8827 Credit for Prior Year Minimum Tax - Corporations

Form

8827

Credit for Prior Year Minimum Tax—Corporations

OMB No. 1545-0123

2019

(Rev. May 2020)
Department of the Treasury
Internal Revenue Service

▶

▶ Attach to the corporation’s tax return.
Go to www.irs.gov/Form8827 for the latest information.

Employer identification number

Name

1
2
3
4
5a

Minimum tax credit carryforward from 2018. Enter the amount from line 9 of the 2018 Form 8827 . .
Enter the corporation’s 2019 regular income tax liability minus allowable tax credits (see instructions)
Enter the refundable minimum tax credit (see instructions) . . . . . . . . . . . . . . .
Add lines 2 and 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Enter the smaller of line 1 or line 4. If the corporation had a post-1986 ownership change or has
pre-acquisition excess credits, see instructions . . . . . . . . . . . . . . . . . .

b Current year minimum tax credit. Enter the smaller of line 1 or line 2 here and on Form 1120,
Schedule J, Part I, line 5d (or the applicable line of your return). If the corporation had a post-1986
ownership change or has pre-acquisition excess credits, see instructions. If you made an entry on line
3, go to line 5c. Otherwise, skip line 5c . . . . . . . . . . . . . . . . . . . . .
c Subtract line 5b from line 5a. This is the current year refundable minimum tax credit. Include this
amount on Form 1120, Schedule J, Part III, line 20c (or the applicable line of your return)
. . . .
6
Minimum tax credit carryforward. Subtract line 5a from line 1. Keep a record of this amount to carry
forward and use in future years
. . . . . . . . . . . . . . . . . . . . .

1
2
3
4
5a

5b
5c
6

Instructions

Purpose of Form

Line 3

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

Corporations use Form 8827 to figure
the minimum tax credit, if any, for AMT
incurred in prior tax years, the
refundable AMT credit amount, and to
figure any minimum tax credit
carryforward.

The minimum tax credit limitation is
increased by the AMT refundable credit
amount. If the corporation did not make
an election under section 53(e)(5) to
take the entire refundable credit
amount in 2018, 100% of the available
minimum tax credits in excess of the
2019 regular tax liability is refundable
for 2019. If the corporation made the
election under section 53(e)(5) no
refundable credit is allowed for 2019.

What’s New
Refundable minimum tax credit. For
tax years beginning in 2018 and 2019,
a corporation is allowed an AMT
refundable credit amount equal to 50%
(100% for tax years beginning in 2019)
of the excess minimum tax credit over
the corporation’s regular tax liability.
The corporation can make an election
to take 100% of the refundable credit
in 2018. If the corporation makes this
election, no credit is allowed for 2019.
See section 53(e). Also, see the
instructions for line 3.

Who Should File
Form 8827 should be filed by
corporations that had a minimum tax
credit carryover from 2018 to 2019.

Line 2
Enter the corporation’s 2019 regular
income tax liability, as defined in
section 26(b), minus any credits
allowed under Chapter 1, Subchapter
A, Part IV, subparts B, D, E, and F of
the Internal Revenue Code (for
example, if filing Form 1120, subtract
any credits on Schedule J, Part I, lines
5a through 5c, from the amount on
Schedule J, Part I, line 2).

For Paperwork Reduction Act Notice, see instructions.

Cat. No. 13008K

If applicable, complete the
Worksheet for Calculating the
Refundable Minimum Tax Credit
Amount, later in the instructions. Enter
the amount from line 3 of the
worksheet on Form 8827, line 3.
Note: A corporation with a short tax
year (less than 12 months) must
prorate the refundable credit based on
the number of days in their tax year.
See section 53(e)(4).
Form 8827 (Rev. 5-2020)

Page 2

Form 8827 (Rev. 5-2020)

Worksheet for Calculating the Refundable Minimum Tax Credit Amount. See instructions. Keep for your records.
1
Minimum tax credit carryforward from 2018. Enter the amount from line 9 of the 2018 Form 8827 . .
1
2
Enter the corporation’s 2019 regular tax minus allowable credits (see instructions for Form 8827,
line 2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2
3
Refundable minimum tax credit. Subtract line 2 from line 1. Enter this amount on Form 8827, line 3 . . .
3

Line 5
If the corporation had a post-1986
ownership change (as defined in
section 382(g)), there may be a limit on
the amount of pre-change minimum
tax credits that can be applied against
the corporation’s tax for any tax year
ending after the ownership change.
See section 383 and the related
regulations. To figure the amount of
the pre-change credit, the corporation
must allocate the credit for the change
year between the pre-change period
and the post-change period. The
corporation must use the same
method of allocation (ratable allocation
or closing-of-the-books) for purposes
of sections 382 and 383. See
Regulations section 1.382-6 for
details.
Also, there may be a limit on the use
of pre-acquisition excess credits of
one corporation to offset the tax
attributable to recognized built-in
gains of another corporation. See
section 384 for details.

If either limit applies, attach a
computation of the allowable minimum
tax credit, enter the amount on lines
5a and 5b, and write “Sec. 383” or
“Sec. 384” on the dotted line to the left
of the line 5a and 5b entry spaces.
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 tax.
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 burden for business
taxpayers filing this form is approved
under OMB control number 1545-0123
and is included in the estimates shown
in the instructions for their business
income tax return.
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. See the instructions for the
tax return with which this form is filed.