Instructions For Form 1120-W - 2012
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Department of the Treasury
Internal Revenue Service
Instructions for
Form 1120-W
Electronic Deposit Requirement
Section references are to the Internal Revenue Code unless
otherwise noted.
Corporations must use electronic funds transfers to make all
What’s New
federal tax deposits (such as deposits of employment, excise,
and corporate income tax). This includes installment payments
•
For corporations with assets of $1 billion or more, the amount
of estimated tax. Forms 8109 and 8109-B, Federal Tax
of any required installment of estimated tax due in July, August,
Coupon, can no longer be used to make federal tax deposits.
or September of 2012 must be increased, and the next required
Generally, electronic funds transfers are made using the
installment must be decreased in an amount to reflect the
Electronic Federal Tax Payment System (EFTPS). However, if
increase in the previous installment. See the instructions for
the corporation does not want to use EFTPS, it can arrange for
line 25.
its tax professional, financial institution, payroll service, or other
•
The IRS has created a page on IRS.gov that includes
trusted third party to make deposits on its behalf. Also, it may
information about Form 1120-W and its instructions,
arrange for its financial institution to initiate a same-day tax wire
at Information about any future
payment (discussed below) on its behalf. EFTPS is a free
developments affecting Form 1120-W (such as legislation
service provided by the Department of the Treasury. Services
enacted after we release it) will be posted on that page.
provided by a tax professional, financial institution, payroll
service, or other third party may have a fee.
General Instructions
To get more information about EFTPS or to enroll in EFTPS,
visit
or call 1-800-555-4477. Additional
Section references are to the Internal Revenue Code unless
information about EFTPS is also available in Pub. 966, The
otherwise noted.
Secure Way to Pay Your Federal Taxes.
Who Must Make Estimated Tax
Depositing on time. For deposits made by EFTPS to be on
time, the corporation must initiate the deposit by 8 p.m. Eastern
Payments
time the day before the date the deposit is due. If the
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Corporations generally must make estimated tax payments if
corporation uses a third party to make deposits on its behalf,
they expect their estimated tax (income tax less credits) to be
they may have different cutoff times.
$500 or more.
Same-day wire payment option. If the corporation fails to
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S corporations must also make estimated tax payments for
initiate a deposit transaction on EFTPS by 8 p.m. Eastern time
certain taxes. S corporations should see the Instructions for
the day before the date a deposit is due, it can still make the
Form 1120S, U.S. Income Tax Return for an S Corporation, to
deposit on time by using the Federal Tax Application (FTA).
figure their estimated tax payments.
Before using the same-day wire payment option, the
•
Tax-exempt corporations, tax-exempt trusts, and domestic
corporation will need to make arrangements with its financial
private foundations use Form 990-W, Estimated Tax on
institution ahead of time. Please check with the financial
Unrelated Business Taxable Income for Tax-Exempt
institution regarding availability, deadlines, and costs. To learn
Organizations, to figure the amount of their estimated tax
more about making a same-day wire payment and download
payments.
the Same-Day Payment Worksheet, visit .
When To Make Estimated Tax Payments
Foreign corporations. If a foreign corporation maintains an
office or place of business in the United States, it must use
The installments generally are due by the 15th day of the 4th,
electronic funds transfers (as discussed above) to make
6th, 9th, and 12th months of the tax year. If any due date falls
installment payments of estimated tax.
on a Saturday, Sunday, or legal holiday, the installment is due
on the next regular business day.
If the foreign corporation does not maintain an office or place
of business in the United States, it may pay the estimated tax
Underpayment of Estimated Tax
by EFTPS if it has a U.S. bank account. The foreign corporation
may also arrange for its financial institution to initiate a
A corporation that does not make estimated tax payments when
same-day wire payment on its behalf or can arrange for either a
due may be subject to an underpayment penalty for the period
qualified intermediary, tax professional, payroll service, or other
of underpayment. Use Form 2220, Underpayment of Estimated
trusted third party to make a deposit on its behalf using a
Tax by Corporations, to see if the corporation owes a penalty
master account.
and to figure the amount of the penalty. See Form 2220 and the
Instructions for Form 2220.
In addition, the foreign corporation has the option to pay the
estimated tax due by check or money order, payable to the
Overpayment of Estimated Tax
“United States Treasury.” To ensure proper crediting, enter the
foreign corporation’s EIN, “Form 1120-F (or 1120-FSC, if
A corporation that has overpaid its estimated tax may apply for
applicable) estimated tax payment,” and the tax period to which
a quick refund if the overpayment is at least 10% of its expected
the payment applies on the check or money order. The
income tax liability and at least $500. To apply, file Form 4466,
payments must be sent to the Internal Revenue Service Center,
Corporation Application for Quick Refund of Overpayment of
P.O. Box 40901, Ogden, UT 84409.
Estimated Tax, after the end of the tax year and before the
corporation files its income tax return. Form 4466 may not be
Refiguring Estimated Tax
filed later than the 15th day of the 3rd month after the end of the
tax year.
If, after the corporation figures and deposits estimated tax, it
finds that its tax liability for the year will be more or less than
Methods of Tax Payment
originally estimated, it may have to refigure its required
Some corporations (described below) are required to
installments. If earlier installments were underpaid, the
electronically deposit all depository taxes, including estimated
corporation may owe a penalty.
tax payments.
Feb 01, 2012
Cat. No. 52102x
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