1.1247-5—Information and recordkeeping requirements.
(a) General.
In order to carry out the purposes of section 1247, a foreign investment company shall keep the records and comply with the information requirements prescribed by this section for each taxable year of the company for which the election under section 1247(a) is in effect. See section 1247(a)(1)(C).
(b) Recordkeeping requirements.
The company shall maintain and preserve such permanent books of account, records, and other documents as are sufficient to establish in accordance with the provisions of § 1.1247-2 what its taxable income would be if it were a domestic corporation. Generally, if the books and records of the company are maintained in the manner prescribed by regulations under section 30 of the Investment Company Act of 1940 (15 U.S.C. 80a-30 ), the requirements of the preceding sentence shall be considered satisfied. Such books, records, and other documents shall be available for inspection in the United States by authorized internal revenue officers or employees, and shall be maintained so long as the contents thereof may be material in the administration of section 1247.
(c) Information returns.
The company shall file, for each taxable year during which the election under section 1247(a) is in effect, on or before the 15th day of the third month following the close of its taxable year or on or before May 1, 1965, whichever is later, with the Director of International Operations, Internal Revenue Service, Washington, DC, 20225:
(1)
Form 1120, modified so as to be an annual information return, establishing the amount of its taxable income referred to in paragraph (b) of this section, and
(2)
Form 2438, modified so as to be an annual information return, establishing the amount of the company's excess capital gains (referred to in paragraph (a)(1) of § 1.1247-3) for the taxable year, the distributed portion thereof, and the amount of the undistributed portion thereof.