Instructions For Form 1120-W - Estimated Tax For Corporations

Line 2

Line 21. Taxable Income

If the corporation has certain extraordinary items, special rules

If a corporation has income includible under section 951(a)

apply. Do not include on line 2 the de minimis extraordinary

(controlled foreign corporation income), special rules apply.

items that the corporation chooses to include on line 9b. See

Amounts includible in income under section 951(a) generally

Extraordinary items above.

must be taken into account in figuring the amount of any

annualized income installment as the income is earned. The

Line 9b

amounts are figured in a manner similar to the way in which

If the corporation has extraordinary items of $1,000,000 or more,

partnership income inclusions are taken into account in figuring

a net operating loss deduction, or a section 481(a) adjustment,

a partner's annualized income installments as provided in

special rules apply. Include these amounts on line 9b for the

Regulations section 1.6654-2(d)(2).

appropriate period. Also include on line 9b the de minimis items

Safe harbor election. Corporations may be able to make a

that the corporation chooses to exclude from line 2. See

prior year safe harbor election. Under the election, an eligible

Extraordinary items above.

corporation is treated as having received ratably during the tax

Line 10

year items of income under section 951(a) equal to 115% (100%

for a noncontrolling shareholder) of the amounts shown on the

Figure the tax on the amount on line 9c by following the same

corporation's return for the first preceding tax year (the second

steps used to figure the tax on Form 1120-W, page 1, line 14.

preceding tax year for the first and second required

installments).

Line 15. Alternative Minimum Tax

For more information, see section 6655(e)(4)(B) and

The corporation may owe AMT unless it will be a “small

Regulations section 1.6655-2(f)(3)(v)(B)(2).

corporation” exempt from the AMT under section 55(e) for its

2017 tax year. To figure the AMT, use the 2016 Form 4626 and

Extraordinary items. If the corporation has extraordinary

its instructions as a guide. Figure alternative minimum taxable

items, special rules apply. Do not include on line 21 the de

income (AMTI) using income and deductions for the months

minimis extraordinary items that the corporation chooses to

shown in the column headings above line 1. Divide the AMTI by

include on line 23b. See Extraordinary items earlier.

the amounts on line 8 before subtracting the exemption amount.

Line 22. Annualization Amounts

Multiply that result by 20% and subtract any AMT foreign tax

credit plus the amount on line 10 to arrive at the AMT. For

Enter the annualization amounts for the option used on line 20.

columns (a) through (c), multiply the AMT by the amount shown

For example, if the corporation elects Option 1, enter on line 22

on line 13.

the annualization amounts 6, 3, 1.71429, and 1.2, in columns (a)

through (d), respectively.

Line 16. Other Taxes

For the same taxes used to figure page 1, Part I, line 19, figure

1st

2nd

3rd

4th

the amounts for the months shown in the column headings

Installment

above line 1.

Standard option

1.33333

Line 18. Credits

Option 1

1.71429

1.2

. . . . .

Enter the credits to which the corporation is entitled for the

Option 2

2.4

1.5

1.09091

. . . . .

months shown in the column headings above line 1.

Part II. Annualized Income Installment

Line 23b

Method

If the corporation has certain extraordinary items of $1,000,000

or more, a net operating loss deduction, or a section 481(a)

Line 20. Annualization Periods

adjustment, special rules apply. Include these amounts on

Enter in the space on line 20, columns (a) through (d),

line 23b. Also include on line 23b the de minimis extraordinary

respectively, the annualization periods that the corporation is

items that the corporation chooses to exclude from line 21. See

using, based on the options listed below. For example, if the

Extraordinary items earlier.

corporation elects Option 1, enter on line 20 the annualization

Line 24

periods 2, 4, 7, and 10, in columns (a) through (d), respectively.

Figure the tax on the amount in each column on line 23c by

Use Option 1 or Option 2 only if the corporation elected

following the same steps used to figure the tax on Form 1120-W,

to use one of these options by filing Form 8842, Election

page 1, line 14.

To Use Different Annualization Periods for Corporate

CAUTION

Estimated Tax, on or before the due date of the first required

Line 25. Alternative Minimum Tax

installment payment. Once made, the election is irrevocable for

the particular tax year.

The corporation may owe AMT unless it will be a “small

corporation” exempt from the AMT under section 55(e) for its

2017 tax year. To figure the AMT, use the 2016 Form 4626 and

1st

2nd

3rd

4th

its instructions as a guide. Figure AMTI using income and

Installment

deductions for the annualization period entered in each column

on line 20. Multiply the AMTI by the annualization amounts on

Standard option

line 22 before subtracting the exemption amount. Multiply that

Option 1

. . . . .

result by 20% and subtract any AMT foreign tax credit plus the

Option 2

. . . . .

amount on line 24 to arrive at the AMT.

-4-

Instructions for Form 1120-W (2017)

Instructions For Form 1120-W - Estimated Tax For Corporations - 2017 Page 4

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