Form 990-W Estimated Tax on Unrelated Business Taxable Income for T

Estimated Tax on Unrelated Business Taxable Income for Tax-Exempt Organizations

2009 Version of Form

Estimated Tax on Unrelated Business Taxable Income for Tax-Exempt Organizations

OMB: 1545-0976

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Form

Estimated Tax on Unrelated Business Taxable
Income for Tax-Exempt Organizations

990-W

(WORKSHEET)
Department of the Treasury
Internal Revenue Service

OMB No. 1545-0976

2009

(and on Investment Income for Private Foundations)
(Keep for your records. Do not send to the Internal Revenue Service.)

Unrelated business taxable income expected in the tax year

Tax on the amount on line 1. See instructions for tax computation

Alternative minimum tax (see instructions)

Total. Add lines 2 and 3

Estimated tax credits (see instructions)

Balance. Subtract line 5 from line 4

Other taxes (see instructions)

Total. Add lines 6 and 7

Credit for federal tax paid on fuels (see instructions)

10a Subtract line 9 from line 8. Note. If less than $500, the organization
is not required to make estimated tax payments. Private foundations,
10a
see instructions
b Enter the tax shown on the 2008 return (see instructions). Caution. If
zero or the tax year was for less than 12 months, skip this line and
10b
enter the amount from line 10a on line 10c
c 2009 Estimated Tax. Enter the smaller of line 10a or line 10b. If the organization is required to
skip line 10b, enter the amount from line 10a on line 10c
(a)
11

Installment due dates (see
instructions)

Required installments. Enter
25% of line 10c in columns
(a) through (d) unless the
organization uses the
annualized income
installment method, the
adjusted seasonal installment
method, or is a “large
organization” (see
instructions)

2008 Overpayment (see
instructions)

Payment due. (Subtract line
13 from line 12.)

For Paperwork Reduction Act Notice, see the instructions on page 8.

(b)

10c

(c)

Cat. No. 63726T

(d)

Form

990-W

(2009)

Page 2
Required Installments Using the Annualized Income Installment Method and/or the Adjusted
Seasonal Installment Method Under Section 6655(e)

Form 990-W (WORKSHEET) 2009

Schedule A

Note. See the instructions for Schedule A. An organization that expects its income to vary during the year may want to
complete Schedule A to determine whether it may be able to lower the amount of one or more required installments.
Complete each column of this schedule in its entirety before going to the next column.
(a)
(b)
(c)
(d)
Part I—Annualized Income Installment Method
First ____
First ____
First ____
First ____
months
months
months
months
1 Annualization period (see instructions)
1
2

Enter taxable income for each annualization period (see
instructions for the treatment of extraordinary items).

Annualization amounts (see instructions)

4a Annualized taxable income. Multiply line 2 by line 3.

b Extraordinary items (see instructions)

c Add lines 4a and 4b.

Figure the tax on the amount in each column on line 4c in
the same manner as you figured line 2, Form 990-W.

Enter alternative minimum tax and other taxes for each
annualization period (see instructions).

Total tax. Add lines 5 and 6.

For each period, enter the same type of credits as allowed
on Form 990-W, lines 5 and 9 (see instructions).

9
10

Total tax after credits. Subtract line 8 from line 7. If less
than zero, enter -0-.
Applicable percentage

9
10

Multiply line 9 by line 10.

Total of all preceding columns of line 40 (see instructions)

Annualized income installments. Subtract line 12 from
line 11. If zero or less, enter -0-.

25%

50%

100%

75%

Part II—Adjusted Seasonal Installment Method
Caution. Use this method only if the base period percentage for any 6 consecutive months is at least 70%. See the instructions for
Schedule A, Part II for more information.

Enter taxable income for the following periods:

a Tax year beginning in 2006

14a

b Tax year beginning in 2007

14b

c Tax year beginning in 2008

14c

Enter taxable income for each period for the tax year
beginning in 2009 (see instructions for the treatment of
extraordinary items).

(b)
First 5
months

(d)
First 11
months

First 4*
months

First 6
months

First 9
months

Entire year

Enter taxable income for the following periods:

a Tax year beginning in 2006

16a

b Tax year beginning in 2007

16b

c Tax year beginning in 2008

16c

*First 5 months for private foundations.

(a)
First 3
months

Form

990-W

(2009)

Form 990-W (WORKSHEET) 2009

Page

(a)
First 4
months
17

Divide the amount in each column on line 14a by the amount
on line 16a, column (d).

Divide the amount in each column on line 14b by the amount
on line 16b, column (d).

Divide the amount in each column on line 14c by the amount
on line 16c, column (d).

Add lines 17 through 19.

Divide line 20 by 3.0.

18
19

22a Divide line 15 by line 21.

(b)
First 6
months

(d)
Entire year

22a

b Extraordinary items (see instructions)

22b

c Add lines 22a and 22b.

22c

Figure the tax on the amount on line 22c in the same manner
as figured on Form 990-W, line 2.

Divide the amount on line 16a, columns (a) through (c) by the
amount on line 16a, column (d).

Divide the amount on line 16b, columns (a) through (c) by the
amount on line 16b, column (d).

Divide the amount on line 16c, columns (a) through (c) by the
amount on line 16c, column (d).

Add lines 24 through 26.

Divide line 27 by 3.0.

Multiply line 23, columns (a) through (c) by line 28, columns
(a) through (c). In column (d), enter the amount from line 23,
column (d).

Enter any alternative minimum tax and other taxes for each
payment period (see instructions).

Total tax. Add lines 29 and 30.

For each period, enter the same type of credits as allowed
on Form 990-W, lines 5 and 9 (see instructions)

Total tax after credits. Subtract line 32 from line 31. If zero
or less, enter -0-.

Total of all preceding columns of line 40 (see instructions)

Adjusted seasonal installments. Subtract line 34 from line
33. If zero or less, enter -0-.

35
Form

990-W

(2009)

Form 990-W (WORKSHEET) 2009

Page

Part III—Required Installments

(a)
1st
installment

If only one of the above parts was completed, enter the
amounts in each column from line 13 or line 35. (If both parts
were completed, enter the smaller of the amounts in each
column from line 13 or line 35.)

Divide line 10c, page 1 of Form 990-W, by 4 and enter the
result in each column. Note. Large organizations, see
instructions for line 12 on page 6 for the amount to enter.

Subtract line 40 of the preceding column from line 39 of the
preceding column and enter here.

Add lines 37 and 38.

Required installments. Enter the smaller of line 36 or line
39 here and on Form 990-W, line 12, page 1.

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

What’s New
If a corporation has both a net capital gain and a qualified
timber gain, a maximum 15% capital gain tax rate may apply
to the qualified timber gain. See the instructions for Line
2-Corporations for more information.

Who Must Make Estimated Tax Payments
Tax-exempt corporations, tax-exempt trusts, and domestic
private foundations must make estimated tax payments if the
total expected tax for the tax year (line 10a) is $500 or more.
Use Form 990-W to figure the organization’s estimated tax
liability for 2009.

When To Make Estimated Tax Payments for 2009
For a calendar or fiscal year organization, the payments are
due by the 15th day of the 4th (the 5th month for private
foundations), 6th, 9th, and 12th months of the tax year. For a
calendar year organization, the payments are due by April 15,
June 15, September 15, and December 15, 2009, except that
for a calendar year private foundation, the first payment is
due on May 15.

Underpayment of Estimated Tax
An organization that does not pay the estimated tax when
due may be charged an underpayment penalty under section
6655, at a rate determined under section 6621(a)(2).

Overpayment of Estimated Tax
A corporation that has overpaid its estimated tax may apply
for a “quick refund” if the overpayment is at least 10% of its
expected income tax liability for the year and is at least $500.
To apply, file Form 4466, Corporation Application for Quick
Refund of Overpayment of Estimated Tax, after the end of
the tax year and before the corporation files its income tax
return. Form 4466 may not be filed after the 15th day of the
3rd month after the end of the tax year.

Depository Method of Tax Payment
See Electronic deposit requirement below to determine if
your organization must electronically deposit all depository
taxes, including the unrelated business income tax and
estimated tax payments. Also, see this section if your
organization wants to participate voluntarily. If your
organization is not required to electronically deposit taxes or
does not wish to voluntarily participate, see Form 8109,
Federal Tax Deposit Coupon Book.

(b)
2nd
installment

(d)
4th
installment

Electronic deposit requirement. The organization must
make electronic deposits of all depository taxes (such as
employment tax, excise tax, and unrelated business income
tax) using the Electronic Federal Tax Payment System
(EFTPS) in 2009 if:
● The total deposits of such taxes in 2007 were more than
$200,000 or
● The organization was required to use EFTPS in 2008.
If the organization is required to use EFTPS and fails to do
so, it may be subject to a 10% penalty. If the organization is
not required to use EFTPS, it may voluntarily participate. To
enroll in or get more information about EFTPS, call
1-800-555-4477. To enroll online, visit www.eftps.gov.
Depositing on time. For deposits made by EFTPS to be on
time, the organization must initiate the transaction at least 1
business day before the date the deposit is due.
Form 8109, Federal Tax Deposit Coupon. If the
organization does not use EFTPS, deposit unrelated business
income tax payments and estimated tax payments with Form
8109. If you do not have a preprinted Form 8109, use Form
8109-B to make deposits. You can get the form only by
calling 1-800-829-4933. Be sure to have your employer
identification number (EIN) ready when you call.
Do not send deposits directly to an IRS office; otherwise,
the organization may have to pay a penalty. Mail or deliver
the completed Form 8109 with the payment to an authorized
depositary, that is, a commercial bank or other financial
institution authorized to accept federal tax deposits.
Make checks or money orders payable to the depositary.
To help ensure proper crediting, write the organization’s
employer identification number, the tax period to which the
deposit applies, and Form 990-T (or 990-PF) on the check or
money order. Darken the 990-T (or 990-PF) box on the
coupon. Records of these deposits will be sent to the IRS.
For more information on deposits, see the instructions in
the coupon booklet (Form 8109) and Pub. 583, Starting a
Business and Keeping Records.

Refiguring Estimated Tax
If, after the organization figures and deposits estimated tax, it
finds that its tax liability for the year will be more or less than
originally estimated, it may have to refigure its required
installments. If earlier installments were underpaid, the
organization may owe a penalty for underpayment of
estimated tax.

Form 990-W (WORKSHEET) 2009

An immediate “catch-up” payment should be made to
reduce the amount of any penalty resulting from the
underpayment of any earlier installments, whether caused by
a change in estimate, failure to make a deposit, or a mistake.

Specific Instructions
Private foundations. Private foundations required to make
estimated tax payments for both the excise tax based on
investment income and unrelated business income tax must
use two Forms 8109 to deposit the taxes and should also
use two Forms 990-W to figure the estimated taxes. Private
foundations figuring estimated tax for the excise tax based
on investment income should skip lines 1 through 9. See the
Instructions for Form 990-PF, O. Figuring and Paying
Estimated Tax, for information on figuring the excise tax
based on investment income.
All organizations. See Form 990-T, Exempt Organization
Business Income Tax Return, and its instructions for
information on figuring unrelated business income,
deductions, and credits for purposes of completing Form
990-W.
Proxy tax. For purposes of Form 990-W, the estimated tax
does not include the proxy tax imposed by section 6033(e).
Line 2—Corporations
Generally, a corporation figures its tax on the amount on line
1, Form 990-W, using the 2009 Tax Computation for
Corporations worksheet shown on this page (members of a
controlled group should see the instructions below). But, if a
corporation has net capital gain and qualified timber gain (as
defined in section 1201(b)(2)), an alternative tax may apply.
Complete the 2009 Tax Computation for Corporations
worksheet first then complete the Alternative Tax for
Corporations With Qualified Timber Gain worksheet. See
Alternative tax on corporations with qualified timber gain,
below, for more information.
Members of a controlled group. Enter on line 2 of the 2009
Tax Computation for Corporations worksheet, the smaller of
the amount on line 1 or their share of the $50,000 amount.
Enter on line 4 the smaller of the amount on line 3 or their
share of the $25,000 amount. Enter on line 6 the smaller of
the amount on line 5 or their share of the $9,925,000 amount.
If no apportionment plan is adopted, the members of the
controlled group must divide the amount in each taxable
income bracket equally among themselves. For example,
controlled group AB consists of corporation A and
corporation B. They do not elect an apportionment plan.
Therefore, both corporation A and corporation B are entitled
to $25,000 (one-half of $50,000) in the $50,000 taxable
income bracket, $12,500 (one-half of $25,000) in the $25,000
taxable income bracket, and $4,962,500 (one-half of
$9,925,000) in the $9,925,000 taxable income bracket.
Members of a controlled group may elect an unequal
apportionment plan and divide the amounts in each taxable
income bracket in any way they want. They need not divide
each taxable income bracket in the same way. For example,
if controlled group AB above elects an unequal
apportionment plan, any member of the controlled group
may be entitled to all, some, or none of the $50,000 amount
in the first taxable income bracket, as long as the total for all
members of the controlled group is not more than $50,000.
Similarly, any member may be entitled to all, some, or none
of the $25,000 amount in the second taxable income
bracket, of the $25,000 amount in the second taxable

Page

income bracket, and the $9,925,000 amount in the third taxable
income bracket, as long as the total for all members of the
controlled group is not more than the bracket amount.
Members of a controlled group are treated as one
corporation to figure the additional 5% tax that must be paid
by corporations with taxable income in excess of $100,000
and the additional 3% tax that must be paid by
corporationswith taxable income in excess of $15 million. If
an additional tax applies, each member of the controlled
group will pay that tax based on the part of the amount that
is used in each taxable income bracket to reduce that
member’s tax. See section 1561(a). Each member must enter
its share of the additional 5% tax on line 12 of the 2009 Tax
Computation for Corporations, and its share of the 3% tax on
line 13.

2009 Tax Computation for Corporations
1. Enter taxable income (line 1, Form 990-W)

2. Enter the smaller of line 1 or $50,000 (members
of a controlled group, see instructions)

3. Subtract line 2 from line 1

4. Enter the smaller of line 3 or $25,000 (members
of a controlled group, see instructions)

5. Subtract line 4 from line 3
6. Enter the smaller of line 5 or $9,925,000
(members of a controlled group, see
instructions)

7. Subtract line 6 from line 5

8. Enter 15% (.15) of line 2

9. Enter 25% (.25) of line 4

10. Enter 34% (.34) of line 6

10
11

11. Enter 35% (.35) of line 7
12. If line 1 is greater than $100,000, enter the
smaller of 5% (.05) of the excess over
$100,000 or $11,750 (members of a controlled
group, see instructions)
13. If line 1 is greater than $15 million, enter the
smaller of 3% (.03) of the excess over $15
million or $100,000 (members of a controlled
group, see instructions)
14. Total of lines 8 through 13. Enter this amount
on line 2, page 1, unless the corporation has
net capital gain and qualified timber gain in
which case it completes the Alternative Tax
for Corporations With Qualified Timber Gain
worksheet before making an entry on line 2,
page 1

Alternative tax for corporations with qualified timber gain.
If taxable income expected for the tax year includes both a
net capital gain and qualified timber gain, an alternative
maximum 15% capital gains tax may apply to the qualified
timber gain. For this purpose, a qualified timber gain is the
net gains described in section 631(a) and (b), figured by
taking into account only trees held more than 15 years. Only
qualified timber gains for the period that begins after May 22,
2008, and before May 23, 2009, are eligible for the alternative
tax. Complete the worksheet below to figure the alternative
tax.

Form 990-W (WORKSHEET) 2009

Page

Alternative Tax for Corporations With Qualified
Timber Gain. Complete only if the corporation has
qualified timber gain under section 1201(b).
1. Enter qualified timber gain (as defined in
section 1201(b)(2))
2. Enter net capital gain

3. Enter the smallest of: (a) the amount on line 1,
(b) the amount on line 2; or (c) the amount on
page 1, line 1
4. Multiply line 3 by 15%

1
2

3
4
5

7. Add lines 3 and 5

8. Subtract line 7 from page 1, line 1. If zero or
less, enter -0-

5. Subtract line 2 from page 1, line 1
6. Enter the tax on line 5 using the same steps
used to figure the tax on page 1, line 2

9. Multiply line 8 by 35%
10. Add lines 4, 6, and 9. Enter the smaller of line
14 of the 2009 Tax Computation for
Corporations (above) or this line on page 1,
line 2

$0
2,300
5,350
8,200
11,150

$2,300
5,350
8,200
11,150
------

$345.00
1,107.50
1,905.50
2,879.00

+
+
+
+

15%
25%
28%
33%
35%

Subtract line 9 from line 8. Private foundations figure the
estimated tax by multiplying their estimated net investment
income by the tax rate (1% or 2%, whichever applies).
Taxable private foundations and nonexempt charitable trusts
treated as private foundations, see O. Figuring and Paying
Estimated Tax and Part VI—Excise Tax Based on Investment
Income in the Instructions for Form 990-PF, for help in
figuring the estimated tax. Enter that amount on line 10a. See
Part VI of Form 990-PF.
Note. If less than $500, the organization is not required to
make estimated tax payments.
Figure the organization’s 2008 tax the same way you figured
line 10a of this worksheet, using the taxes and credits from
your 2008 tax return. If you did not file a return showing a
liability for at least some amount of tax for the 2008 tax year,
or if your 2008 tax year was less than 12 months, do not
complete this line. Instead, enter the amount from line 10a on
line 10c. “Large organizations” see the instructions for line 12
below.

Line 11
Calendar year taxpayers. Enter 4-15-2009 (5-15-2009 for
private foundations), 6-15-2009, 9-15-2009, and 12-15-2009,
respectively, in columns (a) through (d).
Fiscal year taxpayers. Enter the 15th day of the 4th (5th for
private foundations), 6th, 9th, and 12th months of your tax
year in columns (a) through (d). If any date falls on a
Saturday, Sunday, or legal holiday, substitute the next
business day.

Line 12

2009 Tax Rate Schedule for Trusts
(Section 1(e) of the Internal Revenue Code)

Enter on
line 2, page 1:

Line 10a

Line 10b
6

Line 2—Trusts
Trusts exempt under section 501(a) and employees’ trusts
that qualify under section 401(a) are taxed at trust rates. A
trust figures the tax on the amount on line 1 using the 2009
Tax Rate Schedule for Trusts (below). If you expect a net
long-term capital gain and a net capital gain, you may use
the 2009 Tax Computation Worksheet Using Maximum
Capital Gains Rates found in Form 1041-ES.

If the amount on
line 1, page 1 is:
But not
Over—
over—

Of the
amount
over—
$0
2,300
5,350
8,200
11,150

Line 3
Alternative minimum tax (AMT) is generally the excess of
tentative minimum tax over regular tax. Corporations, see
Form 4626, Alternative Minimum Tax—Corporations, for
details. Trusts, see Schedule I (Form 1041), Alternative
Minimum Tax—Estates and Trusts.

Line 5
The estimated tax credits include the sum of any credits
allowable against unrelated business income tax (except the
credits reported on line 9). See Form 990-T and its
instructions for information on the credits that may be taken.

Line 7
Other taxes include the sum of any recaptured tax credits.
See Form 990-T and its instructions for information on
recapture of tax credits that must be included on this line.

Line 9
Complete Form 4136, Credit for Federal Tax Paid on Fuels, if
the organization qualifies to take this credit. Also include on
line 9 any credit the organization is claiming under section
4682(g) for taxes paid on chemicals used as propellants in
metered-dose inhalers.

Annualized income installment method and/or adjusted
seasonal installment method. If the organization’s income
is expected to vary during the year because, for example, it
operates its business on a seasonal basis, it may be able to
lower the amount of one or more required installments by
using the annualized income installment method and/or the
adjusted seasonal installment method. For example, a shop
operated by a museum, which because of its location in an
area frequented by tourists receives most of its income
during the summer months, may be able to benefit from
using one or both of these methods in figuring one or more
of its required installments.
To use one or both of these methods, complete Schedule
A on pages 2 through 4. If you use Schedule A for any
payment date, you must use it for all payment due dates. To
arrive at the amount of each required installment, Schedule A
selects the smallest of: (a) the annualized income installment
(if applicable), (b) the adjusted seasonal installment (if
applicable), or (c) the regular installment under section
6655(d)(1) (increased by any reduction recapture under
section 6655(e)(1)(B)).

Large organization. A “large organization” is any
tax-exempt corporation or other organization subject to
the tax on unrelated business income or any private
foundation subject to the section 4940 tax that had, or
whose predecessor had, taxable income (net
investment income for purposes of the section 4940
tax) of $1 million or more for any of the 3 tax years
immediately preceding the 2009 tax year, or if less, the
number of years the corporation has been in existence.
For this purpose, taxable income is modified to
exclude net operating loss and capital loss carrybacks
or carryovers. Members of a controlled group, as
defined in section 1563, must divide the $1 million
amount among themselves in accordance with rules
similar to those in section 1561. For more details, see
sections 6655(g)(2) and (3).

Form 990-W (WORKSHEET) 2009

If Schedule A is not used, use the following instructions to
figure the amounts to enter on line 12. (If you are using
Schedule A, these instructions apply to line 37 of Schedule
A.)
● If line 10a is smaller than line 10b: Enter 25% (.25) of line
10a in columns (a) through (d) of line 12.
● If line 10b is smaller than line 10a: In column (a) of line 12,
enter 25% (.25) of line 10b. In column (b), determine the
amount to enter by: (i) subtracting line 10b from line 10a, (ii)
adding the result to the amount on line 10a, and (iii)
multiplying the total by 25% (.25). In columns (c) and (d),
enter 25% (.25) of line 10a.

Line 13
Enter any 2008 overpayment that the organization chose to
credit against its 2009 tax. The overpayment is credited
against unpaid required installments in the order in which the
installments are required to be paid.

Page

For more information regarding extraordinary items, see
Regulations section 1.6655-2(f)(3)(ii) and the examples in
Regulations section 1.6655-2(f)(3)(vii). Also see Regulations
section 1.6655-3(d)(3).
In Part I of Schedule A, make the appropriate adjustments
to annualized taxable income before figuring the estimated
tax for each reporting period. Similar adjustments must be
made, if applicable, to Part II of Schedule A, if the adjusted
seasonal installment method applies.

Part I—Annualized Income Installment Method
Line 1
Enter on line 1, in columns (a) through (d), respectively, the
annualization period that the organization is using, based on
the options described below. You may elect option 1
separately for each installment.
1st
Installment

Line 14

3rd
Installment

4th
Installment

3
4

6
7

9
10

See Depository Method of Tax Payment on page 4 to
determine the method for making the line 14 payments.

Standard Option
Option 1

Schedule A

Line 2

If you are using only the annualized income installment
method (Part I), complete Parts I and III of Schedule A. If you
are using only the adjusted seasonal installment method (Part
II), complete Parts II and III. If you are using both methods,
complete all three parts. Enter in each column on line 12 of
page 1, Form 990-W, the amounts from the corresponding
column of line 40 of Schedule A.

If the corporation has certain extraordinary items, special
rules apply. Do not include on line 2 the de minimis items
that the corporation chooses to include on line 4b. See
Extraordinary items on this page.
If an organization has amounts includible in income under
section 951(a) (controlled foreign corporation income), special
rules apply. Organizations must take income (and allocable
credits) under section 951(a) into account as the income is
earned. The amounts are figured in a manner similar to the
way partnership income inclusions (and allocable credits) are
taken into account to figure a partner’s annualized income
installments as provided in Regulations section
1.6654-2(d)(2).
Safe harbor election. Organizations may be able to make a
prior year safe harbor election. Under the election, an eligible
organization is treated as having received ratably during the
tax year, items of income under section 951(a) (and allocable
credits) equal to 115% (100% for a noncontrolling
shareholder) of the amounts shown on the organization’s
return for the first preceding tax year (the second preceding
tax year for the first and second required installments).
For more information, see section 6655(e)(4), Regulations
section 1.6655-2(f)(3)(v)(B)(2), and Rev. Proc. 95-23, 1995-1
C.B. 693.

CAUTION

Do not figure any required installment until after the
end of the month preceding the due date for that
installment.

For each part that applies to you, complete each column in
its entirety before going to the next column. For example, if
Parts I and III are required, complete column (a), lines 1
through 13, and lines 36 through 40, before starting column
(b).
Extraordinary items. Generally, under the annualized income
installment method, extraordinay items must be taken into
account after annualizing the taxable income for the
annualization period. Similar rules apply in determining
taxable income under the adjusted seasonal installment
method. An extraordinary item includes:
● Any item identified in Regulations section
1.1502-76(b)(2)(ii)(C)(1), (2), (3), (4), (7) and (8);
● A net operating loss carryover;
● A section 481(a) adjustment; and
● Net gain or loss from the disposition of 25% or more of
the fair market value of the corporation’s business assets
during the tax year.
These extraordinary items must be accounted for in the
appropriate annualization period. However, a net operating
loss deduction and a section 481(a) adjustment (unless the
corporation makes the alternative choice under Regulations
section 1.6655-2(f)(3)(ii)(C)) are treated as extraordinary items
occurring on the first day of the tax year in which the item is
taken into account in determining taxable income.
De minimis rule. Extraordinary items identified above that
are less than $1,000,000 (other than a net operating loss
carryover or a section 481(a) adjustment) may be annualized
using the general rules of Regulations section 1.6655-2(f), or,
if the corporation chooses, taken into account after
annualizing the taxable income for the annualization period.

2
2

2nd
Installment

Line 3
Enter on line 3, in columns (a) through (d), respectively, the
annualization amounts for the option used for line 1.
1st
Installment
Standard Option
Option 1

6
6

2nd
Installment
4
3

3rd
Installment

4th
Installment

2
1.71429

1.33333
1.2

Line 4b
If the corporation has extraordinary items of $1,000,000 or
more, a net operating loss deduction, or a section 481(a)
adjustment, special rules apply. Include these amounts on
line 4b. Also include on line 4b the de minimis items that the
corporation chooses to exclude from line 2. See
Extraordinary items on this page.

Form 990-W (WORKSHEET) 2009

Page

Line 6

Line 30

For the same taxes used to figure lines 3 and 7 of Form
990-W, figure the amounts for the months shown on line 1.
Tax-exempt corporations that are not exempt from the
alternative minimum tax figure the tax by first computing
alternative minimum taxable income under section 55, based
on the corporation’s income and deductions for the
annualization period entered in each column in line 1. Then
multiply the alternative minimum taxable income by the
annualization amounts (line 3) used to figure annualized
taxable income. Subtract the exemption amount under
section 55(d)(2).

For the same taxes used to figure lines 3 and 7 of Form
990-W, figure the amounts for the months shown in the
column headings above line 14.
Tax-exempt corporations that are not exempt from the
alternative minimum tax figure the tax by first computing
alternative minimum taxable income under section 55, based
on the organization’s income and deductions during the
months shown in the column headings above line 14 of Part
II. Divide the alternative minimum taxable income by the
amounts shown on line 21. Subtract the exemption amount
under section 55(d)(2). For columns (a) through (c) only,
multiply the alternative minimum tax by the amounts shown
on line 28.

Line 8
Enter the credits to which the organization is entitled for the
months shown in each column on line 1.

Line 12
In column (b), enter the amount from Part III, line 40, column
(a), page 4. In column (c), enter the sum of the amounts in
line 40, columns (a) and (b). In column (d), enter the sum of
the amounts in line 40, columns (a), (b), and (c).

Part II—Adjusted Seasonal Installment Method
The adjusted seasonal installment method is used by
organizations that normally receive their taxable income on a
seasonal basis. Therefore, Part II is only used by
organizations whose “base period percentage” for any 6
consecutive months equals or exceeds 70% (.70). Figure the
base period percentage using the 6-month period in which
the organization normally receives the largest part of its
taxable income. Divide the taxable income for the
corresponding 6-month period in each of the 3 preceding tax
years by the taxable income for each of these years. The
following example explains the computation.
Example. A tax-exempt organization that has a calendar year
as its tax year receives the largest part of its unrelated
business taxable income during the 6-month period from
May through October. To figure its base period percentage
for the period May through October 2009, the organization
must figure its taxable income for the period May through
October in each of the years 2006, 2007, and 2008. The
taxable income for each May-through-October period is then
divided by the total taxable income for the tax year in which
the period is included, resulting in the following: 69% for May
through October 2006; 74% for May through October 2007;
and 67% for May through October 2008. The average of
69%, 74%, and 67% is 70%. Therefore, the base period
percentage for May through October 2009 is 70% and the
organization qualifies for the adjusted seasonal installment
method.

Line 15
If the corporation has certain extraordinary items, special
rules apply. Do not include on line 15 the de minimis items
that the corporation chooses to include on line 22b. See
Extraordinary items on page 7.

Line 22b
If the corporation has extraordinary items of $1,000,000 or
more, a net operating loss deduction, or a section 481(a)
adjustment, special rules apply. Include these amounts on
line 22b for the appropriate period. Also include on line 22b
the de minimis items that the corporation chooses to exclude
from line 15. See Extraordinary items on page 7.

Line 32
Enter the credits to which you are entitled because of events
that occurred during the months shown in the column
headings above line 14 of Part II.

Line 34
In column (b), enter the amount from Part III, line 40, column
(a), page 4. In column (c), enter the sum of the amounts in
line 40, columns (a) and (b). In column (d), enter the sum of
the amounts in line 40, columns (a), (b), and (c).
Paperwork Reduction Act Notice. This form is optional. It is
provided only to help you determine your estimated tax
liability.
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 this form will vary depending
on individual circumstances. The estimated average times
are:
Form

Recordkeeping

Form 990-W
10 hr., 2 min.
Form 990-W, Sch. A (Pt. I) 11 hr., 14 min.
Form 990-W, Sch. A (Pt. II) 23 hr., 26 min.
Form 990-W, Sch. A (Pt. III) 4 hr., 32 min.

Learning
about the law
or the form

Preparing
the form

1 hr., 40 min. 1 hr., 55 min.
54 min.
42 min.
12 min.
35 min.
----

4 min.

If you have comments concerning the accuracy of these
time estimates or suggestions for making this form simpler,
we would be happy to hear from you. You can write to the
Internal Revenue Service, Tax Products Coordinating
Committee, SE:W:CAR:MP:T:T:SP, 1111 Constitution Ave.
NW, IR-6526, Washington, DC 20224. Do not send the form
to this address. Instead, keep the form for your records.

File Type	application/pdf
File Title	2009 Form 990-W (Worksheet)
Subject	Fillable
Author	SE:W:CAR:MP
File Modified	2009-03-10
File Created	2009-03-10