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Official form guide
Form 8404: Interest Charge on DISC-Related Deferred Tax Liability
IRS Form 8404 is used to calculate and report the interest charge on DISC-related deferred tax liability for shareholders of IC-DISCs. It must be filed by the due date of the taxpayer’s federal income tax return, and the interest is generally due on the 15th day of the 4th month after the tax year ends.
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IRS Form 8404 - Interest Charge on DISC-Related Deferred Tax Liability
IRS Form 8404 is used to calculate and report the interest charge on DISC-related deferred tax liability for shareholders of IC-DISCs. It must be filed by the due date of the taxpayer’s federal income tax return, and the interest is generally due on the 15th day of the 4th month after the tax year ends.
Risk Radar
Scan points- 1Missing the interest‑charge payment deadline triggers daily compounded interest penalties.
- 2Leaving box A unchecked, so the taxpayer type is not indicated.
- 3Omitting the shareholder’s identifying number in Item B.
- 4Failing to enter the IC‑DISC’s identifying number in Item C when multiple IC‑DISCs are reported.
- 5Not calculating line 9 (interest charge) correctly.
Plain English
Form 8404 tells the IRS how much interest you owe because a Domestic International Sales Corporation (IC-DISC) deferred tax to you. You fill in the numbers the form calculates, sign it, and send it with your tax return. The form only applies if that deferred income would increase your taxable income.
Submission Date
- Filing date: 2026-01-12 17:10:44
- 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 shareholder of an IC‑DISC (or former IC‑DISC) that reports deferred DISC income to you on line 10, Part III of Schedule K (Form 1120‑IC‑DISC) and the addition would increase your taxable income.
- Do not use it when you are not a shareholder of an IC‑DISC, the IC‑DISC does not report deferred DISC income to you, or the income would not affect your taxable income.
- Check Form 1120‑IC‑DISC instead when you need to report the IC‑DISC’s own taxable income and deferred DISC income.
Form selector
Use this form or another form?
Shareholder receiving deferred DISC income
Calculates interest charge on DISC‑related deferred tax liability
✓ Confirm you are a shareholder and the income appears on Schedule K of Form 1120‑IC‑DISC
IC‑DISC itself reporting its taxable income
Reports the corporation’s taxable income and deferred DISC income
✓ Verify the IC‑DISC’s tax year aligns with your filing year
Amending a previously filed interest charge due to audit adjustments
Required when line 7 amount changes after audit or amended return
✓ Ensure the change affects line 7 before filing an amendment
Deadline or filing window
The filing trigger is receipt of deferred DISC income. Form 8404 must be filed by the due date of the taxpayer’s federal return, which does not allow extensions. For example, a tax year ending July 31, 2026 requires filing by November 16, 2026 (3 ½ months after year‑end).
Checklist
What you need before filling it out
Name of shareholder
Shareholder’s name · Form 8404, line E
Shareholder’s identifying number
SSN or EIN · Form 8404, line B
IC‑DISC’s identifying number
IC‑DISC EIN · Form 8404, line C
Shareholder’s tax year for interest charge
Tax year ending date · Form 8404, line D
Taxable income or loss on tax return
Tax return figures · Form 8404, line 1
Interest charge amount
Calculated interest · Form 8404, line 9
Before you submit
- 1Verify the form edition reads 20 25 on the top.
- 2Enter the shareholder’s name exactly as it appears on tax records.
- 3Enter the shareholder’s identifying number (SSN/EIN) in box B.
- 4Enter the IC‑DISC’s identifying number in box C.
- 5Enter the correct tax year for which interest is required in box D.
- 6Enter the taxable income or loss on line 1.
- 7Calculate the interest charge and fill line 9.
- 8Sign the form in the Sign Here section.
- 9Date the signature.
- 10Attach any required supporting statements.
- 11Mail the form to the address indicated in the Where to file instructions.
How to file this form
- 1Collect shareholder name, identifying number, IC‑DISC number, and tax year — retain these details for the form.
- 2Complete lines E, B, C, D, and line 1 with the gathered information — verify entries before proceeding.
- 3Calculate the interest charge and enter it on line 9 — keep the calculation worksheet.
- 4Sign and date the form in the Sign Here section — keep the signed page.
- 5Mail the completed Form 8404 to the IRS filing address — obtain a mailing receipt or tracking number as proof of filing.
Known limitations
- 1Does not apply to individuals or entities that are not shareholders of an IC‑DISC.
- 2Does not apply when the IC‑DISC does not report deferred DISC income to the shareholder.
- 3Does not cover interest on deferred tax liabilities unrelated to IC‑DISCs.
Field map
Compact field-by-field guide
General Info
2 items
Full legal name and taxpayer identification number (SSN or EIN).
Current mailing address.
Details
2 items
Complete all applicable sections of this form according to the official IRS instructions.
Enter the relevant dollar amount if this form involves tax calculation.
Certification
1 items
Read and acknowledge any certifications required by this form.
Signatures
1 items
Sign and date. Unsigned forms cannot be processed.
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Fillable formOpen in Editor->Form 8404 shows revision 20 25 on the top; the form directs users to www.irs.gov/Form8404 for the latest information. No specific change details are provided in the source.
What changed or needs a fresh check
- Edition date — confirm the form shows revision 20 25 on the top (Form p.1).
- Fee — Not stated in the official source — verify on the agency site.
- Mailing address — Not stated in the official source — verify on the agency site.
- Signature — confirm a signature appears in the Sign Here section (Form p.1).
Quick Facts
Downloads
After you file
- 1Retain a complete copy of the filed Form 8404 and supporting calculations for at least three years.
- 2Keep records of the payment receipt for the interest charge.
- 3Watch for any IRS notice confirming receipt or indicating a discrepancy.
- 4If an error is discovered, file an amended Form 8404 as described in the instructions.
- 5Maintain the amended filing documentation alongside the original for future reference.
Sources
- SRCForm p.1 — revision 20 25 appears on the form header.
- SRCForm p.1 — directs users to www.irs.gov/Form8404 for the latest information.
- SRCForm p.1 — purpose: shareholders of IC‑DISCs use Form 8404 to figure and report interest owed.
- SRCForm p.1 — filing requirement: you must file if you are a shareholder of an IC‑DISC, the IC‑DISC reports deferred DISC income on line 10, Part III of Schedule K (Form 1120‑IC‑DISC), and the addition would increase taxable income.
- SRCForm p.1 — filing deadline: file by the due date of your federal income tax return (excluding extensions) for the tax year that ends with or includes the IC‑DISC’s tax year end.
- SRCForm p.1 — interest due date: generally due on the 15th day of the 4th month following the close of the tax year.
- SRCForm p.1 — payment recommendation: IRS recommends paying electronically via www.irs.gov/payments.
- SRCForm p.1 — Sign Here section includes declaration under penalties of perjury and signature lines.
Common confusion points
Do I need to file if I’m an S corporation shareholder?
The form applies to all shareholders, but interest is not deductible for S corporations.
→ Verify your entity type and note the nondeductibility provision.
When is the interest due date?
Interest is generally due on the 15th day of the 4th month after the tax year ends.
→ Check the tax year end and count to the 15th day of the 4th month.
What if my tax year differs from the IC‑DISC’s tax year?
The filing deadline aligns with the taxpayer’s return due date, not the IC‑DISC’s year.
→ Confirm your return due date matches the filing requirement.
Do I have to pay estimated tax on the interest charge?
Payment of estimated tax isn’t required for the interest charge.
→ No estimated payments needed; pay the full amount by the due date.
Do I file Form 8404 with my regular tax return?
Form 8404 must be filed separately from your income tax return.
→ Use a separate envelope and follow the Where to file instructions.
Where is the mailing address for Form 8404?
The source directs users to the IRS Where to file page for the address.
→ Visit www.irs.gov/wheretofile and locate the address for Form 8404.
Workflow map
Related forms and next steps
Before
Current
After
Often used with
⚠ If something goes wrong
- Form 8404 (amended) — file to correct line 7 changes after audit or amendment.
Questions about IRS Form 8404
What is IRS Form 8404 used for?
Form 8404 tells the IRS how much interest you owe because a Domestic International Sales Corporation (IC-DISC) deferred tax to you. You fill in the numbers the form calculates, sign it, and send it with your tax return. The form only applies if that deferred income would increase your taxable income.
Who must file IRS Form 8404?
Shareholders of an IC-DISC (or former IC-DISC) who receive deferred DISC income on Schedule K (Form 1120‑IC‑DISC) and whose tax return would show higher taxable income must file IRS Form 8404.
What information does IRS Form 8404 require?
The form collects the shareholder’s name, address, taxpayer type, identifying numbers (Item B for the shareholder and Item C for the IC‑DISC), the tax year (Item D), and calculates lines 1‑9 to determine the interest charge.
When is IRS Form 8404 due?
File Form 8404 by the due date of your federal income tax return (excluding extensions) for the tax year that ends with or includes the IC‑DISC’s tax year end. For a fiscal year ending July 31, 2026, the filing deadline is November 16, 2026 (3 ½ months after year‑end).
Where do I file IRS Form 8404?
Mail the completed form using the U.S. Postal Service to the address listed on the IRS website: go to www.irs.gov/wheretofile, select examples for returns beginning with a number, click on 8, and locate Form 8404.
How do I complete IRS Form 8404?
Enter the shareholder’s name, address, and check the appropriate taxpayer type box. Provide the shareholder’s SSN or EIN (Item B) and the IC‑DISC’s identifying number (Item C). Fill in the tax year (Item D) and compute lines 1 through 9 as instructed. Sign under penalties of perjury, include any preparer information, and mail the form with your return.
What happens if IRS Form 8404 is filed incorrectly?
If the interest charge shown on line 9 is not paid by its due date, daily compounded interest under section 6621 is added to the unpaid amount, increasing the liability.
Do I need to file if I’m an S corporation shareholder?
The form applies to all shareholders, but interest is not deductible for S corporations. Verify your entity type and note the nondeductibility provision.
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