Instructions For Forms 8804, 8805, And 8813

WORKSHEET TO FIGURE 2005 INSTALLMENT PAYMENTS OF SECTION 1446 TAX FOR A FOREIGN PARTNER

(Keep for your records — Do not send to the Internal Revenue Service)

Caution: Complete lines 1 through 10 of one column before going to the

(a) 1st

(b) 2nd

(d) 4th

next column.

Installment

Period

First

Annualization periods (see instructions)

months

Enter the partnership’s effectively connected taxable income for

each period

Annualization amounts (see instructions)

Annualized effectively connected taxable income. Multiply line 2

by line 3

Foreign partner’s annualized effectively connected taxable

income. Enter the foreign partner’s share of line 4

Multiply line 5 by 35%

Section 6655(e)(2) applicable percentage

25%

50%

75%

100%

Multiply line 6 by line 7

Add the amounts in all preceding columns of line 10

10 Installment payments of section 1446 tax due for foreign partner.

Subtract line 9 from line 8. If less than zero, enter -0-

Worksheet Instructions

Line 1 — Annualization Periods

For purposes of annualizing a foreign partner’s effectively connected taxable income during the tax year, partnerships must choose

one of the following three sets of annualization periods, which are designated Standard Option, Option 1, and Option 2.

1st Installment

2nd Installment

3rd Installment

4th Installment

Standard Option

First 3 months

First 6 months

First 9 months

Option 1

First 2 months

First 4 months

First 7 months

First 10 months

Option 2

First 3 months

First 5 months

First 8 months

First 11 months

If the partnership chooses either Option 1 or 2, it must annually elect to use the option by filing Form 8842, Election To Use

Different Annualization Periods for Corporate Estimated Tax. Form 8842 must be filed by the 15th day of the 4th month of the tax

year for which the election is to apply. The Standard Option can be used without filing Form 8842.

Enter in each column on line 1 the number of months in the annualization periods for the option chosen by the partnership.

Line 3 — Annualization Amounts

If the partnership chose the Standard Option, enter 4 in column (a), 4 in column (b), 2 in column (c), and 1.33333 in column (d). If

the partnership chose Option 1, enter 6 in column (a), 3 in column (b), 1.71429 in column (c), and 1.2 in column (d). If the

partnership chose Option 2, enter 4 in column (a), 2.4 in column (b), 1.5 in column (c), and 1.09091 in column (d).

-4-

Instructions for Forms 8804, 8805, and 8813

Instructions For Forms 8804, 8805, And 8813 - 2004 Page 4

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