2220 Underpayment of Estimated Tax by Corporations

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2220

Underpayment of Estimated Tax by Corporations

Department of the Treasury
Internal Revenue Service

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

Form

OMB No. 1545-0123

2024

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.

TREASURY/IRS
AND OMB USE
ONLY DRAFT
December 2, 2024
DO NOT FILE

Part I

Required Annual Payment

1
2a

Total tax (see instructions) . . . . . . . . . . . . . . . . . .
Personal holding company tax (Schedule PH (Form 1120), line 26) included on line 1

b

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 . . .

c
d

Credit for federal tax paid on fuels (see instructions) .
Total. Add lines 2a through 2c . . . . . . .

3
4
5

8

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11

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1

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2d
3
4

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

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.

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.

Figuring the Underpayment

(a)

10

2b
2c
. .

.

Enter the tax shown on the corporation’s 2023 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 . . . .

Part III
9

.
2a

Subtract line 2d from line 1. If the result is less than $500, do not complete or file this form. The corporation
does not owe the penalty
. . . . . . . . . . . . . . . . . . . . . . . . .

Part II
6
7

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.

.

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

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

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
13
14
15

Enter amount, if any, from line 18 of the preceding column
Add lines 11 and 12 . . . . . . . . . . .
Add amounts on lines 16 and 17 of the preceding column
Subtract line 14 from line 13. If zero or less, enter -0- .

16

If the amount on line 15 is zero, subtract line 13 from line 14.
Otherwise, enter -0- . . . . . . . . . . . . . . .

16

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 . . . . . . . . . . . . . . . . . .

17

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 . . . . . . . . .

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12
13
14
15

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 (2024)

Page 2

Form 2220 (2024)

Part IV

Figuring the Penalty
(a)

19

20

21
22
23
24
25
26
27
28
29
30
31
32
33

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

Number of days on line 20 after 4/15/2024 and before 7/1/2024

21

(b)

(c)

(d)

TREASURY/IRS
AND OMB USE
ONLY DRAFT
December 2, 2024
DO NOT FILE
Underpayment on line 17 ×

Number of days on line 21
366
× 8% (0.08)

Number of days on line 23
366
× 8% (0.08)

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

36

$

$

$

$

37

$

$

$

$

27

Number of days on line 27
× 7% (0.07)
365

28
29

Number of days on line 29
365
× *%

30
31

Number of days on line 20 after 6/30/2025 and before 10/1/2025
Underpayment on line 17 ×

$

26

Number of days on line 20 after 3/31/2025 and before 7/1/2025
Underpayment on line 17 ×

$

25

Number of days on line 25
366
× 8% (0.08)

Number of days on line 20 after 12/31/2024 and before 4/1/2025
Underpayment on line 17 ×

$

24

Number of days on line 20 after 9/30/2024 and before 1/1/2025
Underpayment on line 17 ×

$

23

Number of days on line 20 after 6/30/2024 and before 10/1/2024
Underpayment on line 17 ×

$

22

Number of days on line 31
365
× *%

32
33

Number of days on line 20 after 9/30/2025 and before 1/1/2026
Number of days on line 33
365
× *%

34

Underpayment on line 17 ×

34

35

Number of days on line 20 after 12/31/2025 and before 3/16/2026

35

Number of days on line 35
× *%
365

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 34; or the comparable line
for other income tax returns . . . . . . . . . . . . . . . . . . . . . . . . . . .

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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 800-829-4933 to get interest rate information.
Form 2220 (2024)

Page 3

Form 2220 (2024)

Schedule A

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

Form 1120-S 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

1

TREASURY/IRS
AND OMB USE
ONLY DRAFT
December 2, 2024
DO NOT FILE
Enter taxable income for the following periods.

a
b
c
2
3

5
6

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Enter taxable income for the following periods.
Tax year beginning in 2021
. . . . .
Tax year beginning in 2022 . . . . . .
Tax year beginning in 2023 . . . . . .

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5

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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 . . . . . . . . . . .
Add lines 11a through 11c
Divide line 12 by 3.0 . .

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

Enter any other taxes for each payment period. See instructions
Add lines 14 through 16 . . . . . . . . . . . . .

15
16
17

18

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

18

19

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

19

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First 4 months

First 6 months

First 9 months

Entire year

11c
12
13

12
13

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(d)

First 11 months

6
7
8
9a
9b
9c

Figure the tax on the amount on line 9c using the instructions for
Form 1120, Schedule J, line 1, or comparable line of corporation’s
return . . . . . . . . . . . . . . . . . .

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(c)

First 8 months

3a
3b
3c
4

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(b)

First 5 months

2

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

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 . . . . .

(a)

First 3 months

1a
1b
1c

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

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

7
8
9a
b
c
10

Tax year beginning in 2021 .
Tax year beginning in 2022 .
Tax year beginning in 2023 .

Enter taxable income for each period for the tax year beginning in 2024.
See the instructions for the treatment of extraordinary items . . .

a
b
c
4

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.

14

Form 2220 (2024)

Page 4

Form 2220 (2024)

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 . . . . . . . .

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

24

Figure the tax on the amount on line 23c using the instructions for
Form 1120, Schedule J, line 1, or comparable line of corporation’s
return . . . . . . . . . . . . . . . . . .

26
27
28
29
30
31

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Enter any alternative minimum tax for each payment period. See
instructions
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34
35

months

First

First
months

months

24
25
26
27

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. . . . . . . . . . . . . . . . .
Applicable percentage .
Multiply line 29 by line 30

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Required Installments

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29
30
31

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

33

First

(d)

21
22
23a
23b
23c

Enter any other taxes for each payment period. See instructions
Total tax. Add lines 24 through 26 . . . . . . . . . .

Part III

32

months

(c)

TREASURY/IRS
AND OMB USE
ONLY DRAFT
December 2, 2024
DO NOT FILE

22
23a
b
c

25

20

(b)

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
. . . .

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

32
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

36

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

37

Add lines 35 and 36

38

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

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25%

50%

75%

100%

1st
installment

2nd
installment

3rd
installment

4th
installment

36
37
38

Form 2220 (2024)