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The corporation did not file a tax return for 2000 that showed

employment and withheld income taxes. Do not include any

a liability for at least some amount of tax or

redesignated amounts on line 11.

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The corporation had a 2000 tax year of less than 12 months.

Line 17. If any of the columns in line 17 shows an

underpayment, complete Part III to figure the penalty.

S corporations. Enter on line 7 the sum of:

1. The total of the investment credit recapture tax and the

Part III—Figuring the Penalty

built-in gains tax (or the tax on certain capital gains) shown on

the return for the 2001 tax year and

Complete lines 19 through 36 to determine the amount of the

2. Any excess net passive income tax shown on the S

penalty. The penalty is figured for the period of underpayment

corporation’s return for the 2000 tax year.

determined under section 6655 using the underpayment rate

determined under section 6621(a)(2). For information on

If the 2000 tax year was less than 12 months, skip line 7,

obtaining the interest rate on underpayments paid after March

and enter the amount from line 6 on line 8.

31, 2002, see page 2 of Form 2220.

Line 9. Generally, tax installment due dates are the 15th day of

Line 19. A payment of estimated tax is applied against

the 4th, 6th, 9th, and 12th months of the corporation’s tax year.

underpayments of required installments in the order that

(For Form 990-PF filers, the first installment due date is the

installments are required to be paid, regardless of the

15th day of the 5th month.) However, the due date for any

installment to which the payment pertains.

installment that otherwise would have been due in September

2001 is October 1, 2001.

Example. A corporation underpaid the April 15

installment by $1,000. The June 15 installment requires a

Affected taxpayers. The due date for any required installment

payment of $2,500. On June 10, the corporation deposits

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

$2,500 to cover the June 15 installment. However, $1,000 of

January 15, 2002, for any corporation directly affected by the

this payment will be considered as the April 15 installment. The

September 11, 2001 terrorist attacks. Also, the due date for any

penalty for the April 15 installment is figured to June 10 (56

required installment otherwise due after September 10, 2001,

days). The payment to be applied to the June 15 installment will

and before November 1, 2001, is November 15, 2001, for an

then be $1,500.

indirectly affected corporation. See September 11, 2001,

Terrorist Attacks on page 1.

If the corporation has made more than one payment for a

required installment, attach a separate computation for each

Enter the applicable date on line 9 instead of the original due

payment.

date. If two columns have the same due date, skip lines 10

through 35 of the first of those two columns. On lines 10 and 11

Schedule A

for the second of those two columns, enter the sum of the

amounts that would have otherwise been entered for those two

Part I—Annualized Income Installment Method

columns. On lines 12 and 14, ignore the skipped column and

use the amounts from the preceding column (if any).

Line 1 — Annualization periods. Enter on line 1, columns (a)

through (d), respectively, the annualization amounts for the

Line 10. If the two columns have the same due date, see the

option listed below. For example, if the corporation elected

instructions for line 9. Large corporations, follow the instructions

Option 1, enter on line 1 the annualization periods 2, 4, 7, and

below.

10, in columns (a) through (d), respectively.

1. If the box on line 3 (but not line 1 or line 2) is checked

and line 6 is smaller than line 7, enter 25% of line 6 in columns

Use Option 1 or Option 2 only if the corporation elected

(a) through (d) of line 10.

to do so by filing Form 8842, Election To Use Different

2. If the box on line 3 (but not line 1 or line 2) is checked

Annualization Periods for Corporation Estimated Tax, on

CAUTION

and line 7 is smaller than line 6, enter 25% of line 7 in column

or before the due date of the first required installment payment.

(a) of line 10. In column (b), figure the amount to enter as

Once made, the election is irrevocable for the particular tax

follows:

year.

a. Subtract line 7 from line 6,

Option 2 is not available to tax-exempt organizations and

b. Add the result to the amount on line 6,

private foundations. See Form 990-W.

c. Multiply the total in item (b) above by 25%, and enter the

Corporations

result in column (b).

In columns (c) and (d), enter 25% of line 6.

1st

2nd

3rd

4th

Installment

3. If the box on line 3 and the box on line 1 and/or line 2 is

Standard option

checked, follow the instructions in items 1 and 2 above by

substituting line 37 of Schedule A for line 10 and complete the

Option 1

rest of Part III of Schedule A.

Option 2

Line 11. Enter the estimated tax payments made by the

Tax-Exempt Organizations and Private Foundations

corporation for its tax year as indicated below. Include any

overpayment from the corporation’s 2000 tax return that was

1st

2nd

3rd

4th

Installment

credited to the corporation’s 2001 estimated tax. If an

Standard option

installment is due on a Saturday, Sunday, or legal holiday,

payments made for that installment on the next day that is not a

Option 1

Saturday, Sunday, or legal holiday are considered made on the

due date. If two columns have the same due date, see the

instructions for line 9.

Line 2. Enter on line 2 the taxable income (line 30, Form 1120;

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Column (a). Enter payments made by the date on line 9,

line 26, Form 1120-A; or the applicable line for other income tax

column (a).

returns) that the corporation received for the months entered for

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Columns (b), (c), and (d). Enter payments made by the date

each annualization period in columns (a) through (d) on line 1.

on line 9 for that column and after the date on line 9 of the

Line 3 — Annualization amounts. Enter on line 3, columns (a)

preceding column.

through (d), respectively, the annualization amounts for the

Note: Due to economic disruptions caused by the September

option used on line 1 above. For example, if the corporation

11, 2001, terrorist attack, the IRS allowed corporations to

elected Option 1, enter on line 3 the annualization amounts 6,

redesignate their estimated income tax payments as deposits of

3, 1.71429, and 1.2, in columns (a) through (d), respectively.

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Instructions For Form 2220 - Underpayment Of Estimated Tax By Corporations - Internal Revenue Service - 2001 Page 3

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