Instructions For Form 1120-W - Estimated Tax For Corporations

originally estimated, it may have to refigure its required

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

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

Line 13. Additional 3% Tax

the amount of any penalty resulting from the underpayment of

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

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

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

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

other entities must determine their estimated tax liability

CAUTION

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

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

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

taxable year.

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

allowed in computing the TMT. Use the 2012 Form 4626 and the

Line 1. Qualified Personal Service Corporations

2012 Instructions for Form 4626 as a guide.

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

Line 17. Tax Credits

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

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

2012 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.

Line 19. Other Taxes

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

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

2012 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

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

Group

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.

Line 23a. 2012 Tax

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

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

Figure the corporation's 2012 tax in the same way that line 22 of

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

Equal apportionment plan. If no apportionment plan is

2012 income tax return. Large corporations, see the instructions

adopted, members of a controlled group must divide the amount

for line 25 below.

in each taxable income bracket equally among themselves. For

example, Controlled Group AB consists of Corporation A and

If a return was not filed for the 2012 tax year showing a

Corporation B. They do not elect an apportionment plan.

liability for at least some amount of tax or the 2012 tax year was

Therefore, each corporation is entitled to:

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

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

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

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

Line 24. Installment Due Dates

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

Calendar-year taxpayers: Enter 4-15-2013, 6-17-2013,

Unequal apportionment plan. Members of a controlled group

9-16-2013, and 12-16-2013, respectively, in columns (a) through

can elect an unequal apportionment plan and divide the taxable

(d).

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

among taxable income brackets. Any member may be entitled to

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

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

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

total amount for all members cannot be more than the total

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

amount in each taxable income bracket.

enter the next business day.

Line 12. Additional 5% Tax

Line 25. Required Installments

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

Payments of estimated tax should reflect any 2012 overpayment

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

that the corporation chose to credit against its 2013 tax. The

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

overpayment is credited against unpaid required installments in

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

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

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Instructions for Form 1120-W (2013)

Instructions For Form 1120-W - Estimated Tax For Corporations - 2013 Page 2

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