Instructions For Form 1120-W - 2012 (Page 4 of 4) in pdf

Line 21. Taxable Income

Line 26. Other Taxes

If a corporation has income includible under section 951(a)

For the same taxes used to figure line 19 of Form 1120-W,

(controlled foreign corporation income), special rules apply.

figure the amounts for the months shown on line 20.

Amounts includible in income under section 951(a) generally

Line 28. Credits

must be taken into account in figuring the amount of any

Enter the credits to which the corporation is entitled for the

annualized income installment as the income is earned. The

months shown in each column on line 20. Do not annualize any

amounts are figured in a manner similar to the way in which

credit. However, when figuring the credits, annualize any item

partnership income inclusions are taken into account in figuring

of income or deduction used to figure the credit.

a partner’s annualized income installments as provided in

Regulations section 1.6654-2(d)(2).

Part III. Required Installments

Safe harbor election. Corporations may be able to make a

prior year safe harbor election. Under the election, an eligible

Line 33

corporation is treated as having received ratably during the tax

Before completing line 33 in columns (b) through (d), complete

year items of income under section 951(a) equal to 115%

lines 34 through 38 in each of the preceding columns. For

(100% for a noncontrolling shareholder) of the amounts shown

example, complete lines 34 through 38 in column (a) before

on the corporation’s return for the first preceding tax year (the

completing line 33 in column (b).

second preceding tax year for the first and second required

Line 35

installments).

For more information, see section 6655(e)(4)(B) and

“Large corporations,” see the instructions for page 1, line 25, for

Regulations section 1.6655-2(f)(3)(v)(B)(2).

the amount to enter. Also, corporations with assets of $1 billion

or more (determined as of the end of the preceding year) must

Extraordinary items. If the corporation has extraordinary

increase the required installment due in July, August, or

items, special rules apply. Do not include on line 21 the de

September 2012, and decrease the next required installment to

minimis extraordinary items that the corporation chooses to

reflect the increase in the previous installment. See the

include on line 23b. See Extraordinary items earlier.

instructions for page 1, line 25, earlier.

Line 22. Annualization Amounts

Line 38. Required Installments

Enter the annualization amounts for the option used on line 20.

For each installment, enter the smaller of line 34 or line 37 on

For example, if the corporation elects Option 1, enter on line 22

line 38. Also enter the result on page 1, Part I, line 25.

the annualization amounts 6, 3, 1.71429, and 1.2, in columns

(a) through (d), respectively.

Paperwork Reduction Act Notice. Your use of this form is

optional. It is provided to aid the corporation in determining its

1st

2nd

3rd

4th

tax liability.

Installment

You are not required to provide the information requested on

Standard option

1.33333

a form that is subject to the Paperwork Reduction Act unless

Option 1 . . . . . .

1.71429

1.2

the form displays a valid OMB control number. Books or

records relating to a form or its instructions must be retained as

Option 2 . . . . . .

2.4

1.5

1.09091

long as their contents may become material in the

administration of any Internal Revenue law. Generally, tax

Line 23b

returns and return information are confidential, as required by

If the corporation has certain extraordinary items of $1,000,000

section 6103.

or more, a net operating loss deduction, or a section 481(a)

The time needed to complete this form will vary depending

adjustment, special rules apply. Include these amounts on line

on individual circumstances. The estimated average time is:

23b. Also include on line 23b the de minimis extraordinary items

that the corporation chooses to exclude from line 21. See

Learning about the

Preparing

Extraordinary items earlier.

the form &

Form

Recordkeeping

law or the form

sending

Line 24

1120 – W

10 hr., 45 min.

1 hr., 35 min.

1 hr., 50 min.

1120 – W, Sch. A (Pt.I)

24 hr., 37 min.

1hr.

1hr., 26 min.

Figure the tax on the amount in each column on line 23c by

1120 – W, Sch. A (Pt.II)

12 hr., 26 min.

35 min.

49 min.

following the same steps used to figure the tax on Form

1120 – W, Sch. A (Pt.III)

6 hr., 13 min.

6 min.

12 min.

1120-W, page 1, line 14.

If you have comments concerning the accuracy of these time

Line 25. Alternative Minimum Tax

estimates or suggestions for making this form simpler, we

The corporation may owe AMT unless it will be a “small

would be happy to hear from you. You can write to the Internal

corporation” exempt from the AMT under section 55(e) for its

Revenue Service, Tax Products Coordinating Committee,

2012 tax year. To figure the AMT, use the 2011 Form 4626 and

SE:W:CAR:MP:T:M:S, 1111 Constitution Ave. NW, IR-6526,

its instructions as a guide. Figure AMTI using income and

Washington, DC 20224. Do not send the tax form to this office.

deductions for the annualization period entered in each column

Instead, keep the form for your records.

on line 20. Multiply the AMTI by the annualization amounts on

line 22 before subtracting the exemption amount. Multiply that

result by 20% and subtract any AMT foreign tax credit plus the

amount on line 24 to arrive at the AMT.

-4-

Instructions for Form 1120-W (2012)

Instructions For Form 1120-W - 2012 Page 4

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