Instructions For Schedule A (Form 8804) - 2011 printable pdf download

2011

Department of the Treasury

Internal Revenue Service

Instructions for Schedule A

(Form 8804)

Who Must Pay the

the underpayment for any of the

Section references are to the Internal

installment due dates.

Revenue Code unless otherwise noted.

Underpayment Penalty

•

If there is an underpayment on line 12

(column (a), (b), (c), or (d)), go to Part VII

Generally, a partnership is subject to the

What’s New

to figure the penalty.

penalty if it did not timely pay in

•

Complete Parts IV through VI as

installments at least the smaller of:

•

appropriate if the partnership uses the

For 2011 fiscal tax year partnerships

1. The tax shown on line 5e of its

adjusted seasonal installment method

with assets of $1 billion or more, the

2011 Form 8804 or

and/or the annualized income installment

amount of any required installment of

2. The total section 1446 tax that

method.

estimated tax due in July, August, or

would have been due for 2010, without

regard to reductions for certified foreign

September of 2012, must be increased,

partner-level items, on the ECTI allocable

and the next required installment must be

Specific Instructions

to foreign partners for 2010, provided that

decreased in an amount to reflect the

(1) this amount is at least 50% of the sum

increase in the previous installment. See

of the amounts shown on lines 4d, 4h, 4l,

the instructions for Part III, line 5. See

Part I. Reasons for Filing

and 4p of its 2011 Form 8804 and (2) the

also Who Must File.

tax year was for a full 12 months. See the

•

Adjusted seasonal installment method

The IRS has created a page on

instructions for line 2 below for more

and/or annualized income installment

IRS.gov that includes information about

details.

method. If the partnership’s income

Schedule A (Form 8804) and the related

varied during the year because, for

instructions, at

In these instructions, “Form 8804”

example, it operated its business on a

Information about any future

generally refers to the partnership’s

seasonal basis, it may be able to lower or

developments affecting Schedule A (Form

original Form 8804. However, an

eliminate the amount of one or more

8804) (such as legislation enacted after

amended Form 8804 is considered the

required installments by using the

we release it) will be posted on that page.

original Form 8804 if the amended Form

adjusted seasonal installment method

8804 is filed by the due date (including

and/or the annualized income installment

General Instructions

extensions) of the original Form 8804.

method.

Also, for purposes of determining a

Example. A ski shop, which receives

required installment, if an amended Form

Purpose of Form

most of its income during the winter

8804 is filed for the prior tax year, then

months, may benefit from using one or

Partnerships that have effectively

“prior tax year” includes the amended

both of these methods to figure its

connected taxable income (ECTI)

Form 8804, but only if the amended Form

required installments. The annualized

allocable to foreign partners use

8804 is filed before the applicable

income installment or adjusted seasonal

Schedule A (Form 8804) to determine:

installment due date.

installment may be less than the required

•

Whether they are subject to the penalty

The penalty is figured separately for

installment under the current year safe

for underpayment of estimated tax and, if

each installment due date. Therefore, the

harbor (increased by any reduction

so,

partnership may owe a penalty for an

recaptured under section 6655(e)(1)(B))

•

The amount of the underpayment

earlier due date even if it paid enough tax

for one or more due dates. Using one or

later to make up the underpayment. This

penalty.

both of these methods may reduce or

is true even if the partnership is due a

eliminate the penalty for those due dates.

Who Must File

refund when its return is filed. However,

Use Parts IV through VI on pages 2

the partnership may be able to reduce or

Generally, the partnership does not have

through 4 of Schedule A (Form 8804) to

eliminate the penalty by using the

to file this schedule because the IRS will

figure one or more required installments.

annualized income installment method or

figure the amount of the penalty and

If Parts IV through VI are used for any

the adjusted seasonal installment

notify the partnership of any amount due.

payment due date, those Parts must be

method. See the instructions for Parts IV

However, even if the partnership does not

used for all subsequent payment due

and V for details.

owe a penalty, complete and attach this

dates. To arrive at the amount of each

schedule to the partnership’s Form 8804

required installment, Part VI uses the

Exception to the Penalty

if the Part II, line 1 amount on page 1 is

smallest of:

A partnership will not have to pay a

•

The adjusted seasonal installment (if

$500 or more and any of the following

penalty if the tax shown on line 5e of its

applicable),

apply:

2011 Form 8804 is less than $500.

•

The annualized income installment (if

1. The adjusted seasonal installment

applicable), or

method is used.

How To Use Schedule A

•

The current year safe harbor

2. The annualized income installment

(increased by any reduction recaptured

Complete this schedule as follows:

method is used.

under section 6655(e)(1)(B)).

•

Check one or both of the boxes in Part

3. The partnership had assets of $1

I that apply. If the partnership checks a

Follow the steps below to determine

billion or more (determined as of the end

box in Part I, attach Schedule A (Form

which parts of the form have to be

of the preceding tax year) and the

8804) to Form 8804. Be sure to check the

completed:

partnership has a fiscal tax year for which

•

box on Form 8804, line 8.

If the partnership is using only the

a required installment of estimated tax is

•

If Part II, line 1 is $500 or more,

adjusted seasonal installment method,

due in July, August, or September 2012.

complete the rest of page 1 to determine

check the applicable box in Part I and

Dec 20, 2011

Cat. No. 36325U

Instructions For Schedule A (Form 8804) - 2011

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