Instructions For Form 2220 - 2002 (Page 3 of 4) in pdf

deposits $2,500 to cover the June 15 installment.

Corporations

However, $1,000 of this payment is applied against the

1st

2nd

3rd

4th

Installment

April 15 installment. The penalty for the April 15

Standard option

1.33333

installment is figured to June 17 (63 days). The remaining

Option 1

1.71429 1.2

$1,500 is applied to the June 15 installment as if it were

made on June 15.

Option 2

2.4

1.5

1.09091

If the corporation has made more than one payment

Tax-Exempt Organizations and Private Foundations

for a required installment, attach a separate

1st

2nd

3rd

4th

Installment

computation for each payment.

Standard option

1.33333

Option 1

1.71429 1.2

Schedule A

Line 6. Enter any other taxes (including alternative

Part I—Annualized Income Installment

minimum tax, as figured below) the corporation owed for

Method

the months shown in each column on line 1. Include the

same taxes used to figure line 4, Part II, of Form 2220,

Line 1 — Annualization periods. Enter on line 1,

but do not include the personal holding company tax or

columns (a) through (d), respectively, the annualization

interest due under the look-back method of section

amounts for the option listed below. For example, if the

460(b)(2) for completed long-term contracts or section

corporation elected Option 1, enter on line 1 the

167(g) for property depreciated under the income

annualization periods 2, 4, 7, and 10, in columns (a)

forecast method.

through (d), respectively.

Alternative minimum tax. Compute the alternative

minimum tax (AMT) on Form 4626, Alternative Minimum

Tax —Corporations, if applicable. Figure alternative

Use Option 1 or Option 2 only if the corporation

minimum taxable income (AMTI) based on the

elected to do so by filing Form 8842, Election To

corporation’s income and deductions for the

Use Different Annualization Periods for

CAUTION

annualization period entered in each column on line 1.

Corporation Estimated Tax, by the due date of the first

Multiply AMTI by the annualization amounts (line 3) used

required installment payment. Once made, the election is

to figure annualized taxable income before subtracting

irrevocable for the particular tax year.

the exemption amount under section 55(d).

Line 8. Enter the credits the corporation is entitled to for

Option 2 is not available to tax-exempt organizations

the months shown in each column on line 1. Do not

and private foundations. See Form 990-W.

annualize any credit. However, when figuring the credits,

annualize any item of income or deduction used to figure

Corporations

1st

2nd

3rd

4th

the credit. For details, see Rev. Rul. 79-179, 1979-1 C.B.

Installment

436.

Standard option

Line 12. Before completing line 12 in columns (b)

Option 1

through (d), complete the following items in each of the

Option 2

preceding columns: line 13, Part I; Part II (if applicable);

and Part III. For example, complete line 13, Part I; Part II

(if using the adjusted seasonal installment method); and

Tax-Exempt Organizations and Private Foundations

Part III, in column (a) before completing line 12 in column

1st

2nd

3rd

4th

Installment

(b).

Standard option

Part II—Adjusted Seasonal Installment

Option 1

Method

The corporation may use the adjusted seasonal

Line 2. Enter on line 2 the taxable income (line 30, Form

installment method only if the corporation’s base period

1120; line 26, Form 1120-A; or the applicable line for

percentage for any 6 consecutive months of the tax year

other income tax returns) that the corporation received

is 70% or more. The base period percentage for any

for the months entered for each annualization period in

period of 6 consecutive months is the average of the 3

percentages figured by dividing the taxable income for

columns (a) through (d) on line 1.

the corresponding 6 consecutive month period in each of

the 3 preceding tax years by the taxable income for each

Line 3 —Annualization amounts. Enter on line 3,

of their respective tax years.

columns (a) through (d), respectively, the annualization

amounts for the option used on line 1 above. For

Example. An amusement park with a 2002

example, if the corporation elected Option 1, enter on line

calendar tax year receives the largest part of its taxable

3 the annualization amounts 6, 3, 1.71429, and 1.2, in

income during a 6-month period, May through October.

columns (a) through (d), respectively.

To compute its base period percentage for this 6-month

-3-

Instructions For Form 2220 - 2002 Page 3

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