Form 990W Schedule A (Part III)

Page 4

Form 990-W (Worksheet) 2016

Part III—Required Installments

36

If only one of the earlier 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.)

37

Divide the amount on Form 990-W, line 10c, by 4.0 and
enter the result in each column. Note: Large organizations,
see instructions for line 12 for the amount to enter.
Subtract line 40 of the preceding column from line 39 of the
preceding column and enter here.

38

39
40

Add lines 37 and 38.
Required installments. Enter the smaller of line 36 or line
39 here and on Form 990-W, line 12.

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

Future Developments
For the latest information about developments related to Form 990-W and its
instructions, such as legislation enacted after they were published, go to
www.irs.gov/form990w.

General Instructions
Phone Help
If you have questions and/or need help completing this form, please call
1-877-829-5500. This toll-free telephone service is available Monday through
Friday.

Who Must Make Estimated Tax Payments
Tax-exempt corporations, tax-exempt trusts, and domestic private
foundations must make estimated tax payments if the total estimated tax for
the tax year (Form 990-W, line 10a) is $500 or more. Use Form 990-W
(Worksheet) to figure the organization’s estimated tax liability for 2016.

When To Make Estimated Tax Payments for 2016
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 18, June 15, September 15, and December 15, 2016, except
that for a calendar year private foundation, the first payment is due on May
16.

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
A corporation that has overpaid its estimated tax may apply for a “quick
refund” if the overpayment is at least 10% of its estimated 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.

Federal Tax Deposits Must be Made by Electronic
Funds Transfer
You must use electronic funds transfer to make all federal deposits (such as
deposits of estimated tax, employment tax, and excise tax). Generally,
electronic fund transfers are made using the Electronic Federal Tax Payment
System (EFTPS). If you do not want to use EFTPS, you can arrange for your
tax professional, financial institution, payroll service, or other trusted third
party to make deposits on your behalf. Also, you may arrange for your
financial institution to initiate a same-day wire payment on your behalf.
EFTPS is a free service provided by the Department of Treasury. Services
provided by your tax professional, financial institution, payroll service, or

(a)
1st
installment

(b)
2nd
installment

(c)
3rd
installment

(d)
4th
installment

36

37
38
39
40
other third party may have a fee. To get more information about EFTPS or to
enroll in EFTPS, visit www.eftps.gov or call 1-800-555-4477. Additional
information about EFTPS is available in Publication 966, Electronic Federal
Tax Payment System A Guide to Getting Started.
Deposits on business days only. If a deposit is required to be made on a
day that is not a business day, the deposit is considered timely if it is made
by the close of the next business day. A business day is any day other than a
Saturday, Sunday, or legal holiday. For example, if a deposit is required to be
made on a Friday and Friday is a legal holiday, the deposit will be considered
timely if it is made by the following Monday (if that Monday is a business
day). The term “legal holiday” means any legal holiday in the District of
Columbia.

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
Form 990-W (Worksheet)
Private foundations. Private foundations required to make estimated tax
payments for both the excise tax on net investment income and the
unrelated business income tax must use a separate worksheet Form 990-W
for each tax. Private foundations figuring the estimated tax payment for the
excise tax on net investment income should skip lines 1 through 9 of this
worksheet. For information on figuring the excise tax on net investment
income, see O. Figuring and Paying Estimated Tax under General
Instructions, in the Instructions for Form 990-PF.
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).

Line 2—Corporations
Generally, a corporation figures its tax on the amount on Form 990-W, line 1,
using the 2016 Tax Computation for Corporations worksheet shown later
(members of a controlled group should see the instructions below).
Members of a controlled group. On the 2016 Tax Computation for
Corporations worksheet, line 2, each member of the controlled group, as
defined in section 1563, must enter the smaller of the amount on line 1 or its
share of the $50,000 amount as determined by the apportionment plan
adopted by the controlled group. On line 4, each member must enter the
smaller of the amount on line 3 or its share of the $25,000 amount. On line 6,
each member must enter the smaller of the amount on line 5 or its share of
the $9,925,000 amount.

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Form 990-W (Worksheet) 2016

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. As a result, each
corporation is 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 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 all, some, or none of the $9,925,000
amount in the third taxable income bracket, as long as the total in each
bracket for all members of the controlled group is not more than that 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. The additional tax,
if applicable, will be apportioned among the members of the controlled group
in the same manner as the regular tax brackets earlier. See section 1561(a).
Each member must enter its share of the additional 5% tax on the 2016 Tax
Computation for Corporations worksheet, line 12, and its share of the 3% tax
on the 2016 Tax Computation for Corporations worksheet, line 13.

Line 2—Trusts
Trusts exempt under section 501(a) and 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 2016 Tax Rate Schedule for Trusts (below). If you expect a net
long-term capital gain and a net capital gain, you may use the 2016 Tax
Computation Worksheet Using Maximum Capital Gains Rates found in Form
1041-ES.

2016 Tax Rate Schedule for Trusts
If the amount on
Form 990-W,
line 1, is:
Over—
$0.00
2,550
5,950
9,050
12,400

But not
over—
$2,550
5,950
9,050
12,400
------

Enter on
line 2:
15%
$382.50 + 25%
1,232.50 + 28%
2,100.50 + 33%
3,206 + 39.6%

Of the
amount
over—
$0.00
2,550
5,950
9,050
12,400

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 (Form 1041),
Alternative Minimum Tax—Estates and Trusts.

Line 5
2016 Tax Computation for Corporations
1. Enter taxable income (Form 990-W, line 1)
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.
8.
9.
10.
11.

Subtract line 6 from line 5
Enter 15% (0.15) of line 2
Enter 25% (0.25) of line 4
Enter 34% (0.34) of line 6
Enter 35% (0.35) of line 7

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12. If line 1 is greater than $100,000, enter the
smaller of 5% (0.05) of the excess over
$100,000 or $11,750 (members of a controlled
group, see instructions) . . . . . . .

1
2
3
4
5

6
7
8
9
10
11

12

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)(2) 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 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 (Section 4940(a),
4940(b), 4940(e), or 4948), in the Instructions for Form 990-PF, for help in
figuring the estimated tax. Enter that amount on line 10a. See Form 990-PF,
Part VI.
Note: If less than $500, the organization is not required to make estimated
tax payments.

Line 10b

13. If line 1 is greater than $15 million, enter the
smaller of 3% (0.03) of the excess over $15
million or $100,000 (members of a controlled
group, see instructions) . . . . . . .

13

14. Add lines 8 through 13. Enter this amount on
Form 990-W, line 2 . . . . . . . .

14

Figure the organization’s 2015 tax the same way you figured line 10a, using
the taxes and credits from your 2015 tax return. If you did not file a return
showing a liability for at least some amount of tax for the 2015 tax year, or if
your 2015 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.

Page 6

Form 990-W (Worksheet) 2016

Line 11
Calendar year taxpayers. Enter 4-18-2016 (5-16-2016 for private
foundations), 6-15-2016, 9-15-2016, and 12-15-2016, 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
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. If you use
Schedule A for any payment due 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 on net investment income,
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 2016 tax year, or if less, the number of
years the corporation has been in existence.
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).
A large organization not using Schedule A figures the amounts to enter on
Form 990-W, line 12, as follows.
• If line 10a is smaller than line 10b: Enter 25% (0.25) 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% (0.25)
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% (0.25). In columns (c) and (d), enter 25%
(0.25) of line 10a.
A large organization using Schedule A follows the foregoing instructions to
figure the amounts to enter on Schedule A, line 37.

Line 13
Enter any 2015 overpayment that the organization chose to credit against its
2016 tax. The overpayment is credited against unpaid required installments
in the order in which the installments are required to be paid.

Line 14
See Federal Tax Deposits Must be Made by Electronic Funds Transfer,
earlier, for the required method for making the line 14 payments.

Schedule A
If you are using only the annualized income installment method (Part I),
complete Parts I and III. 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 Form 990-W, line
12, the amounts from the corresponding column of Schedule A, line 40.

!
F

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

CAUTION

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).
Extraordinary items. Generally, under the annualized income installment
method, extraordinary items must be taken into account after annualizing the
taxable income for the annualization period. Similar rules apply in
determining taxable income under the adjusted seasonal installment method.
An extraordinary item includes:
• Any item identified in Regulations section 1.1502-76(b)(2)(ii)(C)(1), (2), (3),
(4), (7), and (8);
• A net operating loss carryover;
• A section 481(a) adjustment; and
• Net gain or loss from the disposition of 25% or more of the fair market
value of the corporation’s business assets during the tax year.
These extraordinary items must be accounted for in the appropriate
annualization period. However, a net operating loss deduction and a section
481(a) adjustment (unless the corporation makes the alternative choice under
Regulations section 1.6655-2(f)(3)(ii)(C)) are treated as extraordinary items
occurring on the first day of the tax year in which the item is taken into
account in determining taxable income.
De minimis rule. At the option of the corporation, extraordinary items
identified earlier that are less than $1 million (other than a net operating loss
carryover or a section 481(a) adjustment) may be annualized using the
general rules of Regulations section 1.6655-2(f), rather than being treated
under the special rules for extraordinary items.
For more information regarding extraordinary items, see Regulations
section 1.6655-2(f)(3)(ii) and the examples in Regulations section 1.6655-2(f)
(3)(vii). Also see Regulations section 1.6655-3(d)(3).
In Schedule A, Part I, make the appropriate adjustments to annualized
taxable income before figuring the estimated tax for each reporting period.
Similar adjustments must be made, if applicable, to Schedule A, Part II, if the
adjusted seasonal installment method applies.

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.

1st
2nd
3rd
Installment Installment Installment

4th
Installment

Standard Option

2

3

6

9

Option 1

2

4

7

10

Line 2
If the corporation has certain extraordinary items, special rules apply. See
Extraordinary items, earlier. In general, extraordinary items are not included
on line 2, except for certain de minimis items at the option of the corporation.
See De minimis rule, earlier.
If an organization has controlled foreign corporation income under section
951(a), it must take such income (and allocable credits) 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 controlled foreign corporation income (and allocable credits)
ratably during the tax year equal to 115% (100% for a noncontrolling
shareholder) 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), Regulations section
1.6655-2(f)(3)(v)(B)(2), and Rev. Proc. 95-23, 1995-1 C.B. 693.

Page 7

Form 990-W (Worksheet) 2016

Line 3

Line 15

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

If the corporation has certain extraordinary items, special rules apply. See
Extraordinary items, earlier. In general, extraordinary items are not included
on line 15, except for certain de minimis items at the option of the
corporation. See De minimis rule, earlier.

1st
2nd
3rd
Installment Installment Installment

4th
Installment

Standard Option

6

4

2

1.33333

Option 1

6

3

1.71429

1.2

Line 4b
Include on line 4b extraordinary items of $1 million or more, a net operating
loss deduction, or a section 481(a) adjustment. See Extraordinary items,
earlier. Also include any de minimis items that the corporation does not
choose to include on line 2. See De minimis rule, earlier.

Line 6
For the same taxes used to figure Form 990-W, lines 3 and 7, 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 on 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).

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). 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).

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% (0.70). 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 illustrates
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 2016, the organization must
figure its taxable income for the period May through October in each of the
years 2013, 2014, and 2015. The taxable income for each May-throughOctober 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 2013, 74% for May through October 2014, and 67% for May
through October 2015. The average of 69%, 74%, and 67% is 70%.
Therefore, the base period percentage for May through October 2016 is 70%
and the organization qualifies for the adjusted seasonal installment method.

Line 22b
Include on line 22b extraordinary items of $1 million or more, a net operating
loss deduction, or a section 481(a) adjustment. See Extraordinary items,
earlier. Also include any de minimis items that the corporation does not
choose to include on line 15. See De minimis rule, earlier.

Line 30
For the same taxes used to figure Form 990-W, lines 3 and 7, 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 Part II,
line 14. Divide the alternative minimum taxable income by the amounts
shown on line 21. Subtract the exemption amount under section 55(d). 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 Part II, line 14.

Line 34
In column (b), enter the amount from Part III, line 40, column (a). 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

Recordkeeping

Learning
about the law
or the form

Preparing
the form

Form 990-W
10 hr., 2 min.
Form 990-W, Sch. A (Pt. I) 11 hr., 14 min.
Form 990-W, Sch. A (Pt. II) 23 hr., 26 min.
Form 990-W, Sch. A (Pt. III) 4 hr., 32 min.

1 hr., 40 min.
42 min.
12 min.
----

1 hr., 55 min.
54 min.
35 min.
4 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:
Internal Revenue Service
Tax Forms and Publications Division
1111 Constitution Ave., NW, IR-6526
Washington, DC 20224
Do not send the form to this address. Instead, keep the form for your
records.