Instructions For Form 1120-Pc - 2001 (Page 6 of 20) in pdf

coupon. Records of these deposits will be

Penalty for late filing of return. A

apply for one on Form SS-4, Application

sent to the IRS.

corporation that does not file its tax return

for Employer Identification Number. If the

by the due date, including extensions,

corporation has not received its EIN by

If the corporation prefers, it may mail

may be penalized 5% of the unpaid tax

the time the return is due, write “Applied

the coupon and payment to: Financial

for each month or part of a month the

for” in the space provided for the EIN.

Agent, Federal Tax Deposit Processing,

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

See Pub. 583 for details.

P.O. Box 970030, St. Louis, MO 63197.

the unpaid tax. The minimum penalty for

Make the check or money order payable

a return that is over 60 days late is the

to “Financial Agent.”

Item A. Section 953

smaller of the tax due or $100. The

For more information on deposits, see

penalty will not be imposed if the

Election

the instructions in the coupon booklet

corporation can show that the failure to

(Form 8109) and Pub. 583, Starting a

Check the applicable box if the

file on time was due to reasonable cause.

Business and Keeping Records.

corporation is a foreign corporation and

Corporations that file late must attach a

If the corporation owes tax when it

elects under:

statement explaining the reasonable

files Form 1120-PC, do not

cause.

1. Section 953(c)(3)(C) to treat its

include the payment with the tax

CAUTION

related person insurance income as

Penalty for late payment of tax. A

return. Instead, mail or deliver the

effectively connected with the conduct of

corporation that does not pay the tax

payment with Form 8109 to an authorized

a trade or business in the United States

when due generally may have to pay a

depositary, or use EFTPS, if applicable.

penalty of

of 1% of the unpaid tax for

2. Section 953(d) to be treated as a

each month or part of a month the tax is

Estimated Tax Payments

not paid, up to a maximum of 25% of the

domestic corporation.

unpaid tax. The penalty will not be

Generally, a foreign corporation

Generally, the following rules apply to the

imposed if the corporation can show that

making either election must file its return

corporation’s payments of estimated tax.

the failure to pay on time was due to

•

The corporation must make installment

with the Internal Revenue Service Center,

reasonable cause.

payments of estimated tax if it expects its

Philadelphia, PA 19255. See Notice

Trust fund recovery penalty. This

total tax for the year (less applicable

87-50, 1987-2 C.B. 357, and Notice

penalty may apply if certain excise,

credits) to be $500 or more.

89-79, 1989-2 C.B. 392, for the

•

income, social security, and Medicare

The installments are due by the 15th

procedural rules election statement

taxes that must be collected or withheld

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

formats, and filing addresses for making

are not collected or withheld, or these

of the tax year. If any date falls on a

the respective elections under section

taxes are not paid to IRS. These taxes

Saturday, Sunday, or legal holiday, the

953(c)(3)(C) or section 953(d).

installment is due on the next regular

are generally reported on Forms 720,

941, 943, or 945, (see Other Forms,

business day.

Note. Once either election is made, it will

•

Returns, and Statements That May Be

Use Form 1120-W, Estimated Tax for

apply to the tax year for which made and

Required on page 3). The trust fund

Corporations, as a worksheet to compute

all subsequent tax years unless revoked

recovery penalty may be imposed on all

estimated tax.

with the consent of the IRS. Also, any

•

persons determined by the IRS to have

If the corporation does not use EFTPS,

loss of a foreign corporation electing to be

been responsible for collecting,

use the deposit coupons (Form 8109) to

treated as a domestic insurance company

make deposits of estimated tax.

accounting for, and paying over these

under section 953(d) will be treated as a

taxes, and who acted willfully in not doing

For more information on estimated tax

dual-consolidated loss and may not be

so. The penalty is equal to the unpaid

payments, including penalties that apply if

used to reduce the taxable income of any

trust fund tax. See the instructions for

the corporation fails to make required

other member of the affiliated group for

Form 720 or Pub. 15 (Circular E),

payments, see the instructions for line 15

this tax year or any other tax year.

Employer’s Tax Guide, for details,

on page 9.

including the definition of responsible

Overpaid Estimated Tax

persons.

Item E. Final Return, Name

If the corporation overpaid estimated tax,

Other penalties. Other penalties can be

it may be able to get a quick refund by

Change, Address Change,

imposed for negligence, substantial

filing Form 4466, Corporation Application

understatement of tax, and fraud. See

or Amended Return

for Quick Refund of Overpayment of

sections 6662 and 6663.

Estimated Tax. The overpayment must be

Indicate a final return, name change,

at least 10% of expected income tax

address change, or amended return by

liability and at least $500. File Form 4466

checking the appropriate box.

before the 16th day of the 3rd month after

Specific Instructions

the end of the tax year, but before the

Note. If a change of address occurs

corporation files its income tax return. Do

after the return is filed, use Form 8822,

not file Form 4466 before the end of the

Change of Address, to notify the IRS of

Period Covered

corporation’s tax year.

the new address.

File the 2001 return for calendar year

Foreign insurance companies, see

2001.

Notice 90-13, 1990-1 C.B. 321,

Taxable Income

before computing estimated tax.

CAUTION

Address

Line 1, Taxable income, and line 2,

Include the suite, room, or other unit

Taxable investment income. If the

Interest and Penalties

number after the street address.

corporation is a small company as

defined in section 831(b)(2) and elects

If the post office does not deliver mail

Interest. Interest is charged on taxes

under section 831(b)(2)(A)(ii) to be taxed

to the street address and the corporation

paid late even if an extension of time to

on taxable investment income, complete

has a P.O. box, show the box number

file is granted. Interest is also charged on

Schedule B (ignore Schedule A) and

instead.

penalties imposed for failure to file,

enter the amount from Schedule B, line

negligence, fraud, gross valuation

21, on line 2, page 1. All other

Employer Identification

overstatements, and substantial

corporations should complete Schedule A

understatements of tax from the due date

Number (EIN)

(ignore Schedule B) and enter on line 1,

(including extensions) to the date of

page 1, the amount from Schedule A, line

payment. The interest charge is figured at

Enter the corporation’s EIN. If the

37.

a rate determined under section 6621.

corporation does not have an EIN, it must

-6-

Instructions For Form 1120-Pc - 2001 Page 6

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