Instructions For Form 1120-W - Estimated Tax For Corporations

Line 15. Alternative Minimum Tax

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

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

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

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

Extraordinary items. If the corporation has extraordinary

2014 tax year. To figure the AMT, use the 2013 Form 4626 and

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

its instructions as a guide. Figure alternative minimum taxable

minimis extraordinary items that the corporation chooses to

income (AMTI) using income and deductions for the months

include on line 23b. See Extraordinary items earlier.

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

Line 22. Annualization Amounts

the amounts on line 8 before subtracting the exemption amount.

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

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

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

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

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

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

on line 13.

through (d), respectively.

Line 16. Other Taxes

1st

2nd

3rd

4th

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

Installment

the amounts for the months shown in the column headings

Standard option

1.33333

above line 1.

Option 1

1.71429

1.2

. . . . .

Line 18. Credits

Option 2

2.4

1.5

1.09091

. . . . .

Enter the credits to which the corporation is entitled for the

months shown in the column headings above line 1.

Line 23b

Part II. Annualized Income Installment

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

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

Method

adjustment, special rules apply. Include these amounts on

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

Line 20. Annualization Periods

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

Extraordinary items earlier.

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

respectively, the annualization periods that the corporation is

Line 24

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

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

corporation elects Option 1, enter on line 20 the annualization

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

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

page 1, line 14.

Use Option 1 or Option 2 only if the corporation elected

to use one of these options by filing Form 8842,

Line 25. Alternative Minimum Tax

Election To Use Different Annualization Periods for

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

CAUTION

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

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

required installment payment. Once made, the election is

2014 tax year. To figure the AMT, use the 2013 Form 4626 and

irrevocable for the particular tax year.

its instructions as a guide. Figure AMTI using income and

deductions for the annualization period entered in each column

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

1st

2nd

3rd

4th

line 22 before subtracting the exemption amount. Multiply that

Installment

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

Standard option

amount on line 24 to arrive at the AMT.

Option 1

. . . . .

Line 26. Other Taxes

Option 2

. . . . .

For the same taxes used to figure line 19 of Form 1120-W, figure

the amounts for the months shown on line 20.

Line 21. Taxable Income

Line 28. Credits

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

(controlled foreign corporation income), special rules apply.

Enter the credits to which the corporation is entitled for the

months shown in each column on line 20. Do not annualize any

Amounts includible in income under section 951(a) generally

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

must be taken into account in figuring the amount of any

income or deduction used to figure the credit.

annualized income installment as the income is earned. The

Part III. Required Installments

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

partnership income inclusions are taken into account in figuring

a partner's annualized income installments as provided in

Line 33

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

Before completing line 33 in columns (b) through (d), complete

Safe harbor election. Corporations may be able to make a

lines 34 through 38 in each of the preceding columns. For

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

example, complete lines 34 through 38 in column (a) before

corporation is treated as having received ratably during the tax

completing line 33 in column (b).

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

for a noncontrolling shareholder) of the amounts shown on the

Line 35

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

“Large corporations,” see the instructions for page 1, line 25, for

preceding tax year for the first and second required

the amount to enter.

installments).

-4-

Instructions for Form 1120-W (2014)

Instructions For Form 1120-W - Estimated Tax For Corporations - 2014 Page 4

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