Form 2220 Underpayment of Estimated Tax by Corporations
See separate instructions.
OMB No. 1545-0142
Department of the Treasury
Internal Revenue Service Attach to the corporation’s tax return.
2007
Name Employer identification number
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 34 on the estimated tax penalty line of the corporation’s income tax return, but do not attach Form 2220.
Part I Required Annual Payment
1 Total tax (see instructions) 1
2a Personal holding company tax (Schedule PH (Form 1120), line 26) included on line 1 2a
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 2b
c Credit for federal tax paid on fuels (see instructions) 2c
d Total. Add lines 2a through 2c 2d
3 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 3
4 Enter the tax shown on the corporation’s 2006 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 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).
6 The corporation is using the adjusted seasonal installment method.
7 The corporation is using the annualized income installment method.
8 The corporation is a “large corporation” figuring its first required installment based on the prior year’s tax.
Part III Figuring the Underpayment
(a) (b) (c) (d)
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%
of line 5 above in each column 10
11 Estimated tax paid or credited for each period (see
instructions). For column (a) only, enter the amount from line
11 on line 15 11
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 Add amounts on lines 16 and 17 of the preceding column 14
15 Subtract line 14 from line 13. If zero or less, enter -0- 15
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 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 (2007)
Form 2220 (2007) Page 2
Part IV Figuring the Penalty
(a) (b) (c) (d)
19 Enter the date of payment or the 15th day of the 3rd month after
the close of the tax year, whichever is earlier (see instructions).
(Form 990-PF and Form 990-T filers: Use 5th month instead of
3rd month.) 19
20 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 4/15/2007 and before 1/1/2008 21
22 Underpayment on line 17 × Number of days on line 21 × 8% 22 $ $ $ $
365
23 Number of days on line 20 after 12/31/2007 and before 4/1/2008 23
24 Underpayment on line 17 × Number of days on line 23 × 7% 24 $ $ $ $
366
25 Number of days on line 20 after 3/31/2008 and before 7/1/2008 25
26 Underpayment on line 17 × Number of days on line 25 × *% 26 $ $ $ $
366
27 Number of days on line 20 after 6/30/2008 and before 10/1/2008 27
28 Underpayment on line 17 × Number of days on line 27 × *% 28 $ $ $ $
366
29 Number of days on line 20 after 9/30/2008 and before 1/1/2009 29
30 Underpayment on line 17 × Number of days on line 29 × *% 30 $ $ $ $
366
31 Number of days on line 20 after 12/31/2008 and before 2/16/2009 31
32 Underpayment on line 17 × Number of days on line 31 × *% 32 $ $ $ $
365
33 Add lines 22, 24, 26, 28, 30, and 32 33 $ $ $ $
34 Penalty. Add columns (a) through (d) of line 33. Enter the total here and on Form 1120, line 33;
or the comparable line for other income tax returns
34 $
*For underpayments paid after March 31, 2008: For lines 26, 28, 30, and 32, 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 (2007)
Form 2220 (2007) Page 3
Schedule A Adjusted Seasonal Installment Method and Annualized Income Installment Method
(see instructions)
Form 1120S filers: For lines 1, 2, 3, and 21, below, “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.)
(a) (b) (c) (d)
1 Enter taxable income for the following periods:
First 3 months First 5 months First 8 months First 11 months
a Tax year beginning in 2004 1a
b Tax year beginning in 2005 1b
c Tax year beginning in 2006 1c
2 Enter taxable income for each period for the tax year beginning
in 2007 (see instructions for the treatment of extraordinary items). 2
First 4 months First 6 months First 9 months Entire year
3 Enter taxable income for the following periods:
a Tax year beginning in 2004 3a
b Tax year beginning in 2005 3b
c Tax year beginning in 2006 3c
4 Divide the amount in each column on line 1a by the amount in
column (d) on line 3a. 4
5 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. 6
7 Add lines 4 through 6. 7
8 Divide line 7 by 3.0. 8
9a Divide line 2 by line 8. 9a
b Extraordinary items (see instructions). 9b
c Add lines 9a and 9b. 9c
10 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). 14
15 Enter any alternative minimum tax for each payment period (see
instructions). 15
16 Enter any other taxes for each payment period (see instructions). 16
17 Add lines 14 through 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
Form 2220 (2007)
Form 2220 (2007) Page 4
Part II Annualized Income Installment Method
(a) (b) (c) (d)
First First First First
20 Annualization periods (see instructions). 20 months months months months
21 Enter taxable income for each annualization period (see
instructions for the treatment of extraordinary items). 21
22 Annualization amounts (see instructions). 22
23a Annualized taxable income. Multiply line 21 by line 22. 23a
b Extraordinary items (see instructions). 23b
c Add lines 23a and 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
25 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
29 Total tax after credits. Subtract line 28 from line 27. If zero or
less, enter -0-. 29
30 Applicable percentage. 30 25% 50% 75% 100%
31 Multiply line 29 by line 30. 31
Part III Required Installments
Note: Complete lines 32 through 38 of one column before 1st 2nd 3rd 4th
installment installment installment installment
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
33 Add the amounts in all preceding columns of line 38 (see
instructions). 33
34 Adjusted seasonal or annualized income installments.
Subtract line 33 from line 32. If zero or less, enter -0-. 34
35 Enter 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. 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). 38
Form 2220 (2007)