Instructions For Form 2220 - 2002 (Page 2 of 4) in pdf

required installment, Schedule A automatically selects

S corporations. Enter on line 7 the sum of:

the smallest of:

1. The total of the investment credit recapture tax and

•

The annualized income installment,

the built-in gains tax (or the tax on certain capital gains)

•

The adjusted seasonal installment (if applicable), or

shown on the return for the 2002 tax year and

•

The regular installment under section 6655(d)

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

(increased by any reduction recaptured under section

corporation’s return for the 2001 tax year.

6655(e)(1)(B)).

If the 2001 tax year was less than 12 months, skip

Follow the steps below to determine which parts of the

line 7 and enter the amount from line 6 on line 8.

form have to be completed.

•

If the corporation is using only the annualized income

Line 10. Large corporations, follow the instructions

installment method, check the box on line 1 of Part I and

below.

complete Parts I and III of Schedule A.

1. If the box on line 3 (but not line 1 or line 2) is

•

If the corporation is using only the adjusted seasonal

checked and line 6 is smaller than line 7, enter 25% of

installment method, check the box on line 2 of Part I and

line 6 in columns (a) through (d) of line 10.

complete Parts II and III of Schedule A.

2. If the box on line 3 (but not line 1 or line 2) is

•

If the corporation is using both methods, check the

checked and line 7 is smaller than line 6, enter 25% of

boxes on lines 1 and 2 of Part I and complete all three

line 7 in column (a) of line 10. In column (b), figure the

parts of Schedule A.

amount to enter as follows:

Line 3. Large corporations. A large corporation is a

a. Subtract line 7 from line 6,

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

b. Add the result to the amount on line 6, and

whose predecessor had, taxable income (defined below)

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

of $1 million or more for any of the 3 tax years

the result in column (b).

immediately preceding the current tax year. A large

In columns (c) and (d), enter 25% of line 6.

corporation includes a “large organization” as defined in

3. If the box on line 3 and the box on line 1 and/or line

the instructions for Form 990-W.

2 is checked, follow the instructions in items 1 and 2

Taxable income, for this purpose, is modified to

above by substituting line 37 of Schedule A for line 10

exclude net operating loss and capital loss carrybacks

and complete the rest of Part III of Schedule A.

and carryforwards. Members of a controlled group, as

Line 11. Enter the estimated tax payments made by the

defined in section 1563, must divide the $1 million

amount among themselves under rules similar to those in

corporation for its tax year as indicated below. Include

section 1561.

any overpayment from the corporation’s 2001 tax return

that was credited to the corporation’s 2002 estimated tax.

If the corporation is a large corporation, check the box

If an installment is due on a Saturday, Sunday, or legal

on line 3 and, if applicable, check the box(es) on line 1

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

and/or line 2. Also, if applicable, complete Parts I, II, and

Saturday, Sunday, or legal holiday are considered made

III of Schedule A, as discussed above.

on the due date to the extent the payment is applied

against that required installment.

Part II—Figuring the Underpayment

•

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

Line 4. Generally, enter the tax from line 31, Form 1120;

9, column (a).

•

line 27, Form 1120-A; or the applicable line for other

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

income tax returns. However, if that amount includes any

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

tax attributable to a sale described in section 338(a)(1),

line 9 of the preceding column.

do not include that tax on line 4. Instead, write “Sec. 338

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

gain” and show the amount of tax in brackets on the

underpayment, complete Part III to figure the penalty.

dotted line next to line 4.

Filers of Forms 990-PF, 990-T, 1120-F, 1120-L,

Part III—Figuring the Penalty

1120-ND, 1120-PC, 1120-REIT, 1120-RIC, 1120S, and

Complete lines 19 through 34 to determine the amount of

1120-SF. See the instructions for the appropriate tax

the penalty. The penalty is figured for the period of

return for the definition of tax for estimated tax purposes.

underpayment determined under section 6655 using the

Line 5c. Enter the amount from line 32g, Form 1120; line

underpayment rate determined under section 6621(a)(2).

28g, Form 1120-A; or the applicable line for other income

For information on obtaining the interest rate on

tax returns.

underpayments paid after March 31, 2003, see page 2 of

Line 7. All filers (other than S corporations). Figure

Form 2220.

the corporation’s 2001 tax the same way the amount on

Line 19. A payment of estimated tax is applied against

line 6 of this form was determined, using the taxes and

underpayments of required installments in the order that

credits from its 2001 tax return. But skip line 7 and

installments are required to be paid, regardless of the

enter the amount from line 6 on line 8 if:

installment to which the payment pertains.

•

The corporation did not file a tax return for 2001 that

showed a liability for at least some amount of tax or

Example. A corporation underpaid the April 15

•

The corporation had a 2001 tax year of less than 12

installment by $1,000. The June 15 installment requires a

months.

payment of $2,500. On Monday, June 17, the corporation

-2-

Instructions For Form 2220 - 2002 Page 2

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