Form 8804 Schedule Form 8804 Schedule Penalty for Underpayment of Estimated Section 1446 Tax b

Penalty for Underpayment of Estimated
Section 1446 Tax by Partnerships

Schedule A
(Form 8804)

OMB No. 1545-1119

2010

Attach to Form 8804.
See separate instructions.

▶

Department of the Treasury
Internal Revenue Service
Name

▶

Employer identification number

Note. Generally, the partnership is not required to file this Schedule A (see Part I below for exceptions) because the IRS will figure
any penalty owed and bill the partnership. However, the partnership may still use this Schedule A to figure the penalty. If so, enter
the amount from line 65 of this Schedule A on line 8 of Form 8804, but do not attach this Schedule A.

Part I

Reasons for Filing—Check the boxes below that apply. If any boxes are checked, the partnership must file
Schedule A (Form 8804) even if it does not owe a penalty (see instructions).
The partnership is using the adjusted seasonal installment method.
The partnership is using the annualized income installment method.

Part II

Current Year and Prior Year Safe Harbors

1

Enter the total section 1446 tax shown on the partnership’s 2010 Form 8804, line 5e. If less than $500, do
not complete or file this form. The partnership does not owe the penalty . . . . . . . . . .

2

Enter the total section 1446 tax that would have been due for 2009, without regard to reductions for
certified foreign partner-level items, on the effectively connected taxable income (ECTI) allocable to
foreign partners for 2009.

3

Caution: This line 2 amount only applies if certain conditions are met (see instructions) . . . . . .
Enter the smaller of line 1 or line 2. If the partnership is required to skip line 2, enter the amount from
line 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Part III

Figuring the Underpayment
(a)

4

Installment due dates. Enter in columns (a) through (d)
the 15th day of the 4th, 6th, 9th, and 12th months of the
partnership’s tax year . . . . . . . . . . .

4

5

Required installments. If the partnership uses the
adjusted seasonal installment method and/or the
annualized income installment method, enter the amounts
from line 43. If neither of those methods is used, enter
25% of line 3 above in each column . . . . . . .

5

Estimated section 1446 tax paid or credited for each
period (see instructions). For column (a) only, enter the
amount from line 6 on line 10 . . . . . . . . .

6

7

Complete lines 7 through 13 of one column before
going to the next column.
Enter amount, if any, from line 13 of the preceding column

7

8

Add lines 6 and 7

8

9

Add amounts on lines 11 and 12 of the preceding column

9

10

Subtract line 9 from line 8. If zero or less, enter -0- .

10

11

If the amount on line 10 is zero, subtract line 8 from line 9.
Otherwise, enter -0- . . . . . . . . . . . .

6

12

13

.

.

.

.

.

.

.

.

.

.

.

.

.

(b)

1

2
3
(c)

(d)

11

Underpayment. If line 10 is less than or equal to line 5,
subtract line 10 from line 5. Then go to line 7 of the next
column. Otherwise, go to line 13 . . . . . . . .

12
Overpayment. If line 5 is less than line 10, subtract line 5
from line 10. Then go to line 7 of the next column
. .
13
Go to Part VII on page 5 to figure the penalty. Do not go to Part VII if there are no entries on line 12—no penalty is owed.

For Paperwork Reduction Act Notice, see separate instructions.

Cat. No. 40853F

Schedule A (Form 8804) 2010

Page 2

Schedule A (Form 8804) 2010

Part IV

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.)

Check this box if the partnership has elected to attach a schedule
that expands lines 15 and 22 through 25 to reflect Regulations
section 1.1446-3(a)(2) (see instructions) . . . . . . . . ▶
14

(b)

(c)

(d)

First 5
months

First 8
months

First 11
months

First 4
months

First 6
months

First 9
months

Entire year

Enter effectively connected taxable income allocable to all foreign
partners for the following periods:

a

Tax year beginning in 2007

14a

b

Tax year beginning in 2008

14b

c

Tax year beginning in 2009

14c

15

Enter effectively connected taxable income allocable to all foreign
partners for each period for the tax year beginning in 2010 (see
instructions for the treatment of extraordinary items).

15

16
a

Enter effectively connected taxable income allocable to all foreign
partners for the following periods:
Tax year beginning in 2007

16a

b

Tax year beginning in 2008

16b

c

Tax year beginning in 2009

16c

17

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

17

18

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

18

19

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

19

20

Add lines 17 through 19.

20

21

Divide line 20 by 3.0.

21

22a

Divide line 15 by line 21.

22a

b

Extraordinary items (see instructions).

22b

c

Combine lines 22a and 22b.

22c

24

Reduction to line 22c amount for state and local taxes under
Regulations section 1.1446-6(c)(1)(iii) and for certified foreign
partner-level items submitted using Form 8804-C (see
instructions).
Subtract line 23 from line 22c. If zero or less, enter -0-.

23
24

25

Multiply line 24 by 35%.

25

26a

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

26a

b

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

26b

c

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

26c

27

Add lines 26a through 26c.

27

28

Divide line 27 by 3.0.

28

29

Multiply the amount in columns (a) through (c) of line 25 by
columns (a) through (c) of line 28. In column (d), enter the amount
from line 25, column (d).

29

23

(a)
First 3
months

Schedule A (Form 8804) 2010

Page 3

Schedule A (Form 8804) 2010

Part V

Annualized Income Installment Method
(a)

(b)

First

30

Annualization periods (see instructions).

31

Enter effectively connected taxable income allocable to all foreign
partners for each annualization period (see instructions for the
treatment of extraordinary items):
Net ordinary income and net short-term capital gain.
28% rate gain (non-corporate partners only).
Unrecaptured section 1250 gain (non-corporate partners only).

31a
31b
31c

Qualified dividend income and net long-term capital gain
(including net section 1231 gains) (non-corporate partners only).
Annualization amounts (see instructions).

31d
32

a
b
c
d
32
33

30

(c)

First

months

(d)

First

months

First

months

months

Annualized effectively connected taxable income allocable to all
foreign partners (see instructions for the treatment of extraordinary
items):
a

Net ordinary income and net short-term capital gain (multiply line
31a by line 32).

33a

b

Reduction to line 33a for state and local taxes under Regulations
section 1.1446-6(c)(1)(iii) (see instructions).

33b (

)(

)(

)(

)

c

Reduction to line 33a for certified foreign partner-level items
submitted using Form 8804-C (see instructions).
Combine lines 33a, 33b, and 33c.

33c (
33d

)(

)(

)(

)

e

28% rate gain allocable to non-corporate partners (multiply line
31b by line 32).

33e

f

Reduction to line 33e for state and local taxes under Regulations
section 1.1446-6(c)(1)(iii) (see instructions).

33f (

)(

)(

)(

)

g

Reduction to line 33e for certified foreign partner-level items
submitted using Form 8804-C (see instructions).
Combine lines 33e, 33f, and 33g.

33g (
33h

)(

)(

)(

)

i

Unrecaptured section 1250 gain allocable to non-corporate
partners (multiply line 31c by line 32).

33i

j

Reduction to line 33i for state and local taxes under Regulations
section 1.1446-6(c)(1)(iii) (see instructions).

33j (

)(

)(

)(

)

k

Reduction to line 33i for certified foreign partner-level items
submitted using Form 8804-C (see instructions).
Combine lines 33i, 33j, and 33k.

33k (
33l

)(

)(

)(

)

33n (

)(

)(

)(

)

33o (
33p

)(

)(

)(

)

d

h

l

m Qualified dividend income and net long-term capital gain
(including net section 1231 gains) allocable to non-corporate
partners (multiply line 31d by line 32).
n

Reduction to line 33m for state and local taxes under Regulations
section 1.1446-6(c)(1)(iii) (see instructions).

o

Reduction to line 33m for certified foreign partner-level items
submitted using Form 8804-C (see instructions).
Combine lines 33m, 33n, and 33o.
Figure the tax on line 33 amounts as follows:
Multiply line 33d by 35%.
Multiply line 33h by 28%.
Multiply line 33l by 25%.
Multiply line 33p by 15%.
Add lines 34a through 34d.
Applicable percentage.
Multiply line 34e by line 35.

p
34
a
b
c
d
e
35
36

33m

34a
34b
34c
34d
34e
35
36

25%

50%

75%

100%

Schedule A (Form 8804) 2010

Page 4

Schedule A (Form 8804) 2010

Part VI

Required Installments
1st
installment

Note. Complete lines 37 through 43 of one column before completing
the next column.
37

38
39
40
41
42
43

If only Part IV or Part V is completed, enter the amount in each
column from line 29 or line 36. If both parts are completed, enter
the smaller of the amounts in each column from line 29 or line 36.
Add the amounts in all preceding columns of line 43 (see instructions).

37
38

Adjusted seasonal or annualized income installments. Subtract
line 38 from line 37. If zero or less, enter -0-.
Enter 25% of line 1 in each column.

39
40

Subtract line 43 of the preceding column from line 42 of the
preceding column.
Add lines 40 and 41.

41
42

Required installments. Enter the smaller of line 39 or line 42 here
and on line 5 (see instructions).

43

2nd
installment

3rd
installment

4th
installment

Schedule A (Form 8804) 2010

Page 5

Schedule A (Form 8804) 2010

Part VII

Figuring the Penalty
(a)

44 Enter the date of payment or the 15th day of the 4th month
after the close of the tax year, whichever is earlier (see
instructions). Partnerships that keep their records and
books of account outside the United States and Puerto
Rico: Use 6th month instead of 4th month.

(b)

(c)

(d)

44

45 Number of days from due date of installment on line 4 to the
date shown on line 44 . . . . . . . . . . . .

45

46 Number of days on line 45 after 4/15/2010 and before 7/1/2010 .

.

46

47 Underpayment on line 12 × Number of days on line 46 × 4% .

.

47 $

48 Number of days on line 45 after 6/30/2010 and before 10/1/2010 .

.

48

49 Underpayment on line 12 × Number of days on line 48 × 4% .

.

49 $

50 Number of days on line 45 after 9/30/2010 and before 1/1/2011 .

.

50

51 Underpayment on line 12 × Number of days on line 50 × 4% .

.

51 $

52 Number of days on line 45 after 12/31/2010 and before 4/1/2011 .

.

52

53 Underpayment on line 12 × Number of days on line 52 × 3% .

.

53 $

54 Number of days on line 45 after 3/31/2011 and before 7/1/2011 .

.

54

55 Underpayment on line 12 × Number of days on line 54 × *%

.

.

55 $

56 Number of days on line 45 after 6/30/2011 and before 10/1/2011 .

.

56

57 Underpayment on line 12 × Number of days on line 56 × *%

.

.

57 $

58 Number of days on line 45 after 9/30/2011 and before 1/1/2012 .

.

58

59 Underpayment on line 12 × Number of days on line 58 × *%

.

.

59 $

60 Number of days on line 45 after 12/31/2011 and before 4/1/2012 .

.

60

61 Underpayment on line 12 × Number of days on line 60 × *%

.

.

61 $

62 Number of days on line 45 after 3/31/2012 and before 5/16/2012 .

.

62

63 Underpayment on line 12 × Number of days on line 62 × *%

.

63 $

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

365

365

365

365

365

365

365

366

.

366

64 Add lines 47, 49, 51, 53, 55, 57, 59, 61, and 63 . . . . . .
64 $
65 Penalty. Add columns (a) through (d) of line 64. Enter the total here and on Form 8804,
line 8 .

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65 $

* For underpayments paid after March 31, 2011: For lines 55, 57, 59, 61, and 63, 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 1-800-829-1040 to get interest rate information.
Schedule A (Form 8804) 2010