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Corporations

particular tax year. The resulting percentages are: 69% (.69) for

1st

2nd

3rd

4th

May-October 1998, 74% (.74) for May-October 1999, and 67%

Installment

(.67) for May-October 2000. Because the average of 69%, 74%,

Standard option

1.33333

and 67% is 70%, the base period percentage for May through

October 2001 is 70%. Therefore, the amusement park qualifies

Option 1

1.71429 1.2

for the adjusted seasonal installment method.

Option 2

2.4

1.5

1.09091

Line 30. Enter any other taxes (including AMT, as figured

below) the corporation owed for the months shown in each

Tax-Exempt Organizations and Private Foundations

column directly above line 14. Include the same taxes used to

figure line 4, Part II, of Form 2220, but do not include the

1st

2nd

3rd

4th

Installment

personal holding company tax or interest due under the

Standard option

1.33333

look-back method of section 460(b)(2) for completed long-term

contracts or section 167(g) for property depreciated under the

Option 1

1.71429 1.2

income forecast method.

Alternative minimum tax. Compute the AMT on Form

Line 6. Enter any other taxes (including alternative minimum

4626, if applicable. Figure AMTI based on the corporation’s

tax, as figured below) the corporation owed for the months

income and deductions for the months shown in the column

shown in each column on line 1. Include the same taxes used

headings directly above line 14. Divide the AMTI by the

to figure line 4, Part II, of Form 2220, but do not include the

amounts shown on line 21 before subtracting the exemption

personal holding company tax or interest due under the

amount under section 55(d). For columns (a) through (c) only,

look-back method of section 460(b)(2) for completed long-term

multiply the AMT determined by the amounts shown on line 28.

contracts or section 167(g) for property depreciated under the

Line 32. Enter the credits the corporation is entitled to for the

income forecast method.

months shown in each column above line 14.

Alternative minimum tax. Compute the alternative

Line 34. Before completing line 34 in columns (b) through (d),

minimum tax (AMT) on Form 4626, Alternative Minimum Tax —

complete lines 35 through 40 in each of the preceding columns.

Corporations, if applicable. Figure alternative minimum taxable

For example, complete lines 35 through 40 in column (a) before

income (AMTI) based on the corporation’s income and

completing line 34 in column (b).

deductions for the annualization period entered in each column

on line 1. Multiply AMTI by the annualization amounts (line 3)

used to figure annualized taxable income before subtracting the

Paperwork Reduction Act Notice. We ask for the information

exemption amount under section 55(d).

on this form to carry out the Internal Revenue laws of the United

States. You are required to give us the information. We need it

Line 8. Enter the credits the corporation is entitled to for the

to ensure that you are complying with these laws and to allow

months shown in each column on line 1. Do not annualize any

us to figure and collect the right amount of tax.

credit. However, when figuring the credits, annualize any item

of income or deduction used to figure the credit. For details, see

You are not required to provide the information requested on

Rev. Rul. 79-179, 1979-1 C.B. 436.

a form that is subject to the Paperwork Reduction Act unless

the form displays a valid OMB control number. Books or

Line 12. Before completing line 12 in columns (b) through (d),

records relating to a form or its instructions must be retained as

complete the following items in each of the preceding columns:

long as their contents may become material in the

line 13, Part I; Part II (if applicable); and Part III. For example,

administration of any Internal Revenue law. Generally, tax

complete line 13, Part I; Part II (if using the adjusted seasonal

returns and return information are confidential, as required by

installment method); and Part III, in column (a) before

section 6103.

completing line 12 in column (b).

The time needed to complete and file this form will vary

Part II—Adjusted Seasonal Installment Method

depending on individual circumstances. The estimated average

The corporation may use the adjusted seasonal installment

time is:

method only if the corporation’s base period percentage for

any 6 consecutive months of the tax year is 70% or more. The

Learning about

Preparing and

the law

sending the form

base period percentage for any period of 6 consecutive months

Form

Recordkeeping

or the form

to the IRS

is the average of the 3 percentages figured by dividing the

taxable income for the corresponding 6 consecutive month

2220

27 hr., 44min.

1 hr., 5 min.

1 hr., 35 min.

period in each of the 3 preceding tax years by the taxable

2220, Schedule A, Part I

11 hr., 14 min.

18 min.

29 min.

income for each of their respective tax years.

2220, Schedule A, Part II

23 hr., 26 min.

- - - -

22 min.

2220, Schedule A, Part III

5 hr., 1 min.

- - - -

4 min.

Example. An amusement park with a 2001 calendar tax

year receives the largest part of its taxable income during a

If you have comments concerning the accuracy of these time

6-month period, May through October. To compute its base

estimates or suggestions for making this form simpler, we

period percentage for this 6-month period, the amusement park

would be happy to hear from you. See the instructions for the

figures its taxable income for the period May-October in 1998,

tax return with which this form is filed.

1999, and 2000. It then divides the taxable income for each

May-October period by the total taxable income for that

-4-

Instructions For Form 2220 - Underpayment Of Estimated Tax By Corporations - Internal Revenue Service - 2001 Page 4

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