Form 8752 Required Payment or Refund Under Section 7519
Do not attach this form to Form 1065, Form 1065-B, or Form 1120S; file it separately.
OMB No. 1545-1181
Department of the Treasury
Internal Revenue Service
For the required payment computed using the net income from the base year ending
Due by May 15, 2008
, 2007
2007
Name of partnership or S corporation Employer identification number
Type or print
Number, street, and room or suite no. If a P.O. box, see instructions.
City or town, state, and ZIP code
A Check applicable box to show how entity is classified for federal income tax purposes: (1) Partnership
(2) S Corporation
B If this is the entity’s first tax year, skip lines 1 through 10, enter -0- on line 11, and check this box
C If this form is being filed to claim a full refund of the net required payment balance because of a terminating event, skip
lines 1 through 9a, enter -0- on line 9b, complete lines 10-12, and check this box
D If the entity had a short base year (a base year of less than 12 months), check this box. See the line 1 instructions for the
definition of “base year”
1 Net income for base year. If the entity had a short base year, increase the net income for the
short base year by the applicable payments made during the base year (line 2 below), and
multiply the result by the ratio of 12 over the number of months in the short base year. Carry
out the ratio to at least 3 decimal places. If zero or less, enter -0- 1
2 Applicable payments made during base year 2
3 Deferral ratio. Divide the number of months in the deferral period by 12 and enter the result
as a percentage. Carry out your answer to at least the nearest tenth of a percent 3 . %
4 Line 1 deferred amount. Multiply line 1 by line 3 4
Caution: If the entity had a short base year, skip lines 5 and 6 and go to line 7.
5 Line 2 deferred amount. Multiply line 2 by line 3 5
6 Applicable payments made during the deferral period of the base
year 6
7 If the entity had a 12-month base year, subtract line 6 from line 5. If zero or less, enter -0-. If
the entity had a short base year, enter the applicable payments made during the deferral period
of the applicable election year 7
8 Net base year income. If the entity had a 12-month base year, add lines 4 and 7. If the entity
had a short base year, subtract line 7 from line 4. If zero or less, enter -0- 8
9a Multiply line 8 by 36% (.36) 9a
b If line 9a is more than $500 or the required payment for any prior tax year was more than
$500, enter the amount from line 9a here. Otherwise, enter -0- 9b
10 Net required payment balance. Enter the excess of the required payments made for all prior
years over the refunds of any required payments received for all prior years 10
11 Required payment due. If line 9b is larger than line 10, subtract line 10 from line 9b. Enclose
a check or money order for the full amount payable to “United States Treasury.” Write the
entity’s employer identification number and “Form 8752” on it 11
12 Refund of net prior year payments. If line 10 is larger than line 9b, subtract line 9b from line 10 12
Under penalties of perjury, I declare that I have examined this return, including accompanying schedules and statements, and to the best of my
Sign knowledge and belief, it is true, correct, and complete.
Here
Keep a copy of
this form for
your records. Signature of officer, general partner, or limited liability company member Date Title
General Instructions Section 7519 payments are required of any election is in effect for the tax year. A partnership
partnership or S corporation that has elected or S corporation that terminates its section 444
Section references are to the Internal Revenue under section 444 to have a tax year other than a election or liquidates must also file Form 8752 to
Code unless otherwise noted. required tax year. claim a refund of its net required payment
Purpose of form. Partnerships and balance. See section 7519(c)(3) for details.
Who must file. A partnership or S corporation
S corporations use Form 8752 to figure and must file Form 8752 if it made a section 444 Do not file Form 8752 for a personal service
report the payment required under section 7519 election by filing Form 8716, Election To Have a corporation (as defined in Regulations section
or to obtain a refund of net prior year payments. Tax Year Other Than a Required Tax Year, and its 1.441-3). Instead, file Schedule H (Form 1120),
For Paperwork Reduction Act Notice, see back of form. Cat. No. 64988D Form 8752 (2007)
Form 8752 (2007) Page 2
Section 280H Limitations for a Personal Service Item B. If an applicable election year is the for the base year. See Temporary Regulations
Corporation (PSC), with the corporation’s income entity’s first year of existence (i.e., it is a newly section 1.7519-1T(b)(5) for other details.
tax return. formed entity and therefore does not have a base Line 2. Applicable payments. In general, the
When to file. For applicable election years year), the required payment is zero. term applicable payments means any amount
beginning in 2007, Form 8752 must be filed and Item C. If the entity terminated its section 444 deductible in the base year that is includible at
the required payment made on or before election and the termination took effect for a tax any time, directly or indirectly, in the gross
May 15, 2008. year ending in 2007, or the entity liquidated income of any partner or shareholder who was a
However, Temporary Regulations section during a tax year ending in 2007, check this box. partner or shareholder during the base year.
1.444-3T(b)(4)(iii) provides a special rule that The entity should claim a full refund of the net However, the term does not include guaranteed
extends the due date for filing Form 8752 and required payment balance shown on line 10. See payments. Examples of applicable payments are
making the required payment related to certain section 7519(c)(3) to determine when you are officer’s compensation, wages, and rent paid to
back-up section 444 elections. eligible for the refund. any partner or shareholder.
A partnership’s section 444 election ends if the If the S corporation was a C corporation for its
Where to file. File Form 8752 at the applicable partnership changes its accounting period to its base year, applicable payments of the
IRS address listed below. required tax year or some other permitted year, it C corporation are treated as if received from an
If the entity’s principal is penalized for willfully failing to comply with the S corporation.
place of business or requirements of section 7519, or it becomes a
Line 3. Deferral ratio. The deferral period is the
principal office or agency Use the following member of a tiered structure and the same tax
is located in address number of months between
year exception does not apply (see Temporary
Regulations section 1.444-2T for more about ● The beginning of the elected tax year and
tiered structures). ● The close of the first required tax year ending
Connecticut, Delaware, An S corporation’s section 444 election ends if within such a year.
District of Columbia, Illinois, it changes its accounting period to a calendar For example, the required tax year for an
Indiana, Kentucky, Maine, year or some other permitted year, it is penalized
Maryland, Massachusetts,
Department of S corporation is the calendar year, ending on
the Treasury, for willfully failing to comply with the requirements December 31. If an S corporation elects a tax
Michigan, New Hampshire, of section 7519, it becomes a member of a tiered
New Jersey, New York, Internal Revenue year beginning on November 1, there would be 2
North Carolina, Ohio, Service Center, structure and the same tax year exception does months between the beginning of the elected tax
Pennsylvania, Rhode Island, Cincinnati, OH 45999 not apply (see Temporary Regulations section year and the end of the required tax year
South Carolina, Vermont, 1.444-2T), or its S corporation election terminates (December 31). The deferral period for the elected
Virginia, West Virginia, (unless it immediately becomes a personal tax year would be 2 months.
Wisconsin service corporation).
See Temporary Regulations section Line 9b. If you enter zero on line 9b and you did
Alabama, Alaska, Arizona, 1.444-1T(a)(5)(ii) for the effective date of the not make any prior year required payment for
Arkansas, California, termination of a section 444 election. which a refund can be claimed, enter zero on
Colorado, Florida, Georgia, line 10, skip lines 11 and 12, and complete the
Hawaii, Idaho, Iowa, Kansas, Once a section 444 election is terminated, the
Department of signature section. You are required to file Form
Louisiana, Minnesota, entity may never make another section 444
the Treasury, 8752 to show that you have a zero liability for
Mississippi, Missouri, election.
Internal Revenue the applicable election year beginning in 2007.
Montana, Nebraska, Nevada,
New Mexico, North Dakota, Service Center, Line 1. Net income for base year. The term Line 12. Refund of net prior year payments.
Oklahoma, Oregon, Ogden, UT 84201 “base year” means the tax year preceding the No refund will be made before the later of:
South Dakota, Tennessee, applicable election year. Any tax year for which a (a) April 15, 2008, or (b) 90 days after Form
Texas, Utah, Washington, section 444 election is in effect, including the 8752 is filed per section 7519(c)(3). No interest
Wyoming first tax year the section 444 election is made, is will be paid on the amount refunded.
an applicable election year. For example, if you
An entity without a principal office or agency are completing Form 8752 for the applicable
or principal place of business in the United election year beginning October 1, 2007, and Paperwork Reduction Act Notice. We ask for
States must file Form 8752 with the Internal ending September 30, 2008, the base year is the the information on this form to carry out the
Revenue Service Center, P.O. Box tax year beginning October 1, 2006, and ending Internal Revenue laws of the United States. You
409101,Ogden, UT 84409. September 30, 2007. are required to give us the information. We need
Partnerships. Line 1 net income is the it to ensure that you are complying with these
Penalties. If the required payment is not made
aggregate (not less than zero) of the laws and to allow us to figure and collect the
by the due date, the entity may have to pay a
partnership’s items of income and expense, right amount of required payment.
penalty equal to 10% of the underpayment. For
this purpose, “underpayment” means the excess other than tax-exempt income, nondeductible You are not required to provide the
of the required payment over the amount (if any) expenses, and guaranteed payments under information requested on a form that is subject
of such payment made on or before the due section 707(c). When figuring this amount, to the Paperwork Reduction Act unless the form
date for the applicable election year. The penalty disregard any limitations at the partner level. For displays a valid OMB control number. Books or
will not be imposed if the entity can show that base years beginning in 2006, line 1 should records relating to a form or its instructions must
the failure to pay on time was due to reasonable equal the amount on the 2006 Form 1065, line 1 be retained as long as their contents may
cause. If you include this penalty with the of Analysis of Net Income (Loss), plus the become material in the administration of any
entity’s payment, identify and enter the penalty aggregate items of income and expense, if any, Internal Revenue law. Generally, tax returns and
amount in the bottom margin of page 1. Do not reported on the attachment for Schedule K, return information are confidential, as required
include the penalty in the Required payment due line 20c (but not less than zero). by section 6103.
space on line 11. Other penalties may also S corporations. Line 1 net income is the The time needed to complete and file this
apply. aggregate (not less than zero) of the form will vary depending on individual
Amended return. To correct an error in a Form corporation’s items of income and expense, circumstances. The estimated average time is:
8752 already filed, file an amended Form 8752 other than tax-exempt income and Recordkeeping, 5 hr., 44 min.; Learning about
and write “Amended Return” across the top. nondeductible expenses. When figuring this the law or the form, 1 hr.; Preparing, copying,
amount, disregard any limitations at the assembling, and sending the form to the IRS,
Specific Instructions shareholder level. For base years beginning in 1 hr., 7 min.
2006, line 1 should equal the amount on the If you have comments concerning the
Enter the beginning and ending dates of your 2006 Form 1120S, Schedule K, line 18, plus the accuracy of these time estimates or suggestions
applicable election year beginning in 2007. See aggregate items of income and expense, if any, for making this form simpler, we would be happy
the definition of applicable election year under reported on Schedule K, line 17d (but not less to hear from you. You can write to the Internal
Line 1. Net income for base year on this page. than zero). For this purpose, all S corporations Revenue Service, Tax Products Coordinating
must complete Schedule K, line 18. Committee, SE:W:CAR:MP:T:T:SP, 1111
Address. Include the suite, room, or other unit If an S corporation was a C corporation for its
number after the street address. If the Post Office Constitution Ave. NW, IR-6526, Washington, DC
base year, the C corporation’s taxable income is 20224.
does not deliver mail to the street address and treated as the net income of the S corporation
the entity has a P.O. box, show the box number Do not send Form 8752 to this address.
instead of the street address. Instead, see Where to file above.