Instructions For Form 2220 - Underpayment Of Estimated Tax By Corporations

If the corporation is using only the annualized income

• 990-PF

• 1120-FSC

• 1120-REIT

installment method, check the box on Part II, line 7, and

• 990-T

• 1120-L

• 1120-RIC

complete Schedule A, Parts II and III.

• 1120-C

• 1120-ND

• 1120S

If the corporation is using both methods, check the boxes

• 1120-F

• 1120-PC

• 1120-SF

in Part II, lines 6 and 7, and complete all three parts of

Schedule A.

Line 8. Large corporations. A large corporation is a

corporation (other than an S corporation) that had, or whose

Line 2c. Enter the amount from Form 1120, Schedule J,

predecessor had, taxable income (defined below) of $1

Line 19b, or the applicable line for other income tax returns.

million or more for any of the 3 tax years immediately

Line 4. All filers (other than S corporations). Figure the

preceding the 2014 tax year, or if less, the number of years

corporation's 2013 tax the same way the amount on line 3 of

the corporation has been in existence. See Regulations

this form was determined, using the taxes and credits from its

section 1.6655-4.

2013 tax return. However, skip line 4 and enter on line 5 the

Taxable income, for this purpose, is modified to exclude

amount from line 3 if either of the following applies.

net operating loss and capital loss carrybacks and

The corporation did not file a tax return for 2013 that

carryovers. Members of a controlled group, as defined in

showed a liability for at least some amount of tax.

section 1563, must divide the $1 million amount among

The corporation had a 2013 tax year of less than 12

themselves under rules similar to those in section 1561.

months.

If the corporation is a large corporation, check the box on

Part II, line 8, and, if applicable, check the box(es) on Part II,

S corporations. Enter on line 4 the sum of:

line 6 and/or line 7. Also, if applicable, complete Parts I, II,

1. The total of the investment credit recapture tax and the

and III of Schedule A, as discussed below in the instructions

built-in gains tax shown on the return for the 2014 tax year

for line 10.

and

Part III. Figuring the Underpayment

2. Any excess net passive income tax shown on the S

corporation's return for the 2013 tax year.

Line 9. The corporation is generally required to enter the

15th day of the 4th (Form 990-PF filers use the 5th month),

If the 2013 tax year was less than 12 months, skip line 4

6th, 9th, and 12th months of its tax year.

and enter on line 5 the amount from line 3.

Line 10. If multiple columns have the same due date, see

Part II. Reasons for Filing

the instructions for line 9.

Large corporations. Large corporations, follow the

Lines 6 and 7. Adjusted seasonal installment method

instructions below.

and/or annualized income installment method. If the

corporation's income varied during the year because, for

1. If the box on line 8 (but not line 6 or line 7) is checked

example, it operated its business on a seasonal basis, it may

and line 3 is smaller than line 4, enter 25% of line 3 in

be able to lower or eliminate the amount of one or more

columns (a) through (d) of line 10.

required installments by using the adjusted seasonal

2. If the box on line 8 (but not line 6 or line 7) is checked

installment method and/or the annualized income installment

and line 4 is smaller than line 3, enter 25% of line 4 in column

method.

(a) of line 10. In column (b), figure the amount to enter as

Example. A ski shop, which receives most of its income

follows:

during the winter months, may benefit from using one or both

a. Subtract line 4 from line 3,

of these methods to figure its required installments. The

b. Add the result to the amount on line 3, and

annualized income installment or adjusted seasonal

c. Multiply the total in item b above by 25%, and enter the

installment may be less than the required installment under

result in column (b).

the regular method for one or more due dates. Using one or

both of these methods may reduce or eliminate the penalty

In columns (c) and (d), enter 25% of line 3.

for those due dates.

3. If the box on line 8 and the box on line 6 and/or line 7

Use Schedule A on pages 3 and 4 of Form 2220 to figure

are checked, follow the instructions in items 1 and 2 above

one or more required installments. If Schedule A is used for

by substituting Schedule A, line 35 for line 10 and complete

any payment due date, it must be used for all payment due

the rest of Schedule A, Part III.

dates. To arrive at the amount of each required installment,

Schedule A automatically selects the smallest of:

Line 11. Enter the estimated tax payments made by the

The adjusted seasonal installment (if applicable),

corporation for its tax year as indicated below. Include any

The annualized income installment (if applicable), or

overpayment from the corporation's 2013 tax return that was

The regular installment under section 6655(d)(1)

credited to the corporation's 2014 estimated tax. If an

(increased by any recapture of a reduction in a required

installment is due on a Saturday, Sunday, or legal holiday,

installment under section 6655(e)(1)(B)).

payments made on the next day that is not a Saturday,

Sunday, or legal holiday are considered made on the due

Follow the steps below to determine which parts of the

date to the extent the payment is applied against that

form have to be completed.

required installment. If multiple columns have the same due

If the corporation is using only the adjusted seasonal

date, see the instructions for line 9.

installment method, check the box in Part II, line 6, and

Column (a). Enter payments made by the date on line 9,

complete Schedule A, Parts I and III.

column (a).

-2-

Instructions for Form 2220 (2014)

Instructions For Form 2220 - Underpayment Of Estimated Tax By Corporations - 2014 Page 2

Related Articles

Related forms

Related Categories