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Revised draft instructions, Form 1120-C for 2017, new tax law

Draft instructions, Form 1120-C for 2017, new tax law

The IRS has posted a draft version of instructions—with changes that reflect the new tax law measures—for Form 1120-C, U.S. Income Tax Return for Cooperative Associations, proposed as guidance for filing Form 1120-C for 2017. This new version of the instructions reflect the new tax law that was enacted December 22, 2017.


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The draft instructions for Form 1120-C [PDF 567 KB] reflect a date of March 30, 2018, and include cautionary language that these instructions are not to be relied upon for filing purposes, and are subject to change and to OMB approval before being officially released.

Under the “What’s New” section of the revised draft instructions are descriptions of the following items: 

  • Tax rates for fiscal year filers
  • Increase in penalty for failure to file
  • Alternative tax for cooperatives with qualified timber gains
  • Deduction for foreign-source portion of dividends received by domestic corporations from specified 10%-owned foreign corporations
  • Treatment of deferred foreign income upon transition to participation exemption system of taxation• Disaster relief
  • Film, television, and live theatrical productions
  • Entertainment expenses, membership dues, and facilities
  • Net operating loss
  • Principal business activity codes


For more information, contact KPMG’s National Director of Cooperative Tax Services:

David Antoni | +1 (267) 256-1627 |


Or Associate National Director of KPMG’s Cooperative Tax Services:

Brett Huston | +1 (916) 554-1654 |

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