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

Note: In most cases, the IRS will figure the penalty and the corporation will not have to complete this form. See Who Must File

in the instructions for more information.

Figuring the Underpayment

1

2a

c

d

3

4

5

6

a

7

8

9

10

11

12

13

14

Total tax (see instructions)

Personal holding company tax included on line 1 (Schedule PH (Form 1120), line 26)

Credit for Federal tax paid on fuels (see instructions)

Total. Add lines 2a through 2c

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

Enter the tax shown on the corporation’s 1993 income tax return. (CAUTION: See instructions before completing

this line.)

Enter the smaller of line 3 or line 4. If the corporation is required to skip line 4, enter the amount from line 3 on

line 5

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

15th day of the 4th, 6th, 9th, and 12th months of the

corporation’s tax year ©

Required installments. Enter 25% of line 5 in columns (a)

through (d) unless a or b below applies to the corporation.

Annualized income installment method and/or the

adjusted seasonal installment method: Check this

box © if the corporation uses one or both of these

methods. After completing Schedule A of this form, enter

on line 7 the amount from line 41, Part III of Schedule A.

“Large corporations”: Check this box © and see the

instructions for the amount to enter in each column of line 7

Complete lines 9 through 15 of one column before going

to the next column.

Estimated tax paid or credited for each period (see

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

line 8 on line 12

Enter amount, if any, from line 15 of the preceding column

Add lines 8 and 9

Add amounts on lines 13 and 14 of the preceding column

Subtract line 11 from line 10. If zero or less, enter -0-. For

column (a) only, enter the amount from line 8

If the amount on line 12 is zero, subtract line 10 from line

11. Otherwise, enter -0-

Underpayment. If line 12 is less than or equal to line 7,

subtract line 12 from line 7. Then go to line 9 of the next

column. Otherwise, go to line 15 (see instructions)

Overpayment. If line 7 is less than line 12, subtract line 7

from line 12. Then go to line 9 of the next column

Complete Part II on page 2 to figure the penalty. If there are no entries on line 14, no penalty is owed.

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

For Paperwork Reduction Act Notice, see page 1 of the instructions. Form 2220 (1994)

b

1

3

2a

2c

2d

5

6

7

8

9

10

11

12

13

14

Form 2220

Cat. No. 11746L

2b

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

contracts included on line 1

Part I

4

15

15
Form 2220 (1994) 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

instructions). (Form 990-PF and Form 990-T filers: Use 5th

month instead of 3rd month.)

16

Number of days from due date of installment on line 6 to the

date shown on line 16

16

17

17

18 Number of days on line 17 after 4/15/94 and before 7/1/94 18

19 Number of days on line 17 after 6/30/94 and before 10/1/94 19

20 20

Number of days on line 17 after 6/30/95 and before 10/1/95

21

Number of days on line 17 after 9/30/95 and before 1/1/96

22

21

Number of days on line 18 × 7%

23

22

365

23

24

Number of days on line 19

24

25

365

Number of days on line 22

25

26

365

Number of days on line 23

26

27

365

Number of days on line 24

33

366

Add lines 25 through 31

PENALTY. Add columns (a) through (d), line 32. Enter here and on line 33, Form 1120; line 29, Form 1120-A; or

comparable line for other income tax returns

*If the corporation’s tax year ends after December 31, 1994, see the Instructions for lines 28 through 31.

Number of days on line 17 after 12/31/95 and before 2/16/96

Underpayment on line 14 ×

× 8%

× *%

× *%

× *%

Underpayment on line 14 ×

Underpayment on line 14 ×

Underpayment on line 14 ×

Underpayment on line 14 ×

$$$$

$

Part II

$$$$

33

$$$$

$$$$

Number of days on line 17 after 9/30/94 and before 4/1/95

Number of days on line 17 after 3/31/95 and before 7/1/95

Number of days on line 20

365

Underpayment on line 14 × × 9%

$$$$

$$$$

Number of days on line 21

365

Underpayment on line 14 × × *%

$$$$

27

28

29

30

31

32

28

29

30

31

32

$$$$
Required Installments Using the Annualized Income Installment Method and/or the Adjusted Seasonal Installment

Method Under Section 6655(e) (See 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 period (see instructions). 1

2 Enter taxable income for each period. 2

3 Annualization amount (see instructions). 3

First

months

First

months

First

months

First

months

4 4

5

5

6 6

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 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 1 and 2c (see 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

instructions).

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 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 1991 14a

Tax year beginning in 1992 14b

Tax year beginning in 1993 14c

a

b

c

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

in 1994. 15

25% 50% 75% 100%

Form 2220 (1994) 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 1991 16a

Tax year beginning in 1992 16b

Tax year beginning in 1993 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 21 Divide line 20 by 3.

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

30 Enter other taxes for each payment period (see instructions). 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 1 and 2c (see instructions).

32

32

33

33

34 34 Add the amounts in all preceding columns of line 41 (see instructions).

35 35 Subtract line 34 from line 33. If zero or less, enter -0-.

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 Divide line 5, page 1 of Form 2220, by 4 and enter the result in

each column. (Note: “Large corporations” see the instructions for

line 7b, Part I, for the amount 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 7.

41

41

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

less, enter -0-.

Printed on recycled paper

Form 2220 (1994) Page 4