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

corporation elects Option 1, enter on line 20 the annualization

Line 25. Alternative Minimum Tax

periods 2, 4, 7, and 10, in columns (a) through (d), respectively.

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

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

Use Option 1 or Option 2 only if the corporation elected

2009 tax year. To figure the AMT, use the 2008 Form 4626 and

to use one of these options by filing Form 8842, Election

its instructions as a guide. Figure AMTI using income and

To Use Different Annualization Periods for Corporate

CAUTION

deductions for the annualization period entered in each column

Estimated Tax, on or before the due date of the first required

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

installment payment. Once made, the election is irrevocable for

line 22 before subtracting the exemption amount. Multiply that

the particular tax year.

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

1st

2nd

3rd

4th

amount on line 24 to arrive at the AMT.

Installment

Line 26. Other Taxes

Standard option

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

Option 1 . . . . . .

figure the amounts for the months shown on line 20.

Line 28. Credits

Option 2

. . . . .

Enter the credits to which the corporation is entitled for the

Line 21. Taxable Income

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

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

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

of income or deduction used to figure the credit.

(controlled foreign corporation income), special rules apply.

Amounts includible in income under section 951(a) generally

Part III. Required Installments

must be taken into account in figuring the amount of any

annualized income installment as the income is earned. The

Line 33

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

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

partnership income inclusions are taken into account in figuring

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

a partner’s annualized income installments as provided in

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

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

completing line 33 in column (b).

Safe harbor election. Corporations may be able to elect a

Line 38. Required Installments

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

corporation is treated as having received ratably during the tax

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

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

line 38. Also enter the result on page 1, Part I, line 27.

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

Paperwork Reduction Act Notice. Your use of this form is

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

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

second preceding tax year for the first and second required

tax liability.

installments).

You are not required to provide the information requested on

For more information, see section 6655(e) and Regulations

a form that is subject to the Paperwork Reduction Act unless

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

the form displays a valid OMB control number. Books or

Extraordinary items. If the corporation has extraordinary

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

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

long as their contents may become material in the

minimis extraordinary items that the corporation chooses to

administration of any Internal Revenue law. Generally, tax

include on line 23b. See Extraordinary items on page 3.

returns and return information are confidential, as required by

Line 22. Annualization Amounts

section 6103.

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

The time needed to complete this form will vary depending

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

on individual circumstances. The estimated average time is:

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

Preparing

(a) through (d), respectively.

Learning about the

the form &

Form

Recordkeeping

law or the form

sending

1st

2nd

3rd

4th

1120 – W

10 hr., 45 min.

1 hr., 35 min.

1 hr., 50 min.

Installment

1120 – W, Sch. A (Pt.I)

24 hr., 37 min.

1hr.

1hr., 26 min.

Standard option

1.33333

1120 – W, Sch. A (Pt.II)

12 hr., 26 min.

35 min.

49 min.

1120 – W, Sch. A (Pt.III)

6 hr., 13 min.

6 min.

12 min.

Option 1 . . . . . .

1.71429

1.2

If you have comments concerning the accuracy of these time

Option 2

. . . . .

2.4

1.5

1.09091

estimates or suggestions for making this form simpler, we

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

Line 23b

Revenue Service, Tax Products Coordinating Committee,

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

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

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

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

Instead, keep the form for your records.

adjustment, special rules apply. Include these amounts on line

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

that the corporation chooses to exclude from line 21. See

Extraordinary items on page 3.

-4-

Instructions For Form 1120-W - 2009 Page 4

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