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Federal Underpayment of Estimated Tax By Corporations
Extracted from PDF file 2023-federal-form-2220.pdf, last modified January 2024Underpayment of Estimated Tax By Corporations
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 2023 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. 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 . . . Credit for federal tax paid on fuels (see instructions) . . . . . . . . . . . Total. Add lines 2a through 2c . . . . . . . . . . . . . . . . . c d 3 4 5 . 2a 2b 2c . . . . . . . 1 . . . . . 2d 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 Enter the tax shown on the corporation’s 2022 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 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. The corporation is using the adjusted seasonal installment method. 6 7 8 . 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. 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 Estimated tax paid or credited for each period. For column (a) only, enter the amount from line 11 on line 15. See instructions . . . . 11 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 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 17 . . . . . . . . . . . . . . . . 12 13 14 15 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 (2023) Page 2 Form 2220 (2023) Part IV Figuring the Penalty (a) 19 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 20 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 4/15/2023 and before 7/1/2023 21 21 Number of days on line 21 365 × 7% (0.07) 22 Underpayment on line 17 × 23 Number of days on line 20 after 6/30/2023 and before 10/1/2023 Underpayment on line 17 × 25 Number of days on line 20 after 9/30/2023 and before 1/1/2024 Underpayment on line 17 × 27 Number of days on line 20 after 12/31/2023 and before 4/1/2024 Underpayment on line 17 × 29 Number of days on line 20 after 3/31/2024 and before 7/1/2024 Underpayment on line 17 × 31 Number of days on line 20 after 6/30/2024 and before 10/1/2024 $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ 36 $ $ $ $ 37 $ $ $ $ 25 26 27 28 29 Number of days on line 29 366 × *% 30 $ 24 Number of days on line 27 × 8% (0.08) 366 28 30 31 Number of days on line 31 366 × *% 32 Underpayment on line 17 × 33 Number of days on line 20 after 9/30/2024 and before 1/1/2025 32 33 Number of days on line 33 366 × *% 34 Underpayment on line 17 × 35 Number of days on line 20 after 12/31/2024 and before 3/16/2025 34 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 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (d) 23 Number of days on line 25 365 × 8% (0.08) 26 (c) $ 22 Number of days on line 23 365 × 7% (0.07) 24 (b) . . 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 (2023) Page 3 Form 2220 (2023) 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 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 Enter taxable income for the following periods. Tax year beginning in 2020 . . . . . . Tax year beginning in 2021 . . . . . . Tax year beginning in 2022 . . . . . . a b c Enter taxable income for each period for the tax year beginning in 2023. See the instructions for the treatment of extraordinary items Enter taxable income for the following periods. Tax year beginning in 2020 . . . . . . . . . . . Tax year beginning in 2021 . . . . . . . . . . . Tax year beginning in 2022 . . . . . . . . . . . 3a 3b 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 column (d) on line 3c . . . . . 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 . . . . . . 2 3 . . . . . . . . . . . . 10 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 . . . . . . . . . . . . . . 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 amount in column (d) on line 3c . . . . . . . Add lines 11a through 11c . . . . . . . . . Divide line 12 by 3.0 . . . . . . . . . . . the . . . 11c 12 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 (trusts only) for each payment period. See instructions . . . . . . . . . . . . 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 12 13 16 17 by . . . (c) (d) First 8 months First 11 months First 4 months First 6 months First 9 months Entire year 2 6 7 8 9a 9b 9c 3c . . . (b) First 5 months 1a 1b 1c amount in . . . . . . . . . . . . . . . . . . 7 8 9a b c line 1c by the . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (a) First 3 months Form 2220 (2023) Page 4 Form 2220 (2023) 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 . . . . Annualization amounts (see instructions) . . . . . . . Annualized taxable income. Multiply line 21 by line 22 . . . Extraordinary items (see instructions) . . . . . . . . Add lines 23a and 23b . . . . . . . . . . . . . 21 22 23a 23b 23c 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 . . . . . . . . . . . . . . 24 25 Enter any alternative minimum tax (trusts only) for each payment period. See instructions . . . . . . . . . . . . Enter any other taxes for each payment period. See instructions Total tax. Add lines 24 through 26 . . . . . . . . . 25 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- . . . . . . . . . . . . . . . . 30 31 Applicable percentage 22 23a b c 26 27 . . . . . . . . . . . . . . . . . . Multiply line 29 by line 30 . . . . . . . . . . . . Part III . . Required Installments 20 29 30 31 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 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% (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 . . . . . . . . . . . . . . Add lines 35 and 36 . . . . . . . . . . . . . . 36 37 Required installments. Enter the smaller of line 34 or line 37 here and on page 1 of Form 2220, line 10. See instructions . 38 37 38 (b) First (c) First (d) First months months months months 25% 50% 75% 100% 1st installment 2nd installment 3rd installment 4th installment Form 2220 (2023)
2023 Form 2220
More about the Federal Form 2220 Corporate Income Tax Estimated TY 2023
Corporations, tax-exempt organizations subject to the unrelated business income tax, and private foundations can use form 2220 to determine: Whether they are subject to the penalty for underpayment of estimated tax and, if so, The amount of the underpayment penalty for the period that applies.
We last updated the Underpayment of Estimated Tax By Corporations in May 2024, so this is the latest version of Form 2220, fully updated for tax year 2023. You can download or print current or past-year PDFs of Form 2220 directly from TaxFormFinder. You can print other Federal tax forms here.
Other Federal Corporate Income Tax Forms:
TaxFormFinder has an additional 774 Federal income tax forms that you may need, plus all federal income tax forms.
| Form Code | Form Name |
|---|---|
| Form 1040 | U.S. Individual Income Tax Return |
| 1040 (Schedule B) | Interest and Ordinary Dividends |
| Form W-3 | Transmittal of Wage and Tax Statements |
| Form 941 | Employer's Quarterly Federal Tax Return |
| Form 1120-H | U.S. Income Tax Return for Homeowners Associations |
View all 775 Federal Income Tax Forms
Form Sources:
The Internal Revenue Service usually releases income tax forms for the current tax year between October and January, although changes to some forms can come even later. We last updated Federal Form 2220 from the Internal Revenue Service in May 2024.
Form 2220 is a Federal Corporate Income Tax form. While most taxpayers have income taxes automatically withheld every pay period by their employer, taxpayers who earn money that is not subject to withholding (such as self employed income, investment returns, etc) are often required to make estimated tax payments on a quarterly basis. Failure to make correct estimated payments can result in interest or penalties.
About the Corporate Income Tax
The IRS and most states require corporations to file an income tax return, with the exact filing requirements depending on the type of company.
Sole proprietorships or disregarded entities like LLCs are filed on Schedule C (or the state equivalent) of the owner's personal income tax return, flow-through entities like S Corporations or Partnerships are generally required to file an informational return equivilent to the IRS Form 1120S or Form 1065, and full corporations must file the equivalent of federal Form 1120 (and, unlike flow-through corporations, are often subject to a corporate tax liability).
Additional forms are available for a wide variety of specific entities and transactions including fiduciaries, nonprofits, and companies involved in other specific types of business.
Historical Past-Year Versions of Federal Form 2220
We have a total of thirteen past-year versions of Form 2220 in the TaxFormFinder archives, including for the previous tax year. Download past year versions of this tax form as PDFs here:
2011 Form 2220
2011 Form 2220
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