Instructions For Form 1120-W - 2009 (Page 2 of 4) in pdf

payment,” and the tax period to which the payment applies

the taxable income in excess of $15 million or (b) $100,000.

(e.g., 1st QTR 2009), on the check or money order. The

See the instructions for line 12 above.

payments must be sent to the Internal Revenue Service Center,

Line 15. Alternative Tax

P.O. Box 40901, Ogden, UT 84409.

If the corporation has or is expected to have both a capital gain

Refiguring Estimated Tax

and a qualified timber gain, complete Part II. Enter the amount

from Part II, line 37, on line 15. See the instructions for Part II.

If, after the corporation figures and deposits estimated tax, it

finds that its tax liability for the year will be more or less than

Line 17. Alternative Minimum Tax (AMT)

originally estimated, it may have to refigure its required

Note. Skip this line if the corporation is treated as a “small

installments. If earlier installments were underpaid, the

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

corporation may owe a penalty.

AMT is generally the excess of tentative minimum tax (TMT)

An immediate catchup payment should be made to reduce

for the tax year over the regular tax for the tax year. A limited

the amount of any penalty resulting from the underpayment of

amount of the foreign tax credit, as refigured for the AMT, is

any earlier installments, whether caused by a change in

allowed in computing the TMT. Use the 2008 Form 4626 and

estimate, failure to make a deposit, or a mistake.

the 2008 Instructions for Form 4626 as a guide.

Line 19. Tax Credits

Specific Instructions

For information on tax credits the corporation can take, see the

instructions for Form 1120, Schedule J, lines 5a through 5e, or

the instructions for the applicable lines and schedule of other

Line 1. Qualified Personal Service Corporations

income tax returns.

A qualified personal service corporation is taxed at a flat rate of

Line 21. Other Taxes

35% on taxable income. A corporation is a qualified personal

For information on other taxes the corporation may owe, see

service corporation if it meets both of the following tests.

•

the instructions for Form 1120, Schedule J, line 9, or the

Substantially all of the corporation’s activities involve the

instructions for the applicable line and schedule of other income

performance of services in the fields of health, law, engineering,

tax returns.

architecture, accounting, actuarial science, performing arts, or

consulting.

Line 23. Credit for Federal Tax Paid on Fuels

•

At least 95% of the corporation’s stock, by value, is owned,

See Form 4136, Credit for Federal Tax Paid on Fuels, to find

directly or indirectly, by employees performing the services

out if the corporation qualifies to take this credit. Also include on

listed above, retired employees who had performed such

line 21 any credit the corporation is claiming under section

services, any estate of an employee or retiree described above,

4682(g)(2) for tax on ozone-depleting chemicals.

or any person who acquired the stock of the corporation as a

Line 25a. 2008 Tax

result of the death of an employee or retiree (but only for the

2-year period beginning on the date of the employee’s or

Figure the corporation’s 2008 tax in the same way that line 24

retiree’s death). See Temporary Regulations section

of this worksheet was figured, using the taxes and credits from

1.448-1T(e) for details.

the 2008 income tax return. Large corporations, see the

instructions for line 27 below.

Lines 2, 5, and 8. Members of a Controlled

Group

If a return was not filed for the 2008 tax year showing a

liability for at least some amount of tax or the 2008 tax year was

Members of a controlled group, complete lines 2, 5, and 8 as

for less than 12 months, do not complete line 25a. Instead, skip

follows:

•

line 25a and enter the amount from line 24 on line 25b.

Enter on line 2, the smaller of the amount on line 1, or the

member’s share of the $50,000 amount.

Line 26. Installment Due Dates

•

Enter on line 5, the smaller of the amount on line 4, or the

Calendar-year taxpayers: Enter 4-15-2009, 6-15-2009,

member’s share of the $25,000 amount.

9-15-2009, and 12-15-2009, respectively, in columns (a)

•

Enter on line 8, the smaller of the amount on line 7, or the

through (d).

member’s share of the $9,925,000 amount.

Fiscal-year taxpayers: Enter the 15th day of the 4th, 6th,

Equal apportionment plan. If no apportionment plan is

9th, and 12th months of your tax year in columns (a) through

adopted, members of a controlled group must divide the

(d). If the due date falls on a Saturday, Sunday, or legal holiday,

amount in each taxable income bracket equally among

enter the next business day.

themselves. For example, Controlled Group AB consists of

Line 27. Required Installments

Corporation A and Corporation B. They do not elect an

apportionment plan. Therefore, each corporation is entitled to:

Payments of estimated tax should reflect any 2008

•

$25,000 (one-half of $50,000) on line 2,

overpayment that the corporation chose to credit against its

•

$12,500 (one-half of $25,000) on line 5, and

2009 tax. The overpayment is credited against unpaid required

•

$4,962,500 (one-half of $9,925,000) on line 8.

installments in the order in which the installments are required

Unequal apportionment plan. Members of a controlled group

to be paid.

can elect an unequal apportionment plan and divide the taxable

Annualized income installment method and/or adjusted

income brackets as they want. There is no need for consistency

seasonal installment method. If the corporation’s income is

among taxable income brackets. Any member may be entitled

expected to vary during the year because, for example, it

to all, some, or none of the taxable income bracket. However,

operates its business on a seasonal basis, it may be able to

the total amount for all members cannot be more than the total

lower the amount of one or more required installments by using

amount in each taxable income bracket.

the annualized income installment method and/or the adjusted

seasonal installment method. For example, a ski shop, which

Line 12. Additional 5% Tax

receives most of its income during the winter months, may be

Members of a controlled group are treated as one group to

able to benefit from using one or both of these methods in

figure the applicability of the additional 5% tax and the

figuring one or more of its required installments.

additional 3% tax. If an additional tax applies, each member will

To use one or both of these methods, complete Schedule A.

pay that tax based on the part of the amount used in each

If Schedule A is used for any payment date, it must be used for

taxable income bracket to reduce that member’s tax. See

all payment due dates. To get the amount of each required

section 1561(a). Each member of the group must enter on line

installment, Schedule A automatically selects the smallest of (a)

12 its share of the smaller of (a) 5% of the taxable income in

the annualized income installment (if applicable), (b) the

excess of $100,000 or (b) $11,750.

adjusted seasonal installment (if applicable), or (c) the regular

Line 13. Additional 3% Tax

installment under section 6655(d)(1) (increased by any

If the additional 3% tax applies, each member of the controlled

recapture of a reduction in a required installment under section

group must enter on line 13 its share of the smaller of (a) 3% of

6655(e)(1)(B)).

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Instructions For Form 1120-W - 2009 Page 2

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