Form 8697 Interest Computation Under the Look-Back Method for Comp

8697

Interest Computation Under the Look-Back
Method for Completed Long-Term Contracts

Form
(Rev. November 2002)

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Department of the Treasury
Internal Revenue Service

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See separate instructions.

For the filing year beginning

OMB No. 1545-1031
Attachment
Sequence No.

Please print or type.

, and ending

97

. See page 2 of the instructions.

Name

A Identifying number

Fill In Your
Address Only If
You Are Filing This
Form Separately
and Not With Your
Tax Return

Number, street, and apt., room, or suite no. If a P.O. box, see page 3 of the instructions.

B Check applicable box to show type of taxpayer:

City or town, state, and ZIP code

Corporation

S corporation

Individual

Partnership

Estate or trust

C If you were an owner of an interest in a pass-through entity (such as a partnership or an S corporation) that holds one or more long-term contracts to which this
interest computation relates, enter the name and employer identification number of the entity. Attach a schedule if there is more than one such entity.
Name of entity

Part I

Employer identification number

Regular Method

1 Taxable income or loss for the prior years shown on tax
return (or as previously adjusted) before net operating loss
or capital loss carrybacks (other than carrybacks that must
be taken into account to properly compute interest under
section 460) (see page 3 of the instructions). If you were
required to file Form 8697 for an earlier year, enter adjusted
taxable income for the prior years from line 3, Form 8697,
for the most recent filing year that affects the prior years

Date of each prior year to which interest
computation relates:
(a)
Year ended
mo.
yr.

(b)
Year ended
mo.
yr.

(c)
Year ended
mo.
yr.

(d)
Totals
(Add columns (a),
(b), and (c).)

2 Adjustment to income to reflect the difference between:
(a) the amount of income required to be allocated for
post-February 1986 contracts completed or adjusted
during the tax year based on the actual contract price and
costs, and (b) the amount of income reported for such
contracts based on estimated contract price and costs.
See page 3 of the instructions and attach a schedule listing
each separate contract, unless you were an owner of an
interest in a pass-through entity reporting this amount from
Schedule K-1 or a similar statement
3 Adjusted taxable income for look-back purposes. Combine
lines 1 and 2
4 Income tax liability on line 3 amount using tax rates in effect
for the prior years (see page 3 of the instructions)
5 Income tax liability shown on return (or as previously
adjusted) for the prior years (see page 3 of the instructions).
If you were required to file Form 8697 for an earlier year,
enter the amount required to be reported on line 4, Form
8697, for the most recent filing year that affects the prior
years
6 Increase or decrease in tax for the prior years on which
interest is due (or is to be refunded). Subtract line 5 from
line 4.
7 Interest due on increase, if any, shown on line 6 (see
page 3 of the instructions)
8 Interest to be refunded on decrease, if any, shown on
line 6 (see page 3 of the instructions)
9 Net amount of interest to be refunded to you. If line 8, column (d), exceeds line 7, column (d), enter the excess. File
Form 8697 separately; do not attach it to your tax return (see page 3 of the instructions)
10

Net amount of interest you owe. If line 7, column (d), exceeds line 8, column (d), enter the excess. Attach
Form 8697 to your tax return. See page 4 of the instructions for where to include this amount on your return

For Privacy Act and Paperwork Reduction Act Notice, see page 5 of the instructions.

Cat. No. 64598V

Form

8697

(Rev. 11-2002)

Form 8697 (Rev. 11-2002)

Part II

Page

Simplified Marginal Impact Method

1 Adjustment to regular taxable income to reflect the
difference between: (a) the amount of such income required
to be allocated for post-February 1986 contracts
completed or adjusted during the tax year based on actual
contract price and costs, and (b) the amount of such
income reported for such contracts based on estimated
contract price and costs. See page 4 of the instructions
and attach a schedule listing each separate contract,
unless you were an owner of an interest in a pass-through
entity reporting this amount from Schedule K-1 or a similar
statement

Date of each prior year to which interest
computation relates:
(a)
Year ended
mo.
yr.

(b)
Year ended
yr.
mo.

(c)
Year ended
yr.
mo.

(d)
Totals
(Add columns (a),
(b), and (c).)

2 Increase or decrease in regular tax for prior years. Multiply
line 1 in each column by the applicable regular tax rate (see
page 4 of the instructions)
Note: For prior years beginning before 1987, skip lines 3
and 4 and enter on line 5 the amount from line 2.
3 Adjustment to alternative minimum taxable income to
reflect the difference between: (a) the amount of such
income required to be allocated for post-February 1986
contracts completed or adjusted during the tax year based
on actual contract price and costs, and (b) the amount of
such income reported for such contracts based on
estimated contract price and costs. See page 4 of the
instructions and attach a schedule listing each separate
contract, unless you were an owner of an interest in a
pass-through entity reporting this amount from Schedule
K-1 or a similar statement
4 Increase or decrease in alternative minimum tax (AMT) for
prior years. Multiply line 3 in each column by the applicable
AMT rate (see page 4 of the instructions)
5 Enter the larger of line 2 or line 4. See page 4 of the
instructions if either amount is negative
Pass-through entities: Skip line 6 and enter on line 7 the
amount from line 5.
6 Overpayment ceiling. For each column in which line 5 is a
negative number, enter your total tax liability for the prior
year, as adjusted for past applications of the look-back
method and after net operating loss, capital loss, net
section 1256 contracts loss, and credit carryovers and
carrybacks to that year. For each column in which line 5 is
a positive number, leave line 6 blank and enter on line 7
the amount from line 5
7 Increase or decrease in tax for the prior years on which
interest is due (or is to be refunded). Enter the amount from
line 5 or line 6, whichever is smaller. Treat both numbers
as positive when making this comparison, but enter the
amount as a negative number
8 Interest due on increase, if any, shown on line 7 (see page
4 of the instructions)
9 Interest to be refunded on decrease, if any, shown on
line 7 (see page 4 of the instructions)
10

Net amount of interest to be refunded to you. If line 9, column (d), exceeds line 8, column (d), enter the excess. File
Form 8697 separately; do not attach it to your tax return (see page 4 of the instructions)

11

Net amount of interest you owe. If line 8, column (d), exceeds line 9, column (d), enter the excess. Attach
Form 8697 to your tax return. See page 4 of the instructions for where to include this amount on your return

Signature(s) Complete this section only if this form is being filed separately.

Sign
Here
Paid
Preparer’s
Use Only

Under penalties of perjury, I declare that I have examined this form, 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.

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Signature(s)

Preparer’s
signature

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Firm’s name (or yours
if self-employed), address, and ZIP code

Date
Preparer’s SSN or PTIN

Date

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Check if
self-employed

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EIN
Phone no. (

)

2