Schedule A 

(Form 8804)

Department of the Treasury 

Internal Revenue Service

Penalty for Underpayment of Estimated 

Section 1446 Tax by Partnerships

▶ Attach to Form 8804.

▶ See separate instructions.

OMB No. 1545-1119

2011

Name Employer identification number

Note. Generally, the partnership is not required to file this Schedule A (see Part I below for exceptions) because the IRS will figure

any penalty owed and bill the partnership. However, the partnership may still use this Schedule A to figure the penalty. If so, enter

the amount from line 65 of this Schedule A on line 8 of Form 8804, but do not attach this Schedule A.

Part I Reasons for Filing—Check the boxes below that apply. If any boxes are checked, the partnership must file 

Schedule A (Form 8804) even if it does not owe a penalty (see instructions).

The partnership is using the adjusted seasonal installment method.

The partnership is using the annualized income installment method.

The partnership had assets of $1 billion or more (determined as of the end of the preceding tax year) and the partnership has a 

fiscal tax year for which a required installment of estimated tax is due in July, August, or September 2012 (see instructions). 

Part II Current Year and Prior Year Safe Harbors

1 Enter the total section 1446 tax shown on the partnership’s 2011 Form 8804, line 5e. If less than $500, do 

not complete or file this form. The partnership does not owe the penalty . . . . . . . . . . 1

2 Enter the total section 1446 tax that would have been due for 2010, without regard to reductions for 

certified foreign partner-level items, on the effectively connected taxable income (ECTI) allocable to 

foreign partners for 2010. 

Caution: This line 2 amount only applies if certain conditions are met (see instructions) . . . . . . 2

3 Enter the smaller of line 1 or line 2. If the partnership is required to skip line 2, enter the amount from 

line 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

Part III Figuring the Underpayment

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

4 

 

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

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

partnership’s tax year . . . . . . . . . . . 4

5 

 

 

 

Required installments. If the partnership uses the 

adjusted seasonal installment method and/or the 

annualized income installment method, enter the amounts 

from line 43. If neither of those methods is used, enter 

25% of line 3 above in each column. Special rules may 

apply to partnerships with assets of $1 billion or more (see 

instructions) . . . . . . . . . . . . . . 5

6 

 

Estimated section 1446 tax paid or credited for each 

period (see instructions). For column (a) only, enter the 

amount from line 6 on line 10 . . . . . . . . . 6

Complete lines 7 through 13 of one column before 

going to the next column.

7 Enter amount, if any, from line 13 of the preceding column 7

8 Add lines 6 and 7 . . . . . . . . . . . . 8

9 Add amounts on lines 11 and 12 of the preceding column 9

10 Subtract line 9 from line 8. If zero or less, enter -0- . . 10

11 If the amount on line 10 is zero, subtract line 8 from line 9. 

Otherwise, enter -0- . . . . . . . . . . . . 11

12 

 

Underpayment. If line 10 is less than or equal to line 5,

subtract line 10 from line 5. Then go to line 7 of the next

column. Otherwise, go to line 13 . . . . . . . . 12

13 Overpayment. If line 5 is less than line 10, subtract line 5 

from line 10. Then go to line 7 of the next column . . 13

Go to Part VII on page 5 to figure the penalty. Do not go to Part VII if there are no entries on line 12—no penalty is owed.

For Paperwork Reduction Act Notice, see separate instructions. Cat. No. 40853F Schedule A (Form 8804) 2011
Schedule A (Form 8804) 2011 Page 2

Part IV 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.)

Check this box if the partnership has elected to attach a schedule 

that expands lines 15 and 22 through 25 to reflect Regulations 

section 1.1446-3(a)(2) (see instructions) . . . . . . . . ▶

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

First 3 

months

First 5 

months

First 8 

months

First 11 

months

14 Enter effectively connected taxable income allocable to all foreign 

partners for the following periods:

a Tax year beginning in 2008 14a

b Tax year beginning in 2009 14b

c Tax year beginning in 2010 14c

15 

 

Enter effectively connected taxable income allocable to all foreign 

partners for each period for the tax year beginning in 2011 (see 

instructions for the treatment of extraordinary items). 15

16 Enter effectively connected taxable income allocable to all foreign 

partners for the following periods:

First 4 

months

First 6 

months

First 9 

months Entire year

a Tax year beginning in 2008 16a

b Tax year beginning in 2009 16b

c Tax year beginning in 2010 16c

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

column (d) on line 16a. 17

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

column (d) on line 16b. 18

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

column (d) on line 16c. 19

20 Add lines 17 through 19. 20

21 Divide line 20 by 3.0. 21

22a Divide line 15 by line 21. 22a

b Extraordinary items (see instructions). 22b

c Combine lines 22a and 22b. 22c

23 Reduction to line 22c amount for state and local taxes under 

Regulations section 1.1446-6(c)(1)(iii) and for certified foreign 

partner-level items submitted using Form 8804-C (see 

instructions). 23

24 Subtract line 23 from line 22c. If zero or less, enter -0-. 24

25 Multiply line 24 by 35%. 25

26a Divide the amount in columns (a) through (c) on line 16a by the 

amount in column (d) on line 16a. 26a

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

amount in column (d) on line 16b. 26b

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

amount in column (d) on line 16c. 26c

27 Add lines 26a through 26c. 27

28 Divide line 27 by 3.0. 28

29 Multiply the amount in columns (a) through (c) of line 25 by 

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

from line 25, column (d). 29

Schedule A (Form 8804) 2011
Schedule A (Form 8804) 2011 Page 3

Part V Annualized Income Installment Method

( ) ( ) ( ) ( ) 

( ) ( ) ( ) ( ) 

( ) ( ) ( ) ( ) 

( ) ( ) ( ) ( ) 

( ) ( ) ( ) ( ) 

( ) ( ) ( ) ( ) 

( ) ( ) ( ) ( ) 

( ) ( ) ( ) ( ) 

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

30 Annualization periods (see instructions). 30

First 

months

First

months

First

months

First

months

31 

 

Enter effectively connected taxable income allocable to all foreign 

partners for each annualization period (see instructions for the 

treatment of extraordinary items):

a Net ordinary income and net short-term capital gain. 31a

b 28% rate gain (non-corporate partners only). 31b

c Unrecaptured section 1250 gain (non-corporate partners only). 31c

d Qualified dividend income and net long-term capital gain 

(including net section 1231 gains) (non-corporate partners only). 31d

32 Annualization amounts (see instructions). 32

33 

 

Annualized effectively connected taxable income allocable to all 

foreign partners (see instructions for the treatment of extraordinary 

items):

a Net ordinary income and net short-term capital gain (multiply line 

31a by line 32). 33a

b Reduction to line 33a for state and local taxes under Regulations 

section 1.1446-6(c)(1)(iii) (see instructions). 33b

c Reduction to line 33a for certified foreign partner-level items 

submitted using Form 8804-C (see instructions). 33c

d Combine lines 33a, 33b, and 33c. 33d

e 28% rate gain allocable to non-corporate partners (multiply line 

31b by line 32). 33e

f Reduction to line 33e for state and local taxes under Regulations 

section 1.1446-6(c)(1)(iii) (see instructions). 33f

g Reduction to line 33e for certified foreign partner-level items 

submitted using Form 8804-C (see instructions). 33g

h Combine lines 33e, 33f, and 33g. 33h

i Unrecaptured section 1250 gain allocable to non-corporate 

partners (multiply line 31c by line 32). 33i

j Reduction to line 33i for state and local taxes under Regulations 

section 1.1446-6(c)(1)(iii) (see instructions). 33j

k Reduction to line 33i for certified foreign partner-level items 

submitted using Form 8804-C (see instructions). 33k

l Combine lines 33i, 33j, and 33k. 33l

m 

 

Qualified dividend income and net long-term capital gain 

(including net section 1231 gains) allocable to non-corporate 

partners (multiply line 31d by line 32). 33m

n Reduction to line 33m for state and local taxes under Regulations 

section 1.1446-6(c)(1)(iii) (see instructions). 33n

o Reduction to line 33m for certified foreign partner-level items 

submitted using Form 8804-C (see instructions). 33o

p Combine lines 33m, 33n, and 33o. 33p

34 Figure the tax on line 33 amounts as follows:

a Multiply line 33d by 35%. 34a

b Multiply line 33h by 28%. 34b

c Multiply line 33l by 25%. 34c

d Multiply line 33p by 15%. 34d

e Add lines 34a through 34d. 34e

35 Applicable percentage. 35

36 Multiply line 34e by line 35. 36

Schedule A (Form 8804) 2011
Schedule A (Form 8804) 2011 Page 4

Part VI Required Installments

Note. Complete lines 37 through 43 of one column before completing 

the next column.

1st 

installment

2nd 

installment

3rd 

installment

4th 

installment

37 If only Part IV or Part V is completed, enter the amount in each 

column from line 29 or line 36. If both parts are completed, enter 

the smaller of the amounts in each column from line 29 or line 36. 37

38 Add the amounts in all preceding columns of line 43 (see instructions). 38

39 Adjusted seasonal or annualized income installments. Subtract 

line 38 from line 37. If zero or less, enter -0-. 39

40 Enter 25% of line 1 in each column. Note. Partnerships with 

assets of $1 billion or more, see the instructions for line 5. 40

41 Subtract line 43 of the preceding column from line 42 of the 

preceding column. 41

42 Add lines 40 and 41. 42

43 Required installments. Enter the smaller of line 39 or line 42 here 

and on line 5 (see instructions). 43

Schedule A (Form 8804) 2011
Schedule A (Form 8804) 2011 Page 5

Part VII Figuring the Penalty

44 Enter the date of payment or the 15th day of the 4th month (a) (b) (c) (d)

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

instructions). Partnerships that keep their records and

books of account outside the United States and Puerto

Rico: Use 6th month instead of 4th month.

44

45 Number of days from due date of installment on line 4 to the 

date shown on line 44 . . . . . . . . . . . . 45

46 Number of days on line 45 after 4/15/2011 and before 7/1/2011 . . 46

47 Underpayment on line 12 × Number of days on line 46

365

× 4% . . 47 $ $ $ $

48 Number of days on line 45 after 6/30/2011 and before 10/1/2011 . . 48

49 Underpayment on line 12 × Number of days on line 48

365

× 4% . . 49 $ $ $ $

50 Number of days on line 45 after 9/30/2011 and before 1/1/2012 . . 50

51 Underpayment on line 12 × Number of days on line 50

365

× 3% . . 51 $ $ $ $

52 Number of days on line 45 after 12/31/2011 and before 4/1/2012 . . 52

53 Underpayment on line 12 × Number of days on line 52

366

× 3% . . 53 $ $ $ $

54 Number of days on line 45 after 3/31/2012 and before 7/1/2012 . . 54

55 Underpayment on line 12 × Number of days on line 54

366

× *% . . 55 $ $ $ $

56 Number of days on line 45 after 6/30/2012 and before 10/1/2012 . . 56

57 Underpayment on line 12 × Number of days on line 56

366

× *% . . 57 $ $ $ $

58 Number of days on line 45 after 9/30/2012 and before 1/1/2013 . . 58

59 Underpayment on line 12 × Number of days on line 58

366

× *% . . 59 $ $ $ $

60 Number of days on line 45 after 12/31/2012 and before 4/1/2013 . . 60

61 Underpayment on line 12 × Number of days on line 60

365

× *% . . 61 $ $ $ $

62 Number of days on line 45 after 3/31/2013 and before 5/16/2013 . . 62

63 Underpayment on line 12 × Number of days on line 62

365

× *% . . 63 $ $ $ $

64 Add lines 47, 49, 51, 53, 55, 57, 59, 61, and 63 . . . . . . 64 $ $ $ $

65 Penalty. Add columns (a) through (d) of line 64. Enter the total here and on Form 8804, 

line 8 . . . . . . . . . . . . . . . . . . . . . . . . . 65 $

* 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 1-800-829-1040 to get interest rate information.

Schedule A (Form 8804) 2011