2220 Underpayment of Estimated Tax by Corporations

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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.

TREASURY/IRS
AND OMB USE
ONLY DRAFT
September 1, 2023
DO NOT FILE

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

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

.
.
.
.

.
.
.
.

.
.
.
.

.
.
.
.

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

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

(b)

(c)

(d)

TREASURY/IRS
AND OMB USE
ONLY DRAFT
September 1, 2023
DO NOT FILE

20

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

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

36

$

$

$

$

37

$

$

$

$

25

26
27

Number of days on line 27
× *%
366

28

$

24

Number of days on line 25
365
× 8% (0.08)

26

$

23

Number of days on line 23
365
× 7% (0.07)

24

$

22

28
29

Number of days on line 29
366
× *%

30

Underpayment on line 17 ×

31

Number of days on line 20 after 6/30/2024 and before 10/1/2024

30
31

Number of days on line 31
366
× *%

32

Underpayment on line 17 ×

32

33

Number of days on line 20 after 9/30/2024 and before 1/1/2025

33

Number of days on line 33
366
× *%

34

Underpayment on line 17 ×

34

35

Number of days on line 20 after 12/31/2024 and before 3/16/2025

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 . . . . . . . . . . . . . . . . . . . . . . . . . . .

.

.

.

.

.

.

.

.

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

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.

TREASURY/IRS
AND OMB USE
ONLY DRAFT
September 1, 2023
DO NOT FILE
1

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 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
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 2, 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

.

.

.

.

.

.

.

20

months

(b)
First
months

(c)

(d)
First

First
months

months

TREASURY/IRS
AND OMB USE
ONLY DRAFT
September 1, 2023
DO NOT FILE

22
23a
b
c

26
27

.

.

.

.

.

.

.

.

.

.

.

.

Multiply line 29 by line 30 .

.

.

.

.

.

.

.

.

.

.

.

Part III

.

Required Installments

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

25%

50%

75%

100%

1st
installment

2nd
installment

3rd
installment

4th
installment

Form 2220 (2023)