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million or more for any of the 3 tax years immediately

Line 2c. Enter the amount from Form 1120, Schedule J,

preceding the 2013 tax year, or if less, the number of years

Line 19b, or the applicable line for other income tax returns.

the corporation has been in existence. See Regulations

Line 4. All filers (other than S corporations). Figure the

section 1.6655-4.

corporation's 2012 tax the same way the amount on line 3 of

Taxable income, for this purpose, is modified to exclude

this form was determined, using the taxes and credits from its

net operating loss and capital loss carrybacks and

2012 tax return. However, skip line 4 and enter on line 5 the

carryovers. Members of a controlled group, as defined in

amount from line 3 if either of the following applies.

section 1563, must divide the $1 million amount among

The corporation did not file a tax return for 2012 that

DRAFT AS OF

themselves under rules similar to those in section 1561.

showed a liability for at least some amount of tax.

If the corporation is a large corporation, check the box on

The corporation had a 2012 tax year of less than 12

Part II, line 8, and, if applicable, check the box(es) on Part II,

months.

line 6 and/or line 7. Also, if applicable, complete Parts I, II,

and III of Schedule A, as discussed below in the instructions

S corporations. Enter on line 4 the sum of:

for line 10.

September 5, 2013

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

Part III. Figuring the Underpayment

built-in gains tax shown on the return for the 2013 tax year

and

Line 9. The corporation is generally required to enter the

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

15th day of the 4th (Form 990-PF filers use the 5th month),

corporation's return for the 2012 tax year.

6th, 9th, and 12th months of its tax year.

If the 2012 tax year was less than 12 months, skip line 4

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

and enter on line 5 the amount from line 3.

the instructions for line 9.

Part II. Reasons for Filing

Large corporations. Large corporations, follow the

instructions below.

Lines 6 and 7. Adjusted seasonal installment method

1. If the box on line 8 (but not line 6 or line 7) is checked

and/or annualized income installment method. If the

and line 3 is smaller than line 4, enter 25% of line 3 in

corporation's income varied during the year because, for

columns (a) through (d) of line 10.

example, it operated its business on a seasonal basis, it may

2. If the box on line 8 (but not line 6 or line 7) is checked

be able to lower or eliminate the amount of one or more

and line 4 is smaller than line 3, enter 25% of line 4 in column

required installments by using the adjusted seasonal

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

installment method and/or the annualized income installment

follows:

method.

a. Subtract line 4 from line 3,

Example. A ski shop, which receives most of its income

b. Add the result to the amount on line 3, and

during the winter months, may benefit from using one or both

of these methods to figure its required installments. The

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

annualized income installment or adjusted seasonal

result in column (b).

installment may be less than the required installment under

In columns (c) and (d), enter 25% of line 3.

the regular method for one or more due dates. Using one or

3. If the box on line 8 and the box on line 6 and/or line 7

both of these methods may reduce or eliminate the penalty

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

for those due dates.

by substituting Schedule A, line 35 for line 10 and complete

Use Schedule A on pages 3 and 4 of Form 2220 to figure

the rest of Schedule A, Part III.

one or more required installments. If Schedule A is used for

any payment due date, it must be used for all payment due

Line 11. Enter the estimated tax payments made by the

dates. To arrive at the amount of each required installment,

corporation for its tax year as indicated below. Include any

Schedule A automatically selects the smallest of:

overpayment from the corporation's 2012 tax return that was

The adjusted seasonal installment (if applicable),

credited to the corporation's 2013 estimated tax. If an

The annualized income installment (if applicable), or

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

The regular installment under section 6655(d)(1)

payments made on the next day that is not a Saturday,

(increased by any recapture of a reduction in a required

Sunday, or legal holiday are considered made on the due

installment under section 6655(e)(1)(B)).

date to the extent the payment is applied against that

Follow the steps below to determine which parts of the

required installment. If multiple columns have the same due

form have to be completed.

date, see the instructions for line 9.

If the corporation is using only the adjusted seasonal

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

installment method, check the box in Part II, line 6, and

column (a).

complete Schedule A, Parts I and III.

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

If the corporation is using only the annualized income

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

installment method, check the box on Part II, line 7, and

the preceding column.

complete Schedule A, Parts II and III.

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

If the corporation is using both methods, check the boxes

underpayment, complete Part IV to figure the penalty.

in Part II, lines 6 and 7, and complete all three parts of

Part IV. Figuring the Penalty

Schedule A.

Line 8. Large corporations. A large corporation is a

Complete lines 19 through 38 to determine the amount of the

corporation (other than an S corporation) that had, or whose

penalty. The penalty is figured for the period of

predecessor had, taxable income (defined below) of $1

underpayment using the underpayment rate determined

-2-

Instructions for Form 2220 (2013)

Instructions For Form 2220 Draft - Underpayment Of Estimated Tax By Corporations - 2013 Page 3

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