Department of the Treasury

Internal Revenue Service

Underpayment of Estimated Tax by Corporations

© See separate instructions.

© Attach to the corporation’s tax return.

OMB No. 1545-0142

Name Employer identification number

Figuring the Underpayment

4

5a

c

d

6

7

8

9

10

11

12

13

14

15

16

17

Total tax. (Caution: See page 2 of the instructions, which includes a special rule if claiming the research credit)

Personal holding company tax included on line 4 (Schedule PH (Form 1120), line 26)

Credit for Federal tax paid on fuels (see page 2 of the instructions)

Total. Add lines 5a through 5c

Subtract line 5d from line 4. If the result is less than $500, do not complete or file this form. The corporation

does not owe the penalty

Enter the tax shown on the corporation’s 1996 income tax return. (CAUTION: See page 2 of the instructions

before completing this line.)

Enter the smaller of line 6 or line 7. If the corporation must skip line 7, enter the amount from line 6 on line 8

Installment due dates. Enter in columns (a) through (d) the

15th day of the 4th (5th month of a private foundation’s tax

year that begins after August 5, 1997), 6th, 9th, and 12th

months of the corporation’s tax year ©

Required installments. If the box on line 1 and/or line 2

above is checked, enter the amounts from Schedule A, line

41. If the box on line 3 (but not 1 or 2) is checked, see page

2 of the instructions for the amounts to enter. If none of these

boxes are checked, enter 25% of line 8 above in each column

Complete lines 12 through 18 of one column before

going to the next column.

Estimated tax paid or credited for each period (see page 2

of the instructions). For column (a) only, enter the amount

from line 11 on line 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- 

If the amount on line 15 is zero, subtract line 13 from line

14. Otherwise, enter -0-

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 (see

page 2 of the instructions). Otherwise, go to line 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

Complete Part III on page 2 to figure the penalty. If there are no entries on line 17, no penalty is owed.

(a) (b) (c) (d)

For Paperwork Reduction Act Notice, see page 4 of the instructions. Form 2220 (1997)

4

6

5a

5c

5d

8

9

10

11

12

13

14

15

16

17

Form 2220

Cat. No. 11746L

5b

b Interest due under the look-back method of section 460(b)(2) for completed long-term

contracts included on line 4

7

18

18

Note: In most cases, the corporation does not need to file Form 2220. (See Part I below for exceptions.) The IRS will figure any penalty

owed and bill the corporation. If the corporation does not need to file Form 2220, it may still use it to figure the penalty. Enter the

amount from line 32 on the estimated tax penalty line of the corporation’s income tax return, but do not attach Form 2220.

The corporation is using the annualized income installment method.

The corporation is using the adjusted seasonal installment method.

The corporation is a “large corporation” figuring its first required installment based on the prior year’s tax.

Part I

Part II

Reasons for Filing—Check the boxes below that apply to the corporation. If any box is checked or the Note below

applies, the corporation must file Form 2220 with the corporation’s tax return, even if it does not owe the penalty. If the

box on line 1 or line 2 applies, the corporation may be able to lower or eliminate the penalty. See page 1 of the instructions.

1

2

3

1997

Note: The corporation must also file Form 2220 if it is claiming a waiver of the penalty. See Waiver of penalty on page 2 of the instructions.
Form 2220 (1997) Page 2

Figuring the Penalty

(a) (b) (c) (d)

Enter the date of payment or the 15th day of the 3rd month

after the close of the tax year, whichever is earlier (see page

3 of the instructions). (Form 990-PF and Form 990-T filers:

Use 5th month instead of 3rd month.)

19

Number of days from due date of installment on line 9 to the

date shown on line 19

19

20

20

21 Number of days on line 20 after 4/15/97 and before 4/1/98 21

23 23

25 Number of days on line 20 after 6/30/98 and before 10/1/98 25

Number of days on line 20 after 9/30/98 and before 1/1/99 27

29

27

Number of days on line 21 × 9%

31

29

365

32

22

Number of days on line 25

22

24

365

Number of days on line 27

24

26

365

Number of days on line 29

32

365

Add lines 22, 24, 26, 28, and 30

Penalty. Add columns (a) through (d), of line 31. Enter the total here and on Form 1120, line 33; Form 1120-A, line

29; or the comparable line for other income tax returns

*For underpayments paid after March 31, 1998, see Lines 24, 26, 28, and 30 on page 3 of the instructions.

Number of days on line 20 after 12/31/98 and before 2/16/99

× *%

× *%

Underpayment on line 17 × × *%

$$$$

$

$$$$

Number of days on line 20 after 3/31/98 and before 7/1/98

$$$$

$$$$

Number of days on line 23

365 × *%

$$$$

26

28

30

28

30

$$$$

Part III

Underpayment on line 17 ×

Underpayment on line 17 ×

Underpayment on line 17 ×

Underpayment on line 17 ×

31
Annualized Income Installment Method and/or the Adjusted Seasonal Installment Method Under Section 6655(e)

(see pages 3 and 4 of the instructions)

Form 1120S filers: For lines 2, 14, 15, and 16, below, “taxable income” refers to excess net passive income or the amount on which tax

is imposed under section 1374(a) (or the corresponding provisions of prior law), whichever applies.

Part I—Annualized Income Installment Method (a) (b) (c) (d)

1 Annualization periods (see page 3 of the instructions). 1

2 Enter taxable income for each annualization period. 2

3 Annualization amounts (see page 3 of the instructions). 3

First

months

First

months

First

months

First

months

4 4

5

5

6

6

Annualized taxable income. Multiply line 2 by line 3.

7 7

Figure the tax on the amount in each column on line 4 using the

instructions for Form 1120, Schedule J, line 3 (or the comparable

line of the tax return).

8

8

9

Enter other taxes for each payment period (see page 3 of the

instructions).

9

Total tax. Add lines 5 and 6.

10 10

For each period, enter the same type of credits as allowed on

Form 2220, lines 4 and 5c (see page 3 of the instructions).

11 11

12

Total tax after credits. Subtract line 8 from line 7. If zero or less,

enter -0-.

12

Applicable percentage.

13

13

Multiply line 9 by line 10.

Add the amounts in all preceding columns of line 41 (see page

3 of the instructions).

Annualized income installments. Subtract line 12 from line

11. If zero or less, enter -0-.

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 pages 3 and 4 of the instructions for more information.)

(a) (b) (c) (d)

First 11

months

First 8

months

First 5

months

First 3

months

14 Enter taxable income for the following periods:

Tax year beginning in 1994 14a

Tax year beginning in 1995 14b

Tax year beginning in 1996 14c

a

b

c

15 Enter taxable income for each period for the tax year beginning

in 1997. 15

25% 50% 75% 100%

Form 2220 (1997) Page 3

Schedule A

First 9

months

First 6

months

First 4

months Entire year

16 Enter taxable income for the following periods:

Tax year beginning in 1994 16a

Tax year beginning in 1995 16b

Tax year beginning in 1996 16c

Divide the amount in each column on line 14a by the amount in

column (d) on line 16a.

17

17

18 Divide the amount in each column on line 14b by the amount in

column (d) on line 16b. 18

Divide the amount in each column on line 14c by the amount in

column (d) on line 16c.

19

19

a

b

c
(a) (b) (c) (d)

First 9

months

First 6

months

First 4

months Entire year

20 Add lines 17 through 19. 20

21 Divide line 20 by 3. 21

22 Divide line 15 by line 21. 22

Figure the tax on the amount on line 22 using the instructions for

Form 1120, Schedule J, line 3 (or the comparable line of the

return).

23

23

24 Divide the amount in columns (a) through (c) on line 16a by the

amount in column (d) on line 16a. 24

Divide the amount in columns (a) through (c) on line 16b by the

amount in column (d) on line 16b.

25

25

Divide the amount in columns (a) through (c) on line 16c by the

amount in column (d) on line 16c.

26

26

27 Add lines 24 through 26. 27

28 Divide line 27 by 3. 28

Multiply the amount in columns (a) through (c) of line 23 by

columns (a) through (c) of line 28. In column (d), enter the amount

from line 23, column (d).

29

29

Enter other taxes for each payment period (see page 4 of the

instructions).

30

30

31 Total tax. Add lines 29 and 30. 31

For each period, enter the same type of credits as allowed on

Form 2220, lines 4 and 5c (see page 4 of the instructions).

32

32

33

33

Add the amounts in all preceding columns of line 41 (see page 4 of

the instructions).

34

34

Adjusted seasonal installments. Subtract line 34 from line 33.

If zero or less, enter -0-.

35

35

Part III—Required Installments

4th

installment

3rd

installment

2nd

installment

1st

installment

36 If only one of the above parts is completed, enter the amount in

each column from line 13 or line 35. If both parts are completed,

enter the smaller of the amounts in each column from line 13 or

line 35. 36

37 Enter 25% of line 8 on page 1 of Form 2220 in each column.

(Note: “Large corporations” see the instructions for line 10, on

page 2, for the amounts to enter.) 37

38 Enter the amount from line 40 of the preceding column. 38

39 Add lines 37 and 38. 39

If line 39 is more than line 36, subtract line 36 from line 39.

Otherwise, enter -0-.

40

40

Required installments. Enter the smaller of line 36 or line 39

here and on page 1 of Form 2220, line 10.

41

41

Total tax after credits. Subtract line 32 from line 31. If zero or

less, enter -0-.

Form 2220 (1997) Page 4