Form 8752 Required Payment or Refund Under Section 7519

Approved for TPCC Chairperson "AS IS," Johnny
Cervantes, October 15, 2009

8752

Form

Cumulative Changes Copy

Required Payment or Refund Under Section 7519


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For the required payment computed using the net income from the base year ending
Department of the Treasury
 Due by May 17, 2010
10
Internal Revenue Service
Name of partnership or S corporation
Type or print

OMB No. 1545-1181

Do not attach this form to Form 1065, Form 1065-B, or Form 1120S; file it separately.

2009
09

, 2009
09

Employer identification number

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

City or town, state, and ZIP code

Partnership
(1)
S Corporation
(2)

B If this is the entity’s first tax year, skip lines 1 through 10, enter -0- on line 11, and check this box
C If this form is being filed to claim a full refund of the net required payment balance because of a terminating event, skip

lines 1 through 9a, enter -0- on line 9b, complete lines 10-12, and check this box
D If the entity had a short base year (a base year of less than 12 months), check this box. See the line 1 instructions for the

definition of “base year”
A Check applicable box to show how entity is classified for federal income tax purposes:

1

2
3

Net income for base year. If the entity had a short base year, increase the net income for the
short base year by the applicable payments made during the base year (line 2 below), and
multiply the result by the ratio of 12 over the number of months in the short base year. Carry
out the ratio to at least 3 decimal places. If zero or less, enter -0Applicable payments made during base year
Deferral ratio. Divide the number of months in the deferral period by 12 and enter the result
as a percentage. Carry out your answer to at least the nearest tenth of a percent

4

Line 1 deferred amount. Multiply line 1 by line 3
Caution. If the entity had a short base year, skip lines 5 and 6 and go to line 7.

5
6

Line 2 deferred amount. Multiply line 2 by line 3
Applicable payments made during the deferral period of the base
year

7

8

1
2

3

.

%

4

5
6

If the entity had a 12-month base year, subtract line 6 from line 5. If zero or less, enter -0-. If
the entity had a short base year, enter the applicable payments made during the deferral period
of the applicable election year
Net base year income. If the entity had a 12-month base year, add lines 4 and 7. If the entity
had a short base year, subtract line 7 from line 4. If zero or less, enter -0-

9a

9a Multiply line 8 by 36% (.36)
b If line 9a is more than $500 or the required payment for any prior tax year was more than

$500, enter the amount from line 9a here. Otherwise, enter -010 Net required payment balance. Enter the excess of the required payments made for all prior
years over the refunds of any required payments received for all prior years

7
8

9b
10

11

Required payment due. If line 9b is larger than line 10, subtract line 10 from line 9b. See the
line 11 instructions for payment options

11

12

Refund of net prior year payments. If line 10 is larger than line 9b, subtract line 9b from line 10

12

Sign
Here

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.

Keep a copy of
this form for
your records.



Paid
Preparer’s
Use Only

Signature of officer, general partner, or limited liability company member
Preparer’s
signature



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

Date

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

Title

Check if
self-employed



General Instructions
Purpose of form. Partnerships and
S corporations use Form 8752 to figure and



Date

Preparer’s SSN or PTIN

EIN
Phone no.
report the payment required under section 7519 or to
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.

For Privacy Act and Paperwork Reduction Act Notice, see back of form.

(

)

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

Cat. No. 64988D

Form

8752

(2009)
09)

Form 8752 (2009)
09)
must also file Form 8752 to claim a refund of its net
required payment balance. See section 7519(c)(3) for
details.
Do not 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
09, Form 8752 must be filed and the
beginning in 2009,
y
required payment
made on or before
010.
May 17, 2010.
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.
If the entity’s principal
place of business or
principal office or agency
is located in

Use the following
address





Connecticut, Delaware,
District of Columbia, Georgia,
Illinois, Indiana, Kentucky,
Maine, Maryland,
Department of
Massachusetts, Michigan,
the Treasury,
New Hampshire, New Jersey,
Internal Revenue
New York, North Carolina,
Service Center,
Ohio, Pennsylvania,
Cincinnati, OH 45999
Rhode Island, South Carolina,
Tennessee, Vermont, Virginia,
West Virginia, Wisconsin
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 Center,
Ogden, UT 84201

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 is not 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. If you
include this penalty with the entity’s payment,
identify and enter the penalty amount in the bottom
margin of page 1. Do not include the penalty in the
Required payment due space on line 11. Other
penalties may also apply.
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 2009,
enter the ending date of the base year ending in
2009. See the definitions of applicable election year
and base year under Line 1. Net income for base year
on this page.
Address. Include the suite, room, or other unit
number after the street address. If the Post Office
does not deliver mail to the street address and the
entity has a P.O. box, show the box number instead
of the street address.

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Page

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

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.

Item C. If the entity terminated its section 444
election and the termination took effect for a tax year
09, or the entity liquidated during a tax
ending in 2009,
09, check this box. The entity
year ending in 2009,
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 does not apply (see Temporary
Regulations section 1.444-2T for more about tiered
structures).

Line 3. Deferral ratio. The deferral period is the
n:
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.

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 does not 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
09, and ending September 30, 2010,
010,
October 1, 2009,
the base year is the tax year beginning
08, and ending September 30, 2009.
09.
October 1, 2008,
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
08, line 1
level. For base years beginning in 2008,
08 Form 1065,
should equal the amount on the 2008
line 1 of Analysis of Net Income (Loss), plus the
aggregate items of income and expense, if any,
reported on the attachment 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
g in
at the shareholder level. For base years beginning
8, line 1 should equal the amount on the 2008
08
2008,
Form 1120S, 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
does not include guaranteed payments. Examples of
applicable payments are officer’s compensation,
wages, and rent paid to any partner or shareholder.

Printed on recycled paper

2

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 did not
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
09.
beginning in 2009.
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 are not 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 the “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:
010, or (b) 90 days after Form 8752 is
(a) April 15, 2010,
filed per section 7519(c)(3). No interest will be paid
on the amount refunded.
Privacy Act and 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. Section 6109
requires paid preparers to provide their identifying
number.
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 average time is: Recordkeeping, 5 hr., 44
min.; Learning about the law or the form, 1 hr.;
Preparing, copying, assembling, and sending the
form to the IRS, 1 hr., 7 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 Form 8752 to this address. Instead,
see Where to file above.