Revenue Procedures 2021-45 and 2022-38, section 3.31, increased the threshold for the gross receipts test for small business to $27 million for 2022 and $29 million for 2023. However, Form 1120-IC DISC, Interest Charge Domestic International Sales Corporation Return, Schedule O, line 8b and its instructions will not be revised to reflect the increases. If you download the form or instructions for Form 1120-IC-DISC revised December 2021, please be advised that the threshold for the gross receipts test has not been updated for 2022 and 2023. For tax years beginning in 2022, a taxpayer meets the gross receipts test if the taxpayer has average annual gross receipts of $27 million or less for the 3 prior tax years. For tax years beginning in 2023, a taxpayer meets the gross receipts test if the taxpayer has average annual gross receipts of $29 million or less for the 3 prior tax years. In the next revision of the form and instructions, we will remove the gross receipts test threshold amount from the form and refer the taxpayer to the revenue procedure for the inflation adjustments in the instructions.
