Instructions For Form 1120-Pc - 2010 (Page 8 of 21) in pdf

appropriate box(es) for the form, if any,

8816, Part III, line 11. See Form 8816 and

applicable, Form 3800 and the

used to compute the total.

section 847 for additional information.

Instructions for Form 3800.

Line 14c. Estimated tax payments.

Recapture of investment credit. If the

Line 14k. Total payments. Add the

Enter any estimated tax payments the

corporation disposed of investment credit

amounts on lines 14f through 14j and

corporation made for the tax year. Do not

property or changed its use before the

enter the total on line 14k.

include any amount being applied on line

end of its useful life or recovery period, it

Line 15. Estimated tax penalty. If Form

14d.

may owe a tax. See Form 4255,

2220 is attached, check the box on line

Recapture of Investment Credit.

Line 14d. Special estimated tax

15 and enter any penalty on this line. See

payments. If the deduction under

Recapture of low-income housing

Estimated tax penalty on page 3.

section 847 is claimed on Schedule A,

credit. If the corporation disposed of

Line 18. Electronic deposit of tax

line 27, special estimated tax payments

property (or there was a reduction in the

refund of $1 million or more. If the

must be made in an amount equal to the

qualified basis of the property) for which it

corporation is due a refund of $1 million

tax benefit of the deduction. These

took the low-income housing credit, it may

or more and wants it electronically

payments must be made on or before the

owe a tax. See Form 8611, Recapture of

deposited into its checking or savings

due date (without regard to extensions) of

Low-Income Housing Credit.

account at any U.S. bank or other

this tax return. See Form 8816 and

Other. Additional taxes and interest

financial institution instead of having a

section 847(2) for additional information.

amounts can be included in the total

check sent to the corporation, complete

Tax benefit rule. Section 847(8)

entered on line 12. Check the box for

Form 8302 and attach it to the

requires that if a corporation carries back

“Other” if the corporation includes any

corporation’s tax return.

net operating losses or capital losses that

additional taxes and interest such as the

arise in years after a year in which a

items discussed below. See How to report

section 847 deduction was claimed, then

below, for details on reporting these

Schedule A—Taxable

the corporation must recompute the tax

amounts on an attached schedule.

•

benefit attributable to the previously

Income

Recapture of Indian employment credit.

claimed section 847 deduction taking into

Generally, if an employer terminates the

account the loss carrybacks. Tax benefits

Gross income. Under section 832,

employment of a qualified employee less

also include those derived from filing a

gross amounts of underwriting and

than 1 year after the date of initial

consolidated return with another

investment income should be computed

employment, any Indian employment

insurance company (without regard to

on the basis of the Statement of Income

credit allowed for a prior tax year because

section 1503(c)).

of the NAIC annual statement to the

of wages paid or incurred to that

extent not inconsistent with the Internal

employee must be recaptured. See Form

Therefore, if the recomputation

Revenue Code and its Regulations.

8845 and section 45A.

changes the amount of the section 847

•

Recapture of new markets credit (see

tax benefit, then the taxpayer must

Income from qualifying shipping

Form 8874).

provide a computation schedule and

activities. Gross income does not

•

Recapture of employer-provided

attach it to Form 8816.

include income from qualifying shipping

childcare facilities and services credit

Line 14e. Overpaid Estimated Tax. If

activities if the corporation makes an

(see Form 8882).

the corporation overpaid estimated tax, it

election under section 1354 to be taxed

•

Interest on deferred tax attributable to

may be able to get a quick refund by filing

on its notional shipping income (as

certain nondealer installment obligations

Form 4466. The overpayment must be at

defined in section 1353) at the highest

(section 453A(c)).

least 10% of the corporation’s expected

corporate tax rate (35%). If the election is

•

Interest due on deferred gain (section

income tax liability and at least $500. File

made, the corporation generally may not

1260(b)).

Form 4466 after the end of the

claim any loss, deduction, or credit with

•

Alternative tax on qualifying shipping

corporation’s tax year, and no later than

respect to qualifying shipping activities. A

activities (see Form 8902).

the 15th day of the third month after the

corporation making this election also may

How to report. If the corporation

end of the tax year. Form 4466 must be

elect to defer gain on the disposition of a

filed before the corporation files its tax

checked the “Other” box, attach a

qualifying vessel.

return.

schedule showing the computation of

Use Form 8902, Alternative Tax on

each item included in the total for line 12

Line 14h. Credit by reciprocal for tax

Qualifying Shipping Activities, to figure

and identify the applicable Code section

paid by attorney-in-fact under section

the tax. Include the alternative tax on line

and the type of tax or interest.

835(d). Enter the amount of tax paid by

12, page 1 of the Form 1120-PC.

an attorney-in-fact as a result of income

Line 13. Total Tax

Note. In computing the amounts for lines

received by the attorney-in-fact from the

Include any deferred tax on the

2, 3, and 4, take all interest, dividends, or

reciprocal during the tax year. For more

termination of a section 1294 election

rents received during the year, add

information, see section 835, the related

applicable to shareholders in a qualified

interest, dividends, or rents due and

regulations, and the instructions for line 5

electing fund in the amount entered on

accrued at the end of the tax year, and

on page 7.

line 13. See Form 8621, Part V, and How

deduct interest, dividends, or rents due

Line 14i. Other credits and payments.

to report below.

and accrued at the end of the preceding

Enter the amount of any other credits the

tax year. For rules regarding the accrual

Subtract any deferred tax on the

corporation may take and/or payments

of dividends, see Regulations section

corporation’s share of undistributed

made. Write an explanation of the entry to

1.301-1(b).

earnings of a qualified electing fund (see

the left of the entry space.

Form 8621, Part II).

Backup withholding. If the corporation

Line 3a, column (a). Gross interest.

How to report. Attach a schedule

had federal income tax withheld from any

Enter the gross amount of interest

showing the computation of each item

payments it received because, for

income, including all tax-exempt interest.

included in, or subtracted from, the total

example, it failed to give the payer its

Line 3b, column (a). Section 103(a)

for line 13. On the dotted line next to line

correct EIN, include the amount withheld

excludes interest on state or local bonds

13, specify (a) the applicable Code

in the total for line 14i. Write the amount

from gross income.

section, (b) the type of tax, and (c) the

withheld and the words “Backup

amount of tax.

Withholding” on the dotted line to the left

This exclusion does not apply to any:

of the entry space for line 14i.

Line 14b. Prior year(s) special

1. Private activity bond which is not a

estimated tax payments to be applied.

Line 14j. Refundable Credits from

qualified bond as defined by section 141;

The amount entered on line 14b must

Forms 3800 and 8827. For more

2. Arbitrage bond as defined by

agree with the amount(s) from Form

information see Form 8827 and, if

section 148; or

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Instructions for Form 1120-PC (2010)

Instructions For Form 1120-Pc - 2010 Page 8

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