OMB No. 1545-1257

Form 8827 Credit for Prior Year Minimum Tax—Corporations

Department of the Treasury

Internal Revenue Service

© Attach to the corporation’s tax return.

Name Employer identification number

1 Alternative minimum tax (AMT) for 2005. Enter the amount from line 14 of the 2005 Form 4626 1

2 Minimum tax credit carryforward from 2005. Enter the amount from line 9 of the 2005 Form 8827 2

3 Enter the total of any 2005 unallowed nonconventional source fuel credit and 2005 unallowed

qualified electric vehicle credit (see instructions) 3

4 Add lines 1, 2, and 3 4

5

5 Enter the corporation’s 2006 regular income tax liability minus allowable tax credits (see

instructions)

6

6 Is the corporation a “small corporation” exempt from the AMT for 2006 (see instructions)?

7 Subtract line 6 from line 5. If zero or less, enter -0- 7

8 Minimum tax credit. Enter the smaller of line 4 or line 7 here and on Form 1120, Schedule J,

line 5d or the appropriate line of the corporation’s income tax return. If the corporation had a

post-1986 ownership change or has pre-acquisition excess credits, see instructions 8

9 Minimum tax credit carryforward to 2007. Subtract line 8 from line 4. Keep a record of this

amount to carry forward and use in future years 9

Section references are to the Internal

Revenue Code unless otherwise noted.

Year references are to the corporation’s

tax year beginning during that year.

Line 5

Who Should File

Form 8827 should be filed by

corporations that had:

● An AMT liability in 2005,

● A minimum tax credit carryforward

from 2005 to 2006, or

● A nonconventional source fuel credit

or qualified electric vehicle credit not

allowed for 2005 (see the instructions for

line 3).

Line 3

Purpose of Form

Corporations use Form 8827 to figure

the minimum tax credit, if any, for AMT

incurred in prior tax years and to figure

any minimum tax credit carryforward.

Cat. No. 13008K Form 8827 (2006)

Enter the corporation’s 2006 regular

income tax liability (as defined in section

26(b)) minus any credits allowed under

Chapter 1, Subchapter A, Part IV,

subparts B, D, E, and F of the Internal

Revenue Code (for example, if you are

Enter the total of any nonconventional

source fuel credit and qualified electric

vehicle credit not allowed for 2005 solely

because of the tentative minimum tax

limitations under sections 29(b)(6)(B) and

30(b)(3)(B).

If either limit applies, attach a

computation of the minimum tax credit

allowed. Enter that amount on line 8.

Write “Sec. 383” or “Sec. 384” on the

dotted line to the left of the line 8 entry

space.

● Yes. Enter 25% of the excess of line 5 over $25,000. If line 5 is $25,000 or less, enter -0-

● No. Complete Form 4626 for 2006 and enter the tentative minimum tax from line 12

Line 6

See the 2006 Instructions for Form 4626

to find out if the corporation is treated

as a “small corporation” exempt from

the AMT for 2006. If the corporation is a

“small corporation” exempt from the

AMT, see section 38(c)(5) before

completing line 6 for special rules that

apply to controlled corporate groups,

regulated investment companies, and

real estate investment trusts.

Line 8

If the corporation had a post-1986

ownership change (as defined in section

382(g)), there may be a limit on the

amount of pre-change minimum tax

credits that can be applied against the

corporation’s tax for any tax year ending

after the ownership change. See section

383 and the related regulations. To

figure the amount of the pre-change

credit, the corporation must allocate the

credit for the change year between the

pre-change period and the post-change

period. The corporation must use the

same method of allocation (ratable

allocation or closing-of-the-books) for

purposes of sections 382 and 383. See

Regulations section 1.382-6 for details. 

Also, there may be a limit on the use

of pre-acquisition excess credits of one

corporation to offset the tax attributable

to recognized built-in gains of another

corporation. See section 384 for details.

Paperwork Reduction Act Notice. We

ask for the information on this form to

carry out the Internal Revenue laws of

the United States. You are required to

give us the information. We need it to

ensure that you are complying with

these laws and to allow us to figure and

collect the right amount of tax.

The time needed to complete and file

this form will vary depending on

individual circumstances. The estimated

average time is 1 hour.

If you have comments concerning the

accuracy of this time estimate or

suggestions for making this form

simpler, we would be happy to hear from

you. See the instructions for the tax

return with which this form is filed.

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.

Instructions

2006

filing Form 1120, subtract any credits on

Schedule J, lines 5a through 5c, from

the amount on Schedule J, line 2).