Instructions For Form 1120-W - Estimated Tax For Corporations

installments. If earlier installments were underpaid, the

member of the group must enter on line 12 its share of the

corporation may owe a penalty.

smaller of (a) 5% of the taxable income in excess of $100,000 or

(b) $11,750.

An immediate catchup payment should be made to reduce

the amount of any penalty resulting from the underpayment of

Line 13. Additional 3% Tax

any earlier installments, whether caused by a change in

If the additional 3% tax applies, each member of the controlled

estimate, failure to make a deposit, or a mistake.

group must enter on line 13 its share of the smaller of (a) 3% of

the taxable income in excess of $15 million or (b) $100,000. See

Specific Instructions

the instructions for line 12 above.

Line 15. Alternative Minimum Tax (AMT)

All line references on Form 1120-W are references to

Form 1120, U.S. Corporation Income Tax Return. All

Note. Skip this line if the corporation is treated as a “small

other entities must determine their estimated tax liability

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

CAUTION

by using the maximum rate that is in effect for their applicable

AMT is generally the excess of tentative minimum tax (TMT) for

taxable year.

the tax year over the regular tax for the tax year. A limited

amount of the foreign tax credit, as refigured for the AMT, is

allowed in computing the TMT. Use the 2013 Form 4626 and the

Line 1. Qualified Personal Service Corporations

2013 Instructions for Form 4626 as a guide.

A qualified personal service corporation is taxed at a flat rate of

35% on taxable income. A corporation is a qualified personal

Line 17. Tax Credits

service corporation if it meets both of the following tests.

For information on tax credits the corporation can take, see the

Substantially all of the corporation's activities involve the

2013 Instructions for Form 1120, Schedule J, lines 5a through

performance of services in the fields of health, law, engineering,

5e, or the instructions for the applicable lines and schedule of

architecture, accounting, actuarial science, performing arts, or

other income tax returns.

consulting.

At least 95% of the corporation's stock, by value, is owned,

Line 19. Other Taxes

directly or indirectly, by employees performing the services listed

For information on other taxes the corporation may owe, see the

above, retired employees who had performed such services, any

2013 Instructions for Form 1120, Schedule J, line 9, or the

estate of an employee or retiree described above, or any person

instructions for the applicable line and schedule of other income

who acquired the stock of the corporation as a result of the death

tax returns.

of an employee or retiree (but only for the 2-year period

beginning on the date of the employee's or retiree's death). See

Line 21. Credit for Federal Tax Paid on Fuels

Temporary Regulations section 1.448-1T(e) for details.

and Other Refundable Credits

Lines 2, 5, and 8. Members of a Controlled

See Form 4136, Credit for Federal Tax Paid on Fuels, to find out

Group

if the corporation qualifies to take this credit. Also include on

line 21 any other refundable credit, including any credit the

Members of a controlled group, complete lines 2, 5, and 8 as

corporation is claiming under section 4682(g)(2) for tax on

follows:

ozone-depleting chemicals. For information on other refundable

Enter on line 2 the smaller of the amount on line 1, or the

credits, see the Instructions for Form 1120, Schedule J, line 19,

member's share of the $50,000 amount.

or the instructions for the applicable line or schedule of other

Enter on line 5 the smaller of the amount on line 4, or the

income tax returns.

member's share of the $25,000 amount.

Enter on line 8 the smaller of the amount on line 7, or the

Line 23a. 2013 Tax

member's share of the $9,925,000 amount.

Figure the corporation's 2013 tax in the same way that line 22 of

Equal apportionment plan. If no apportionment plan is

this worksheet was figured, using the taxes and credits from the

adopted, members of a controlled group must divide the amount

2013 income tax return. Large corporations, see the instructions

in each taxable income bracket equally among themselves. For

for line 25 below.

example, Controlled Group AB consists of Corporation A and

Corporation B. They do not elect an apportionment plan.

If a return was not filed for the 2013 tax year showing a

Therefore, each corporation is entitled to:

liability for at least some amount of tax or the 2013 tax year was

$25,000 (one-half of $50,000) on line 2,

for less than 12 months, do not complete line 23a. Instead, skip

$12,500 (one-half of $25,000) on line 5, and

line 23a and enter the amount from line 22 on line 23b.

$4,962,500 (one-half of $9,925,000) on line 8.

Line 24. Installment Due Dates

Unequal apportionment plan. Members of a controlled group

Calendar-year taxpayers: Enter 4-15-2014, 6-16-2014,

can elect an unequal apportionment plan and divide the taxable

9-15-2014, and 12-15-2014, respectively, in columns (a) through

income brackets as they want. There is no need for consistency

(d).

among taxable income brackets. Any member may be entitled to

all, some, or none of the taxable income bracket. However, the

Fiscal-year taxpayers: Enter the 15th day of the 4th, 6th,

total amount for all members cannot be more than the total

9th, and 12th months of your tax year in columns (a) through (d).

amount in each taxable income bracket.

If the due date falls on a Saturday, Sunday, or legal holiday,

enter the next business day.

Line 12. Additional 5% Tax

Members of a controlled group are treated as one group to figure

Line 25. Required Installments

the applicability of the additional 5% tax and the additional 3%

Payments of estimated tax should reflect any 2013 overpayment

tax. If an additional tax applies, each member will pay that tax

that the corporation chose to credit against its 2014 tax. The

based on the part of the amount used in each taxable income

overpayment is credited against unpaid required installments in

bracket to reduce that member's tax. See section 1561(a). Each

the order in which the installments are required to be paid.

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Instructions for Form 1120-W (2014)

Instructions For Form 1120-W - Estimated Tax For Corporations - 2014 Page 2

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