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Form 1120-FQ: 1120-F (Schedule Q)
IRS Form 1120-FQ (Schedule Q) is used to report the tax liability of a Qualified Derivatives Dealer (QDD). Corporations must file this schedule as an attachment to Form 1120-F. The amount in column (c) is determined by multiplying column (a) by column (b).
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IRS Form 1120-FQ - 1120-F (Schedule Q)
IRS Form 1120-FQ (Schedule Q) is used to report the tax liability of a Qualified Derivatives Dealer (QDD). Corporations must file this schedule as an attachment to Form 1120-F. The amount in column (c) is determined by multiplying column (a) by column (b).
Risk Radar
Scan points- 1Failure to file a separate Schedule Q for every qualified derivatives dealer (QDD) or branch is required.
- 2Filing without attaching the completed Schedule Q to Form 1120-F.
- 3Omitting a separate Schedule Q for any branch that was a qualified derivatives dealer (QDD).
- 4Failing to file multiple Schedules Q if the corporation operates under a fiscal year.
- 5Not completing a separate Schedule Q for every portion of the calendar year within a fiscal year.
Plain English
This form helps report taxes owed by a corporation or its branches that operate as qualified derivatives dealers. It summarizes various types of tax liabilities related to specific financial transactions and agreements. Filing this schedule ensures the company accounts for all required tax amounts associated with these dealer activities.
Submission Date
- Filing date: 2025-12-22 11:10:43
- Preparation window: collect IDs, supporting records, and signatures in advance.
- Final review: verify names, dates, and required fields before submission.
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What this form is for
- Use this form when a corporation or any branch was a qualified derivatives dealer (QDD) during the tax year.
- Do not use it when filing for general corporate income that does not relate to qualified derivatives dealing capacity.
- Check Form 1120-F instead when completing the main corporate return.
Deadline or filing window
Not stated in the official source.
Checklist
What you need before filling it out
Tax Liability (column c)
The amount in column (c) is determined by multiplying column (a) by column (b) · Schedule Q (Form 1120-F)
QDD Status Requirement
The corporation or any branch must be a qualified derivatives dealer (QDD), approved via a Qualified Intermediary Agreement (QIA). · General Instructions
Filing Multiple Schedules
A separate Schedule Q is required for each QDD and potentially for each portion of the calendar year that falls within the fiscal year. · General Instructions
Line 5 Income Types
The filer must enter information separately for each income type (e.g., dividends or interest) on Line 5. · Form p.1
Year Specific Rules
For calendar years 2019 through 2026, certain lines are not required, but information is needed for fiscal years beginning in 2026 and ending in 2027 for amounts accrued on or after January 1, 2027. · Form p.1
Before you submit
- 1Calculate column (c) by multiplying column (a) by column (b), remembering this amount is not reduced by any withholding.
- 2Determine if the corporation has multiple branches or a fiscal year, as this dictates the number of Schedules Q required.
- 3Enter the name of every QDD and indicate the total number of Schedules Q being filed in the designated spaces.
- 4Complete Line 5 separately for each income type, ensuring that all dividends are included, unless the calendar year is 2019 through 2026.
- 5Review Lines 1, 2, and 3 to ensure required information is entered based on whether the tax year falls within specific non-required periods (e.g., 2019–2026).
- 6Attach all completed Schedules Q to Form 1120-F.
- 7Retain a copy of the entire package for internal records.
How to file this form
- 1Determine if the corporation or any branch was a qualified derivatives dealer (QDD) during the tax year, as this dictates filing necessity.
- 2Complete a separate Schedule Q for each identified QDD and for every portion of the calendar year that falls within the fiscal year.
- 3Calculate column (c) by multiplying column (a) by column (b), noting that this amount is not reduced by withholding.
- 4Attach all completed Schedules Q to Form 1120-F, indicating the total number of schedules filed.
Known limitations
- 1A Schedule Q is required only if the corporation or any branch was a qualified derivatives dealer (QDD) during the tax year.
- 2If the corporation has a fiscal year rather than a calendar year, it must provide a separate Schedule Q for each QDD for every portion of the calendar year that falls within the fiscal year.
- 3For calendar years 2019 through 2026, information is not required for Line 3 (Total QDD tax liability pursuant to section 3.09(A) of the Qualified Intermediary Agreement).
- 4When completing Line 5 for dividends, do not include any dividends that were included on Line 2 for calendar years 2019 through 2026.
Field map
Compact field-by-field guide
Entity Info
2 items
Full legal name of the corporation and its Employer Identification Number.
Current mailing address and date of incorporation.
Income
3 items
Total revenue from business operations before deducting costs.
Direct costs attributable to producing goods sold by the corporation.
Gross receipts minus cost of goods sold and returns/allowances.
Deductions
1 items
Sum of all business expenses including compensation, rent, interest, taxes, and depreciation.
Tax
2 items
Total income minus total deductions.
Tax calculated on taxable income using the applicable corporate tax rate, minus any credits.
Signatures
1 items
An authorized corporate officer must sign and date the return.
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Fillable formOpen in Editor->The Schedule Q (Form 1120-F) was amended to reflect Notice 2024-44, 2024-25 I.R.B. 1737. This notice further delayed the effective/applicability date of certain rules in the section 871(m) regulations and extended the phase-in period provided in Notice 2022-37, 2022-37 I.R.B. 234.
What changed or needs a fresh check
- Edition date — confirm the revision date reads 20/25.
- Fee — Not stated in the official source
- Mailing address — Not stated in the official source
- Signature — State plainly that a signature is required for filing.
Quick Facts
Downloads
After you file
- 1Keep a copy of all filed Schedules Q and Form 1120-F for future record keeping.
- 2File the current edition of the form; confirming the revision date is recommended.
- 3The source does not specify any mandatory retention length for tax records, but general IRS guidance applies.
- 4If an error is discovered after filing, correction should follow standard IRS procedures and consult professional advice.
Sources
- SRCInstructions p.1 — Schedule Q must be completed and filed as an attachment to Form 1120-F if the corporation or any branch was a qualified derivatives dealer (QDD) during the tax year.
- SRCInstructions p.1 — A separate Schedule Q is required for each QDD, and multiple schedules are needed if the filer has a fiscal year.
- SRCInstructions p.1 — The amount in column (c) is determined by multiplying column (a) by column (b).
- SRCInstructions p.1 — For calendar years 2019 through 2026, certain information related to Line 3 and Line 5 dividends is not required.
- SRCInstructions p.1 — The QDD status requires the entity to be a home office or branch that qualifies and has been approved for QDD status under the qualified intermediary agreement (QIA).
- SRCInstructions p.1 — For calendar years 2018 through 2026, there is an exception requiring information only if the corporation has a fiscal year beginning in 2026 and ending in 2027 for amounts paid or accrued on or after January 1, 2027.
Common confusion points
Do I need more than one Schedule Q?
Yes, the filer must file a separate Schedule Q for each Qualified Derivatives Dealer (QDD) and also provide an additional schedule if the corporation uses a fiscal year.
→ The number of schedules filed must be indicated in the entry spaces provided.
How is Column (c) calculated?
This amount is determined by multiplying column (a) by column (b).
→ Remember that this column is not reduced by any withholding that has occurred.
What happens if I file for a fiscal year?
The corporation must provide separate Schedule Qs for each portion of the calendar year that falls within the fiscal year.
→ For example, a fiscal year beginning September 1 and ending August 31 requires two schedules (one for Sept 1 through Dec 31, and one for Jan 1 through Aug 31).
When filling out Line 5 for dividends, should I count them twice?
No. For calendar years 2019 through 2026, do not include dividends that are already included on Line 2.
Is information required for all lines every year?
No. The source specifies that certain information is not required for calendar years 2019 through 2026 (e.g., Line 3).
→ Check the line instructions to determine which fields apply to your tax year.
Workflow map
Related forms and next steps
Before
Current
After
Often used with
⚠ If something goes wrong
- The Qualified Intermediary Agreement (QIA) provides additional information regarding QDD status; the QIA is section 6 of Rev. Proc. 2022-43, 2022-52 I.R.B. 570.
Questions about IRS Form 1120-FQ
What is IRS Form 1120-FQ used for?
This form helps report taxes owed by a corporation or its branches that operate as qualified derivatives dealers. It summarizes various types of tax liabilities related to specific financial transactions and agreements. Filing this schedule ensures the company accounts for all required tax amounts associated with these dealer activities.
Who must file IRS Form 1120-FQ?
The corporation must file Schedule Q if it or any branch was a qualified derivatives dealer (QDD) during the tax year. A separate Schedule Q is needed for each QDD.
What information does IRS Form 1120-FQ require?
The form collects the QDD Tax Liability through a Schedule of Summary, detailing amounts for section 871(m) (Line 1), total dividends received in equity derivatives dealer capacity (Line 2), and tax liabilities pursuant to sections 3.09(A), 3.09(B), and 3.09(C) (Lines 3, 4, and 5).
Where do I file IRS Form 1120-FQ?
The corporation must file Schedule Q as an attachment to Form 1120-F.
How do I complete IRS Form 1120-FQ?
A separate Schedule Q is required for each qualified derivatives dealer (QDD) or branch. The filer must indicate the specific name of the QDD and also provide the total number of Schedules Q being filed by the corporation.
Do I need more than one Schedule Q?
Yes, the filer must file a separate Schedule Q for each Qualified Derivatives Dealer (QDD) and also provide an additional schedule if the corporation uses a fiscal year. The number of schedules filed must be indicated in the entry spaces provided.
How is Column (c) calculated?
This amount is determined by multiplying column (a) by column (b). Remember that this column is not reduced by any withholding that has occurred.
What happens if I file for a fiscal year?
The corporation must provide separate Schedule Qs for each portion of the calendar year that falls within the fiscal year. For example, a fiscal year beginning September 1 and ending August 31 requires two schedules (one for Sept 1 through Dec 31, and one for Jan 1 through Aug 31).
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