Form 5712 (Rev. 9-2000) Page 2
Instructions
Section references are to the Inter nal Revenue Code.
Purpose of Form
Form 5712 must be completed by domestic corporations
that elect to be treated as possessions corporations under
section 936.
Important. The corporation must be an “ existing credit
claimant” in order to make this election. For details, see
Regulations section 1.936-11 and the Instructions for Form
5735.
Who Can Elect
Only domestic corporations that are existing credit claimants
can elect to be treated as possessions corporations.
When To File
File Form 5712 by the due date (including extensions) of the
first return to which the election will apply.
Where To File
File this form with the Internal Revenue Service Center,
Philadelphia, PA 19255. File it separately from your regular
income tax return.
U.S. Possessions
For purposes of this election, U.S. possessions include
Puerto Rico and the Virgin Islands.
Period of Election
The election applies to the first tax year the election was
made, and each subsequent tax year unless revoked, and for
each tax year the domestic corporation qualifies under
section 936(a).
Generally, an election under section 936(a) may be revoked
during the first 10 years of section 936 status only with the
consent of the Commissioner. After the 10th year, the
Commissioner’s consent is not needed. See section 936(e)(2)
for more details. Requests to revoke the election should be
sent to the Internal Revenue Service, Attn: Director, Prefiling
and Technical Guidance, Large and Mid-Size Business
Division (LM:PFTG), Mint Bldg, 3rd Floor, Room M3-443,
1111 Constitution Ave., NW, Washington, DC 20224.
Other Forms That May Be Required
Form 5712-A
Use Form 5712-A, Election and Verification of the Cost
Sharing or Profit Split Method Under Section 936(h)(5), to
elect either the cost sharing method or the profit split
method. These methods allow the possessions corporation
to share either its costs or its profits with its affiliates. When
making either election, attach Form 5712-A to Schedule P
(Form 5735). See Form 5712-A for more details.
Form 5735
For each year the election is in effect, Form 5735,
Possessions Corporation Tax Credit (Under Sections 936 and
30A) must be completed and attached to the corporation’s
income tax return.
Consolidated Returns
A corporation may not join in filing a consolidated return for
any year this election is in effect.
Business Classification
See the Standard Industrial Classification Manual for the
proper code for the product or service. Enter the business
code number, principal business activity, and principal
product or service.
Address
If the Post Office does not deliver mail to the street address
and the corporation has a P.O. box, show the box number
instead of the street address.
Identifying Number
For individuals, the identifying number is their social security
number. For all others, it is the employer identification
number.
Signature
This form must be signed by the president, vice president,
treasurer, assistant treasurer, chief accounting officer, or any
other corporate officer (such as tax officer) authorized to
sign.
Paperwork Reduction Act Notice. We ask for the
information on this form to carry out the Internal Revenue
laws of the United States. You are required to give us the
information. We need it to ensure that you are complying
with these laws and to allow us to figure and collect the right
amount of tax.
You are not required to provide the information requested
on a form that is subject to 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 their contents may become material in
the administration of any Internal Revenue law. Generally, tax
returns and return information are confidential, as required by
section 6103.
The time needed to complete and file this form will vary
depending on individual circumstances. The estimated
average time is:
Recordkeeping
4 hr., 32 min.
Learning about the law or
the form
35 min.
Preparing and sending the
form to the IRS
42 min.
If you have comments concerning the accuracy of these
time estimates or suggestions for making this form simpler,
we would be happy to hear from you. You can write to the
Tax Forms Committee, Western Area Distribution Center,
Rancho Cordova, CA 95743-0001. Do not send the form to
this address. Instead, see Where To File above.
