credit.q Indian employment credit.q Employer credit for social security andMedicare taxes paid on certain employeetips.q Orphan drug credit.q Welfare-to-work credit.

If the corporation has any of thesecredits, be sure to figure each currentyear credit before figuring the deductionfor expenses on which the credit is based.

Line 12Compensation of Officers

Enter deductible officers' compensationon line 12. Form 1120 filers mustcomplete Schedule E if their total receipts(line 1a, plus lines 4 through 10) are$500,000 or more. Do not includecompensation deductible elsewhere onthe return, such as amounts included incost of goods sold, elective contributionsto a section 401(k) cash or deferredarrangement, or amounts contributedunder a salary reduction SEP agreementor a SIMPLE IRA plan.

Include only the deductible part ofofficers' compensation on Schedule E.(See Disallowance of deduction foremployee compensation in excess of$1 million below.) Complete Schedule E,line 1, columns (a) through (f), for allofficers. The corporation determines whois an officer under the laws of the statewhere incorporated.

If a consolidated return is filed, eachmember of an affiliated group must furnishthis information.Disallowance of deduction foremployee compensation in excess of$1 million. Publicly held corporationsmay not deduct compensation to acovered employee to the extent that thecompensation exceeds $1 million.Generally, a covered employee is:q The chief executive officer of thecorporation (or an individual acting in thatcapacity) as of the end of the tax year, orq An employee whose total compensationmust be reported to shareholders underthe Securities Exchange Act of 1934because the employee is among the fourhighest compensated officers for that taxyear (other than the chief executiveofficer).

For this purpose, compensation doesnot include the following:q Income from certain employee trusts,annuity plans, or pensions; andq Any benefit paid to an employee that isexcluded from the employee's income.

The deduction limit does not apply to:q Commissions based on individualperformance;q Qualified performance-basedcompensation; andq Income payable under a written, bindingcontract in effect on February 17, 1993.

The $1 million limit is reduced byamounts disallowed as excess parachutepayments under section 280G.

For details, see section 162(m) andRegulations section 1.162-27.

Line 13

Salaries and Wages

Enter the amount of salaries and wagespaid for the tax year, reduced by:q Any work opportunity credit from Form5884,q Any empowerment zone employmentcredit from Form 8844,q Any Indian employment credit fromForm 8845, andq Any welfare-to-work credit from Form8861.See the instructions for these forms for

more information. Do not include salariesand wages deductible elsewhere on thereturn, such as amounts included in costof goods sold, elective contributions to asection 401(k) cash or deferredarrangement, or amounts contributedunder a salary reduction SEP agreementor a SIMPLE IRA plan.

CAUTION

!If the corporation provided taxablefringe benefits to its employees,such as personal use of a car, donot deduct as wages the amount

allocated for depreciation and otherexpenses claimed on lines 20 and 26,

Form 1120, or lines 20 and 22, Form1120-A.

Line 14

Repairs and Maintenance

Enter the cost of incidental repairs andmaintenance not claimed elsewhere onthe return, such as labor and supplies,that do not add to the value of theproperty or appreciably prolong its life.New buildings, machinery, or permanentimprovements that increase the value of

the property are not deductible. Theymust be depreciated or amortized.

Line 15

Bad Debts

Enter the total debts that becameworthless in whole or in part during the taxyear. A small bank or thrift institutionusing the reserve method of section 585should attach a schedule showing how itarrived at the current year's provision.

CAUTION

!A cash basis taxpayer may notclaim a bad debt deduction unlessthe amount was previouslyincluded in income.

Line 16

Rents

If the corporation rented or leased avehicle, enter the total annual rent orlease expense paid or incurred during theyear. Also complete Part V of Form 4562,Depreciation and Amortization. If thecorporation leased a vehicle for a term of30 days or more, the deduction for vehiclelease expense may have to be reducedby an amount called the inclusionamount. The corporation may have aninclusion amount if:

See Pub. 463 for instructions onfiguring the inclusion amount.

Line 17

Taxes and Licenses

Enter taxes paid or accrued during the taxyear, but do not include the following:q Federal income taxes.q Foreign or U.S. possession incometaxes if a tax credit is claimed (however,see the Instructions for Form 5735 forspecial rules for possession incometaxes).q Taxes not imposed on the corporation.q Taxes, including state or local salestaxes, that are paid or incurred inconnection with an acquisition ordisposition of property (these taxes mustbe treated as a part of the cost of theacquired property or, in the case of a

The lease term began:

And the vehicle's fairmarket value on the

first day of the leaseexceeded:

After 12/31/98 ............................................... $15,500

After 12/31/96 but before 1/1/99................... $15,800

After 12/31/94 but before 1/1/97................... $15,500

After 12/31/93 but before 1/1/95................... $14,600

If the lease term began before January 1, 1994, or,the leased vehicle was an electric vehicle, get Pub.463, Travel, Entertainment, Gift, and Car Expenses,to find out if the corporation has an inclusion amount.

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disposition, as a reduction in the amountrealized on the disposition).q Taxes assessed against local benefitsthat increase the value of the propertyassessed (such as for paving, etc.).q Taxes deducted elsewhere on thereturn, such as those reflected in cost ofgoods sold.

See section 164(d) for apportionmentof taxes on real property between sellerand purchaser.

Line 18

Interest

Note: The deduction for interest is limitedwhen the corporation is a policyholder orbeneficiary with respect to a lifeinsurance, endowment, or annuitycontract issued after June 8, 1997. Fordetails, see section 264(f). Attach astatement showing the computation of thededuction.

The corporation must make an interestallocation if the proceeds of a loan wereused for more than one purpose (e.g., topurchase a portfolio investment and toacquire an interest in a passive activity).See Temporary Regulations section

1.163-8T for the interest allocation rules.Mutual savings banks, building andloan associations, and cooperative bankscan deduct the amounts paid or creditedto the accounts of depositors asdividends, interest, or earnings. Seesection 591.

Do not deduct the following interest:q Interest on indebtedness incurred orcontinued to purchase or carry obligationsif the interest is wholly exempt fromincome tax. For exceptions, see section265(b).q For cash basis taxpayers, prepaidinterest allocable to years following thecurrent tax year (e.g., a cash basiscalendar year taxpayer who in 1999

prepaid interest allocable to any periodafter 1999 can deduct only the amountallocable to 1999).q Interest and carrying charges onstraddles. Generally, these amounts mustbe capitalized. See section 263(g).q Interest on debt allocable to theproduction of designated property by acorporation for its own use or for sale. Thecorporation must capitalize this interest.Also capitalize any interest on debtallocable to an asset used to produce theproperty. See section 263A(f) andRegulations section 1.263A-8 through1.263A-15 for definitions and moreinformation.

Special rules apply to:q Interest on which no tax is imposed(see section 163(j)).q Foregone interest on certainbelow-market-rate loans (see section7872).q Original issue discount on certainhigh-yield discount obligations. (Seesection 163(e) to figure the disqualifiedportion.)

Line 19

Charitable Contributions

Enter contributions or gifts actually paidwithin the tax year to or for the use ofcharitable and governmentalorganizations described in section 170(c)and any unused contributions carried overfrom prior years.

Corporations reporting taxable incomeon the accrual method may elect to treatas paid during the tax year any

contributions paid by the 15th day of the3rd month after the end of the tax year ifthe contributions were authorized by theboard of directors during the tax year.Attach a declaration to the return, signedby an officer, stating that the resolutionauthorizing the contributions was adoptedby the board of directors during the taxyear. Also attach a copy of the resolution.Limitation on deduction. The totalamount claimed may not be more than10% of taxable income (line 30, Form1120, or line 26, Form 1120-A) computedwithout regard to the following:q Any deduction for contributions,q The special deductions on line 29b,Form 1120 (line 25b, Form 1120-A),q The deduction allowed under section249,q Any net operating loss (NOL) carrybackto the tax year under section 172, andq Any capital loss carryback to the taxyear under section 1212(a)(1).

Carryover. Charitable contributionsover the 10% limitation may not bededucted for the tax year but may becarried over to the next 5 tax years.

Special rules apply if the corporationhas an NOL carryover to the tax year. Infiguring the charitable contributionsdeduction for the tax year, the 10% limitis applied using the taxable income aftertaking into account any deduction for the

NOL.To figure the amount of any remainingNOL carryover to later years, taxableincome must be modified (see section172(b)). To the extent that contributionsare used to reduce taxable income for thispurpose and increase an NOL carryover,a contributions carryover is not allowed.See section 170(d)(2)(B).Substantiation requirements.Generally, no deduction is allowed for anycontribution of $250 or more unless thecorporation gets a writtenacknowledgment from the doneeorganization that shows the amount ofcash contributed, describes any propertycontributed, and, either gives a

description and a good faith estimate ofthe value of any goods or servicesprovided in return for the contribution, orstates that no goods or services wereprovided in return for the contribution. Theacknowledgment must be obtained by thedue date (including extensions) of thecorporation's return, or, if earlier, the datethe return is filed. Do not attach theacknowledgment to the tax return, butkeep it with the corporation's records.These rules apply in addition to the filingrequirements for Form 8283 describedbelow.

For more information on substantiationand recordkeeping requirements, see theregulations under section 170 and Pub.526, Charitable Contributions.Contributions to organizationsconducting lobbying activities.Contributions made to an organizationthat conducts lobbying activities are notdeductible if:q The lobbying activities relate to mattersof direct financial interest to the donor'strade or business, andq

The principal purpose of thecontribution was to avoid Federal incometax by obtaining a deduction for activitiesthat would have been nondeductibleunder the lobbying expense rules ifconducted directly by the donor.Contributions of property other thancash. If a corporation (other than aclosely held or personal servicecorporation) contributes property otherthan cash and claims over a $500deduction for the property, it must attacha schedule to the return describing thekind of property contributed and themethod used to determine its fair marketvalue. Closely held corporations andpersonal service corporations must

complete Form 8283, Noncash CharitableContributions, and attach it to theirreturns. All other corporations generallymust complete and attach Form 8283 totheir returns for contributions of property(other than money) if the total claimeddeduction for all property contributed wasmore than $5,000.

If the corporation made a qualifiedconservation contribution under section170(h), also include the fair market valueof the underlying property before and afterthe donation, as well as the type of legalinterest contributed, and describe theconservation purpose benefited by thedonation. If a contribution carryover isincluded, show the amount and how it

was determined.Reduced deduction for contributionsof certain property. For a charitablecontribution of property, the corporationmust reduce the contribution by the sumof:q The ordinary income and short-termcapital gain that would have resulted if theproperty were sold at its fair market value,andq For certain contributions, the long-termcapital gain that would have resulted if theproperty were sold at its fair market value.

The reduction for the long-term capitalgain applies to:q Contributions of tangible personalproperty for use by an exemptorganization for a purpose or functionunrelated to the basis for its exemption,andq Contributions of any property to or forthe use of certain private foundationsexcept for stock for which marketquotations are readily available (section170(e)(5)).

Larger deduction. A larger deductionis allowed for certain contributions of:q Inventory and other property to certainorganizations for use in the care of the ill,needy, or infants (see section 170(e)(3)and Regulations section 1.170A-4A);

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q Scientific equipment used for researchto institutions of higher learning or tocertain scientific research organizations(other than by personal holdingcompanies and service organizations)(see section 170(e)(4)); andq Computer technology and equipment toschools (see below).

Contributions of computertechnology and equipment to schools.A corporation may take an increaseddeduction under section 170(e)(6) forqualified contributions of computertechnology or equipment for elementaryor secondary school purposes. Acontribution is a qualified contribution if:q It is made to an eligible donee (seebelow);q Substantially all of the donee property'suse is:

1. Related to the purpose or functionof the donee;

2. For use within the United States;and

3. For educational purposes in anygrade K-12.q The contribution is made not later than2 years after the date the taxpayeracquired or substantially completed the

construction of the property;q The original use of the property is bythe donor or the donee;q The property is not transferred by thedonee for money, services, or otherproperty, except for shipping, transfer,and installation costs; andq The property fits productively into thedonee's education plan.

Eligible donee. The term eligibledonee means:q An educational organization thatnormally maintains a regular faculty andcurriculum and has a regularly enrolledbody of pupils in attendance at the placewhere its educational activities are

regularly conducted; orq A section 501(c)(3) entity organizedprimarily for purposes of supportingelementary and secondary education.Note: Contributions of computertechnology or equipment to privatefoundations may be treated as qualifiedelementary or secondary educationalcontributions if certain requirements aremet. See section 170(e)(6)(C).

Line 20

Depreciation

Besides depreciation, include on line 20the part of the cost that the corporationelected to expense under section 179 for

certain tangible property placed in serviceduring tax year 1999 or carried over from1998. See Form 4562, Depreciation andAmortization, and its instructions.

Line 22 (Form 1120 Only)

Depletion

See sections 613 and 613A forpercentage depletion rates applicable tonatural deposits. Also, see section 291 forthe limitation on the depletion deductionfor iron ore and coal (including lignite).

Attach Form T (Timber), ForestActivities Schedules, if a deduction fordepletion of timber is taken.

Foreign intangible drilling costs andforeign exploration and developmentcosts must either be added to thecorporation's basis for cost depletionpurposes or be deducted ratably over a10-year period. See sections 263(i), 616,and 617 for details.


Pension, Profit-Sharing, etc., PlansEnter the deduction for contributions toqualified pension, profit-sharing, or otherfunded deferred compensation plans.Employers who maintain such a plangenerally must file one of the forms listedbelow, even if the plan is not a qualifiedplan under the Internal Revenue Code.The filing requirement applies even if thecorporation does not claim a deduction forthe current tax year. There are penaltiesfor failure to file these forms on time andfor overstating the pension plandeduction. See sections 6652(e) and6662(f).Form 5500, Annual Return/Report ofEmployee Benefit Plan. File this form fora plan that is not a one-participant plan(see below).Form 5500-EZ, Annual Return ofOne-Participant (Owners and TheirSpouses) Retirement Plan. File this formfor a plan that only covers the owner (orthe owner and his or her spouse) but onlyif the owner (or the owner and his or herspouse) owns the entire business.


Employee Benefit Programs

Enter contributions to employee benefitprograms not claimed elsewhere on thereturn (e.g., insurance, health and welfare

programs, etc.) that are not an incidentalpart of a pension, profit-sharing, etc., planincluded on line 24.

Line 26, Form 1120(Line 22, Form 1120-A)

Other Deductions

Note: Do not deduct fines or penaltiespaid to a government for violating any law.

Attach a schedule, listing by type andamount, all allowable deductions that arenot deductible elsewhere on Form 1120or Form 1120-A. Form 1120-A filersshould include amounts described in theinstructions above for lines 22, 24, and25 of Form 1120. Enter the total of other

deductions on line 26, Form 1120 (line 22,Form 1120-A).Generally, a deduction may not be

taken for any amount that is allocable toa class of exempt income. See section265(b) for exceptions.

Examples of amounts to include are:q The deduction for amortization ofpollution control facilities, organizationexpenses, etc. (see Form 4562).q Ordinary losses from trade or businessactivities of a partnership (from ScheduleK-1 (Form 1065 or 1065-B)).

q Dividends paid in cash on stock heldby an employee stock ownership plan.However, a deduction may only be takenif, according to the plan, the dividendsare:

1. Paid in cash directly to the planparticipants or beneficiaries;

2. Paid to the plan, which distributesthem in cash to the plan participants ortheir beneficiaries no later than 90 daysafter the end of the plan year in which thedividends are paid; or

3. Used to make payments on a loandescribed in section 404(a)(9).See section 404(k) for more details andthe limitation on certain dividends.Travel, meals, and entertainment.Subject to limitations and restrictionsdiscussed below, a corporation candeduct ordinary and necessary travel,meals, and entertainment expenses paidor incurred in its trade or business. Also,special rules apply to deductions for gifts,skybox rentals, luxury water travel,convention expenses, and entertainmenttickets. See section 274 and Pub. 463 formore details.

Travel. The corporation cannot deducttravel expenses of any individual

accompanying a corporate officer oremployee, including a spouse ordependent of the officer or employee,unless:q That individual is an employee of thecorporation, andq His or her travel is for a bona fidebusiness purpose and would otherwisebe deductible by that individual.

Meals and entertainment. Generally,the corporation can deduct only 50% ofthe amount otherwise allowable for mealsand entertainment expenses paid orincurred in its trade or business. Inaddition (subject to exceptions undersection 274(k)(2)):q Meals must not be lavish orextravagant;q A bona fide business discussion mustoccur during, immediately before, orimmediately after the meal; andq An employee of the corporation mustbe present at the meal.

See section 274(n)(3) for a special rulethat applies to expenses for mealsconsumed by individuals subject to thehours of service limits of the Departmentof Transportation.

Membership dues. The corporationmay deduct amounts paid or incurred formembership dues in civic or public serviceorganizations, professional organizations(such as bar and medical associations),

business leagues, trade associations,chambers of commerce, boards of trade,and real estate boards. However, nodeduction is allowed if a principal purposeof the organization is to entertain, orprovide entertainment facilities for,members or their guests. In addition,corporations may not deduct membershipdues in any club organized for business,pleasure, recreation, or other socialpurpose. This includes country clubs, golfand athletic clubs, airline and hotel clubs,and clubs operated to provide mealsunder conditions favorable to businessdiscussion.

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Entertainment facilities. Thecorporation cannot deduct an expensepaid or incurred for a facility (such as ayacht or hunting lodge) used for anactivity usually considered entertainment,amusement, or recreation.Note: The corporation may be able todeduct otherwise nondeductible meals,travel, and entertainment expenses if theamounts are treated as compensationand reported on Form W-2 for anemployee or on Form 1099-MISC for anindependent contractor.Deduction for clean-fuel vehicles andcertain refueling property. Section179A allows a deduction for part of thecost of qualified clean-fuel vehicleproperty and qualified clean-fuel vehiclerefueling property placed in service duringthe tax year. For more information, seePub. 535.Lobbying expenses. Generally,lobbying expenses are not deductible.These expenses include:q Amounts paid or incurred in connectionwith influencing Federal or statelegislation (but not local legislation), orq Amounts paid or incurred in connectionwith any communication with certain

Federal executive branch officials in anattempt to influence the official actions orpositions of the officials. See Regulationssection 1.162-29 for the definition ofinfluencing legislation.

Dues and other similar amounts paidto certain tax-exempt organizations maynot be deductible. See section 162(e)(3).If certain in-house lobbying expendituresdo not exceed $2,000, they aredeductible. For information oncontributions to charitable organizationsthat conduct lobbying activities, see theinstructions for line 19. For moreinformation on lobbying expenses, seesection 162(e).


Taxable Income Before NOLDeduction and Special Deductions

At-risk rules. Generally, special at-riskrules under section 465 apply to closelyheld corporations (see Passive activitylimitations on page 7) engaged in anyactivity as a trade or business or for theproduction of income. These corporationsmay have to adjust the amount on line 28,Form 1120, or line 24, Form 1120-A. (Seebelow.)

But the at-risk rules do not apply to:q Holding real property placed in service

by the taxpayer before 1987;q Equipment leasing under sections465(c)(4), (5), and (6); orq Any qualifying business of a qualifiedcorporation under section 465(c)(7).

However, the at-risk rules do apply tothe holding of mineral property.

If the at-risk rules apply, adjust theamount on this line for any section 465(d)losses. These losses are limited to theamount for which the corporation is at riskfor each separate activity at the close ofthe tax year. If the corporation is involvedin one or more activities, any of whichincurs a loss for the year, report the

losses for each activity separately. AttachForm 6198, At-Risk Limitations, showingthe amount at risk and gross income anddeductions for the activities with thelosses.

If the corporation sells or otherwisedisposes of an asset or its interest (eithertotal or partial) in an activity to which theat-risk rules apply, determine the net profitor loss from the activity by combining thegain or loss on the sale or disposition withthe profit or loss from the activity. If thecorporation has a net loss, it may belimited because of the at-risk rules.

Treat any loss from an activity notallowed for the tax year as a deductionallocable to the activity in the next taxyear.

Line 29a, Form 1120(Line 25a, Form 1120-A)

Net Operating Loss Deduction

A corporation may use the net operatingloss (NOL) incurred in one tax year toreduce its taxable income in another year.Generally, a corporation may carry anNOL back to each of the 2 years (3 yearsfor NOLs incurred in tax years beginningbefore August 6, 1997), preceding theyear of the loss and then carry anyremaining amount over to each of the 20years (15 years for NOLs incurred in taxyears beginning before August 6, 1997),following the year of the loss (but Form1120 filers see Waiving the carrybackperiod below). For exceptions to thegeneral rule, see Special carrybackperiods for certain losses below.

Enter on line 29a (line 25a, Form1120-A), the total NOL carryovers fromprior tax years, but do not enter more thanthe corporation's taxable income (afterspecial deductions). An NOL deductioncannot be taken in a year in which thecorporation has a negative taxable

income. Attach a schedule showing thecomputation of the NOL deduction. Form1120 filers must also complete question15 on Schedule K.

For details on the NOL deduction, getPub. 536, Net Operating Losses.Carryback and carryover rules. Tocarry back the loss and obtain a quickrefund of taxes, use Form 1139,Corporation Application for TentativeRefund. Form 1139 must be filed within12 months after the close of the tax yearof the loss. See section 6411 for details.

For carryback claims filed later than 12months after the close of the tax year ofthe loss, file Form 1120X, Amended U.S.Corporation Income Tax Return, instead

of Form 1139.After the corporation applies the NOL

to the first tax year to which it may becarried, the taxable income of that year ismodified (as described in section 172(b))to determine how much of the remainingloss may be carried to other years. Seesection 172(b) and the related regulationsfor details.

Special NOL rulesapply when:q An ownership change occurs (i.e., theamount of the taxable income of a losscorporation that can be offset bypre-change NOL carryovers is limited).

See section 382 and the relatedregulations. Also see TemporaryRegulations section 1.382-2T(a)(2)(ii),which requires that a loss corporation filean information statement with its incometax return for each tax year that it is a losscorporation and certain shifts inownership occurred. See Regulationssection 1.382-6(b) for details on how tomake the closing-of-the-books election.q A corporation acquires control ofanother corporation (or acquires its assetsin a reorganization) and the amount ofpre-acquisition losses that may offsetrecognized built-in gains is limited. Seesection 384.Waiving the carryback period (Form1120 filers only). A corporation maymake an irrevocable election to waive thecarryback period and instead carry theNOL forward to years following the yearof the loss. To make this election, checkthe box in question 14 on Schedule K.Form 1120 must be timely filed (includingextensions).

Special carryback periods for certainlosses. The regular 2-year carrybackperiod generally does not apply to thefollowing losses.q

Specified liability losses, including aproduct liability loss. The part of an NOLthat is attributable to a specified liabilityloss may be carried back 10 years. Thecorporation may, however, elect to treatsuch a loss as if it were not a specifiedliability loss. If the corporation makes thiselection, the loss carryback period will be2, 3, or 5 years, whichever applies. Makethe election by attaching a statement to atimely filed return (including extensions,however, see Automatic extensionbelow). Also see section 172(b)(1)(C).q Farming losses. An NOL attributableto any farming business may be carriedback 5 years. However, the corporationmay elect to treat the loss as if it were not

a farming loss. If the corporation makesthis election, the loss carryback period willbe 2 years or 3 years, whichever applies.Make the election by attaching astatement to a timely filed return(including extensions, however, seeAutomatic extension below). Also seesections 172(b)(1)(G) and 172(i).

Automatic extension. If thecorporation timely filed its return for theloss year without making the election forSpecified liability losses or Farminglosses above, the corporation may stillmake the election by filing an amendedreturn within 6 months of the due date ofthe loss year return (excludingextensions). Attach the election to the

amended return and write Filed pursuantto section 301.9100-2 on the electionstatement. File the amended return at thesame address the original return wasfiled. Once made, the election isirrevocable.q Eligible losses.The part of an NOL thatis attributable to an eligible loss may becarried back 3 years. An eligible loss isan NOL attributable to a Presidentiallydeclared disaster if, for the tax year inwhich the NOL arose, the corporation was(a) engaged in a farming business, or (b)a small business that met the grossreceipts test of section 448(c). An eligible

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loss does not include any farming loss orspecified liability loss described above.q Corporate equity reduction interestlosses. See section 172(b)(1)(E) forspecial rules that apply if the corporationhas an NOL attributable to interestdeducted in connection with corporateequity reduction transactions.q Losses incurred by a personalservice corporation (PSC). A PSC maynot carry back an NOL to or from any taxyear to which a section 444 electionapplies.

Line 29b, Form 1120(Line 25b, Form 1120-A)

Special Deductions

Form 1120 filers. See the instructions forSchedule C.Form 1120-A filers. Generally, enter70% of line 4, page 1, on line 25b.However, this deduction may not be morethan 70% of line 24, page 1. Compute line24 without regard to any adjustment undersection 1059 and without regard to anycapital loss carryback to the tax yearunder section 1212(a)(1).

In a year in which an NOL occurs, this

70% limitation does not apply even if theloss is created by the dividends-receiveddeduction. See sections 172(d) and246(b).


Taxable Income

Capital construction fund. To take adeduction for amounts contributed to acapital construction fund, reduce theamount that would otherwise be enteredon line 30 (line 26, Form 1120-A) by theamount of the deduction. On the dottedline next to the entry space, write CCFand the amount of the deduction. For

more information, get Pub. 595, TaxHighlights for Commercial Fishermen.

Line 32b, Form 1120(Line 28b, Form 1120-A)

Estimated Tax Payments

Enter any estimated tax payments thecorporation made for the tax year.Beneficiaries of trusts. If thecorporation is the beneficiary of a trust,and the trust makes a section 643(g)election to credit its estimated taxpayments to its beneficiaries, include thecorporation's share of the payment in thetotal for line 32b, Form 1120 (line 28b,Form 1120-A). Write T and the amounton the dotted line next to the entry space.Special estimated tax payments forcertain life insurance companies. If thecorporation is required to make or applyspecial estimated tax payments (SETP)under section 847 in addition to its regularestimated tax payments, enter on line 32b(line 28b, Form 1120-A), the corporation'stotal estimated tax payments. On thedotted line next to the entry space, writeSETP and the amount. Attach aschedule showing your computation ofestimated tax payments. See section

847(2) and Form 8816, Special LossDiscount Account and Special EstimatedTax Payments for Insurance Companies,for more information.

Line 32f, Form 1120(Line 28f, Form 1120-A)Enter the credit (from Form 2439, Noticeto Shareholder of UndistributedLong-Term Capital Gains) for thecorporation's share of the tax paid by aregulated investment company or a realestate investment trust on undistributedlong-term capital gains included in thecorporation's income. Attach Form 2439to Form 1120 or 1120-A.

Line 32g, Form 1120(Line 28g, Form 1120-A)

Credit for Federal Tax on Fuels

Complete and attach Form 4136, Creditfor Federal Tax Paid on Fuels, if thecorporation qualifies to take this credit.Credit for tax on ozone-depletingchemicals. Include on line 32g (line 28g,Form 1120-A) any credit the corporationis claiming under section 4682(g)(2) fortax on ozone-depleting chemicals. Write

ODC to the left of the entry space.Line 32h, Form 1120(Line 28h, Form 1120-A)

Total Payments

On Form 1120, add the amounts on lines32d through 32g and enter the total online 32h. On Form 1120-A, add theamounts on lines 28d through 28g andenter the total on line 28h.Backup withholding. If the corporationhad income tax withheld from anypayments it received because, forexample, it failed to give the payer itscorrect EIN, include the amount withheldin the total for line 32h, Form 1120 (line

28h, Form 1120-A). This type ofwithholding is called backup withholding.On Form 1120, show the amount withheldin the blank space in the right-handcolumn between lines 31 and 32h, andwrite backup withholding. On Form1120-A, show the amount withheld on thedotted line to the left of line 28h, and writebackup withholding.


Estimated Tax Penalty

A corporation that does not makeestimated tax payments when due maybe subject to an underpayment penalty forthe period of underpayment. Generally, acorporation is subject to the penalty if itstax liability is $500 or more, and it did nottimely pay the smaller of:q 100% of its tax liability for 1999, or

q 100% of its prior year's tax.See section 6655 for details andexceptions, including special rules forlarge corporations.

Use Form 2220, Underpayment ofEstimated Tax by Corporations, to see ifthe corporation owes a penalty and tofigure the amount of the penalty.Generally, the corporation does not haveto file this form because the IRS canfigure the amount of any penalty and billthe corporation for it. However, even if thecorporation does not owe the penalty, youmust complete and attach Form 2220 if:q The annualized income or adjustedseasonal installment method is used, orq The corporation is a large corporation

computing its first required installmentbased on the prior year's tax. (See theForm 2220 instructions for the definitionof a large corporation.)

If you attach Form 2220, check the boxon line 33, Form 1120 (line 29, Form1120-A), and enter the amount of anypenalty on this line.

Schedule A, Form 1120(Worksheet, Form 1120-A)

Cost of Goods SoldInventories are required at the beginningand end of each tax year if the production,purchase, or sale of merchandise is anincome-producing factor. See Regulationssection 1.471-1. If inventories are notused, enter zero on lines 1 and 7 ofSchedule A, Form 1120, or the worksheetbelow.

All filers should see Section 263Auniform capitalization rules on page 7before completing Schedule A or theworksheet. The instructions for lines 4

Cost of Goods Sold Worksheet

Form 1120-A(keep for your records)

Inventory at start of year. Enter here and in Part III, line 3, column

(a), Form 1120-A 1.Purchases. Enter here and in Part II, line 5a(1), Form 1120-A 2.

Cost of labor. Enter here and include in total in Part II, line 5a(3),Form 1120-A 3.Additional section 263A costs. Enter here and in Part II, line 5a(2),Form 1120-A (see instructions for line 4) 4.

Other costs. Enter here and include in Part II, line 5a(3), Form1120-A 5.

Total. Add lines 1 through 5 6.

Inventory at end of year. Enter here and in Part III, line 3, column(b), Form 1120-A 7.

Cost of goods sold. Subtract line 7 from line 6. Enter the resulthere and on page 1, line 2, Form 1120-A 8.

1.

2.

3.

4.

5.

6.

7.

8.

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through 7 below apply to Schedule A andthe worksheet.

Line 4

Additional Section 263A Costs

An entry is required on this line only forcorporations that have elected a simplifiedmethod of accounting.

For corporations that have elected thesimplified production method,additional section 263A costs aregenerally those costs, other than interest,that were not capitalized under thecorporation's method of accountingimmediately prior to the effective date ofsection 263A but are now required to becapitalized under section 263A. Fordetails, see Regulations section1.263A-2(b).

For corporations that have elected thesimplified resale method, additionalsection 263A costs are generally thosecosts incurred with respect to thefollowing categories:q Off-site storage or warehousing;q Purchasing;q Handling, such as processing,assembling, repackaging, and

transporting; andq General and administrative costs(mixed service costs).For details, see Regulations section1.263A-3(d).

Enter on line 4 the balance of section263A costs paid or incurred during the taxyear not includable on lines 2, 3, and 5.

Line 5

Other Costs

Enter on line 5 any costs paid or incurredd

Documents

US Internal Revenue Service: i1120 a--1999