What is IRS Form 1120-FSC?
Form 1120-FSC is the income tax return to be filed by foreign sales corporations. Such a corporation is incorporated in another country but sells goods and services in the United States. Numerous attached schedules require further information on the financial activities of the corporation. These include determining cost of goods sold, computing the FSC’s tax liability, and computing the amount of trade income that can be exempted. The FSC must also provide its balance sheet and adjustments mandated by the IRS to produce the taxable income figures given, along with the FSC’s allocation of undistributed retained earnings.
