Form 2220 PDF Details

Every business owner is responsible for their own taxes. This includes any income generated through your business, as well as self-employment tax. One of the most common ways to file your business taxes is with Form 2220. This form is used to report any income and expenses related to your business. If you're not sure how to complete this form, or if you have any other questions related to your taxes, consult a professional tax advisor. Filing your taxes incorrectly can lead to costly penalties, so it's best to make sure you're doing everything correctly.

QuestionAnswer
Form NameForm 2220
Form Length4 pages
Fillable?No
Fillable fields0
Avg. time to fill out1 min
Other names Instructions for Form 2220 (2020)Internal Revenue Service2020 Instructions for Form 2220 - IRS tax formsInstructions for Form 2220 (2020)Internal Revenue Service

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Form 2220

Underpayment of Estimated Tax by Corporations

OMB No. 1545-0123

 

 

 

 

 

 

 

Department of the Treasury

Attach to the corporation’s tax return.

2021

Internal Revenue Service

Go to www.irs.gov/Form2220 for instructions and the latest information.

 

Name

 

Employer identification number

 

 

 

 

Note: Generally, the corporation is not required to file Form 2220 (see Part II below for exceptions) because the IRS will figure any penalty owed and bill the corporation. However, the corporation may still use Form 2220 to figure the penalty. If so, enter the amount from page 2, line 38, on the estimated tax penalty line of the corporation’s income tax return, but do not attach Form 2220.

Part I Required Annual Payment

1

Total tax (see instructions)

. . . . . . .

1

 

2a

Personal holding company tax (Schedule PH (Form 1120), line 26) included on line 1

2a

 

 

 

b Look-back interest included on line 1 under section 460(b)(2) for completed long-term

 

 

 

 

 

contracts or section 167(g) for depreciation under the income forecast method . .

2b

 

 

 

c

Credit for federal tax paid on fuels (see instructions)

2c

 

 

 

d

Total. Add lines 2a through 2c

. . . . . . .

2d

 

3

Subtract line 2d from line 1. If the result is less than $500, do not complete or file this form. The corporation

 

 

 

does not owe the penalty

. . . . . . .

3

 

4

Enter the tax shown on the corporation’s 2020 income tax return. See instructions. Caution: If the tax is zero or

 

 

 

the tax year was for less than 12 months, skip this line and enter the amount from line 3 on line 5 . . . .

4

 

5

Required annual payment. Enter the smaller of line 3 or line 4. If the corporation is required to skip line 4, enter

 

 

 

the amount from line 3

. . . . . . .

5

 

Part II Reasons for Filing—Check the boxes below that apply. If any boxes are checked, the corporation must file Form 2220 even if it does not owe a penalty. See instructions.

6

7

8

The corporation is using the adjusted seasonal installment method. The corporation is using the annualized income installment method.

The corporation is a “large corporation” figuring its first required installment based on the prior year’s tax.

Part III Figuring the Underpayment

 

 

 

 

(a)

 

(b)

(c)

 

(d)

9

Installment due dates. Enter in columns (a) through (d) the 15th day

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

of the 4th (Form 990-PF filers: Use 5th month), 6th, 9th, and 12th

 

 

 

 

 

 

 

 

months of the corporation’s tax year

9

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

10

Required installments. If the box on line 6 and/or line 7 above is

 

 

 

 

 

 

 

 

checked, enter the amounts from Schedule A, line 38. If the box on

 

 

 

 

 

 

 

 

line 8 (but not 6 or 7) is checked, see instructions for the amounts to

 

 

 

 

 

 

 

 

enter. If none of these boxes are checked, enter 25% (0.25) of line 5

 

 

 

 

 

 

 

 

above in each column

.

10

 

 

 

 

 

 

11

Estimated tax paid or credited for each period. For column (a) only,

 

 

 

 

 

 

 

 

enter the amount from line 11 on line 15. See instructions . . .

.

11

 

 

 

 

 

 

 

Complete lines 12 through 18 of one column before going to the

 

 

 

 

 

 

 

 

next column.

 

 

 

 

 

 

 

 

12

Enter amount, if any, from line 18 of the preceding column . . .

.

12

 

 

 

 

 

 

13

Add lines 11 and 12

.

13

 

 

 

 

 

 

14

Add amounts on lines 16 and 17 of the preceding column . . .

.

14

 

 

 

 

 

 

15

Subtract line 14 from line 13. If zero or less, enter -0- . . . .

.

15

 

 

 

 

 

 

16

If the amount on line 15 is zero, subtract line 13 from line 14.

 

 

 

 

 

 

 

 

Otherwise, enter -0-

.

16

 

 

 

 

 

 

17

Underpayment. If line 15 is less than or equal to line 10, subtract

line

 

 

 

 

 

 

 

 

15 from line 10. Then go to line 12 of the next column. Otherwise, go

 

 

 

 

 

 

 

 

to line 18

.

17

 

 

 

 

 

 

18

Overpayment. If line 10 is less than line 15, subtract line 10 from line

 

 

 

 

 

 

 

 

15. Then go to line 12 of the next column

.

18

 

 

 

 

 

 

Go to Part IV on page 2 to figure the penalty. Do not go to Part IV if there are no entries on line 17—no penalty is owed.

 

 

For Paperwork Reduction Act Notice, see separate instructions.

 

 

Cat. No. 11746L

 

 

Form 2220 (2021)

Form 2220 (2021)

 

 

 

 

 

 

Page 2

 

 

 

 

 

 

 

Part IV

Figuring the Penalty

 

 

 

 

 

 

 

 

 

 

 

 

(a)

(b)

(c)

(d)

19

Enter the date of payment or the 15th day of the 4th month after

 

 

 

 

 

 

 

 

 

 

 

the close of the tax year, whichever is earlier. (C corporations with

 

 

 

 

 

 

tax years ending June 30 and S corporations: Use 3rd month

 

 

 

 

 

 

instead of 4th month. Form 990-PF and Form 990-T filers: Use 5th

 

 

 

 

 

 

month instead of 4th month.) See instructions

19

 

 

 

 

 

 

 

 

 

 

 

 

 

20

Number of days from due date of installment on line 9 to the date

 

 

 

 

 

 

shown on line 19

20

 

 

 

 

21

Number of days on line 20 after 4/15/2021 and before 7/1/2021

21

 

 

 

 

 

 

 

Number of days on line 21

 

 

 

 

 

 

22

Underpayment on line 17 ×

365

× 3% (0.03)

22

$

$

$

$

23

Number of days on line 20 after 6/30/2021 and before 10/1/2021

23

 

 

 

 

 

 

 

Number of days on line 23

 

 

 

 

 

 

24

Underpayment on line 17 ×

365

× 3% (0.03)

24

$

$

$

$

25

Number of days on line 20 after 9/30/2021 and before 1/1/2022

25

 

 

 

 

 

 

 

Number of days on line 25

 

 

 

 

 

 

26

Underpayment on line 17 ×

365

× 3% (0.03)

26

$

$

$

$

27

Number of days on line 20 after 12/31/2021 and before 4/1/2022

27

 

 

 

 

 

 

 

Number of days on line 27

 

 

 

 

 

 

28

Underpayment on line 17 ×

365

× 3% (0.03)

28

$

$

$

$

29

Number of days on line 20 after 3/31/2022 and before 7/1/2022

29

 

 

 

 

 

 

 

Number of days on line 29

 

 

 

 

 

 

30

Underpayment on line 17 ×

365

× *%

30

$

$

$

$

31

Number of days on line 20 after 6/30/2022 and before 10/1/2022

31

 

 

 

 

 

 

 

Number of days on line 31

 

 

 

 

 

 

32

Underpayment on line 17 ×

365

× *%

32

$

$

$

$

33

Number of days on line 20 after 9/30/2022 and before 1/1/2023

33

 

 

 

 

 

 

 

Number of days on line 33

 

 

 

 

 

 

34

Underpayment on line 17 ×

365

× *%

34

$

$

$

$

35

Number of days on line 20 after 12/31/2022 and before 3/16/2023

35

 

 

 

 

 

 

 

Number of days on line 35

 

 

 

 

 

 

36

Underpayment on line 17 ×

365

× *%

36

$

$

$

$

37

Add lines 22, 24, 26, 28, 30, 32, 34, and 36

37

$

$

$

$

38Penalty. Add columns (a) through (d) of line 37. Enter the total here and on Form 1120, line 34; or the comparable

line for other income tax returns

38

$

*Use the penalty interest rate for each calendar quarter, which the IRS will determine during the first month in the preceding quarter. These rates are published quarterly in an IRS News Release and in a revenue ruling in the Internal Revenue Bulletin. To obtain this information on the Internet, access the IRS website at www.irs.gov. You can also call 1-800-829-4933 to get interest rate information.

Form 2220 (2021)

Form 2220 (2021)

Page 3

 

 

Schedule A

Adjusted Seasonal Installment Method and Annualized Income Installment Method

 

See instructions.

Form 1120-S filers: For lines 1, 2, 3, and 21, “taxable income” refers to excess net passive income or the amount on which tax is imposed under section 1374(a), whichever applies.

Part I Adjusted Seasonal Installment Method

Caution: Use this method only if the base period percentage for any 6 consecutive months is at least 70%. See instructions.

1Enter taxable income for the following periods.

a

Tax year beginning in 2018

b

Tax year beginning in 2019

c

Tax year beginning in 2020

2Enter taxable income for each period for the tax year beginning in 2021. See the instructions for the treatment of extraordinary items

3Enter taxable income for the following periods.

a

Tax year beginning in 2018

b

Tax year beginning in 2019

c

Tax year beginning in 2020

4Divide the amount in each column on line 1a by the amount in

column (d) on line 3a . . . . . . . . . . . . .

5Divide the amount in each column on line 1b by the amount in

column (d) on line 3b . . . . . . . . . . . . .

6Divide the amount in each column on line 1c by the amount in

column (d) on line 3c . . . . . . . . . . . . .

7

Add lines 4 through 6

8

Divide line 7 by 3.0

9a

Divide line 2 by line 8

b

Extraordinary items (see instructions)

c

Add lines 9a and 9b

10Figure the tax on the amount on line 9c using the instructions for Form 1120, Schedule J, line 2, or comparable line of

corporation’s return . . . . . . . . . . . . . .

11a Divide the amount in columns (a) through (c) on line 3a by the amount in column (d) on line 3a . . . . . . . . . .

bDivide the amount in columns (a) through (c) on line 3b by the

amount in column (d) on line 3b . . . . . . . . . .

cDivide the amount in columns (a) through (c) on line 3c by the

 

amount in column (d) on line 3c

12

Add lines 11a through 11c

13

Divide line 12 by 3.0

14Multiply the amount in columns (a) through (c) of line 10 by

columns (a) through (c) of line 13. In column (d), enter the amount from line 10, column (d) . . . . . . . . . .

15Enter any alternative minimum tax (trusts only) for each payment

period. See instructions

. . . . . . . . . . . .

16Enter any other taxes for each payment period. See instructions

17

Add lines 14 through 16

18For each period, enter the same type of credits as allowed on

Form 2220, lines 1 and 2c. See instructions . . . . . .

19Total tax after credits. Subtract line 18 from line 17. If zero or less, enter -0- . . . . . . . . . . . . . . . .

 

(a)

(b)

(c)

(d)

 

 

 

 

 

 

First 3 months

First 5 months

First 8 months

First 11 months

1a

 

 

 

 

 

 

 

 

1b

 

 

 

 

1c

 

 

 

 

2

 

 

 

 

 

First 4 months

First 6 months

First 9 months

Entire year

3a

 

 

 

 

 

 

 

 

3b

 

 

 

 

3c

 

 

 

 

4

 

 

 

 

5

 

 

 

 

6

 

 

 

 

7

 

 

 

 

8

 

 

 

 

9a

 

 

 

 

9b

 

 

 

 

9c

 

 

 

 

10

 

 

 

 

11a

 

 

 

 

11b

 

 

 

 

11c

 

 

 

 

12

 

 

 

 

13

 

 

 

 

14

 

 

 

 

15

 

 

 

 

16

 

 

 

 

17

 

 

 

 

18

 

 

 

 

19

 

 

 

 

 

 

 

 

 

Form 2220 (2021)

Form 2220 (2021)

Page 4

 

 

Part II

Annualized Income Installment Method

 

20Annualization periods (see instructions) . . . . . . . .

21Enter taxable income for each annualization period. See instructions for the treatment of extraordinary items . . . .

22

Annualization amounts (see instructions)

23a

Annualized taxable income. Multiply line 21 by line 22 . . .

b

Extraordinary items (see instructions)

c

Add lines 23a and 23b

24Figure the tax on the amount on line 23c using the instructions for Form 1120, Schedule J, line 2, or comparable line of

corporation’s return . . . . . . . . . . . . . .

25Enter any alternative minimum tax (trusts only) for each payment

period (see instructions)

. . . . . . . . . . . .

26Enter any other taxes for each payment period. See instructions

27

Total tax. Add lines 24 through 26

28For each period, enter the same type of credits as allowed on

Form 2220, lines 1 and 2c. See instructions . . . . . .

29Total tax after credits. Subtract line 28 from line 27. If zero or

less, enter -0- . . . . . . . . . . . . . . . .

30

Applicable percentage

31

Multiply line 29 by line 30

 

(a)

(b)

(c)

(d)

 

 

 

 

 

 

 

 

 

 

First

First

First

First

 

 

 

 

 

 

 

 

 

20

months

months

months

months

21

 

 

 

 

 

 

 

 

22

 

 

 

 

 

 

 

 

23a

 

 

 

 

 

 

 

 

23b

 

 

 

 

 

 

 

 

23c

 

 

 

 

 

 

 

 

24

 

 

 

 

 

 

 

 

25

 

 

 

 

 

 

 

 

26

 

 

 

 

 

 

 

 

27

 

 

 

 

 

 

 

 

28

 

 

 

 

 

 

 

 

29

 

 

 

 

 

 

 

 

30

25%

50%

75%

100%

31

 

 

 

 

 

 

 

 

Part III Required Installments

Note: Complete lines 32 through 38 of one column before completing the next column.

32If only Part I or Part II is completed, enter the amount in each column from line 19 or line 31. If both parts are completed, enter the smaller of the amounts in each column from line 19 or line 31

33Add the amounts in all preceding columns of line 38. See

 

instructions

34

Adjusted seasonal or annualized income installments.

 

Subtract line 33 from line 32. If zero or less, enter -0- . . .

35Enter 25% (0.25) of line 5 on page 1 of Form 2220 in each

column. Note: “Large corporations,” see the instructions for line 10 for the amounts to enter . . . . . . . . . . .

36Subtract line 38 of the preceding column from line 37 of the

 

preceding column

37

Add lines 35 and 36

38

Required installments. Enter the smaller of line 34 or line 37

 

here and on page 1 of Form 2220, line 10. See instructions .

1st

2nd

3rd

4th

installment

installment

installment

installment

32

33

34

35

36

37

38

Form 2220 (2021)

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It really is straightforward to finish the form adhering to this practical guide! This is what you should do:

1. Start filling out your Form 2220 with a selection of necessary blanks. Get all of the information you need and make sure there is nothing neglected!

Best ways to fill in Form 2220 stage 1

2. Once the last array of fields is completed, you need to add the needed details in Installment due dates Enter in, Required installments If the box, Estimated tax paid or credited for, Complete lines through of one, Enter amount if any from line of, If the amount on line is zero, Underpayment If line is less than, Overpayment If line is less than, Then go to line of the next, Go to Part IV on page to figure, For Paperwork Reduction Act Notice, Cat No L, and Form so you're able to go to the 3rd part.

Guidelines on how to fill in Form 2220 part 2

3. This next part will be focused on Part IV Figuring the Penalty, Enter the date of payment or the, Number of days from due date of, Number of days on line after and, Underpayment on line, Number of days on line, Number of days on line after and, Underpayment on line, Number of days on line, Number of days on line after and, Underpayment on line, Number of days on line, Number of days on line after and, Underpayment on line, and Number of days on line - complete these empty form fields.

Learn how to complete Form 2220 portion 3

4. Completing Underpayment on line, Number of days on line, Number of days on line after and, Underpayment on line, Number of days on line, Number of days on line after and, Underpayment on line, Number of days on line, Number of days on line after and, Underpayment on line, Number of days on line, Add lines and, Penalty Add columns a through d of, and Use the penalty interest rate for is crucial in this next section - don't forget to don't hurry and fill in every single blank!

Number of days on line, Number of days on line  after  and, and Underpayment on line in Form 2220

Those who use this document frequently make errors while completing Number of days on line in this section. You should definitely read again everything you enter right here.

5. While you come near to the completion of your file, you'll notice just a few more things to do. Mainly, Enter taxable income for the, a Tax year beginning in b Tax, Enter taxable income for each, a Tax year beginning in b Tax, Divide the amount in each column, Divide the amount in each column, Divide the amount in each column, b Extraordinary items see, Figure the tax on the amount on, First months, First months, First months, First months, First months, and First months should be filled in.

Filling in part 5 of Form 2220

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