Part I

Line A. If the corporation claims a deduction for percentage depletion under section 613 with respect to any part of its foreign mineral income (as defined in section 901(e)(2)) for the tax year, any foreign taxes on that income must be reduced by the smaller of:

1. The foreign taxes minus the tax on that income, or
2. The tax on that income determined without regard to the deduction for percentage depletion minus the tax on that income.

The reduction must be made on a country-by-country basis (Regulations section 1.901-3(a)(1)). Attach a separate schedule showing the reduction.

Line C. If the corporation chooses to calculate the reduction in the foreign tax by identifying taxes specifically attributable to participation in or cooperation with an international boycott, enter the amount from Schedule C (Form 5713), line 2b. See Form 5713 and its separate Schedule C and instructions.

Line D. If the corporation controls a foreign corporation or partnership and fails to furnish any return or any information in any return required under section 6038(a) by the due date, reduce the foreign income taxes available for credit under sections 901 and 960 by 10%. If the failure continues for 90 days or more after the date of written notice by the IRS, reduce the tax by an additional 5% for each 3-month period or fraction thereof during which the failure continues after the 90-day period has expired. See section 6038(c) for limitations and special rules.

In addition, a $10,000 penalty is imposed under section 6038(b) for failure to supply the information required under section 6038(a) for each entity within the time prescribed. If the required information is not submitted within 90 days after the IRS has mailed notice to the U.S. person, additional penalties may apply.

Note: The reduction in foreign income taxes available for credit is reduced by any dollar penalty imposed under section 6038(b).

Line E. Enter foreign income taxes paid or accrued during the current tax year that have been suspended due to the rules of section 909.

Line F. Enter disallowed taxes under section 965(g). These amounts should correspond to the total amounts reported from Schedule E, Part I, columns 12 and 15.

Taxes paid or accrued with respect to distributions of section 965(a) PTEP and section 965(b) PTEP must be reduced by the relevant applicable percentage. See Regulations section 1.965-5(b). Taxes deemed paid with respect to distributions of section 965(a) PTEP and section 965(b) PTEP must be reduced by the relevant applicable percentage. See Regulations section 1.965-5(c)(1)(i) and (iii).

Line G. Enter disallowed taxes under section 245A. Such disallowed taxes may also include, for example, gain on certain sales of CFC stock treated as dividends. See section 964(e)(4).

Line H. Enter disallowed taxes under section 960(d)(4). These amounts should correspond to the total amounts reported from Schedule E, Part I, columns 13 and 16.

Section 960(d)(4) disallows a foreign tax credit under section 901 for 10% of any foreign income taxes paid or accrued (or deemed paid under section 960(b)(1)) with respect to section 959(a) distributions, to the extent the previously taxed earnings and profits were excluded under section 959(a) by reason of a section 951A inclusion in a U.S. shareholder’s tax year ending after June 28, 2025.

Line I. For any other reductions in taxes, enter the code “OTH” and attach a statement with the amount and the nature of such other reduction.

Computer-Generated Schedule H A computer-generated Schedule H may be filed if it conforms to the IRS version. In some cases, Schedule H must be expanded to properly report apportioned deductions. This applies in cases such as when the corporation:

• Has more than two product lines (under the gross receipts method of apportioning research and experimental (R&E) deductions in Part I), or

• Has more than five categories of income (statutory groupings within Part I, line 6; Part II, line 3; or Part III, line 2) with respect to which expenses are required to be apportioned.

Instructions for Form 1118 (Rev. 12-2025) 25

Note: If there are more than five foreign source statutory groupings within Part II, line 3, or Part III, line 2, add them after the U.S. source residual grouping.

Part I—Research and Experimental Deductions Note: These instructions refer to the regulations issued on November 12, 2020. See Regulations section 1.861-17 (T.D. 9922, 85 FR 72042, as corrected by 86 FR 54367).

Use Part I to apportion R&E deductions. Use the gross receipts method described in Regulations section 1.861-17 and report applicable amounts in column (a).

Column (a), Gross Receipts Method

Enter in the spaces provided the SIC codes (based upon the Standard Industrial Classification System) of the product lines to which the R&E deductions relate. See Regulations section 1.861-17(b)(3) for details on choosing SIC codes and changing a product category.

Note: If the corporation has more than two product lines, see Computer-Generated Schedule H, earlier.

Columns (a)(i) and (a)(iv)

Line 1. For each product line, enter the taxpayer’s worldwide “gross intangible income” (as defined in Regulations section 1.861-17(b)(2)).

Line 4a. For each product line, enter the U.S. source “gross intangible income” (as defined in Regulations section 1.861-17(b)(2)) of the taxpayer that is neither income pertaining to sales, licenses, leases, or services of controlled parties (as defined in Regulations section 1.861-17(d)(4)) nor income pertaining to sales, licenses, leases, or services of uncontrolled parties (as defined in Regulations section 1.861-17(d)(3)).

Line 4b. For each product line, enter the U.S. source “gross intangible income” (as defined in Regulations section 1.861-17(b)(2)) of the taxpayer that is income pertaining to sales, licenses, leases, or services of controlled parties (as defined in Regulations section 1.861-17(d)(4)).

Line 4c. For each product line, enter the U.S. source “gross intangible income” (as defined in Regulations section 1.861-17(b)(2)) of the taxpayer that is income pertaining to sales, licenses, leases, or services of uncontrolled parties (as defined in Regulations section 1.861-17(d)(3)).

Line 4d. For each product line, add lines 4a through 4c and enter the sum on line 4d.

Line 5a. For each product line, enter the aggregate foreign source “gross intangible income” (as defined in Regulations section 1.861-17(b)(2)) of the taxpayer that is neither income pertaining to sales, licenses, leases, or services of controlled parties (as defined in Regulations section 1.861-17(d)(4)) nor income pertaining to sales, licenses, leases, or services of uncontrolled parties (as defined in Regulations section 1.861-17(d)(3)).

Line 5b. For each product line, enter the aggregate foreign source “gross intangible income” (as defined in Regulations section 1.861-17(b)(2)) of the taxpayer that is

income pertaining to sales, licenses, leases, or services of controlled parties (as defined in Regulations section 1.861-17(d)(4)).

Line 5c. For each product line, enter the aggregate foreign source “gross intangible income” (as defined in Regulations section 1.861-17(b)(2)) of the taxpayer that is income pertaining to sales, licenses, leases, or services of uncontrolled parties (as defined in Regulations section 1.861-17(d)(3)).

Line 5d. For each product line, add lines 5a through 5c and enter the sum on line 5d.

Lines 6a through 6e. For lines 6a through 6e, enter the code for the applicable separate category of income (foreign source statutory grouping). See Categories of Income, earlier. If code “901j” or one of the “RBT” codes applies, also enter the applicable country.

Note: If the corporation has more than five separate categories of income, Schedule H, Part I, line 6 must be expanded to properly report apportioned R&E deductions. See Computer-Generated Schedule H, earlier.

Lines 6a(1), 6b(1), 6c(1), 6d(1), and 6e(1). For each product line and for each separate category, enter the foreign source “gross intangible income” (as defined in Regulations section 1.861-17(b)(2)) of the taxpayer that is neither income pertaining to sales, licenses, leases, or services of controlled parties (as defined in Regulations section 1.861-17(d)(4)) nor income pertaining to sales, licenses, leases, or services of uncontrolled parties (as defined in Regulations section 1.861-17(d)(3)).

Lines 6a(2), 6b(2), 6c(2), 6d(2), and 6e(2). For each product line and for each separate category, enter the foreign source “gross intangible income” (as defined in Regulations section 1.861-17(b)(2)) of the taxpayer that is income pertaining to sales, licenses, leases, or services of controlled parties (as defined in Regulations section 1.861-17(d)(4)).

Lines 6a(3), 6b(3), 6c(3), 6d(3), and 6e(3). For each product line and for each separate category, enter the foreign source “gross intangible income” (as defined in Regulations section 1.861-17(b)(2)) of the taxpayer that is income pertaining to sales, licenses, leases, or services of uncontrolled parties (as defined in Regulations section 1.861-17(d)(3)).

Lines 6a(4), 6b(4), 6c(4), 6d(4), and 6e(4). For each product line and for each separate category, add lines (1), (2), and (3) and enter the sum on line (4).

Columns (a)(ii) and (a)(v)

Line 1. For each product line, enter the taxpayer’s worldwide gross receipts from sales and leases of products or services.

Line 4a. For each product line, enter the taxpayer’s gross receipts from sales and leases of products or services related to U.S. source gross intangible income.

Line 4b. For each product line, enter the controlled parties’ (as defined in Regulations section 1.861-17(d)(4)) gross receipts from sales, leases, licenses, or services

26 Instructions for Form 1118 (Rev. 12-2025)

that are related to the taxpayer’s U.S. source gross intangible income.

Line 4c. For each product line, enter the uncontrolled parties’ (as defined in Regulations section 1.861-17(d)(3)) gross receipts from sales, leases, licenses, or services of uncontrolled parties that are related to the taxpayer’s U.S. source gross intangible income.

Line 4d. For each product line, add lines 4a through 4c and enter the sum on line 4d.

Line 5a. For each product line, enter the taxpayer’s gross receipts from sales and leases of products or services related to foreign source gross intangible income.

Line 5b. For each product line, enter the controlled parties’ (as defined in Regulations section 1.861-17(d)(4)) gross receipts from sales, leases, licenses, or services that are related to the taxpayer’s foreign source gross intangible income.

Line 5c. For each product line, enter the uncontrolled parties’ (as defined in Regulations section 1.861-17(d)(3)) gross receipts from sales, licenses, leases, or services that are related to the taxpayer’s foreign source gross intangible income.

Line 5d. For each product line, add lines 4a through 4c and enter the sum on line 4d.

Lines 6a(1), 6b(1), 6c(1), 6d(1), and 6e(1). For each product line, enter the taxpayer’s gross receipts from sales and leases of products or services that are related to foreign source gross intangible income within the relevant separate category.

Lines 6a(2), 6b(2), 6c(2), 6d(2), and 6e(2). For each product line, enter the controlled parties’ (as defined in Regulations section 1.861-17(d)(4)) gross receipts from sales, licenses, leases, or services that are related to foreign source gross intangible income within the relevant statutory grouping.

Lines 6a(3), 6b(3), 6c(3), 6d(3), and 6e(3). For each product line, enter the uncontrolled parties’ (as defined in Regulations section 1.861-17(d)(3)) gross receipts from sales, licenses, leases, or services that are related to foreign source gross intangible income within the relevant statutory grouping.

Lines 6a(4), 6b(4), 6c(4), 6d(4), and 6e(4). For each product line and for each separate category, add lines (1), (2), and (3) and enter the sum on line (4).

Columns (a)(iii) and (a)(vi)

Line 1. Enter the total R&E deductions connected with the product lines.

Line 2a or 2b. Reduce the line 1 totals by a 50% exclusive apportionment amount (Regulations section 1.861-17(c)).

Note: For tax years beginning on or after January 1, 2020, there is no longer a rule with respect to legally mandated R&E. See Regulations section 1.861-17 (T.D. 9922) published in the Federal Register on November 12, 2020.

Under the exclusive apportionment rules, 50% of the R&E deductions are apportioned exclusively to the residual grouping of U.S. source gross income, if the R&E that accounts for more than 50% of the amount of such R&E deductions were performed in the United States. A similar rule applies when a majority of R&E is performed outside the United States.

Enter 50% of line 1 on either line 2a or line 2b (as explained above).

Line 4d. According to Regulations section 1.861-17(d) (1), to determine the line 3 amount of R&E expenditures to be apportioned to the residual grouping of U.S. source gross income, divide the gross receipts related to the gross intangible income within the residual grouping by the worldwide gross receipts for the product line. Multiply the result by the line 3 R&E deductions to be apportioned.

Example 1. With respect to the first product line reported on Schedule H, Part I, to determine the amount to enter on line 4d, column (a)(iii), divide the amount on line 4d, column (a)(ii) by the amount on line 1, column (a) (ii). Multiply the result by the amount on line 3, column (a) (iii).

Line 5d. According to Regulations section 1.861-17(d) (1), to determine the line 3 amount of R&E expenditures to be apportioned to the aggregate statutory grouping of foreign source gross income, divide the gross receipts related to the gross intangible income within the statutory grouping(s) by the worldwide gross receipts for the product line. Multiply the result by the line 3 R&E deductions to be apportioned.

Example 2. With respect to the first product line reported on Schedule H, Part I, to determine the amount to enter on line 5d, column (a)(iii), divide the amount on line 5d, column (a)(ii) by the amount on line 1, column (a) (ii). Multiply the result by the amount on line 3, column (a) (iii).

Lines 6a(5), 6b(5), 6c(5), 6d(5), and 6e(5). Enter the amount of line 3 R&E deductions apportioned to each separate category. According to Regulations section 1.861-17(d)(1), to determine the line 3 amount of R&E expenditures to be apportioned among the statutory groupings of foreign source gross income, divide the gross receipts related to the gross intangible income within the statutory grouping by the worldwide gross receipts for the product line. Multiply the result by the line 3 R&E deductions to be apportioned.

Example 3. With respect to the first product line reported on Schedule H, Part I, there are two foreign tax credit separate limitation categories with gross receipts that are related to foreign source gross intangible income within each of the two categories. With respect to the first separate category, to determine the amount to enter on line 6a(5), column (a)(iii), divide the amount on line 6a(4), column (a)(ii) by the amount on line 1, column (a)(ii) and multiply the result by the amount on line 3, column (a)(iii). Similarly, with respect to the second separate category, to determine the amount to enter on line 6b(5), column (a) (iii), divide the amount on line 6b(4), column (a)(ii) by the amount on line 1, column (a)(ii) and multiply the result by the amount on line 3, column (a)(iii).

Instructions for Form 1118 (Rev. 12-2025) 27

Lines 6a(6), 6b(6), 6c(6), 6d(6), and 6e(6). Enter the amount of line 2b R&E deductions, if any, to be apportioned to each separate category. As indicated in Regulations section 1.861-17(c), if there are multiple separate categories with foreign source gross intangible income with respect to a given product line, the line 2b amount is apportioned ratably based on the relative amounts of gross receipts from gross intangible income in each separate category, as determined under Regulations section 1.861-17(d).

Column (b)

Line 1. Enter total R&E deductions for all product lines (for example, from column (a)(iii) and, if applicable, columns (a)(vi), (a)(ix), etc.).

Note: Line 1, column (b) is the total worldwide R&E deductions for all product lines.

Lines 2a and 4d. Enter on line 2a the total amount exclusively apportioned to U.S. source gross intangible income for all product lines. Enter on line 4d the total amount of line 3 R&E expenditures apportioned to the residual grouping of U.S. source gross intangible income for all product lines.

Note: Line 2a, column (b) plus line 4d, column (b) equals the total amount of R&E deductions for all product lines apportioned to U.S. source gross intangible income for all product lines.

Lines 6a(7), 6b(7), 6c(7), 6d(7), and 6e(7). Enter on each of these lines the total amount of line 3 R&E expenditures apportioned to the statutory grouping of foreign source gross income for all product lines.

Note: The sum of lines 6a(7), 6b(7), 6c(7), 6d(7), and 6e(7) in column (b) equals the total amount of R&E deductions for all product lines apportioned to foreign source gross intangible income for all product lines.

Note: Include the amount from column (b) of line 6a(7) in column 14 of the Schedule A that corresponds with the code entered on line 6a. If applicable, you should likewise include the amount from column (b) of line 6b(7) in column 14 of the Schedule A that corresponds with the code entered on line 6b. If applicable, on page 10 of Form 1118, you should likewise include the amount(s) from column (b) of lines 6c(7), 6d(7), and 6e(7) in column 14 of the Schedule A that corresponds with the code entered on lines 6c, 6d, and 6e, respectively.

Part II—Deductions Allocated and Apportioned Based on Assets

Columns (a)(i) Through (b)(iv)

Use these columns to apportion interest deductions. See final and temporary Regulations sections 1.861-8 through 1.861-14 for rules on the apportionment of interest deductions based on the tax book value or adjusted tax book value of assets.

A corporation may elect to use the alternative tax book value method. See Regulations section 1.861-9(i).

Columns (a) and (b) are subdivided into “Nonfinancial Corporations” and “Financial Corporations.” In allocating interest deductions, members of an affiliated group that are financial corporations must be treated as a separate affiliated group. Complete columns (a)(ii) and (b)(iv) for members of the corporation’s affiliated group that are financial corporations and columns (a)(i) and (b)(iii) for members that are nonfinancial corporations.

See Regulations section 1.861-11 for the definition of an affiliated group.

Columns (a)(i) and (a)(ii)

Line 1a. Enter the average of the total assets of the affiliated group. See Regulations section 1.861-9(g)(2) for the definition of “average” for these purposes.

Line 1b. Enter the assets included on line 1a that are characterized as excess related party indebtedness. See Regulations section 1.861-10(e) for an exception to the general rule of fungibility for excess related party indebtedness.

Line 1c. Enter all other assets that attract specifically allocable interest deductions. See Regulations section 1.861-10 for other exceptions to the general rule of fungibility (such as qualified nonrecourse indebtedness and integrated financial transactions).

Line 1d. Enter the total of the exempt assets and assets without directly identifiable yield that are to be excluded from the interest apportionment formula (Regulations section 1.861-8(d)(2) and Temporary Regulations sections 1.861-8T(d)(2) and 1.861-9T(g)(3)). This could include an exempt portion of assets that produce foreign-derived intangible income and/or an exempt portion of CFC stock that gives rise to inclusions under section 951A.

Lines 3a through 3f. For lines 3a through 3e, enter the code for the applicable separate category of income (statutory grouping). See Categories of Income , earlier. If code “901j” or one of the “RBT” codes applies, also enter the applicable country.

Enter the value of the assets in each of the statutory groupings on lines 3a through 3e, and enter the value of the assets in the residual grouping on line 3f. See Regulations sections 1.861-12 and 1.861-13 and

Note: If the corporation had more than five separate categories of income, Schedule H, Part II, line 3 must be expanded to properly report deductions apportioned based on assets. See Computer-Generated Schedule H , earlier.

The assets in each statutory grouping (lines 3a through 3e) and the residual grouping (line 3f) are divided between those assets generating dividend income eligible to be offset by the deduction under section 245A versus those generating all other types of gross income. The foreign branch income and section 951A income categories do not include assets generating dividend income eligible to be offset by the deduction under section 245A. The assets on line 2 are characterized as assets in one of the statutory groupings or as belonging to the residual grouping.

28 Instructions for Form 1118 (Rev. 12-2025)

Temporary Regulations sections 1.861-9T(g)(3), 1.861-12T(g)(2), and 1.861-12T for the rules for characterizing the assets.

Columns (b)(iii) and (b)(iv)

Line 1a. Enter the total interest deductions for the members of the corporation’s affiliated group. These include any expense that is currently deductible under section 163 (including original issue discount), and interest equivalents. See Regulations section 1.861-9 and Temporary Regulations section 1.861-9T for the definition of interest equivalents and a list of the sections that disallow or suspend interest deductions or require the capitalization of interest deductions.

Line 1b. Enter the interest deductions associated with the assets on line 1b of columns (a)(i) and (a)(ii), respectively, that attract specifically allocable interest deductions under Regulations section 1.861-10(e).

Note: These interest deductions will be divided among the statutory groupings and the residual grouping. The interest deductions allocated and apportioned to the statutory groupings will appear as a definitely allocable deduction in Schedule A, column 13(j).

Line 1c. Enter the interest deductions associated with the assets on line 1c of columns (a)(i) and (a)(ii), respectively, that attract specifically allocable interest deductions.

Lines 3a through 3f. To figure the amount of interest deductions to apportion to each separate category of income (statutory grouping) and to the residual grouping, divide the assets apportioned to the grouping by the total assets apportioned and multiply the result by the interest deductions to be apportioned.

Column (e)

Complete this column to apportion all other deductions allocated and apportioned based on assets (other than interest deductions, stewardship deductions, and certain industrial/investor damages). See final and temporary Regulations sections 1.861-8 and 1.861-14.

Line Instructions for Columns (c), (d), and (e)

Line 1a. For each column, enter the total expenses to be allocated and apportioned. See final and temporary Regulations sections 1.861-8 and 1.861-14. Also report this amount on line 2.

Lines 3a through 3f. For lines 3a through 3e, enter the code for the applicable separate category of income (statutory grouping). See Categories of Income , earlier. If code “901j” or one of the “RBT” codes applies, also enter the applicable country.

Note: If the corporation had more than five separate categories of income, Schedule H, Part II, line 3 must be expanded to properly report stewardship deductions in column (c), certain industrial/investor damages in column (d), and “other deductions” in column (e). To clarify, in column (e), report all other deductions allocated and apportioned based on assets (other than those listed in columns (b), (c), and (d)). See Computer-Generated Schedule H , earlier.

Enter on lines 3a through 3e the amount of expenses apportioned to each separate category of income as further apportioned between dividend income eligible to be offset by the deduction under section 245A and all other gross income.

Example 1. To determine the amount to enter on line 3a(1), column (b)(iii), do the following.

1. Divide the amount entered on line 3a(1), column (a) (i), by the amount on line 2, column (a)(i).

Enter on line 3f the amount of expenses apportioned to income in the residual grouping (U.S. source income) as further apportioned between dividend income eligible to be offset by the deduction under section 245A and all other gross income.

Attach a schedule that explains in detail how the above apportionments were made.

Column (f)

To determine the totals to enter in column (f), use the following steps.

Step 1: For each applicable line beginning with line 3a(1), enter the sum of the amounts in columns (b)(iii), (b)(iv), (c), (d), and (e) in this column (f).

Step 2: With respect to section 245A dividends, enter the sum of any amounts entered in column (f) of lines 3a(1), 3b(1), 3c(1), 3d(1), 3e(1), and 3f(1) on line 4, column (f). Include this line 4 result as a negative amount on Schedule B, Part II, line 8b.

Note: This is the adjustment required by section 904(b) (4) to worldwide taxable income to eliminate the expenses properly allocated or apportioned to stock or dividend income for which a dividends received deduction is allowed under section 245A. As such, it includes both foreign source amounts (that is, the amounts from the applicable statutory groupings on lines 3a(1), 3b(1), 3c(1),

2. Multiply the result by the amount on line 2, column (b)(iii).

Example 2. To determine the amount to enter on line 3b(2), column (b)(iv), do the following.

1. Divide the amount on line 3b(2), column (a)(ii), by the amount on line 2, column (a)(ii).

2. Multiply the result by the amount on line 2, column (b)(iv).

Column (c)

Complete this column to apportion stewardship deductions. See Regulations section 1.861-8(e)(4)(ii).

Column (d)

Complete this column to apportion certain industrial/ investor damages. See Regulations section 1.861-8(e)(5) (ii) and (iii).

Instructions for Form 1118 (Rev. 12-2025) 29

3d(1), and 3e(1)) and U.S. source amounts (that is, the amount from the residual grouping on line 3f(1)).

Step 3: With respect to amounts other than section 245A dividends, for each applicable statutory grouping, include the amount in column (f) of line 3a(2), 3b(2), 3c(2), 3d(2), or 3e(2) in column 14 of the corresponding Schedule A. For example, if the taxpayer enters “PAS” on Schedule H, Part II, line 3a, the taxpayer takes the total on line 3a(2), column (f) and includes it in column 14 of the Schedule A being completed for the Passive Category.

Note: Do not include the amount on line 3f(2), column (f) in column 14 on any Schedule A. The amount on line 3f(2), column (f) is a residual grouping amount and not an applicable statutory grouping amount.

Note: Due to the reporting requirement described in step 3 above, you do not need to report a grand total for amounts other than section 245A dividends (that is, the amount reported on line 4).

Line 1. For each column, enter the total expenses to be allocated and apportioned.

Lines 2a through 2f. For lines 2a through 2e, enter the code for the applicable separate category of income (statutory grouping). See Categories of Income , earlier. If code “901j” or one of the “RBT” codes applies, also enter the applicable country.

Note: If the corporation had more than five separate categories of income, Schedule H, Part III, line 2 must be expanded to properly report deductions other than research and experimental deductions (reported in Schedule H, Part I), and other than deductions allocated and apportioned based on assets (reported in Schedule H, Part II). See Computer-Generated Schedule H, earlier.

Enter on lines 2a through 2e the amount of expenses apportioned to each separate category of income as further apportioned between dividend income eligible to be offset by the deduction under section 245A and all other gross income.

Enter on line 2f the amount of expenses apportioned to income in the residual grouping (U.S. source income) as further apportioned between dividend income eligible to be offset by the deduction under section 245A and all other gross income.

Attach a schedule that explains in detail how the above apportionments were made.

Line 3. See the instructions for column (f) above.

See the separate instructions for Schedule I, Schedule J, Schedule K, and Schedule L to see if the corporation must file these schedules.

30 Instructions for Form 1118 (Rev. 12-2025)

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 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 suggestions for making Form 1118 and related schedules simpler, we would be happy to hear from you. You can send us comments through IRS.gov/FormComments . Or you can send your comments to Internal Revenue Service, Tax Forms and Publications Division, 1111 Constitution Ave. NW, IR-6526, Washington, DC 20224. Do not send the tax form to this office. Instead, see Where To File in the instructions for the tax return with which this form is filed.

Instructions for Form 1118 (Rev. 12-2025) 31