U. S. Business Income Tax Return

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Instructions for
Form 1120-ND
(Rev. December 2025)

Return for Nuclear Decommissioning Funds and Certain Related Persons
Section references are to the Internal Revenue Code
unless otherwise noted.

Future Developments
For the latest information about developments related to
Form 1120-ND and its instructions, such as legislation
enacted after they were published, go to IRS.gov/
Form1120ND.

Form 1120-ND. Use the December 2025 revision of
Form 1120-ND and instructions for 2025 and subsequent
years until a superseding revision of Form 1120-ND is
issued.
Increase in penalty for failure to file. For tax returns
required to be filed after 2025, the minimum penalty for
failure to file a return that is more than 60 days late has
increased to the lesser of the tax due or $525 (adjusted for
inflation). See Late filing of return, later.
Gain from the sale or exchange of qualified farmland
property to qualified farmers. P.L. 119-21, commonly
known as the One Big Beautiful Bill Act, created new
section 1062, Gain from the sale or exchange of qualified
farmland property to qualified farmers. Section 1062
allows taxpayers to elect to pay the net income tax
attributable to the gain from the sale or exchange of
qualified farmland property to qualified farmers in four
equal, annual installments. This election is available for
qualified sales and exchanges in tax years beginning after
July 4, 2025. For more information, see section 1062 and
new Form 1062 when it is available.
To report the section 1062 applicable net tax liability
and the installment due in the first tax year, two lines were
added to Form 1120-ND. Report the full amount of section
1062 applicable net tax liability on line 14f. Report the first
installment due in tax year 2025 on Form 1120-ND,
line 13b. For more information, see the instructions for
line 13b and line 14f, later.
Electronic payments. If the fund has access to U.S.
banking services or electronic payment systems, it should
use direct deposit for any refunds and pay electronically
for any payments, whenever possible.
Direct deposit. Direct deposit fields have been added
to the form on lines 18c, 18d, and 18e. If there is an
overpayment on line 17, enter the amount the fund wants
refunded on line 18b and complete the direct deposit
information on lines 18c, 18d, and 18e. Instead of a direct
deposit of the fund’s refund, it can still choose to have all
or part of the overpayment credited to next year’s

Nov 24, 2025

General Instructions
Purpose of Form

Nuclear decommissioning funds use Form 1120-ND to
report contributions received, income earned, the
administrative expenses of operating the fund, and the tax
on modified gross income. The return is also used to
report the section 4951 initial taxes on self-dealing.
Taxpayers, electing under section 468A, are allowed
deductions for amounts contributed to a qualified fund, up
to 100% of the present value of the nuclear power plant’s
decommissioning costs. Taxpayers can apply for a new
ruling amount if the nuclear power plant is granted a
license renewal extending its useful life. See section 468A
for more information.

Who Must File

All section 468A nuclear decommissioning funds must file
Form 1120-ND. A disqualified person engaging in
self-dealing must file Form 1120-ND to report the initial
tax. See Part II, later, to determine if an individual has
engaged in self-dealing as a trustee or disqualified
person.
Note: Each person liable for filing a return to pay any tax
reportable on this form must file a separate return.

When To File

Generally, a fund must file its income tax return by the
15th day of the 4th month after the end of its tax year. The
return of a trustee or self-dealer who owes tax under
section 4951 must be filed by the 15th day of the 4th
month after the end of the tax year of the trustee or
self-dealer.
However, a fund with a fiscal tax year ending on June
30 must file by the 15th day of the 3rd month after the end
of its tax year. A fund with a short tax year ending in June
will be treated as if the short year ended on June 30, and
must file by the 15th day of the 3rd month after the end of
its tax year.
If the due date falls on a Saturday, Sunday, or legal
holiday, the fund may file on the next business day.

Instructions for Form 1120-ND (Rev. 12-2025) Catalog Number 11508V
Department of the Treasury Internal Revenue Service www.irs.gov

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What’s New

estimated tax by completing line 18a. See Line 17, later,
for more information.
Making a payment. If there is a balance due on
line 16, go to IRS.gov/Payments for information on how to
make a payment. See Tax Payments and the instructions
for line 16, later, for more details.

Where To File

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File the fund’s, disqualified person’s, or trustee’s return at
the applicable IRS address listed below.
If the fund’s principal business, office, or agency is
located in the United States, file Form 1120-ND at the
following address.
Department of the Treasury
Internal Revenue Service Center
Ogden, UT 84201-0012
If the fund’s principal business, office, or agency is
located in a foreign country or a U.S. territory, file Form
1120-ND at the following address.

Private delivery services (PDSs). Funds can use
certain PDSs designated by the IRS to meet the “timely
mailing as timely filing” rule for tax returns. See the
Instructions for Form 1120, U.S. Corporation Income Tax
Return, for details.
Caution: PDSs can’t deliver items to P.O. boxes. The
fund must use the U.S. Postal Service to mail any item to
an IRS P.O. box address.
Extension of time to file. File Form 7004, Application for
Automatic Extension of Time To File Certain Business
Income Tax, Information, and Other Returns, to request an
extension of time to file. Generally, the fund must file Form
7004 by the regular due date of the return.
A disqualified person or trustee filing to report section
4951 taxes must also file Form 7004 to request an
extension of time to file. See the Instructions for Form
7004.

Who Must Sign

The return must be signed and dated by an authorized
trustee. The return of any person who engaged in any act
of self-dealing must be signed and dated by that person or
the individual authorized to sign on behalf of that person.

Paid Preparer Use Only section. If an employee of the
fund completes Form 1120-ND, the paid preparer section
should remain blank. Anyone who prepares Form
1120-ND but doesn’t charge the fund shouldn’t complete
that section. Generally, anyone who is paid to prepare the
return must sign and complete the section.
The paid preparer must complete the required preparer
information and:
• Sign the return in the space provided for the preparer’s
signature,
• Include their Preparer Tax Identification Number (PTIN),
and
• Give a copy of the return to the taxpayer.
A paid preparer may sign original or amended returns
by rubber stamp, mechanical device, or computer
software program.

2

If the “Yes” box is checked, the fund is authorizing the
IRS to call the paid preparer to answer any questions that
may arise during the processing of its return. The fund is
also authorizing the paid preparer to:
• Give the IRS any information that is missing from the
return;
• Call the IRS for information about the processing of the
return or the status of any related refund or payment(s);
and
• Respond to certain IRS notices about math errors,
offsets, and return preparation.
The fund isn’t authorizing the paid preparer to receive
any refund check, bind the fund to anything (including any
additional tax liability), or otherwise represent the fund
before the IRS.
The authorization will automatically end no later than
the due date (excluding extensions) for filing the fund’s
subsequent tax return. If the fund wants to expand the
paid preparer’s authorization or revoke authorization
before it ends, see Pub. 947, Practice Before the IRS and
Power of Attorney.

Assembling the Return

To ensure that the fund’s tax return is correctly processed,
attach all schedules after page 2 of Form 1120-ND in
alphabetical order followed by other forms in numerical
order.
Complete every applicable entry space on Form
1120-ND. Don’t enter “See Attached” or “Available Upon
Request” instead of completing the entry spaces. If more
space is needed on the forms or schedules, attach
separate sheets using the same size and format as the
printed forms.
If there are supporting statements and attachments,
arrange them in the same order as the schedules or forms
they support and attach them last. Show the totals on the
printed forms. Enter the fund’s name and employer
identification number (EIN) on each supporting statement
or attachment.

Tax Payments

Generally, the fund must pay the tax due in full no later
than the due date for filing its tax return (not including
extensions). See the instructions for line 16, later. If the
due date falls on a Saturday, Sunday, or legal holiday, the
payment is due on the next day that isn’t a Saturday,
Sunday, or legal holiday.

Electronic Deposit Requirement

Nuclear decommissioning funds must use electronic
funds transfer (EFT) to make all federal tax deposits (such
as deposits of employment, excise, and corporate income
taxes). An EFT can be made using the Electronic Federal
Tax Payment System (EFTPS) or the fund’s IRS business
Instructions for Form 1120-ND (Rev. 12-2025)

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Internal Revenue Service Center
P.O. Box 409101
Ogden, UT 84409

Paid Preparer Authorization

If the fund wants to allow the IRS to discuss its tax return
with the paid preparer who signed it, check the “Yes” box
in the signature area of the return. This authorization
applies only to the individual whose signature appears in
the Paid Preparer Use Only section of the fund’s return. It
doesn’t apply to the firm, if any, shown in that section.

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tax account. However, if the fund doesn’t want to use one
of these methods, it can arrange for its tax professional,
financial institution, payroll service, or other trusted third
party to make deposits on its behalf. Also, it may arrange
for its financial institution to submit a same-day wire
payment (discussed below) on its behalf. EFTPS is a free
service provided by the Department of the Treasury.
Payments made using the fund’s IRS business tax
account are also free. Services provided by a tax
professional, financial institution, payroll service, or other
third party may have a fee.
To get more information about EFTPS or to enroll in
EFTPS, go to EFTPS.gov or call 800-555-4477. To
contact EFTPS using Telecommunications Relay Services
(TRS) for people who are deaf, hard of hearing, or have a
speech disability, dial 711 and then provide the TRS
assistant the 800-555-4477 number above or
800-733-4829. Additional information about EFTPS is also
available in Pub. 966.

Depositing on time. EFTPS accepts same day
payments of $1 million or less if the payment is submitted
before 3:00 p.m. Eastern time on a business day. If the
fund’s payment is more than $1 million, the fund must
submit the deposit by 8:00 p.m. Eastern time the day
before the date the deposit is due. If the fund uses a third
party to make deposits on its behalf, they may have
different cutoff times.
Same-day wire payment option. If the fund fails to
submit a timely deposit transaction on EFTPS, it can still
make its deposit on time by using the Federal Tax
Collection Service (FTCS).To use the same-day wire
payment method, the fund will need to make
arrangements with its financial institution ahead of time
regarding availability, deadlines, and costs. Financial
institutions may charge a fee for payments made this way.
To learn more about the information the fund will need to
provide to its financial institution to make a same-day wire
payment, go to IRS.gov/SameDayWire.

Estimated Tax Payments

Generally, the following rules apply to the fund’s payments
of estimated tax.
• The fund must make installment payments of estimated
tax if it expects its total tax for the year (less applicable
credits) to be $500 or more.
• The installments are due by the 15th day of the 4th, 6th,
9th, and 12th months of the tax year. If any date falls on a
Saturday, Sunday, or legal holiday, the installment is due
on the next regular business day.
• The fund must use EFTs to make installment payments
of estimated tax.
• Figure the fund’s expected modified gross income for
the tax year. Then multiply the fund’s expected modified
gross income by 20% (0.20).
• If, after the fund figures and deposits estimated tax, it
finds that its tax liability for the year will be more or less
than originally estimated, it may have to refigure its
required installments. If earlier installments were
Instructions for Form 1120-ND (Rev. 12-2025)

See section 6655 for more information on how to figure
estimated taxes.

Interest and Penalties
Interest. Interest is charged on taxes paid late even if an
extension of time to file is granted. Interest is also charged
on penalties imposed for failure to file, negligence, fraud,
substantial valuation misstatements, substantial
understatements of tax, and reportable transaction
understatements from the due date (including extensions)
to the date of payment. The interest charge is figured at a
rate determined under section 6621.
Late filing of return. A fund that doesn’t file its tax return
by the due date, including extensions, may be penalized
5% of the unpaid tax for each month or part of a month the
return is late, up to a maximum of 25% of the unpaid tax.
The minimum penalty for a tax return that is more than 60
days late is the lesser of the tax due or $525 (adjusted for
inflation). Go to IRS.gov/Newsroom/Inflation-Adjusted-TaxItems-by-Tax-Year for adjusted failure-to-file penalty
amounts for the applicable tax year. The penalty won’t be
imposed if the fund can show that the failure to file on time
was due to reasonable cause. See Reasonable-cause
determinations, later.
Late payment of tax. A fund that doesn’t pay the tax
when due may generally be penalized 1/2 of 1% of the
unpaid tax for each month or part of a month the tax is not
paid, up to a maximum of 25% of the unpaid tax. See
Reasonable-cause determinations, later.
Other penalties. Other penalties can be imposed for
negligence, substantial understatements of tax, reportable
transaction understatements, and fraud. See sections
6662, 6662A, and 6663.
Reasonable-cause determinations. If the fund receives
a notice about penalties after it files its return, send the
IRS an explanation and we will determine if the fund
meets reasonable-cause criteria. Do not attach an
explanation when the fund files its return.

Accounting Method

The fund must use the same method of accounting as the
electing taxpayer.

Rounding Off to Whole Dollars

The fund may enter decimal points and cents when
completing its return. However, the fund should round off
cents to whole dollars on its return and schedules to make
completing its return easier. The fund must either round
off all amounts on its return to whole dollars, or use cents
for all amounts. To round, drop amounts under 50 cents
and increase amounts from 50 to 99 cents to the next
dollar. For example, $1.39 rounds to $1 and $2.50 rounds
to $3.

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For more information about making an EFT through the
fund’s IRS business tax account, go to IRS.gov/
BusinessAccount.

underpaid, the fund may owe a penalty. See the
instructions for line 15, later.
• If the fund overpaid estimated tax, it may be able to get
a quick refund by filing Form 4466, Corporation
Application for Quick Refund of Overpayment of
Estimated Tax.

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If two or more amounts must be added to figure the
amount to enter on a line, include cents when adding the
amounts and round off only the total.

Recordkeeping

Keep the fund’s records for as long as they may be
needed for the administration of any provision of the
Internal Revenue Code. Usually, records that support an
item of income, deduction, or credit on the return must be
kept for 3 years from the date the return is due or filed,
whichever is later. Keep records that verify the fund’s basis
in property for as long as they are needed to figure the
basis of the original or replacement property.
The fund should keep copies of all filed returns. They
help in preparing future and amended returns.

Additional Information

See the Instructions for Form 1120 and Pub. 542,
Corporations, for more information about corporations,
including additional forms the fund may need to file and
how to get forms and publications.
Self-dealing. When determining if an act is an act of
self-dealing, treat the transfer of personal property by a
disqualified person to the fund as a sale or exchange if the
property is subject to a mortgage or similar lien.
Otherwise, the term “self-dealing” means any direct or
indirect:
• Sale, exchange, or leasing of real or personal property
between the fund and a disqualified person;
• Lending of money or other extensions of credit between
the fund and a disqualified person;
• Furnishing of goods, services, or facilities between the
fund and a disqualified person;
• Payment of compensation (or payment or
reimbursement of expenses) by the fund to a disqualified
person; and
• Transfers to, or use by or for the benefit of, a disqualified
person of the income or assets of the fund.
Exceptions. Acts of self-dealing don’t include the
following.
1. The payment by the fund for the purposes of
satisfying, in whole or in part, the liability of the electing
taxpayer for decommissioning costs of the nuclear power
plant.
2. The withdrawal of excess contributions by the
electing taxpayer in accordance with Regulations section
1.468A-5(c)(2).
3. The withdrawal of amounts that have been treated
as distributions to the electing taxpayer under Regulations
section 1.468A-5(c)(3).
4. The payment of amounts remaining in the fund to
the electing taxpayer after the termination of the fund upon
the substantial completion of decommissioning.
5. The furnishing of goods, services, or facilities by a
disqualified person to the fund if the furnishing is without
charge and if the goods, services, or facilities so furnished
are exclusively used for the purposes specified in section
468A(e)(4).
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The allowable general banking services are:

• Checking accounts, as long as the bank doesn’t charge

interest on any overwithdrawals;
• Savings accounts, as long as the fund may withdraw its
money after giving no more than 30 days notice, without
losing interest for the period the money was on deposit;
and
• Safekeeping activities (for example, rental of a safe
deposit box).
Tax period. For an act of self-dealing, the term “tax
period” means the period beginning on the date of the act
of self-dealing and ending on the date of the earliest of:
• The date of mailing of a notice of deficiency under
section 6212 for the section 4951 tax,
• The date on which the tax imposed by section 4951 is
assessed, or
• The date correction of the act of self-dealing is
completed.
Amount involved. The term “amount involved” means
the greater of the amount of money given (or received)
and the FMV of the other property given (or received).
When services described in section 4951(d)(2)(C) are
involved, the amount involved is only the excess
compensation.
Note: FMV is determined as of the date on which the act
of self-dealing occurs and at the highest market value
during the tax period.

Correction and correct. The terms “correction” and
“correct” mean the undoing of an act of self-dealing, to the
extent possible, but in any case returning the fund to a
financial position no worse than it would have been if the
disqualified person acted under the highest fiduciary
relationship.
Disqualified person. The term “disqualified person”
means a person who is any of the following.
1. A contributor to the fund.
2. A trustee of the fund.
3. An owner of more than 10% of (a) the total
combined voting power of a corporation, (b) the profits
interest of a partnership, or (c) the beneficial interest of a
trust or unincorporated business that is a contributor to the
fund.
4. An officer, a director, or an employee of a person
who is a contributor to the fund.
Instructions for Form 1120-ND (Rev. 12-2025)

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Definitions

6. The payment of compensation (and the payment or
reimbursement of expenses) by the fund to a disqualified
person for personal services that are reasonable and
necessary to carry out the purposes of the fund and the
compensation (or payment or reimbursement of
expenses) isn’t excessive.
7. A payment by the fund for the performance of trust
functions and certain general banking services by a bank
or trust company that is a disqualified person, if the
banking services are reasonable and necessary to carry
out the purposes of the fund and the compensation paid
to the bank or trust company isn’t excessive (considering
the fair market interest rate for the use of the funds by the
bank or trust company).

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For purposes of (3(a)) and (6) above, indirect
stockholders would be taken into account under section
267(c), except that, for purposes of this paragraph,
section 267(c)(4) will be treated as providing that the
members of the family of an individual are only those
individuals described in (5) above. For purposes of (3(a)),
(3(c)), (7), and (8) above, the ownership of profits or
beneficial interests will be determined by the rules of
constructive ownership of stock provided in section 267(c)
(other than paragraph (3) thereof), except that section
267(c)(4) will be treated as providing that the members of
the family of an individual are only those individuals
described in (5) above.

Dispositions of an Interest in a Nuclear Power
Plant

There are federal income tax consequences when there is
a transfer of assets of a nuclear decommissioning fund in
connection with the sale, exchange, or other disposition of
a transferor of all or a portion of its qualifying interest in a
nuclear power plant to another taxpayer (transferee). If the
requirements of Regulations section 1.468A-6(b) are met,
the federal income tax consequences are the following.
1. No gain or loss. If there is a disposition of an
interest (wholly or partially) in a nuclear power plant,
neither the transferor nor the transferee (or either’s fund)
will recognize gain, loss, or otherwise take any income or
deduction into account because of the transfer of all or
some of the assets of the transferor’s fund. Also, the
transfer isn’t considered a payment or contribution of
assets by the transferor’s fund (or by the transferee to its
fund).
2. Basis. Transfers of assets of a fund to which
Regulations section 1.468A-6 applies don’t affect basis.
The transferee’s fund will have a basis in the assets
received from the transferor equal to the transferor’s basis
in those assets immediately prior to the transfer.
3. Tax year of disposition.
A. Transferee. If a transferee doesn’t file a request for a
schedule of ruling amounts by the deemed payment
deadline (21/2 months after the end of the tax year of the
disposition), the transferee’s ruling amount for the interest
acquired is determined by taking the amount contained in
the transferor’s current schedule of ruling amounts for that
tax year and that plant multiplied by the product of:
(1) The portion of the transferor’s qualifying interest that
is transferred; and

Instructions for Form 1120-ND (Rev. 12-2025)

(2) A fraction, the numerator of which is the number of
days in the tax year of the transferor including and
following the date of the disposition, and the denominator
of which is the number of days in that tax year.
B. Transferor. If a transferor doesn’t file a request for a
revised schedule of ruling amounts on or before the
deemed payment deadline for the tax year of the
transferor in which the disposition of its interest in the
nuclear power plant occurred (that is, the date that is 21/2
months after the close of that tax year), the transferor’s
ruling amount with respect to that plant for that year will
equal the sum of:
(1) The ruling amount contained in the transferor’s
current schedule of ruling amounts with respect to that
plant for that tax year multiplied by the portion of qualifying
interest that is retained, if any; and
(2) The ruling amount contained in the transferor’s
current schedule of ruling amounts with respect to that
plant for that tax year multiplied by the product of:
(a) The portion of the transferor’s qualifying interest that
is disposed of; and
(b) A fraction, the numerator of which is the number of
days in the tax year that precede the date of the
disposition, and the denominator of which is the number
of days in that tax year.
4. Tax year after the year of disposition. A
transferee of, or a transferor who retains, a qualifying
interest in a nuclear power plant must file a request for a
revised schedule of ruling amounts for the interest by the
deemed payment deadline (defined above). If the
transferee (or the transferor) doesn’t timely file such a
request, the transferee’s (or the transferor’s) ruling
amounts for the interest for that tax year will be zero.
For more information, see Regulations section
1.468A-6.

Specific Instructions
Period Covered

Enter the tax year in the space provided at the top of the
form. For a calendar year, enter the last two digits of the
calendar year in the first entry space. For a fiscal tax year
return, fill in the tax year space at the top of the form.

Name and Address

Enter the fund’s true name (as set forth in the charter or
other legal document creating it), address, and EIN on the
appropriate lines. Enter the address of the fund’s principal
office or place of business. Include the suite, room, or
other unit number on the “Room or suite no.” line. If the
post office doesn’t deliver mail to the street address and
the fund has a P.O. box, enter the box number instead.
Don’t use the address of the registered agent for the
state in which the fund is incorporated. For example, if a
fund is incorporated in Delaware or Nevada and the fund’s
principal office is located in Little Rock, Arkansas, the fund
should enter the Little Rock address.
If the return is filed by a trustee or disqualified person to
report section 4951 taxes, enter that person’s name and
address in the address section.
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5. The spouse, an ancestor, or a lineal descendant, or
a spouse of a lineal descendant of an individual described
in (1) through (4) above.
6. A corporation of which persons described in (1)
through (5) above own more than 35% of the total
combined voting power.
7. A partnership of which persons described in (1)
through (5) above own more than 35% of the profits
interests.
8. A trust or estate of which persons described in (1)
through (5) above own more than 35% of the beneficial
interest.

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If the fund receives its mail in care of a third party (such
as an accountant or an attorney), enter on the street
address line “C/O” followed by the third party’s name and
street address or P.O. box.
If the fund has a foreign address, enter the city or town,
state or province, country, and foreign postal code in the
spaces provided. Don’t abbreviate the country name.
Follow the country’s practice for entering the name of the
state or province and postal code.

Item A. Employer Identification
Number (EIN)

If the fund hasn’t received its EIN by the time the return
is due, enter “Applied for” and the date the fund applied in
the space for the EIN. For more information, see the
Instructions for Form SS-4.

Item B. Identifying Number of Trustee
or Disqualified Person

If the return is filed by a trustee or disqualified person to
report section 4951 taxes, enter the identifying number of
the trustee or disqualified person. For an individual trustee
or disqualified person, enter the individual’s social security
number. If the trustee or disqualified person isn’t an
individual, enter the EIN.
Note: Don’t complete item B if Form 1120-ND is filed to
report the income, deductions, and income tax liability of
the fund.

Item C. Fund, Trustee, or Disqualified
Person

Check only the box that applies.
1. When filed to report the income, deductions, and
income tax liability of the fund, check the “Fund” box.
2. When filed by a trustee who is liable for taxes under
section 4951, check the “Trustee” box.
3. When filed by a disqualified person who is liable for
section 4951 tax, check the “Disqualified person” box.

Item D. Final Return, Name Change,
Address Change, or Amended Return

Indicate a final return, name change, address change, or
amended return by checking the appropriate box. If you
are a trustee or disqualified person reporting section 4951
taxes, omit item D.
Note: If a change in address occurs after the return is
filed, use Form 8822-B, Change of Address or
Responsible Party—Business, to notify the IRS. See the
instructions for Form 8822-B for details.

6

Income
Line 1. Taxable interest. Enter the total taxable interest
income received or accrued for the year, including any
original issue discount. Don’t include tax-exempt interest
on line 1, but report it as an item of information on
Schedule M, line 2d.
Line 2. Capital gain net income. Every sale, exchange,
or actual or deemed distribution of assets held by the fund
must be reported in detail on Schedule D (Form 1120),
Capital Gains and Losses (and Form 8949, Sales and
Other Dispositions of Capital Assets, if applicable), even if
there is no gain or loss. The amount realized on an actual
or deemed distribution is the fair market value (FMV) of
the assets as of the date of distribution.
Line 3. Other income. Enter any other taxable income
not reported on line 1 or line 2 and explain its nature on an
attached schedule. If the fund had only one item of other
income, describe it in parentheses on line 3.

Deductions

Note: A deduction isn’t allowed for certain expenses
allocable to tax-exempt income. See section 265. In
addition, a deduction isn’t allowed for distributions made
to electing taxpayers. Report such payments as an item of
information on Schedule M, line 2c. Liabilities aren’t
treated as incurred prior to the time economic
performance takes place. See section 461(h).
Line 5. Trustee fees. Enter the total deductible fees paid
or incurred to the trustee(s) for administering the fund
during the tax year.
Line 6. Taxes. Enter deductible taxes paid or incurred
during the tax year, including state and local income taxes.
Don’t deduct federal income taxes or taxes not imposed
on the fund.
Line 8. Other deductions. Attach a schedule listing by
type and amount all allowable deductions that aren’t
deducted elsewhere on Form 1120-ND. Include
investment advisory fees, actuarial expenses, and other
administrative expenses paid or incurred during the tax
year, but don’t include decommissioning costs.
Line 11. Net operating loss (NOL) deduction. Enter
the amount of any NOL deduction allowed by Regulations
section 1.468A-4(b)(4), and explain its computation on an
attached schedule.
Note: The 2-year carryback rule doesn’t apply to NOLs
arising in tax years ending after 2017. An exception
applies to farmers and non-life insurance companies. See
section 172(b), as amended by P.L. 115-97, section
13302.
Line 13b. First installment of section 1062 applicable
net tax liability. Complete and attach Form 1062,
Schedule(s) A (Form 1062), and a copy of the covenant if
electing to defer the net income tax attributable to the gain
from the sale or exchange of qualified farmland property
Instructions for Form 1120-ND (Rev. 12-2025)

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Enter the fund’s EIN. If the fund doesn’t have an EIN, it
must apply for one. An EIN can be applied for in the
following ways.
• Online—Go to IRS.gov/EIN. The EIN is issued
immediately once the application information is validated.
• By faxing or mailing Form SS-4, Application for
Employer Identification Number.

Part I. Computation of Fund Income
Tax

TREASURY/IRS AND OMB USE ONLY DRAFT
during this tax year under section 1062. Enter the amount
from Form 1062, Part III, line 15. See the Instructions for
Form 1062 for more information. Also, see section 1062.
Line 14. Payments. Generally, no payments are allowed
other than those on lines 14a through 14d and the credit
for backup withholding.
Backup withholding. If the fund had federal income tax
withheld from any payments it received because, for
example, it failed to give the payer its correct EIN, include
the amount withheld in the total for line 14z. Enter the
amount withheld and “Backup Withholding” in the blank
space above line 14z.

Line 15. Estimated tax penalty. A fund that doesn’t
make estimated tax payments when due may be subject
to an underpayment penalty for the period of
underpayment. Use Form 2220, Underpayment of
Estimated Tax by Corporations, to see if the fund owes a
penalty and to figure the amount of the penalty. If Form
2220 is attached, check the box on line 15 and enter the
amount of the penalty on that line.
Line 16. Tax due. Generally, the fund must pay any tax
due in full no later than the due date for filing its tax return
(excluding extensions). Payment of the tax due must be
made electronically. See Electronic Deposit Requirement,
earlier, for the payment options for the fund. Also, go to
IRS.gov/Payments for more detailed information.
If the fund cannot pay the full amount of tax owed, it can
apply for an installment agreement online. The fund can
apply for an installment agreement online if:
• It cannot pay the full amount shown on line 16,
• The total amount owed is $25,000 or less, and
• The fund can pay the liability in full in 24 months.
To apply using the Online Payment Agreement
Application, go to IRS.gov/OPA.
Under an installment agreement, the fund can pay what
it owes in monthly installments. There are certain
conditions that must be met to enter into and maintain an
installment agreement, such as paying the liability within
24 months and making all required deposits and timely
filing tax returns during the length of the agreement.
If the installment agreement is accepted, the fund will
be charged a fee and it will be subject to penalties and
interest on the amount of tax not paid by the due date of
the return.
Line 17. Overpayment. If there is an overpayment on
line 17, enter the amount the fund wants refunded on
line 18b. See the instructions for line 18b, later. The fund
can also choose to have all or part of the overpayment
credited to next year’s estimated tax by completing
line 18a. See the instructions for line 18a next.

Instructions for Form 1120-ND (Rev. 12-2025)

Line 18b. Refunded. Enter the amount to be refunded to
the fund on line 18b. If the fund has access to U.S.
banking services, it should use direct deposit for any
refunds, whenever possible.
The benefits of a direct deposit include a faster refund,
the added security of a paperless payment, and the
savings of tax dollars associated with the reduced
processing costs.
Direct deposit of refund. If the fund wants its refund
directly deposited into its checking or savings account at
any U.S. bank or other financial institution, complete lines
18c through 18e. See the instructions for lines 18c, 18d,
and 18e, later.
The fund is not eligible to request a direct deposit if:
• The receiving financial institution is a foreign bank or a
foreign branch of a U.S. bank, or
• The fund has applied for an EIN but is filing its tax return
before receiving one.
Line 18c. Routing number. The routing number must be
nine digits. The first two digits must be 01 through 12 or 21
through 32. Enter the financial institution’s routing number
and verify that the institution will accept a direct deposit.
Ask the fund’s financial institution for the correct routing
number to enter on line 18c if:
• The routing number on a deposit slip is different from
the routing number on the fund’s checks,
• The deposit is to a savings account that doesn’t allow
the fund to write checks, or
• The fund’s checks state they are payable through a
financial institution different from the one at which the
account is located.
Line 18d. Type of account. Check the appropriate box
for the type of account. Don’t check more than one box.
The fund must check the correct box to ensure the fund’s
deposit is accepted.
Line 18e. Account number. The account number can
be up to 17 characters (both numbers and letters). Include
hyphens but omit spaces and special symbols. Enter the
number from left to right and leave any unused boxes
blank. Don’t include the check number.
If the direct deposit to the fund’s account is different
from the amount it expected, the fund will receive an
explanation in the mail about 2 weeks after the refund is
deposited.
Conditions resulting in a refund by check. If the IRS
is unable to process the request for a direct deposit, a
refund by check will be generated instead. Reasons for
not processing a request include the following.
• The name of the fund on the tax return does not match
the name on the account.
• The financial institution rejects the direct deposit
because of an incorrect routing or account number.
• The fund fails to indicate the type of account the deposit
is to be made to (that is, checking or savings).
7

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Line 14f. Section 1062 applicable net tax liability
from Form 1062. If the fund is electing to defer the net
income tax attributable to the gain from the sale or
exchange of qualified farmland property, complete and
attach Form 1062 and Schedule(s) A (Form 1062). Enter
the amount from Form 1062, Part III, line 14. See the
Instructions for Form 1062 for more information. Also, see
section 1062.

Line 18a. Credited to next year’s estimated tax. The
fund can elect to apply all or part of the fund’s
overpayment to next year’s estimated tax. Enter the
amount from line 17 that the fund wants applied to next
year’s estimated tax.

TREASURY/IRS AND OMB USE ONLY DRAFT
Note: The IRS isn’t responsible for a lost refund if the
fund enters the wrong account information. Check with the
fund’s financial institution to get the correct routing and
account numbers and to make sure the direct deposit will
be accepted.

Schedule L. Balance Sheets

The balance sheets should agree with the fund’s books
and records.

Schedule M. Other Information
Line 1. The term “electing taxpayer” means an eligible
taxpayer that elects the application of section 468A to
deduct payments made to a nuclear decommissioning
fund. See Regulations section 1.468A-7 for the rules
concerning the election.

Part II. Initial Taxes on Self-Dealing
(Section 4951)
Initial Taxes on Self-Dealers

An initial tax of 10% of the amount involved (defined later)
is imposed on each act of self-dealing between a
disqualified person and a nuclear decommissioning fund
for each tax year (or part of a tax year) in the tax period.
The tax is required to be paid by any disqualified person
(other than a trustee acting only as a trustee of the trust)
who participates in the act of self-dealing.

Initial Taxes on Trustee

A tax of 21/2% of the amount involved is imposed on a
trustee who participates in the act of self-dealing. The tax
isn’t imposed if the trustee unwillingly or due to
reasonable cause participated in the act. The tax is
computed on all acts of self-dealing that occur within the
tax period. The tax is required to be paid by the trustee
who participates in the act.
Exceptions. The initial tax on the act of self-dealing of
a disqualified person or a trustee isn’t imposed if the acts
of self-dealing are corrected within the tax period.
Privacy Act and 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

8

Section 4951 of the Internal Revenue Code requires
disqualified taxpayers engaged in self-dealing with a trust
to pay over to the IRS an initial tax. This form is used to
report the initial amount of tax that you owe. Sections
6001 and 6011 require you to provide the requested
information if the tax applies to you. Section 6109 and its
regulations require you to provide your identifying number.
Routine uses of this information include disclosing it to the
Department of Justice for civil and criminal litigation and to
other federal agencies, as provided by law. We may
disclose the information to cities, states, the District of
Columbia, and U.S. commonwealths or territories to
administer their tax laws. We may disclose the information
to foreign governments pursuant to tax treaties. We may
disclose the information to contractors for tax
administration purposes. We may also disclose this
information to federal and state agencies to enforce
federal nontax criminal laws and to combat terrorism. If
you don't provide this information, or you provide false or
fraudulent information, you may be subject to penalties.
You aren’t 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
burden for business taxpayers filing this form is approved
under OMB control number 1545-0123 and is included in
the estimates shown in the instructions for their business
income tax return.
If you have comments concerning the accuracy of the
time estimates or suggestions for making this form
simpler, we would be happy to hear from you. You can
send us comments through IRS.gov/FormComments. Or
you can write to the Internal Revenue Service, Tax Forms
and Publications, 1111 Constitution Ave. NW, IR-6526,
Washington, DC 20224.
Don’t send the tax form to this address. Instead, see
Where To File, earlier.

Instructions for Form 1120-ND (Rev. 12-2025)

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Line 5. If you are a trustee or disqualified person (defined
later), complete the items included in line 5 to determine if
you have engaged in an act of self-dealing.

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.