Instructions For Form 2220 - Underpayment Of Estimated Tax By Corporations

Line 15. Compute the alternative minimum tax (AMT) on

Line 22. Annualization amounts. Enter on line 22,

Form 4626, Alternative Minimum Tax—Corporations, if

columns (a) through (d), respectively, the annualization

applicable. Figure alternative minimum taxable income

amounts shown in the tables below for the option used for

(AMTI) based on the corporation's income and deductions

line 20 above. For example, if the corporation elected Option

for the months shown in the column headings directly above

1, enter on line 22 the annualization amounts 6, 3, 1.71429,

line 1. For each column, divide the AMTI by the amount

and 1.2, in columns (a) through (d), respectively.

shown on line 8 before subtracting the AMT exemption

Corporations

amount under section 55(d). Enter on line 15, column (d), the

1st

2nd

3rd

4th

AMT determined for column (d). For columns (a) through (c)

Installment

only, first multiply the AMT determined by the amounts

Standard option

1.33333

shown in columns (a) through (c) of line 13 and then enter on

Option 1

1.71429 1.2

line 15 the result for each column.

Option 2

2.4

1.5

1.09091

Line 16. Enter on line 16 any other taxes the corporation

owed for the months shown in each column heading directly

Tax-Exempt Organizations and Private Foundations

above line 1. Include the same taxes used to figure Form

1st

2nd

3rd

4th

2220, Part I, line 1, but do not include the personal holding

Installment

company tax and interest due under the look-back method of

Standard option

1.33333

section 460(b)(2) for completed long-term contracts or

Option 1

1.71429 1.2

section 167(g)(2) for property depreciated under the income

forecast method.

Line 23b. If the corporation has certain extraordinary items

Line 18. Enter the credits the corporation is entitled to for

of $1,000,000 or more, a net operating loss deduction, or a

the months shown in each column heading above line 1.

section 481(a) adjustment, special rules apply. Include these

Enter the same type of credits that are allowed on Form

amounts on line 23b. Also include on line 23b the de minimis

2220, page 1, lines 1 and 2c.

extraordinary items that the corporation chooses to exclude

from line 21. See Extraordinary items, earlier.

Part II. Annualized Income Installment Method

Line 25. Compute the alternative minimum tax (AMT) on

Line 20. Annualization periods. Enter on line 20, columns

Form 4626, if applicable. Figure alternative minimum taxable

(a) through (d), respectively, the annualization periods for the

income (AMTI) based on the corporation's income and

option shown in the tables below. For example, if the

deductions for the annualization period entered in each

corporation elected Option 1, enter on line 20 the

column on line 20. Multiply AMTI by the annualization

annualization periods 2, 4, 7, and 10, in columns (a) through

amounts (line 22) used to figure annualized taxable income

(d), respectively.

before subtracting the AMT exemption amount under section

55(d). Enter on line 25 the result for each column.

Use Option 1 or Option 2 only if the corporation

elected to do so by filing Form 8842, Election To Use

Line 26. Enter any other taxes the corporation owed for the

Different Annualization Periods for Corporate

months shown in each column on line 20. Include the same

CAUTION

Estimated Tax, by the due date of the first required

taxes used to figure Form 2220, Part I, line 1, but do not

installment payment. Once made, the election is irrevocable

include the personal holding company tax and interest due

for the particular tax year.

under the look-back method of section 460(b)(2) for

completed long-term contracts or section 167(g)(2) for

property depreciated under the income forecast method.

Option 2 is not available to tax-exempt organizations and

private foundations. For these entities, see the options shown

Line 28. Enter the credits the corporation is entitled to for

in the table in the instructions for line 22.

the months shown in each column on line 20. Do not

annualize any credit. However, when figuring the credits,

Corporations

annualize any item of income or deduction used to figure the

1st

2nd

3rd

4th

Installment

credit.

Standard option

Part III. Required Installments

Option 1

Line 33. Before completing line 33 in columns (b) through

Option 2

(d), complete lines 34 through 38 in each of the preceding

columns. For example, complete lines 34 through 38 in

Tax-Exempt Organizations and Private Foundations

column (a) before completing line 33 in column (b).

1st

2nd

3rd

4th

Installment

Line 35. Enter in each column of line 35, 25% of the amount

Standard option

from page 1, Part I, line 5. Large corporations, see the

Option 1

instructions for line 10 for the amounts to enter.

Line 38. For each installment, enter the smaller of line 34 or

Line 21. Enter on line 21 the taxable income (line 30, Form

line 37 on line 38. Also enter the result on page 1, Part III,

1120; or the applicable line for other income tax returns) that

line 10.

the corporation received for the months entered for each

annualization period in columns (a) through (d) on line 20.

Paperwork Reduction Act Notice. We ask for the

If the corporation has extraordinary items, special rules

information on this form to carry out the Internal Revenue

apply. Do not include on line 21 the de minimis extraordinary

laws of the United States. You are required to give us the

items that the corporation chooses to include on line 23b.

information. We need it to ensure that you are complying with

See Extraordinary items, earlier.

-4-

Instructions for Form 2220 (2016)

Instructions For Form 2220 - Underpayment Of Estimated Tax By Corporations - 2016 Page 4

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