Instructions For Form 1120-Sf - 2006 (Page 2 of 4) in pdf

Overpaid estimated tax. If the fund overpaid

estimated tax, it may be able to get a quick

Where To File

refund by filing Form 4466, Corporation

Application for Quick Refund of Overpayment

of Estimated Tax. The overpayment must be at

File the fund’s return at the applicable IRS address listed below.

least 10% of the fund’s expected income tax

liability and at least $500. File Form 4466 after

If the fund’s principal

And the total assets at the

Use the following Internal

the end of the fund’s tax year, and no later than

business, office, or agency

end of the tax year (Form

Revenue Service Center

the 15th day of the third month after the end of

is located in:

1120-SF, Schedule L, line 6,

address:

the tax year. Form 4466 must be filed before

column (b)) are:

the fund files its tax return.

Connecticut, Delaware, District

Interest and Penalties

of Columbia, Illinois, Indiana,

Kentucky, Maine, Maryland,

Less than $10 million

Cincinnati, OH 45999-0012

Interest. Interest is charged on taxes paid late

Massachusetts, Michigan, New

even if an extension of time to file is granted.

Hampshire, New Jersey, New

Interest is also charged on penalties imposed

York, North Carolina, Ohio,

for failure to file, negligence, fraud, substantial

Pennsylvania, Rhode Island,

valuation misstatements, substantial

South Carolina, Vermont,

understatements of tax, and reportable

Virginia, West Virginia,

$10 million or more

Ogden, UT 84201-0012

transaction understatements from the due date

(including extensions) to the date of payment.

Wisconsin

The interest charge is figured at a rate

Alabama, Alaska, Arizona,

determined under section 6621.

Arkansas, California,

Late filing of return. A fund that does not file

Colorado, Florida, Georgia,

its tax return by the due date, including

Hawaii, Idaho, Iowa, Kansas,

extensions, may be penalized 5% of the unpaid

Louisiana, Minnesota,

tax for each month or part of a month the

Mississippi, Missouri,

Any amount

Ogden, UT 84201-0012

return is late, up to a maximum of 25% of the

Montana, Nebraska, Nevada,

unpaid tax. The minimum penalty for a return

New Mexico, North Dakota,

that is over 60 days late is the smaller of the

Oklahoma, Oregon, South

tax due or $100. The penalty will not be

Dakota, Tennessee, Texas,

imposed if the fund can show that the failure to

Utah, Washington, Wyoming

file on time was due to reasonable cause.

Funds that file late must attach a statement

A foreign country or U.S.

explaining the reasonable cause.

Any amount

Philadelphia, PA 19255-0012

possession

Late payment of tax. A fund that does not

pay the tax when due generally may be

penalized

of 1% of the unpaid tax for each

fund is required to use the Electronic Federal

coupon. Records of these deposits will be sent

month or part of a month the tax is not paid, up

Tax Payment System (EFTPS), it must

to the IRS.

to a maximum of 25% of the unpaid tax. The

continue to use EFTPS in all later years.

penalty will not be imposed if the fund can

For more information on deposits, see the

show that the failure to pay on time was due to

If the fund is required to use EFTPS and

instructions in the coupon booklet (Form 8109)

reasonable cause.

fails to do so, it may be subject to a 10%

and Publication 583, Starting a Business and

penalty. If the fund is not required to use

Keeping Records.

Trust fund recovery penalty. This penalty

EFTPS, it may participate voluntarily. To enroll

may apply if certain excise, income, social

in or get more information about EFTPS, call

If the fund owes tax when it files Form

security, and Medicare taxes that must be

1-800-555-4477. To enroll online, visit

1120-SF, do not include the payment

collected or withheld are not collected or

with the tax return. Instead, mail or

withheld, or these taxes are not paid. These

CAUTION

deliver the payment with Form 8109 to an

taxes are generally reported on Forms 720,

Depositing on time. For EFTPS deposits to

authorized depositary, or use EFTPS, if

941, or 945 (see Other Forms That May Be

be made timely, the fund must initiate the

applicable.

Required on page 3). The trust fund recovery

transaction at least 1 business day before the

penalty may be imposed on all persons who

date the deposit is due.

are determined by the IRS to have been

Estimated Tax Payments

Deposits With Form 8109

responsible for collecting, accounting for, and

Generally, the following rules apply to the

paying over these taxes, and who acted

If the fund does not use EFTPS, deposit fund

fund’s payments of estimated tax.

willfully in not doing so. The penalty is equal to

income tax payments (and estimated tax

•

A fund must make installment payments of

the unpaid trust fund tax. See the Instructions

payments) with Form 8109, Federal Tax

estimated tax if it expects its total tax for the

for Form 720 or Publication 15 (Circular E),

Deposit Coupon. If you do not have a

year (less applicable credits) to be $500 or

Employer’s Tax Guide, for details, including the

preprinted Form 8109, use Form 8109-B to

more.

definition of responsible persons.

make deposits. You can get this form by calling

•

The installments are due by the 15th day of

1-800-829-4933 or visiting an IRS taxpayer

Other penalties. Other penalties can be

the 4th, 6th, 9th, and 12th months of the tax

assistance center. Have your EIN ready when

imposed for negligence, substantial

year. If any date falls on a Saturday, Sunday,

you call or visit.

understatement of tax, reportable transaction

or legal holiday, the installment is due on the

understatements, and fraud. See sections

next business day.

Do not send deposits directly to an IRS

6662, 6662A, and 6663.

•

office; otherwise, the fund may have to pay a

Use Form 1120-W, Estimated Tax for

penalty. Mail or deliver the completed Form

Corporations, as a worksheet to compute

Tax Year and Accounting

8109 with the payment to an authorized

estimated tax. Complete Form 1120-W

depository (for example, a commercial bank or

according to its instructions. However, you

Method

other financial institution authorized to accept

should multiply the expected modified gross

A designated or qualified settlement fund’s tax

federal tax deposits). Make checks or money

income (see instructions for line 14 on page 4)

year is the calendar year and the fund must

orders payable to that depositary.

by the maximum corporate tax rate in effect for

use the accrual method of accounting.

the year. See section 11 for the current year

If the fund prefers, it may mail the coupon

maximum corporate tax rate.

and payment to: Financial Agent, Federal Tax

•

Rounding Off to Whole

If the fund does not use EFTPS, use the

Deposit Processing, P.O. Box 970030, St.

deposit coupons (Forms 8109) to make

Dollars

Louis, MO 63197. Make the check or money

deposits of estimated tax.

order payable to “Financial Agent.”

The fund may round off cents to whole dollars

To help ensure proper crediting, write the

For more information on estimated tax

on its return and schedules. If the fund does

fund’s EIN, the tax period to which the deposit

payments, including penalties that apply if the

round to whole dollars, it must round all

applies, and “Form 1120-SF” on the check or

fund fails to make required payments, see the

amounts. To round, drop amounts under 50

money order. Darken the “1120” box on the

instructions for line 17 on page 4.

cents and increase amounts from 50 cents to

-2-

Instructions For Form 1120-Sf - 2006 Page 2

Related Articles

Related forms

Related Categories