2220 Underpayment of Estimated Tax by Corporations

Caution: DRAFT—NOT FOR FILING
This is an early release draft of an IRS tax form, instructions, or
publication, which the IRS is providing for your information as a courtesy.
Do not file draft forms. Also, do not rely on draft forms, instructions, and
publications for filing. We generally do not release drafts of forms until we
believe we have incorporated all changes. However, unexpected issues
sometimes arise, or legislation is passed, necessitating a change to a draft
form. In addition, forms generally are subject to OMB approval before they
can be officially released. Drafts of instructions and publications usually
have at least some changes before being officially released.
Early release drafts are at IRS.gov/DraftForms, and may remain there
even after the final release is posted at IRS.gov/DownloadForms. All
information about all forms, instructions, and pubs is at IRS.gov/Forms.
Almost every form and publication also has its own page on IRS.gov. For
example, the Form 1040 page is at IRS.gov/Form1040; the Publication 17
page is at IRS.gov/Pub17; the Form W-4 page is at IRS.gov/W4; and the
Schedule A (Form 1040) page is at IRS.gov/ScheduleA. If typing in a link
above instead of clicking on it, be sure to type the link into the address bar
of your browser, not in a Search box. Note that these are friendly shortcut
links that will automatically go to the actual link for the page.
If you wish, you can submit comments about draft or final forms,
instructions, or publications at IRS.gov/FormsComments. We cannot
respond to all comments due to the high volume we receive. Please note that
we may not be able to consider many suggestions until the subsequent
revision of the product.

Form

2220

OMB No. 1545-0123

Underpayment of Estimated Tax by Corporations

Department of the Treasury
Internal Revenue Service

▶ Go

2018

▶ Attach to the corporation’s tax return.
to www.irs.gov/Form2220 for instructions and the latest information.

Employer identification number

Name

Note: Generally, the corporation is not required to file Form 2220 (see Part II below for exceptions) because the IRS will figure any penalty
owed and bill the corporation. However, the corporation may still use Form 2220 to figure the penalty. If so, enter the amount from page 2, line
38, on the estimated tax penalty line of the corporation’s income tax return, but do not attach Form 2220.

DRAFT AS OF
September 26, 2018
DO NOT FILE
Part I
1
2a
b
c
d

3

Required Annual Payment

Total tax (see instructions) . . . . . . . . . . . . . . . . . .
Personal holding company tax (Schedule PH (Form 1120), line 26) included on line 1
Look-back interest included on line 1 under section 460(b)(2) for completed long-term
contracts or section 167(g) for depreciation under the income forecast method . .
Credit for federal tax paid on fuels (see instructions) .
Total. Add lines 2a through 2c . . . . . . .
Subtract line 2d from line 1. If the result is less than
does not owe the penalty
. . . . . . . .

. .
. .
$500,
. .

.
.
do
.

.
.
not
.

. . . .
. . . .
complete or
. . . .

.

.
2a

.

.

.

.

.

2b
.
2c
. . . . . . . . .
file this form. The corporation
. . . . . . . . .

1

2d
3

4

Enter the tax shown on the corporation’s 2017 income tax return. See instructions. Caution: If the tax is zero or
the tax year was for less than 12 months, skip this line and enter the amount from line 3 on line 5
. .

4

5

Required annual payment. Enter the smaller of line 3 or line 4. If the corporation is required to skip line 4, enter
the amount from line 3 . . . . . . . . . . . . . . . . . . . . . . . . . .

5

Part II

The corporation is using the adjusted seasonal installment method.
The corporation is using the annualized income installment method.
The corporation is a “large corporation” figuring its first required installment based on the prior year’s tax.

6
7
8

Reasons for Filing—Check the boxes below that apply. If any boxes are checked, the corporation must file
Form 2220 even if it does not owe a penalty. See instructions.

Part III

Figuring the Underpayment
(a)

9

Installment due dates. Enter in columns (a) through (d) the 15th day
of the 4th (Form 990-PF filers: Use 5th month), 6th, 9th, and 12th
months of the corporation’s tax year . . . . . . . . . .

9

10

Required installments. If the box on line 6 and/or line 7 above is
checked, enter the amounts from Schedule A, line 38. If the box on
line 8 (but not 6 or 7) is checked, see instructions for the amounts to
enter. If none of these boxes are checked, enter 25% (0.25) of line 5
above in each column
. . . . . . . . . . . . . .

10

11

Estimated tax paid or credited for each period. For column (a) only,
enter the amount from line 11 on line 15. See instructions . . . .

11

(b)

(c)

(d)

Complete lines 12 through 18 of one column before going to the
next column.
12

Enter amount, if any, from line 18 of the preceding column .

.

.

.

12

13

Add lines 11 and 12

.

.

.

13

14
15
16

Add amounts on lines 16 and 17 of the preceding column
Subtract line 14 from line 13. If zero or less, enter -0- .
If the amount on line 15 is zero, subtract line
Otherwise, enter -0- . . . . . . . . .

17

Underpayment. If line 15 is less than or equal to line 10, subtract line
15 from line 10. Then go to line 12 of the next column. Otherwise, go
to line 18 . . . . . . . . . . . . . . . . . .

18

Overpayment. If line 10 is less than line 15, subtract line 10 from line
15. Then go to line 12 of the next column . . . . . . . . .

.

.

.

.

.

.

.

.

.

.

.

.

. . .
. . .
13 from
. . .

. . .
. . .
line 14.
. . .

14
15
16

17

18
Go to Part IV on page 2 to figure the penalty. Do not go to Part IV if there are no entries on line 17—no penalty is owed.
For Paperwork Reduction Act Notice, see separate instructions.

Cat. No. 11746L

Form 2220 (2018)

Page 2

Form 2220 (2018)

Part IV Figuring the Penalty
(a)
19

(b)

(c)

Enter the date of payment or the 15th day of the 4th month after the
close of the tax year, whichever is earlier. (C corporations with tax
years ending June 30 and S corporations: Use 3rd month instead
of 4th month. Form 990-PF and Form 990-T filers: Use 5th month
instead of 4th month.) See instructions
. . . . . . . .

19

Number of days from due date of installment on line 9 to the date
shown on line 19 . . . . . . . . . . . . . . .

20

21

Number of days on line 20 after 4/15/2018 and before 7/1/2018

21

22

Underpayment on line 17 ×

23

Number of days on line 20 after 6/30/2018 and before 10/1/2018

24

Underpayment on line 17 ×

25

Number of days on line 20 after 9/30/2018 and before 1/1/2019

26

Underpayment on line 17 ×

27

Number of days on line 20 after 12/31/2018 and before 4/1/2019

28

Underpayment on line 17 ×

29

Number of days on line 20 after 3/31/2019 and before 7/1/2019

30

Underpayment on line 17 ×

31

Number of days on line 20 after 6/30/2019 and before 10/1/2019

32

Underpayment on line 17 ×

33

Number of days on line 20 after 9/30/2019 and before 1/1/2020

34

Underpayment on line 17 ×

35

Number of days on line 20 after 12/31/2019 and before 3/16/2020

36

Underpayment on line 17 ×

37

Add lines 22, 24, 26, 28, 30, 32, 34, and 36

38

Penalty. Add columns (a) through (d) of line 37. Enter the total here and on Form 1120, line 33; or the comparable
line for other income tax returns . . . . . . . . . . . . . . . . . . . . . . . . .

(d)

DRAFT AS OF
September 26, 2018
DO NOT FILE
20

Number of days on line 21
× 5% (0.05)
365

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

36

$

$

$

$

37

$

$

$

$

26

29
30
31

Number of days on line 31
× *%
365

32
33

Number of days on line 33
× *%
365

34
35

Number of days on line 35
× *%
365
.

$

24

28

Number of days on line 29
× *%
365

.

$

27

Number of days on line 27
× *%
365

.

$

25

Number of days on line 25
× 5% (0.05)
365

.

$

23

Number of days on line 23
× 5% (0.05)
365

.

$

22

.

.

38 $
*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 1-800-829-4933 to get interest rate
information.
Form 2220 (2018)

Page 3

Form 2220 (2018)

Schedule A

Adjusted Seasonal Installment Method and Annualized Income Installment Method
See instructions.

Form 1120S filers: For lines 1, 2, 3, and 21 “taxable income” refers to excess net passive income or the amount on which tax is
imposed under section 1374(a), whichever applies.

Part I

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.

DRAFT AS OF
September 26, 2018
DO NOT FILE
1

a
b
c

2

3

a
b
c

Enter taxable income for the following periods.
Tax year beginning in 2015
. . . . . . . . . . .
Tax year beginning in 2016
. . . . . . . . . . .
Tax year beginning in 2017
. . . . . . . . . . .
Enter taxable income for each period for the tax year beginning in
2018. See the instructions for the treatment of extraordinary
items . . . . . . . . . . . . . . . . . .
Enter taxable income for the following periods.
Tax year beginning in 2015
. . . . . .
Tax year beginning in 2016
. . . . . .
Tax year beginning in 2017
. . . . . .

.
.
.

.
.
.

.
.
.

.
.
.

.
.
.

4

Divide the amount in each column on line 1b by the amount in
column (d) on line 3b . . . . . . . . . . . . .

5

6

Divide the amount in each column on line 1c by the amount in
column (d) on line 3c . . . . . . . . . . . . .

7
8
9a
b
c

Add lines 4 through 6 . . . . .
Divide line 7 by 3.0 . . . . . .
Divide line 2 by line 8 . . . . .
Extraordinary items (see instructions)
Add lines 9a and 9b . . . . . .

.
.
.
.
.

.
.
.
.
.

.
.
.
.
.

.
.
.
.
.

.
.
.
.
.

Figure the tax on the amount on line 9c using the instructions
for Form 1120, Schedule J, line 2, or comparable line of
corporation’s return . . . . . . . . . . . . . .

10

11a

Divide the amount in columns (a) through (c) on line 3a by the
amount in column (d) on line 3a . . . . . . . . . .

11a

b

Divide the amount in columns (a) through (c) on line 3b by the
amount in column (d) on line 3b . . . . . . . . . .

11b

c

Divide the amount in columns (a) through (c) on line 3c by the
amount in column (d) on line 3c . . . . . . . . . .

11c

12

Add lines 11a through 11c .

.

.

.

.

.

.

.

.

.

.

.

12

13

Divide line 12 by 3.0 .

.

.

.

.

.

.

.

.

.

.

.

13

14

Multiply the amount in columns (a) through (c) of line 10 by
columns (a) through (c) of line 13. In column (d), enter the
amount from line 10, column (d) . . . . . . . . . .

.

15

Enter any alternative minimum tax for each payment period. See
instructions . . . . . . . . . . . . . . . .

16
17
18

Enter any other taxes for each payment period. See instructions
Add lines 14 through 16 . . . . . . . . . . . .
For each period, enter the same type of credits as allowed on
Form 2220, lines 1 and 2c. See instructions . . . . . .

19

Total tax after credits. Subtract line 18 from line 17. If zero or
less, enter -0- . . . . . . . . . . . . . . . .

First 4 months

First 6 months

First 9 months

Entire year

6
7
8
9a
9b
9c

10

.

(d)

First 11 months

3a
3b
3c

5

.
.
.
.
.

(c)

First 8 months

2

Divide the amount in each column on line 1a by the amount in
column (d) on line 3a . . . . . . . . . . . . .

.
.
.
.
.

(b)

First 5 months

1a
1b
1c

4

.
.
.
.
.

(a)

First 3 months

14

15
16
17
18
19

Form 2220 (2018)

Page 4

Form 2220 (2018)

Part II

Annualized Income Installment Method
(a)
First

20

Annualization periods (see instructions) .

21

Enter taxable income for each annualization period. See
instructions for the treatment of extraordinary items . . . .

21

22

Annualization amounts (see instructions)

.

.

.

22

23a
b
c

Annualized taxable income. Multiply line 21 by line 22 .
Extraordinary items (see instructions) . . . . . .
Add lines 23a and 23b . . . . . . . . . . .

.
.
.

.
.
.

23a
23b
23c

24

Figure the tax on the amount on line 23c using the instructions
for Form 1120, Schedule J, line 2, or comparable line of
corporation’s return . . . . . . . . . . . . . .

24

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

25

26

Enter any other taxes for each payment period. See instructions

26

27

Total tax. Add lines 24 through 26

27

28

For each period, enter the same type of credits as allowed on
Form 2220, lines 1 and 2c. See instructions . . . . . .

28

Total tax after credits. Subtract line 28 from line 27. If zero or
less, enter -0. . . . . . . . . . . . . . .

29

30

Applicable percentage

.

.

.

.

.

.

.

.

.

.

.

.

30

31

Multiply line 29 by line 30 .

.

.

.

.

.

.

.

.

.

.

.

31

.

.

.

.

.

.

.

20

months

(b)
First
months

(c)

(d)
First

First
months

months

DRAFT AS OF
September 26, 2018
DO NOT FILE
25

29

Part III

.

.

.

.

.

.

.

.

.

.

.

.

.

.

Required Installments

Note: Complete lines 32 through 38 of one column before
completing the next column.
32

If only Part I or Part II is completed, enter the amount in each column
from line 19 or line 31. If both parts are completed, enter the
smaller of the amounts in each column from line 19 or line 31 . .

32

Add the amounts in all preceding columns of line 38. See
instructions . . . . . . . . . . . . . . . .

33

Adjusted seasonal or annualized income installments.
Subtract line 33 from line 32. If zero or less, enter -0- . . .

34

Enter 25% (0.25) of line 5 on page 1 of Form 2220 in each
column. Note: “Large corporations,” see the instructions for
line 10 for the amounts to enter . . . . . . . . .

35

Subtract line 38 of the preceding column from line 37 of the
preceding column . . . . . . . . . . . . . .

36

37

Add lines 35 and 36 .

37

38

Required installments. Enter the smaller of line 34 or line 37
here and on page 1 of Form 2220, line 10. See instructions .

33

34

35

36

.

.

.

.

.

.

.

.

.

.

.

.

.

38

25%

50%

75%

100%

1st
installment

2nd
installment

3rd
installment

4th
installment

Form 2220 (2018)