Instructions For Form 2220 - Underpayment Of Estimated Tax By Corporations

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

Line 23b. If the corporation has certain extraordinary items

the months shown in each column heading above line 1.

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

Enter the same type of credits that are allowed on Form

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

2220, page 1, lines 1 and 2c.

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

extraordinary items that the corporation chooses to exclude

Part II. Annualized Income Installment Method

from line 21. See Extraordinary items earlier.

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

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

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

Form 4626, if applicable. Figure alternative minimum taxable

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

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

corporation elected Option 1, enter on line 20 the

deductions for the annualization period entered in each

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

column on line 20. Multiply AMTI by the annualization

(d), respectively.

amounts (line 22) used to figure annualized taxable income

before subtracting the AMT exemption amount under section

Use Option 1 or Option 2 only if the corporation

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

elected to do so by filing Form 8842, Election To

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

Use Different Annualization Periods for Corporate

CAUTION

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

Estimated Tax, by the due date of the first required

taxes used to figure Part I, line 1 of Form 2220, 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

Option 2 is not available to tax-exempt organizations and

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

private foundations. For these entities, see the options shown

property depreciated under the income forecast method.

in the table in the instructions for line 22.

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

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

Corporations

annualize any credit. However, when figuring the credits,

1st

2nd

3rd

4th

Installment

annualize any item of income or deduction used to figure the

Standard option

credit.

Option 1

Part III. Required Installments

Option 2

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

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

Tax-Exempt Organizations and Private Foundations

columns. For example, complete lines 34 through 38 in

1st

2nd

3rd

4th

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

Installment

Standard option

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

Option 1

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

instructions for line 10 for the amounts to enter.

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

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

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

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

the corporation received for the months entered for each

line 10.

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

If the corporation has extraordinary items, special rules

Paperwork Reduction Act Notice. We ask for the

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

information on this form to carry out the Internal Revenue

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

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

See Extraordinary items earlier.

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

these laws and to allow us to figure and collect the right

Line 22. Annualization amounts. Enter on line 22,

amount of tax.

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

amounts shown in the tables below for the option used for

You are not required to provide the information requested

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

on a form that is subject to the Paperwork Reduction Act

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

unless the form displays a valid OMB control number. Books

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

or records relating to a form or its instructions must be

retained as long as their contents can become material in the

Corporations

administration of any Internal Revenue law. Generally, tax

1st

2nd

3rd

4th

Installment

returns and return information are confidential, as required by

Standard option

1.33333

section 6103.

Option 1

1.71429 1.2

The time needed to complete and file this form will vary

Option 2

2.4

1.5

1.09091

depending on individual circumstances. The estimated

average time is:

Tax-Exempt Organizations and Private Foundations

1st

2nd

3rd

4th

Installment

Standard option

1.33333

Option 1

1.71429 1.2

-4-

Instructions for Form 2220 (2012)

Instructions For Form 2220 - Underpayment Of Estimated Tax By Corporations - 2012 Page 4

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