Instructions For Form 2220 - 2009 (Page 2 of 4) in pdf

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the corporation has been in existence. A large corporation

990-PF

1120-FSC

1120-REIT

includes a “large organization” as defined in the instructions

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990-T

1120-L

1120-RIC

for Form 990-W.

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1120-C

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1120-ND

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1120S

Taxable income, for this purpose, is modified to exclude

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1120-F

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1120-PC

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1120-SF

net operating loss and capital loss carrybacks and

Line 2c. Enter the amount from Form 1120, Line 32f(2); or

carryovers. Members of a controlled group, as defined in

the applicable line for other income tax returns.

section 1563, must divide the $1 million amount among

themselves under rules similar to those in section 1561.

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

corporation’s 2008 tax the same way the amount on line 3 of

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

this form was determined, using the taxes and credits from

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

its 2008 tax return. However, skip line 4 and enter on line 5

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

the amount from line 3 if either of the following applies.

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

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The corporation did not file a tax return for 2008 that

for line 10.

showed a liability for at least some amount of tax.

For more information, see Regulations section 1.6655-4.

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The corporation had a 2008 tax year of less than 12

months.

Part III. Figuring the Underpayment

S corporations. Enter on line 4 the sum of:

Line 9. The corporation is generally required to enter the

1. The total of the investment credit recapture tax and

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

the built-in gains tax shown on the return for the 2009 tax

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

year and

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

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

the instructions for line 9.

corporation’s return for the 2008 tax year.

Large corporations. Large corporations, follow the

If the 2008 tax year was less than 12 months, skip line 4

instructions below.

and enter on line 5 the amount from line 3.

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

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

Part II. Reasons for Filing

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

Lines 6 and 7. Adjusted seasonal installment method

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

and/or annualized income installment method. If the

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

corporation’s income varied during the year because, for

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

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

enter as follows:

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

a. Subtract line 4 from line 3,

required installments by using the adjusted seasonal

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

installment method and/or the annualized income

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

installment method.

the result in column (b).

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

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

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

during the winter months, may benefit from using one or

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

both of these methods to figure its required installments.

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

The annualized income installment or adjusted seasonal

the rest of Schedule A, Part III.

installment may be less than the required installment under

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

Line 11. Enter the estimated tax payments made by the

both of these methods may reduce or eliminate the penalty

corporation for its tax year as indicated below. Include any

for those due dates.

overpayment from the corporation’s 2008 tax return that was

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

credited to the corporation’s 2009 estimated tax. If an

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

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

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

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

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

Sunday, or legal holiday are considered made on the due

Schedule A automatically selects the smallest of:

date to the extent the payment is applied against that

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The adjusted seasonal installment (if applicable),

required installment. If multiple columns have the same due

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The annualized income installment (if applicable), or

date, see the instructions for line 9.

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

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

(increased by any recapture of a reduction in a required

9, column (a).

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

Columns (b), (c), and (d). Enter payments made by

Follow the steps below to determine which parts of the

the date on line 9 for that column and after the date on line 9

form have to be completed.

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of the preceding column.

If the corporation is using only the adjusted seasonal

Line 17. If any of the columns in line 17 shows an

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

underpayment, complete Part IV to figure the penalty.

complete Schedule A, Parts II and III.

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If the corporation is using only the annualized income

Part IV. Figuring the Penalty

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

complete Schedule A, Parts II and III.

Complete lines 19 through 38 to determine the amount of

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If the corporation is using both methods, check the boxes

the penalty. The penalty is figured for the period of

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

underpayment using the underpayment rate determined

Schedule A.

under section 6621(a)(2). The period of underpayment runs

Line 8. Large corporations. A large corporation is a

from the installment due date to the earlier of the date the

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

underpayment is actually paid or the 15th day of the third

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

month after the close of the tax year. For information on

million or more for any of the 3 tax years immediately

obtaining the interest rate on underpayments, see the

preceding the 2009 tax year, or if less, the number of years

footnote on page 2 of Form 2220.

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Instructions For Form 2220 - 2009 Page 2

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