Form 990-W Estimated Tax on Unrelated Business Taxable Income for T

Estimated Tax on Unrelated Business Taxable Income for Tax-Exempt Organizations

990-W.form

Estimated Tax on Unrelated Business Taxable Income for Tax-Exempt Organizations

OMB: 1545-0976

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Form

I.R.S. SPECIFICATIONS
TO BE REMOVED BEFORE PRINTING
INSTRUCTIONS TO PRINTERS
Form 990-W, PAGE 1 of 6
MARGINS: TOP 13mm (1⁄2 "), CENTER SIDES.
PRINTS: HEAD TO FOOT
PAPER: WHITE, WRITING, SUB. 20 INK: BLACK
1
7
FLAT SIZE: 216mm (8 ⁄2 ") 835mm (32 ⁄8 "), FOLD TO: 216mm (81⁄2 ") 279mm (11")
PERFORATE: ON FOLD
DO NOT PRINT — DO NOT PRINT — DO NOT PRINT — DO NOT PRINT

Date

(WORKSHEET)

Revised proofs
requested

OMB No. 1545-0976

2006

(and on Investment Income for Private Foundations)
(Keep for your records. Do not send to the Internal Revenue Service.)

Unrelated business taxable income expected in the tax year

Tax on the amount on line 1. (See instructions for tax computation.)

Alternative minimum tax (see instructions)

Total. Add lines 2 and 3

Estimated tax credits (see instructions)

Balance. Subtract line 5 from line 4

Other taxes (see instructions)

Total. Add lines 6 and 7

Credit for federal tax paid on fuels (see instructions)

10a Subtract line 9 from line 8. Note. If less than $500, the organization
is not required to make estimated tax payments. (Private foundations,
10a
see instructions.)
b Enter the tax shown on the 2005 return (see instructions). (Caution.
If zero or the tax year was for less than 12 months, skip this line
10b
and enter the amount from line 10a on line 10c)
c 2006 Estimated Tax. Enter the smaller of line 10a or line 10b. If the organization is required to
skip line 10b, enter the amount from line 10a on line 10c.
(a)
11

Installment due dates (see
instructions)

Required installments. Enter
25% of line 10c in columns
(a) through (d) unless the
organization uses the
annualized income
installment method, the
adjusted seasonal installment
method, or is a “large
organization” (see
instructions)

2005 Overpayment (see
instructions)

Payment due. (Subtract line
13 from line 12.)

For Paperwork Reduction Act Notice, see the instructions on page 6.

Signature

O.K. to print

Estimated Tax on Unrelated Business Taxable
Income for Tax-Exempt Organizations

990-W

Department of the Treasury
Internal Revenue Service

Action

(b)

10c

(c)

Cat. No. 63726T

(d)

Form

990-W

(2006)

5
I.R.S. SPECIFICATIONS
TO BE REMOVED BEFORE PRINTING
INSTRUCTIONS TO PRINTERS
Form 990-W, PAGE 2 of 6
MARGINS: TOP 13mm (1⁄2 "), CENTER SIDES.
PRINTS: HEAD TO FOOT
PAPER: WHITE, WRITING, SUB. 20 INK: BLACK
FLAT SIZE: 216mm (81⁄2 ") 835mm (327⁄8 "), FOLD TO: 216mm (81⁄2 ") 279mm (11")
PERFORATE: ON FOLD
DO NOT PRINT — DO NOT PRINT — DO NOT PRINT — DO NOT PRINT

2
Required Installments Using the Annualized Income Installment Method and/or the Adjusted
Seasonal Installment Method Under Section 6655(e).

Form 990-W (WORKSHEET) 2006

Schedule A

Page

Note. See the instructions for Schedule A. An organization that expects its income to vary during the year may want to
complete Schedule A to determine whether it may be able to lower the amount of one or more required installments.
Complete each column of this schedule in its entirety before going to the next column.
(a)
(b)
(c)
(d)
Part I—Annualized Income Installment Method
First ____
First ____
First ____
First ____
months
months
months
months
1 Annualization period (see instructions)
1
2 Enter taxable income for each annualization period (see
instructions)
2
3

Annualization amounts (see instructions)

Annualized taxable income. Multiply line 2 by line 3.

Figure the tax on the amount in each column on line 4 in
the same manner as you figured line 2, Form 990-W.

Enter alternative minimum tax and other taxes for each
annualization period (see instructions)

Total tax. Add lines 5 and 6.

For each period, enter the same type of credits as allowed
on Form 990-W, lines 5 and 9 (see instructions)

9
10

Total tax after credits. Subtract line 8 from line 7. If less
than zero, enter -0-.
Applicable percentage.

9
10

Multiply line 9 by line 10.

Total of all preceding columns of line 40 (see instructions)

Annualized income installments. Subtract line 12 from
line 11. If zero or less, enter -0-.

25%

50%

100%

75%

Part II—Adjusted Seasonal Installment Method (Caution. Use this method only if the base period percentage for
any 6 consecutive months is at least 70%. See the instructions for Schedule A, Part II for more information.)

Enter taxable income for the following periods:

a Tax year beginning in 2003

14a

b Tax year beginning in 2004

14b

c Tax year beginning in 2005

14c

Enter taxable income for each period for the tax year
beginning in 2006.

(b)
First 5
months

(d)
First 11
months

First 4*
months

First 6
months

First 9
months

Entire year

Enter taxable income for the following periods:

a Tax year beginning in 2003

16a

b Tax year beginning in 2004

16b

c Tax year beginning in 2005

16c

Divide the amount in each column on line 14a by the amount
on line 16a, column (d).

Divide the amount in each column on line 14b by the amount
on line 16b, column (d).

Divide the amount in each column on line 14c by the amount
on line 16c, column (d).

*First 5 months for private foundations.

(a)
First 3
months

Form

990-W

(2006)

5
I.R.S. SPECIFICATIONS
TO BE REMOVED BEFORE PRINTING
INSTRUCTIONS TO PRINTERS
Form 990-W, PAGE 3 of 6
MARGINS: TOP 13mm (1⁄2 "), CENTER SIDES.
PRINTS: HEAD TO FOOT
PAPER: WHITE, WRITING, SUB. 20 INK: BLACK
FLAT SIZE: 216mm (81⁄2 ") 835mm (327⁄8 "), FOLD TO: 216mm (81⁄2 ") 279mm (11")
PERFORATE: ON FOLD
DO NOT PRINT — DO NOT PRINT — DO NOT PRINT — DO NOT PRINT

Form 990-W (WORKSHEET) 2006

Page

Add lines 17 through 19.

Divide line 20 by 3.

Divide line 15 by line 21.

Figure the tax on the amount on line 22 in the same manner
as figured on Form 990-W, line 2.

Divide the amount on line 16a, columns (a) through (c) by the
amount on line 16a, column (d).

Divide the amount on line 16b, columns (a) through (c) by the
amount on line 16b, column (d).

Divide the amount on line 16c, columns (a) through (c) by the
amount on line 16c, column (d).

Add lines 24 through 26.

Divide line 27 by 3.

Multiply line 23, columns (a) through (c) by line 28, columns
(a) through (c). In column (d), enter the amount from line 23,
column (d).

Enter any alternative minimum tax and other taxes for each
payment period (see instructions)

Total tax. Add lines 29 and 30.

For each period, enter the same type of credits as allowed
on Form 990-W, lines 5 and 9 (see instructions)

Total tax after credits. Subtract line 32 from line 31. If zero
or less, enter -0-.

Total of all preceding columns of line 40 (see instructions)

Adjusted seasonal installments. Subtract line 34 from line
33. If zero or less, enter -0-.

Part III—Required Installments

If only one of the above parts was completed, enter the
amounts in each column from line 13 or line 35. (If both parts
were completed, enter the smaller of the amounts in each
column from line 13 or line 35.)

Divide line 10c, page 1 of Form 990-W, by 4 and enter the
result in each column. (Note. Large organizations, see
instructions for line 12 on page 5 for the amount to enter.)

Subtract line 40 of the preceding column from line 39 of the
preceding column and enter here.

Add lines 37 and 38.

Required installments. Enter the smaller of line 36 or line
39 here and on Form 990-W, line 12, page 1.

(a)
First 4
months

(b)
First 6
months

(a)
1st
installment

(b)
2nd
installment

Form

(d)
Entire year

(d)
4th
installment

990-W

(2006)

5
I.R.S. SPECIFICATIONS
TO BE REMOVED BEFORE PRINTING
INSTRUCTIONS TO PRINTERS
Form 990-W, PAGE 4 of 6
MARGINS: TOP 13mm (1⁄2 "), CENTER SIDES.
PRINTS: HEAD TO FOOT
PAPER: WHITE, WRITING, SUB. 20 INK: BLACK
FLAT SIZE: 216mm (81⁄2 ") 835mm (327⁄8 "), FOLD TO: 216mm (81⁄2 ") 279mm (11")
PERFORATE: ON FOLD
DO NOT PRINT — DO NOT PRINT — DO NOT PRINT — DO NOT PRINT

Form 990-W (WORKSHEET) 2006

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

Who Must Make Estimated Tax Payments
Tax-exempt corporations, tax-exempt trusts, and domestic
private foundations must make estimated tax payments if the
total expected tax for the tax year (line 10a) is $500 or more.
Use Form 990-W to figure the organization’s estimated tax
liability for 2006.

When To Make Estimated Tax Payments For 2006
For a calendar or fiscal year organization, the payments are due
by the 15th day of the 4th (the 5th month for private
foundations), 6th, 9th, and 12th months of the tax year. For a
calendar year organization, the payments are due by April 17,
June 15, September 15, and December 15, 2006, except that for
a calendar year private foundation, the first payment is due on
May 15.

Page

For more information on deposits, see the instructions in the
coupon booklet (Form 8109) and Pub. 583, Starting a Business
and Keeping Records.

Refiguring Estimated Tax
If, after the organization figures and deposits estimated tax, it
finds that its tax liability for the year will be more or less than
originally estimated, it may have to refigure its required
installments. If earlier installments were underpaid, the
organization may owe a penalty for underpayment of estimated
tax.
An immediate “catch-up” payment should be made to reduce
the amount of any penalty resulting from the underpayment of
any earlier installments, whether caused by a change in estimate,
failure to make a deposit, or a mistake.

Specific Instructions

A corporation that has overpaid its estimated tax may apply for a
“quick refund” if the overpayment is at least 10% of its expected
income tax liability for the year and is at least $500. To apply,
file Form 4466, Corporation Application for Quick Refund of
Overpayment of Estimated Tax, after the end of the tax year and
before the corporation files its income tax return. Form 4466 may
not be filed after the 15th day of the 3rd month after the end of
the tax year.

Private foundations. Private foundations required to make
estimated tax payments for both the excise tax based on
investment income and unrelated business income tax must use
two Forms 8109 to deposit the taxes and should also use two
Forms 990-W to figure the estimated taxes. Private foundations
figuring estimated tax for the excise tax based on investment
income should skip lines 1 through 9. See the Instructions for
Form 990-PF, O. Figuring and Paying Estimated Tax, for
information on figuring the excise tax based on investment
income.
All organizations. See Form 990-T, Exempt Organization
Business Income Tax Return, and its instructions for information
on figuring unrelated business income, deductions, and credits
for purposes of completing Form 990-W.
Proxy tax. For purposes of Form 990-W, the estimated tax does
not include the proxy tax imposed by section 6033(e).

Depository Method of Tax Payment

Line 2—Corporations

See Electronic deposit requirement below to determine if your
organization must electronically deposit all depository taxes,
including the unrelated business income tax and estimated tax
payments. Also, see this section if your organization wants to
participate voluntarily. If your organization is not required to
electronically deposit taxes or does not wish to voluntarily
participate, see Form 8109, Federal Tax Deposit Coupon Book.
Electronic deposit requirement. The organization must make
electronic deposits of all depository taxes (such as employment
tax, excise tax, and unrelated business income tax) using the
Electronic Federal Tax Payment System (EFTPS) in 2006 if:
● The total deposits of such taxes in 2004 were more than
$200,000 or
● The organization was required to use EFTPS in 2005.
If the organization is required to use EFTPS and fails to do so,
it may be subject to a 10% penalty. If the organization is not
required to use EFTPS, it may voluntarily participate. To enroll in
or get more information about EFTPS, call 1-800-555-4477. To
enroll online, visit www.eftps.gov.
Depositing on time. For deposits made by EFTPS to be on
time, the organization must initiate the transaction at least 1
business day before the date the deposit is due.
Form 8109, Federal Tax Deposit Coupon. If the organization
does not use EFTPS, deposit unrelated business income tax
payments and estimated tax payments with Form 8109. If you
do not have a preprinted Form 8109, use Form 8109-B to make
deposits. You can get the form only by calling 1-800-829-4933.
Be sure to have your employer identification number (EIN) ready
when you call.
Do not send deposits directly to an IRS office; otherwise, the
organization may have to pay a penalty. Mail or deliver the
completed Form 8109 with the payment to an authorized
depositary, that is, a commercial bank or other financial
institution authorized to accept federal tax deposits.
Make checks or money orders payable to the depositary. To
help ensure proper crediting, write the organization’s employer
identification number, the tax period to which the deposit
applies, and Form 990-T (or 990-PF) on the check or money
order. Darken the 990-T (or 990-PF) box on the coupon. Records
of these deposits will be sent to the IRS.

A corporation figures its tax on the amount on line 1, Form
990-W, using the 2006 Tax Computation for Corporations on
page 5 (members of a controlled group should see the
instructions below).
Members of a controlled group. Enter on line 2 of the 2006
Tax Computation for Corporations Worksheet, the smaller of the
amount on line 1 or their share of the $50,000 amount. Enter on
line 4 the smaller of the amount on line 3 or their share of the
$25,000 amount. Enter on line 6 the smaller of the amount on
line 5 or their share of the $9,925,000 amount.
If no apportionment plan is adopted, the members of the
controlled group must divide the amount in each taxable income
bracket equally among themselves. For example, controlled
group AB consists of corporation A and corporation B. They do
not elect an apportionment plan. Therefore, both corporation A
and corporation B are entitled to $25,000 (one-half of $50,000) in
the $50,000 taxable income bracket, $12,500 (one-half of
$25,000) in the $25,000 taxable income bracket, and $4,962,500
(one-half of $9,925,000) in the $9,925,000 taxable income
bracket.
Members of a controlled group may elect an unequal
apportionment plan and divide the amounts in each taxable
income bracket in any way they want. They need not divide each
taxable income bracket in the same way. For example, if
controlled group AB above elects an unequal apportionment
plan, any member of the controlled group may be entitled to all,
some, or none of the $50,000 amount in the first taxable income
bracket, as long as the total for all members of the controlled
group is not more than $50,000. Similarly, any member may be
entitled to all, some, or none of the $25,000 amount in the
second taxable income bracket, and the $9,925,000 amount in
the third taxable income bracket, as long as the total for all
members of the controlled group is not more than the bracket
amount.
Members of a controlled group are treated as one corporation
to figure the additional 5% tax that must be paid by corporations
with taxable income in excess of $100,000 and the additional
3% tax that must be paid by corporations with taxable income in
excess of $15 million. If an additional tax applies, each member
of the controlled group will pay that tax based on the part of the
amount that is used in each taxable income bracket to reduce
that member’s tax. See section 1561(a). Each member must

Underpayment of Estimated Tax
An organization that does not pay the estimated tax when due
may be charged an underpayment penalty under section 6655,
at a rate determined under section 6621(a)(2).

Overpayment of Estimated Tax

5
I.R.S. SPECIFICATIONS
TO BE REMOVED BEFORE PRINTING
INSTRUCTIONS TO PRINTERS
Form 990-W, PAGE 5 of 6
MARGINS: TOP 13mm (1⁄2 "), CENTER SIDES.
PRINTS: HEAD TO FOOT
PAPER: WHITE, WRITING, SUB. 20 INK: BLACK
FLAT SIZE: 216mm (81⁄2 ") 835mm (327⁄8 "), FOLD TO: 216mm (81⁄2 ") 279mm (11")
PERFORATE: ON FOLD
DO NOT PRINT — DO NOT PRINT — DO NOT PRINT — DO NOT PRINT

Form 990-W (WORKSHEET) 2006

Page

enter its share of the additional 5% tax on line 12 of the 2006
Tax Computation for Corporations, and its share of the 3% tax
on line 13.

2006 Tax Computation for Corporations
1. Enter taxable income (line 1, Form 990-W)
2. Enter the smaller of line 1 or $50,000 (members of a
controlled group, see instructions)
3. Subtract line 2 from line 1
4. Enter the smaller of line 3 or $25,000 (members of a
controlled group, see instructions)
5. Subtract line 4 from line 3
6. Enter the smaller of line 5 or $9,925,000 (members
of a controlled group, see instructions)
7. Subtract line 6 from line 5
8. Enter 15% (.15) of line 2
9. Enter 25% (.25) of line 4
10. Enter 34% (.34) of line 6
11. Enter 35% (.35) of line 7
12. If line 1 is greater than $100,000, enter the smaller
of 5% (.05) of the excess over $100,000 or $11,750
(members of a controlled group, see instructions)
13. If line 1 is greater than $15 million, enter the smaller
of 3% (.03) of the excess over $15 million or $100,000
(members of a controlled group, see instructions)
14. Total of lines 8 through 13. Enter this amount on
line 2, page 1, Form 990-W

Figure the organization’s 2005 tax the same way you figured line
10a of this worksheet, using the taxes and credits from your
2005 tax return. If you did not file a return showing a liability for
at least some amount of tax for the 2005 tax year, or if your
2005 tax year was less than 12 months, do not complete this
line. Instead, enter the amount from line 10a on line 10c. “Large
organizations” see the instructions for line 12 below.

4
5
6
7
8
9
10
11

Line 11
Calendar year taxpayers. Enter 4-17-2006 (5-15-2006 for
private foundations), 6-15-2006, 9-15-2006, and 12-15-2006,
respectively, in columns (a) through (d).
Fiscal year taxpayers. Enter the 15th day of the 4th (5th for
private foundations), 6th, 9th, and 12th months of your tax year
in columns (a) through (d). If any date falls on a Saturday,
Sunday, or legal holiday, substitute the next business day.

Line 12

13
14

Trusts exempt under section 501(a) and employees’ trusts that
qualify under section 401(a) are taxed at trust rates. A trust
figures the tax on the amount on line 1 using the 2006 Tax Rate
Schedule for Trusts (below). If you expect a net long-term capital
gain and a net capital gain, you may use the 2006 Tax
Computation Worksheet Using Maximum Capital Gains Rates
found in Form 1041-ES.
2006 Tax Rate Schedule for Trusts
(Section 1(e) of the Internal Revenue Code)

Enter on
line 2, page 1:
15%
$307.50 + 25%
1,007.50 + 28%
1,721.00 + 33%
2,596.00 + 35%

private foundations and nonexempt charitable trusts treated as
private foundations, see O. Figuring and Paying Estimated Tax
and Part VI—Excise Tax Based on Investment Income in the
Instructions for Form 990-PF, for help in figuring the estimated
tax. Enter that amount on line 10a. See Part VI of Form 990-PF.
Note. If less than $500, the organization is not required to make
estimated tax payments.

Line 10b

2
3

Line 2—Trusts

If the amount on
line 1, page 1 is:
But not
Over—
over—
$0
2,050
2,050
4,850
4,850
7,400
7,400
10,050
10,050
------

Of the
amount
over—
$0.00
2,050
4,850
7,400
10,050

Line 3
Alternative minimum tax (AMT) is generally the excess of
tentative minimum tax over regular tax. Corporations, see Form
4626, Alternative Minimum Tax—Corporations, for details. Trusts,
see Schedule I of Form 1041, U.S. Income Tax Return for
Estates and Trusts.

Line 5
The estimated tax credits include the sum of any credits
allowable against unrelated business income tax (except the
credits reported on line 9). See Form 990-T and its instructions
for information on the credits that may be taken.

Line 7
Other taxes include the sum of any recaptured tax credits. See
Form 990-T and its instructions for information on recapture of
tax credits that must be included on this line.

Line 9
Complete Form 4136, Credit for Federal Tax Paid on Fuels, if the
organization qualifies to take this credit. Also include on line 9
any credit the organization is claiming under section 4682(g) for
taxes paid on chemicals used as propellants in metered-dose
inhalers.

Line 10a
Subtract line 9 from line 8. Private foundations figure the
estimated tax by multiplying their estimated net investment
income by the tax rate (1% or 2%, whichever applies). Taxable

Annualized income installment method and/or adjusted
seasonal installment method. If the organization’s income is
expected to vary during the year because, for example, it
operates its business on a seasonal basis, it may be able to
lower the amount of one or more required installments by using
the annualized income installment method and/or the adjusted
seasonal installment method. For example, a shop operated by a
museum, which because of its location in an area frequented by
tourists receives most of its income during the summer months,
may be able to benefit from using one or both of these methods
in figuring one or more of its required installments.
To use one or both of these methods, complete Schedule A
on pages 2 and 3. If you use Schedule A for any payment date,
you must use it for all payment due dates. To arrive at the
amount of each required installment, Schedule A selects the
smallest of: (a) the annualized income installment (if applicable),
(b) the adjusted seasonal installment (if applicable), or (c) the
regular installment under section 6655(d)(1) (increased by any
reduction recapture under section 6655(e)(1)(B)).
Large organization. A “large organization” is any tax-exempt
corporation or other organization subject to the tax on unrelated
business income or any private foundation subject to the section
4940 tax that had, or whose predecessor had, taxable income
(net investment income for purposes of the section 4940 tax) of
$1 million or more for any of the 3 tax years immediately
preceding the 2006 tax year. For this purpose, taxable income is
modified to exclude net operating loss and capital loss
carrybacks or carryovers. Members of a controlled group, as
defined in section 1563, must divide the $1 million amount
among themselves in accordance with rules similar to those in
section 1561. For more details, see sections 6655(g)(2) and (3).
If Schedule A is not used, use the following instructions to
figure the amounts to enter on line 12. (If you are using Schedule
A, these instructions apply to line 37 of Schedule A.)
● If line 10a is smaller than line 10b: Enter 25% (.25) of line 10a
in columns (a) through (d) of line 12.
● If line 10b is smaller than line 10a: In column (a) of line 12,
enter 25% (.25) of line 10b. In column (b), determine the amount
to enter by: (i) subtracting line 10b from line 10a, (ii) adding the
result to the amount on line 10a, and (iii) multiplying the total by
25% (.25). In columns (c) and (d), enter 25% (.25) of line 10a.

Line 13
Enter any 2005 overpayment that the organization chose to
credit against its 2006 tax. The overpayment is credited against
unpaid required installments in the order in which the
installments are required to be paid.

Line 14
See Depository Method of Tax Payment on page 4 to determine
the method for making the line 14 payments.

5
I.R.S. SPECIFICATIONS
TO BE REMOVED BEFORE PRINTING
INSTRUCTIONS TO PRINTERS
Form 990-W, PAGE 6 of 6
MARGINS: TOP 13mm (1⁄2 "), CENTER SIDES.
PRINTS: HEAD TO FOOT
PAPER: WHITE, WRITING, SUB. 20 INK: BLACK
FLAT SIZE: 216mm (81⁄2 ") 835mm (327⁄8 "), FOLD TO: 216mm (81⁄2 ") 279mm (11")
PERFORATE: ON FOLD
DO NOT PRINT — DO NOT PRINT — DO NOT PRINT — DO NOT PRINT

Form 990-W (WORKSHEET) 2006

Page

Schedule A

columns (a) and (b). In column (d), enter the sum of the amounts
in line 40, columns (a), (b), and (c).

If you are using only the annualized income installment method
(Part I), complete Parts I and III of Schedule A. If you are using
only the adjusted seasonal installment method (Part II), complete
Parts II and III. If you are using both methods, complete all three
parts. Enter in each column on line 12 of page 1, Form 990-W,
the amounts from the corresponding column of line 40 of
Schedule A.

CAUTION

Do not figure any required installment until after the
end of the month preceding the due date for that
installment.

For each part that applies to you, complete each column in its
entirety before going to the next column. For example, if Parts I
and III are required, complete column (a), lines 1 through 13, and
lines 36 through 40, before starting column (b).

Part I—Annualized Income Installment Method
Line 1
Enter on line 1, in columns (a) through (d), respectively, the
annualization period that the organization is using, based on the
options described below. You may elect option 1 separately for
each installment.

Standard Option
Option 1

1st
Installment

2nd
Installment

3rd
Installment

4th
Installment

2
2

3
4

6
7

9
10

Line 2
If an organization has amounts includible in income under
section 936(h) (Puerto Rico and possessions tax credits) or
section 951(a) (controlled foreign corporation income), special
rules apply.
Organizations must take income (and allocable credits) under
section 936(h) or 951(a) into account as the income is earned.
The amounts are figured in a manner similar to the way
partnership income inclusions (and allocable credits) are taken
into account to figure a partner’s annualized income installments
as provided in Regulations section 1.6654-2(d)(2).
Safe harbor election. Organizations may be able to make a
prior year safe harbor election. Under the election, an eligible
organization is treated as having received ratably during the tax
year, items of income under sections 936(h) and 951(a) (and
allocable credits) equal to a specified percentage of the amounts
shown on the organization’s return for the first preceding tax
year (the second preceding tax year for the first and second
required installments).
For more information, see section 6655(e)(4) and Rev. Proc. 95-23,
1995-1 C.B. 693.

Line 3
Enter on line 3, in columns (a) through (d), respectively, the
annualization amounts for the option used for line 1.
1st
Installment
Standard Option
Option 1

6
6

2nd
Installment
4
3

3rd
Installment

4th
Installment

2
1.71429

1.33333
1.2

Line 6
For the same taxes used to figure lines 3 and 7 of Form 990-W,
figure the amounts for the months shown on line 1.
Tax-exempt corporations that are not exempt from the
alternative minimum tax figure the tax by first computing
alternative minimum taxable income under section 55, based on
the corporation’s income and deductions for the annualization
period entered in each column in line 1. Then multiply the
alternative minimum taxable income by the annualization
amounts (line 3) used to figure annualized taxable income.
Subtract the exemption amount under section 55(d)(2).

Line 8
Enter the credits to which the organization is entitled for the
months shown in each column on line 1.

Line 12
In column (b), enter the amount from Part III, line 40, column (a),
page 3. In column (c), enter the sum of the amounts in line 40,

Part II—Adjusted Seasonal Installment Method
The adjusted seasonal installment method is used by
organizations that normally receive their taxable income on a
seasonal basis. Therefore, Part II is only used by organizations
whose “base period percentage” for any 6 consecutive months
equals or exceeds 70% (.70). Figure the base period percentage
using the 6-month period in which the organization normally
receives the largest part of its taxable income. Divide the taxable
income for the corresponding 6-month period in each of the 3
preceding tax years by the taxable income for each of these
years. The following example explains the computation.
Example. A tax-exempt organization that has a calendar year as
its tax year receives the largest part of its unrelated business
taxable income during the 6-month period from May through
October. To figure its base period percentage for the period May
through October 2006, the organization must figure its taxable
income for the period May through October in each of the years
2003, 2004, and 2005. The taxable income for each
May-through-October period is then divided by the total taxable
income for the tax year in which the period is included, resulting
in the following: 69% for May through October 2003; 74% for
May through October 2004; and 67% for May through October
2005. The average of 69%, 74%, and 67% is 70%. Therefore,
the base period percentage for May through October 2006 is
70% and the organization qualifies for the adjusted seasonal
installment method.

Line 30
For the same taxes used to figure lines 3 and 7 of Form 990-W,
figure the amounts for the months shown in the column
headings above line 14.
Tax-exempt corporations that are not exempt from the
alternative minimum tax figure the tax by first computing
alternative minimum taxable income under section 55, based on
the organization’s income and deductions during the months
shown in the column headings above line 14 of Part II. Divide
the alternative minimum taxable income by the amounts shown
on line 21. Subtract the exemption amount under section
55(d)(2). For columns (a) through (c) only, multiply the alternative
minimum tax by the amounts shown on line 28.

Line 32
Enter the credits to which you are entitled because of events
that occurred during the months shown in the column headings
above line 14 of Part II.

Line 34
In column (b), enter the amount from Part III, line 40, column (a),
page 3. In column (c), enter the sum of the amounts in line 40,
columns (a) and (b). In column (d), enter the sum of the amounts
in line 40, columns (a), (b), and (c).
Paperwork Reduction Act Notice. This form is optional. It is
provided only to help you determine your estimated tax liability.
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 this form will vary depending on
individual circumstances. The estimated average times are:
Form
Form
Form
Form
Form

Recordkeeping
990-W
990-W, Sch. A (Pt. I)
990-W, Sch. A (Pt. II)
990-W, Sch. A (Pt. III)

10
11
23
4

hr.,
hr.,
hr.,
hr.,

2
14
26
32

min.
min.
min.
min.

Learning about the
law or the form
1 hr., 40 min.
42 min.
12 min.
----

Preparing
the form
1 hr., 55
54
35
4

min.
min.
min.
min.

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. You can write to the Internal
Revenue Service, Tax Products Coordinating Committee,
SE:W:CAR:MP:T:T:SP, 1111 Constitution Ave. NW, IR-6406,
Washington, DC 20224. Do not send the form to this address.
Instead, keep the form for your records.

File Type	application/pdf
File Title	2006 Form 990-W (Worksheet)
Subject	Estimated Tax on Unrelated Business Taxable Income for Tax-Exempt Organizations
Author	SE:W:CAR:MP
File Modified	2005-12-30
File Created	2005-12-27