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Form 1120-IDQ: 1120-IC-DISC (Schedule Q)
IRS Form 1120-IC-DISC Schedule Q is a Borrower's Certificate of Compliance with the Rules for Producer's Loans. It certifies that a loan from an IC-DISC qualifies as a producer's loan under sections 993(d)(2) and (3). The borrower must certify compliance with the Limitation Rule and Increased Investment Requirement. Attach to Form 1120-IC-DISC.
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IRS Form 1120-IDQ - 1120-IC-DISC (Schedule Q)
IRS Form 1120-IC-DISC Schedule Q is a Borrower's Certificate of Compliance with the Rules for Producer's Loans. It certifies that a loan from an IC-DISC qualifies as a producer's loan under sections 993(d)(2) and (3). The borrower must certify compliance with the Limitation Rule and Increased Investment Requirement. Attach to Form 1120-IC-DISC.
Risk Radar
Scan points- 1Certifying false loan compliance under penalties of perjury.
- 2Failing to attach Schedule Q or a CPA-certified statement to Form 1120-IC-DISC.
- 3Not computing the Limitation Rule correctly using adjusted basis of assets.
- 4Omitting the borrower's EIN or address.
- 5Not including the tax year beginning and ending dates.
Plain English
This form is used by a borrower to certify that a loan from an IC-DISC meets the rules for a producer's loan. The borrower must show that the loan amount does not exceed limits based on their assets and export receipts, and that it does not exceed the increase in their investment. The form is attached to the IC-DISC's tax return.
Submission Date
- Filing date: 2016-09-02 00:00:00
- 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 you are a borrower certifying that a loan from an IC-DISC qualifies as a producer's loan under sections 993(d)(2) and (3).
- Do not use it when you choose to provide a written statement of compliance certified by a CPA instead of this schedule.
- Check Form 1120-IC-DISC instead when you need the main return for an Interest Charge Domestic International Sales Corporation.
Form selector
Use this form or another form?
Preparing the IC-DISC return
Schedule Q is a required attachment for producer's loans
✓ Check instructions for Form 1120-IC-DISC
Borrower certification of producer's loan
This schedule certifies compliance with sections 993(d)(2) and (3)
✓ Must be signed under penalties of perjury
Alternative to Schedule Q
A written statement certified by a CPA may be attached instead
✓ Confirm with IRS instructions
Deadline or filing window
Not stated in the official source. The form must be attached to the IC-DISC's tax return, but the due date of that return is not provided in this source.
Checklist
What you need before filling it out
Borrower's name and EIN
Borrower's legal name and EIN · Borrower's tax return or IRS notice
Limitation Rule 1a – adjusted basis in plant, machinery, equipment, supporting production facilities in US at beginning of tax year
Borrower's fixed asset records showing adjusted basis · Borrower's depreciation schedule or fixed asset ledger
Limitation Rule 1b – property held primarily for sale, lease, or rental at beginning of tax year
Borrower's inventory records · Borrower's balance sheet or inventory listing
Limitation Rule 1c – research and experimental expenditures under section 174 in US during all preceding tax years after 1971
Borrower's R&D expense records · Borrower's tax returns or R&D credit documentation
Limitation Rule 2 – percentage of receipts from export property over 3 prior tax years
Borrower's sales records by destination · Borrower's income statements or export sales reports
Increased Investment Requirement B1 – increase in adjusted basis of assets from first day to last day of tax year
Borrower's asset records for both dates · Borrower's fixed asset rollforward
Increased Investment Requirement B2 – R&D expenditures during tax year
Borrower's current year R&D records · Borrower's R&D expense schedule
Signature and date
Officer's signature and date of certification · Signed by authorized officer
Before you submit
- 1Verify that the borrower's name and EIN match the loan documents.
- 2Confirm the IC-DISC's name and EIN are correctly entered.
- 3Calculate the Limitation Rule amounts using the borrower's adjusted basis and receipts.
- 4Calculate the Increased Investment Requirement using the borrower's asset basis changes and R&D expenditures.
- 5Ensure the loan amount does not exceed the limitations.
- 6Have an authorized officer sign and date the certificate.
- 7Attach Schedule Q to Form 1120-IC-DISC before filing.
- 8Keep a copy of the signed Schedule Q with your records.
- 9Check the revision date on the form is September 2016.
- 10Visit www.irs.gov/form1120icdisc for any updates.
How to file this form
- 1Obtain the current version of Schedule Q (Form 1120-IC-DISC) from www.irs.gov/form1120icdisc.
- 2Enter the IC-DISC's name and EIN at the top.
- 3Enter the borrower's name, EIN, and address.
- 4Complete Part A (Limitation Rule) by calculating the adjusted basis and receipts percentage.
- 5Complete Part B (Increased Investment Requirement) by calculating the asset basis increase and R&D expenditures.
- 6Have an authorized officer sign and date the certificate.
- 7Attach the completed Schedule Q to Form 1120-IC-DISC.
- 8File Form 1120-IC-DISC with Schedule Q attached by the due date.
Known limitations
- 1This form only applies to loans that qualify as producer's loans under sections 993(d)(2) and (3).
- 2The borrower must be a person (not necessarily a corporation) that meets the definition of a producer.
- 3The form does not apply to loans that are not producer's loans.
- 4The alternative of a written statement certified by a CPA is available instead of this schedule.
- 5The form does not provide instructions; refer to the Instructions for Form 1120-IC-DISC.
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.
Almost done reviewing the fields?
Fillable formOpen in Editor->The current edition is Rev. September 2016. The source directs filers to www.irs.gov/form1120icdisc for the latest information about Form 1120-IC-DISC and its instructions.
What changed or needs a fresh check
- Edition date — confirm the revision is September 2016.
- OMB No. — confirm OMB No. 1545-0123 is present.
- Attach to Form 1120-IC-DISC — confirm you are attaching this schedule to the correct return.
- Signature — confirm the officer signs and dates the certificate.
- Information source — confirm you have checked www.irs.gov/form1120icdisc for latest updates.
- Penalties — confirm you understand the penalties of perjury statement.
Quick Facts
Downloads
After you file
- 1Retain a copy of the filed Schedule Q and Form 1120-IC-DISC for your records.
- 2Keep records supporting the calculations (adjusted basis, receipts, R&D expenditures) for at least 3 years after filing.
- 3If you discover an error, file an amended Form 1120-IC-DISC with a corrected Schedule Q.
- 4Monitor for any IRS correspondence regarding the certification.
- 5If using the CPA-certified statement alternative, retain that statement as well.
- 6Check the IRS website for any updates to the form or instructions.
Sources
- SRCForm p.1 — Title and revision date: Schedule Q (Form 1120-IC-DISC) (Rev. September 2016).
- SRCForm p.1 — Purpose: Borrower’s Certificate of Compliance With the Rules for Producer’s Loans.
- SRCForm p.1 — Attachment: Attach to Form 1120-IC-DISC.
- SRCForm p.1 — Information source: www.irs.gov/form1120icdisc.
- SRCForm p.1 — OMB No.: 1545-0123.
- SRCForm p.1 — Alternative: Written statement of compliance certified by a CPA.
- SRCForm p.1 — Penalties: Under penalties of perjury.
- SRCForm p.1 — Limitation Rule: Sections 993(d)(2) and (3).
- SRCForm p.1 — Increased Investment Requirement: Same sections.
- SRCForm p.1 — Signature: Date, signature of officer, type or print name and title.
Common confusion points
What is the difference between the Limitation Rule and the Increased Investment Requirement?
Both involve asset basis and R&D but use different time periods
→ Limitation uses beginning of year and prior 3 years; Increased Investment uses beginning and end of current year
Can I use a written statement instead of Schedule Q?
The form mentions an alternative
→ The written statement must be certified by a certified public accountant
What is considered 'export property' for the percentage calculation?
Definition is complex with exclusions
→ Refer to section 993(c)(2)(C) and (D) for excluded property
How do I calculate adjusted basis?
Adjusted basis after depreciation can be confusing
→ Use tax basis from the borrower's depreciation schedule
What if the loan amount exceeds the limits?
Loan may not qualify as a producer's loan
→ Ensure loan plus outstanding balances does not exceed calculated amounts
Do I need to attach this to my own tax return?
Form says attach to Form 1120-IC-DISC
→ Borrower does not file; IC-DISC attaches to its return
What is the penalty for incorrect certification?
Certification is under penalties of perjury
→ Sign only after verifying all information is accurate
Is this form required for all IC-DISC loans?
Only for producer's loans
→ Confirm loan qualifies as a producer's loan under section 993(d)
Workflow map
Related forms and next steps
Before
Current
After
Often used with
⚠ If something goes wrong
- Amended Form 1120-IC-DISC — to correct errors in Schedule Q.
- Written statement of compliance (CPA-certified) — alternative if Schedule Q is not used.
Questions about IRS Form 1120-IDQ
What is IRS Form 1120-IDQ used for?
This form is used by a borrower to certify that a loan from an IC-DISC meets the rules for a producer's loan. The borrower must show that the loan amount does not exceed limits based on their assets and export receipts, and that it does not exceed the increase in their investment. The form is attached to the IC-DISC's tax return.
Who must file IRS Form 1120-IDQ?
The borrower of a producer's loan from an IC-DISC must complete and certify Schedule Q (Form 1120-IC-DISC) to be attached to the IC-DISC's tax return.
What information does IRS Form 1120-IDQ require?
The form collects the borrower's name, EIN, and address, and requires certification of compliance with the Limitation Rule (Part A, lines 1a-2) and Increased Investment Requirement (Part B, lines 1-2). It includes calculations of adjusted basis of assets, export receipts, and research expenditures.
How do I complete IRS Form 1120-IDQ?
Complete the top portion with the IC-DISC's and borrower's information. Fill in Part A (Limitation Rule) by calculating the loan limit based on adjusted basis of assets and export receipts. Fill in Part B (Increased Investment Requirement) by calculating the additional investment limit. Sign and date the form under penalties of perjury.
What happens if IRS Form 1120-IDQ is filed incorrectly?
The certification is made under penalties of perjury. Incorrect certification could result in penalties for the borrower and disqualification of the producer's loan for the IC-DISC.
What is the difference between the Limitation Rule and the Increased Investment Requirement?
Both involve asset basis and R&D but use different time periods Limitation uses beginning of year and prior 3 years; Increased Investment uses beginning and end of current year
Can I use a written statement instead of Schedule Q?
The form mentions an alternative The written statement must be certified by a certified public accountant
What is considered 'export property' for the percentage calculation?
Definition is complex with exclusions Refer to section 993(c)(2)(C) and (D) for excluded property
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