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Estimated Tax Payments

A disqualified person or trustee filing to

order followed by other forms in numerical

report section 4951 taxes must also file Form

order.

Generally, the following rules apply to the

7004 to request an extension of time to file.

fund's payments of estimated tax.

Complete every applicable entry space

Who Must Sign

The fund must make installment

on Form 1120-ND. Do not write “See

payments of estimated tax if it expects its

Attached” instead of completing the entry

The return must be signed and dated by an

total tax for the year (less applicable credits)

spaces. If more space is needed on the

authorized trustee. The return of any person

to be $500 or more.

forms or schedules, attach separate sheets

who engaged in any act of self-dealing must

The installments are due by the 15th day

using the same size and format as the

be signed and dated by that person or the

of the 4th, 6th, 9th, and 12th months of the

printed forms. If there are supporting

individual authorized to sign on behalf of that

tax year. If any date falls on a Saturday,

statements and attachments, arrange them

person.

Sunday, or legal holiday, the installment is

in the same order as the schedules or forms

due on the next regular business day.

If an employee of the fund completes

they support and attach them last. Show the

The fund must use electronic funds

Form 1120-ND, the paid preparer space

totals on the printed forms. Enter the fund's

transfers to make installment payments of

should remain blank. Anyone who prepares

name and employer identification number

estimated tax.

Form 1120-ND but does not charge the fund

(EIN) on each supporting statement or

Figure the fund's expected modified gross

should not complete that section. Generally,

attachment.

income for the tax year. Then multiply the

anyone who is paid to prepare the return

Tax Payments

fund's expected modified gross income by

must sign it and fill in the “Paid Preparer Use

20% and use Form 1120-W, Estimated Tax

Only” area.

The fund must pay the tax due in full no later

for Corporations, as a worksheet to compute

than the due date for filing its tax return (not

The paid preparer must complete the

estimated tax. See the Instructions for Form

including extensions).

required preparer information and:

1120-W.

Sign the return in the space provided for

If the fund overpaid estimated tax, it may

Electronic Deposit

the preparer's signature.

be able to get a quick refund by filing Form

Requirement

Give a copy of the return to the taxpayer.

4466, Corporation Application for Quick

Refund of Overpayment of Estimated Tax.

Nuclear decommissioning funds must use

Note. A paid preparer may sign original or

electronic funds transfers to make all federal

For more information on estimated tax

amended returns by rubber stamp,

tax deposits (such as deposits of

payments, see the instructions for line 15.

mechanical device, or computer software

employment, excise, and corporate income

program.

Interest and Penalties

tax). Generally, electronic funds transfers are

Paid Preparer Authorization

made using the Electronic Federal Tax

Interest. Interest is charged on taxes paid

Payment System (EFTPS). However, if the

If the fund wants to allow the IRS to discuss

late even if an extension of time to file is

fund does not want to use EFTPS, it can

its tax return with the paid preparer who

granted. Interest is also charged on penalties

arrange for its tax professional, financial

signed it, check the “Yes” box in the

imposed for failure to file, negligence, fraud,

institution, payroll service, or other trusted

signature area of the return. This

substantial valuation misstatements,

third party to make deposits on its behalf.

authorization applies only to the individual

substantial understatements of tax, and

Also, it may arrange for its financial institution

whose signature appears in the “Paid

reportable transaction understatements from

to submit a same-day tax wire payment

Preparer Use Only” section of the fund's

the due date (including extensions) to the

(discussed below) on its behalf. EFTPS is a

return. It does not apply to the firm, if any,

date of payment. The interest charge is

free service provided by the Department of

shown in that section.

figured at a rate determined under section

the Treasury. Services provided by a tax

6621.

professional, financial institution, payroll

If the “Yes” box is checked, the fund is

service, or other third party may have a fee.

authorizing the IRS to call the paid preparer

Late filing of return. A fund that doesn’t file

its tax return by the due date, including

to answer any questions that may arise

To get more information about EFTPS or

extensions, may be penalized 5% of the

during the processing of its return. The fund

to enroll in EFTPS, visit

is also authorizing the paid preparer to:

unpaid tax for each month or part of a month

call 1-800-555-4477 (TTY/TDD

the return is late, up to a maximum of 25% of

Give the IRS any information that is

1-800-733-4829).

missing from the return,

the unpaid tax. The minimum penalty for a

Call the IRS for information about the

Depositing on time. For any deposit made

return that is over 60 days late is the smaller

of the tax due or $205. The penalty won’t be

processing of the return or the status of any

by EFTPS to be on time, the fund must

related refund or payment(s), and

submit the deposit by 8 p.m. Eastern time the

imposed if the fund can show that the failure

to file on time was due to reasonable cause.

Respond to certain IRS notices about

day before the date the deposit is due. If the

math errors, offsets, and return preparation.

fund uses a third party to make deposits on

Late payment of tax. A fund that doesn’t

its behalf, they may have different cutoff

pay the tax when due generally may be

The fund is not authorizing the paid

times.

penalized 1/2 of 1% of the unpaid tax for

preparer to receive any refund check, bind

Same-day wire payment option. If the

each month or part of a month the tax is not

the fund to anything (including any additional

paid, up to a maximum of 25% of the unpaid

fund fails to submit a deposit transaction on

tax liability), or otherwise represent the fund

EFTPS by 8 p.m. Eastern time the day

tax. The penalty won’t be imposed if the fund

before the IRS.

can show that the failure to pay on time was

before the date a deposit is due, it can still

due to reasonable cause.

The authorization will automatically end

make its deposit on time by using the

Federal Tax Collection Service (FTCS).To

no later than the due date (excluding

Reasonable cause determinations. If the

extensions) for filing the fund's subsequent

use the same-day payment method, the fund

fund receives a notice about penalties after it

tax return. If the fund wants to expand the

will need to make arrangements with its

files its return, send the IRS an explanation,

financial institution ahead of time regarding

paid preparer's authorization or revoke

and we will determine if the fund meets the

authorization before it ends, see Pub. 947,

availability, deadlines, and costs. Financial

reasonable cause criteria. Do not attach an

Practice Before the IRS and Power of

institutions may charge a fee for payments

explanation when the fund files its return.

made this way. To learn more about the

Attorney.

information the fund will need to provide to

Other Penalties. Other penalties can be

Assembling the Return

its financial institution to make a same-day

imposed for negligence, substantial

To ensure that the fund's tax return is

wire payment, visit the IRS website at

understatement of tax, reportable transaction

correctly processed, attach all schedules

, and click on

understatements, and fraud. See sections

after page 2, Form 1120-ND, in alphabetical

“Same-day wire.”

6662, 6662A, and 6663.

-2-

Instructions For Form 1120-Nd - Return For Nuclear Decommissioning Funds And Certain Related Persons - 2016 Page 2

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