Form 8752 – Fill Out and Use This PDF

Form 8752

Department of the Treasury Internal Revenue Service

Required Payment or Refund Under Section 7519

▶Don’t attach this form to Form 1065 or Form 1120-S; file it separately.

▶Go to www.irs.gov/Form8752 for the latest information.

▶Due by May 16, 2022.

OMB No. 1545-0123

2021

Type or print

Number, street, and room or suite no. If a P.O. box, see instructions.

City or town, state or province, country, and ZIP or foreign postal code

Sign

Here

Keep a copy of this form for your records.

Under penalties of perjury, I declare that I have examined this return, including accompanying schedules and statements, and to the best of my knowledge and belief, it is true, correct, and complete. Declaration of preparer (other than taxpayer) is based on all information of which preparer has any knowledge.

General Instructions

Section references are to the Internal Revenue Code unless otherwise noted.

Future developments. For the latest information about developments related to Form 8752 and its instructions, such as legislation enacted after they were published, go to www.irs.gov/Form8752.

Purpose of form. Partnerships and S corporations use Form 8752 to figure and report the payment required under section 7519 or to

Alabama, Alaska, Arizona,

Arkansas, California, Colorado,

Florida, Hawaii, Idaho, Iowa,

Kansas, Louisiana, Minnesota,

Mississippi, Missouri, Montana,

Nebraska, Nevada, New Mexico,

North Dakota, Oklahoma,

Oregon, South Dakota, Texas,

Utah, Washington, Wyoming

Department of the Treasury Internal Revenue Service Ogden, UT

84201

obtain a refund of net prior year payments.

Section 7519 payments are required of any partnership or

S corporation that has elected under section 444 to have a tax year other than a required tax year.

Who must file. A partnership or S corporation must file Form 8752 if it made a section 444 election by filing Form 8716, Election To Have a Tax Year Other Than a Required Tax Year, and its election is in effect for the tax year. A partnership or S corporation that terminates its section 444 election or liquidates must also file Form 8752 to claim a refund of its net required payment balance. Form 8752 must be filed for each year the section 444 election is in effect, even if the required payment for the applicable election year is zero. See section 7519(c) for details.

Don’t file Form 8752 for a personal service corporation (as defined in Regulations section 1.441-3). Instead, file Schedule H (Form 1120), Section 280H Limitations for a Personal Service Corporation (PSC), with the corporation’s income tax return.

When to file. For applicable election years beginning in 2021, Form 8752 must be filed and the required payment made on or before May 16, 2022.

However, Temporary Regulations section 1.444-3T(b)(4)(iii) provides a special rule that extends the due date for filing Form 8752 and making the required payment related to certain back-up section 444 elections.

Where to file. File Form 8752 at the applicable IRS address listed below.

An entity without a principal office or agency or principal place of business in the United States must file Form 8752 with the Internal Revenue Service Center, P.O. Box 409101, Ogden, UT 84409.

Penalties. If the required payment isn’t made by the due date, the entity may have to pay a penalty equal to 10% of the underpayment. For this purpose, “underpayment” means the excess of the required payment over the amount (if any) of such payment made on or before the due date for the applicable election year. The penalty will not be imposed if the entity can show that the failure to pay on time was due to reasonable cause and not willful neglect. If you include this penalty with the entity’s payment, identify and enter the penalty amount in the bottom margin of page 1. Don’t include the penalty in the Required payment due space on line 11. Other penalties may also apply. If the entity receives a notice about a penalty after it files Form 8752, the entity should send us an explanation and we will determine if the entity meets reasonable cause criteria. Do not attach an explanation when filing Form 8752.

Amended return. To correct an error in a Form 8752 already filed, file an amended Form 8752 and write “Amended Return” across the top.

Specific Instructions

For the applicable election year beginning in 2021, enter the ending date of the base year ending in 2021. See the definitions of applicable election year and base year under Line 1. Net income for base year, later.

Address. Include the suite, room, or other unit number after the street address. If the Post Office doesn’t deliver mail to the street address and the entity has a P.O. box, show the box number instead of the street address.

Item B. If an applicable election year is the entity’s first year of existence (that is, it is a newly formed entity and therefore doesn’t have a base year), the required payment is zero.

Item C. If the entity terminated its section 444 election and the termination took effect for a tax year ending in 2021, or the entity liquidated during a tax year ending in 2021, check this box. The entity should claim a full refund of the net required payment balance shown on line 10. See section 7519(c)(3) to determine when you are eligible for the refund.

A partnership’s section 444 election ends if the partnership changes its accounting period to its required tax year or some other permitted year, it is penalized for willfully failing to comply with the requirements of section 7519, or it becomes a member of a tiered structure and the same tax year exception doesn’t apply (see Temporary Regulations section 1.444-2T for more about tiered structures).

An S corporation’s section 444 election ends if it changes its accounting period to a calendar year or some other permitted year, it is penalized for willfully failing to comply with the requirements of section 7519, it becomes a member of a tiered structure and the same tax year exception doesn’t apply (see Temporary Regulations section 1.444-2T), or its S corporation election terminates (unless it immediately becomes a personal service corporation).

See Temporary Regulations section 1.444-1T(a)(5)(ii) for the effective date of the termination of a section 444 election.

Once a section 444 election is terminated, the entity may never make another section 444 election.

Line 1. Net income for base year. The term “base year” means the tax year preceding the applicable election year. Any tax year for which a section 444 election is in effect, including the first tax year the section 444 election is made, is an applicable election year. For example, if you are completing Form 8752 for the applicable election year beginning October 1, 2021, and ending September 30, 2022, the base year is the tax year beginning October 1, 2020, and ending September 30, 2021.

Partnerships. Line 1 net income is the aggregate (not less than zero) of the partnership’s items of income and expense, other than tax-exempt income, nondeductible expenses, and guaranteed payments under section 707(c). When figuring this amount, disregard any limitations at the partner level. For base years beginning in 2020, line 1 should equal the amount on the 2020 Form 1065, line 1, of Analysis of Net Income (Loss), plus the aggregate items of income and expense, if any, reported on the attached statement for Schedule K, line 20c (but not less than zero).

S corporations. Line 1 net income is the aggregate (not less than zero) of the corporation’s items of income and expense, other than tax-exempt income and nondeductible expenses. When figuring this amount, disregard any limitations at the shareholder level. For base years beginning in 2020, line 1 should equal the amount on the 2020 Form 1120-S, Schedule K, line 18, plus the aggregate items of income and expense, if any, reported on Schedule K, line 17d (but not less than zero). For this purpose, all S corporations must complete Schedule K, line 18.

If an S corporation was a C corporation for its base year, the

C corporation’s taxable income is treated as the net income of the S corporation for the base year. See Temporary Regulations section 1.7519-1T(b)(5) for other details.

Line 2. Applicable payments. In general, the term “applicable payments” means any amount deductible in the base year that is includible at any time, directly or indirectly, in the gross income of any partner or shareholder who was a partner or shareholder during the base year. However, the term doesn’t include guaranteed payments. Examples of applicable payments are officer’s compensation, wages, and rent paid to any partner or shareholder.

If the S corporation was a C corporation for its base year, applicable payments of the C corporation are treated as if received from an S corporation.

Line 3. Deferral ratio. The deferral period is the number of months between:

•The beginning of the elected tax year, and

•The close of the first required tax year ending within such a year.

For example, the required tax year for an S corporation is the calendar year, ending on December 31. If an S corporation elects a tax year beginning on November 1, there would be 2 months between the beginning of the elected tax year and the end of the required tax year (December 31). The deferral period for the elected tax year would be 2 months.

Line 9b. If you enter zero on line 9b and you didn’t make any prior year required payment for which a refund can be claimed, enter zero on line 10, skip lines 11 and 12, and complete the signature section. You are required to file Form 8752 to show that you have a zero liability for the applicable election year beginning in 2021.

Line 11. Required payment due. If you are enrolled in the Electronic Federal Tax Payment System (EFTPS), you can pay your balance due online or by phone. EFTPS is a free service provided by the U.S. Department of Treasury. If you aren’t required to use EFTPS, you may still participate voluntarily. To pay the balance due, get more information, or enroll in EFTPS, visit www.eftps.gov or call 1-800-555-4477.

To pay by check or money order. Enclose a check or money order for the amount on line 11 payable to “United States Treasury.” Write the entity’s employer identification number and “Form 8752” on the check or money order.

Line 12. Refund of net prior year payments. No refund will be made before the later of: (a) April 15, 2022, or (b) 90 days after Form 8752 is filed per section 7519(c)(3). No interest will be paid on the amount refunded.

Paperwork Reduction Act Notice. We ask for the information on this form to carry out the Internal Revenue laws of the United States. You are required to give us the information. We need it to ensure that you are complying with these laws and to allow us to figure and collect the right amount of required payment.

You are not required to provide the information requested on a form that is subject to the Paperwork Reduction Act unless the form displays a valid OMB control number. Books or records relating to a form or its instructions must be retained as long as their contents may become material in the administration of any Internal Revenue law. Generally, tax returns and return information are confidential, as required by section 6103.

The time needed to complete and file this form will vary depending on individual circumstances. The estimated burden for business taxpayers filing this form is approved under OMB control number 1545-0123 and is included in the estimates shown in the instructions for their business income tax return.

If you have suggestions for making this form simpler, we would be happy to hear from you. You can send us comments from www.irs.gov/FormComments. Or you can write to the Internal Revenue Service, Tax Forms and Publications, 1111 Constitution Ave. NW, IR-6526, Washington, DC 20224. Don’t send the form to this office. Instead, see Where to file, earlier.