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Department of the Treasury

Internal Revenue Service

Instructions for Form 2220

Underpayment of Estimated Tax by Corporations

Section references are to the Internal Revenue Code unless otherwise noted.

underpayment. This is true even if the corporation is due a

Changes To Note

refund when its return is filed. However, the corporation may be

•

able to reduce or eliminate the penalty by using the annualized

The due date for any required installment that otherwise

income installment method or the adjusted seasonal installment

would have been due in September 2001, is October 1, 2001.

•

method. See the Part I instructions for details.

The due date for any required installment due after

September 10, 2001, and before January 15, 2002, for a

How To Use Form 2220

corporation directly affected by the September 11, 2001,

•

terrorist attack was extended to January 15, 2002. Additional

Check one or more boxes in Part I if the corporation uses the

relief may also be available. See September 11, 2001,

annualized income installment method, the adjusted seasonal

Terrorist Attacks on this page.

installment method, or if the corporation is a large corporation.

If the corporation checked a box in Part I, is requesting relief

General Instructions

as an indirectly affected taxpayer, or has a suspended research

credit allowed for the current year, attach Form 2220 to the

income tax return. Be sure to check the box on line 33, page 1

Purpose of Form

of Form 1120; line 29 of Form 1120-A; or the comparable line of

any other income tax return the corporation is required to file

Corporations (including S corporations), tax-exempt

(e.g., Form 990-C, 1120-L, 1120S, etc.).

organizations subject to the unrelated business income tax

•

Complete Part II to determine the underpayment for any of

(tax-exempt organizations), and private foundations use Form

the four installment due dates.

2220 to determine:

•

If there is an underpayment on line 17, Part II (column (a),

Whether they are subject to the penalty for underpayment of

(b), (c), or (d)), go to Part III to figure the penalty.

estimated tax and, if so,

•

Complete Schedule A if the corporation uses the annualized

The amount of the underpayment penalty.

income installment method and/or the adjusted seasonal

Who Must File

installment method.

Generally, the corporation does not have to file this form with its

September 11, 2001, Terrorist Attacks

income tax return because the IRS will figure the amount of any

penalty and notify the corporation of any amount due. However,

Taxpayers affected by the September 11, 2001, terrorist attacks

even if the corporation does not owe a penalty, complete and

are eligible for relief as described below. Also see the

attach this form to the corporation’s tax return if:

instructions for line 9.

1. The annualized income installment method is used,

Directly affected. The due date for any required installment

2. The adjusted seasonal installment method is used,

due after September 10, 2001, and before January 15, 2002, is

3. The corporation is a large corporation (as defined in the

January 15, 2002, for any directly affected corporation. A

instructions for Part I, line 3, on page 2) figuring its first required

corporation is directly affected if its records were maintained in

installment based on the prior year’s tax.

a covered disaster area. The covered disaster areas are The

4. The corporation is requesting relief because it was

Bronx, Kings, New York (boroughs of Brooklyn and Manhattan),

indirectly affected by the September 11, 2001, terrorist attacks

Queens, and Richmond counties in New York and Arlington

(see September 11, 2001, Terrorist Attacks on this page), or

county, Virginia.

5. The corporation has a suspended research credit allowed

for the current year (see the instructions for line 4 on page 2).

If the corporation was directly affected, write “September 11,

2001, Terrorist Attack” in red ink at the top of the corporation’s

income tax return. The corporation is not required to file Form

Who Must Pay the Underpayment

2220 to request this relief. However, if the corporation is

otherwise required to file Form 2220, write “September 11,

Penalty

2001, Terrorist Attack” in red ink at the top of Form 2220 as

Generally, a corporation is subject to the penalty if the tax

well.

shown on its 2001 return is $500 or more and it did not timely

Indirectly affected. If the corporation was not directly affected

pay at least the smaller of:

but had difficulty in making estimated tax payments because of

1. The tax shown on its 2001 return or

disruption in the transportation and delivery of documents by

2. The tax shown on its 2000 return (if it filed a 2000 return

mail or private delivery services resulting from the terrorist

showing at least some amount of tax and the return was for a

attacks, the corporation qualifies for relief as a indirectly

full 12 months). However, a large corporation may base only its

affected taxpayer. The due date for the corporation’s required

first required installment on the prior year’s tax.

installments otherwise due after September 10, 2001, and

before November 1, 2001, is November 15, 2001. Do not write

Note: In these instructions, “return” generally refers to the

“September 11, 2001, Terrorist Attack” at the top of the

corporation’s original return. However, an amended return is

corporation’s income tax return or Form 2220 to request relief

considered the original return if the amended return is filed by

as an indirectly affected taxpayer. Instead, file Form 2220 and

the due date (including extensions) of the original return.

follow the rules below.

•

The penalty is figured separately for each installment due

Complete Form 2220 through line 35 without regard to this

date. Therefore, the corporation may owe a penalty for an

relief. Write “Indirectly Affected” at the top of Form 2220 in black

earlier due date even if it paid enough tax later to make up the

ink.

Cat. No. 64293P

Instructions For Form 2220 - Underpayment Of Estimated Tax By Corporations - Internal Revenue Service - 2001

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