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2017

Department of the Treasury

Internal Revenue Service

Instructions for Form 8804-W

(WORKSHEET)

Installment Payments of Section 1446 Tax for Partnerships

Underpayment of

all foreign partners, see Effectively

Section references are to the Internal Revenue

Code unless otherwise noted.

Connected Taxable Income in the

Estimated Section 1446

Instructions for Forms 8804, 8805, and

Future Developments

Tax

8813. Enter on lines 1i, 1m, and 1q the

specified types of ECTI allocable to those

For the latest information about

A partnership that doesn’t make estimated

partners who would be entitled to use a

developments related to Form 8804-W

section 1446 tax payments when due may

preferential rate on such income or gain

and its instructions, such as legislation

be subject to an underpayment penalty for

(see Regulations section 1.1446-3(a)(2)).

enacted after they were published, go to

the period of underpayment. See

For tiered partnerships, see Regulations

IRS.gov/form8804w.

Schedule A (Form 8804) for details.

section 1.1446-5.

What's New

How To Make Estimated

A partner may be entitled to use a

Section 1446 Tax

preferential rate on the following types of

Partnerships with assets of $1 billion or

income or gain.

more (determined as of the end of the

Payments

preceding tax year) must increase the

1. Line 1i—See section 1(h)(4) and

A partnership that is required to make an

required installment of estimated tax due

the instructions for line 18, Schedule D

installment payment of section 1446 tax

in July, August, or September of 2017 by

(Form 1040), for more information

must file Form 8813. Furthermore, the

0.25% of the amount that otherwise would

regarding 28% rate gain.

partnership is generally required to notify

have been due for that installment. The

2. Line 1m—See section 1(h)(6) and

each foreign partner of the section 1446

amount of the next required installment

the instructions for line 19, Schedule D

tax paid on the partner's behalf within 10

would be decreased by an equal amount

(Form 1040), for more information

days of the installment payment due date.

to reflect the increase in the previous

regarding unrecaptured section 1250 gain.

See Regulations section 1.1446-3(d) and

installment.

3. Line 1q—Adjusted net capital gain

the Instructions for Forms 8804, 8805, and

General Instructions

is net capital gain, as defined in section

8813 for more information.

1222(11), reduced (but not below zero) by

Refiguring Estimated

the sum of (a) unrecaptured section 1250

Purpose of Form

gain and (b) 28% rate gain, plus qualified

Section 1446 Tax

Partnerships that have effectively

dividend income. See section 1(h)(3).

If, after the partnership figures and makes

connected taxable income (ECTI)

If the partnership has net ordinary loss,

an installment payment of estimated

allocable to foreign partners can use the

net short-term capital loss, or net 28% rate

section 1446 tax, it finds that its section

Form 8804-W (WORKSHEET) to

loss, each net loss should be netted

1446 tax liability for the year will be more

determine the proper estimated section

against the appropriate categories of

or less than originally estimated, it may

1446 tax payments.

income and gain to determine the

have to refigure its required installments. If

amounts of income and gain to be entered

Who Must Make Estimated

earlier installments were underpaid, the

on lines 1a, 1e, 1i, 1m, and 1q,

partnership may owe a penalty for

Section 1446 Tax

respectively. Don’t enter a negative

underpayment of estimated tax. An

Payments

number on line 1a, 1e, 1i, 1m, or 1q. See

immediate catch-up payment should be

section 1(h) and Notice 97-59, 1997-45

made to reduce the amount of any penalty

Partnerships generally must make

I.R.B. 7, for rules for netting gains and

resulting from the underpayment of any

installment payments of estimated section

losses.

earlier installments, whether caused by a

1446 tax if the aggregate tax on the ECTI

change in estimate, failure to make a

Lines 1b, 1f, 1j, 1n, and 1r. Enter the

that is allocable to all foreign partners will

payment, or a mistake.

reduction amounts for state and local

be $500 or more.

taxes under Regulations section

Specific Instructions

When To Make Estimated

1.1446-6(c)(1)(iii). See Reductions for

State and Local Taxes in the Instructions

Section 1446 Tax

for Forms 8804, 8805, and 8813 for

Part I—Determination of

Payments

additional information. The netting rules

Installment Payments

under section 1(h) and Notice 97-59 must

The installments are due by the 15th day

be considered in determining the category

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

Complete Form 8804-W for each

of income the reduction amounts offset.

partnership's tax year. If any date falls on

installment payment of section 1446 tax

a Saturday, Sunday, or legal holiday, the

based on the information available at the

Lines 1c, 1g, 1k, 1o, and 1s. Enter the

installment is due on the next regular

time of the installment payment.

reduction amounts resulting from certified

business day.

partner-level items received from foreign

Lines 1 Through 6—Current

partners using Form 8804-C. See

Year Safe Harbor

Certification of Deductions and Losses in

the Instructions for Forms 8804, 8805, and

Lines 1a, 1e, 1i, 1m, and 1q. To

8813 for additional information. The

determine the allocable share of ECTI for

Dec 09, 2016

Cat. No. 51675X

Instructions For Form 8804-W - Installment Payments Of Section 1446 Tax For Partnerships - 2017

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