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Use Option 1 or Option 2 only if

Lines 32a, 32e, 32i, and 32m

period in which the partnership normally

receives the largest part of its ECTI. The

the partnership elected to use one

If the partnership has certain

of these options by filing Form

base period percentage for any period of

CAUTION

extraordinary items that total $1 million or

6 consecutive months is the average of

8842, Election To Use Different

more from a particular transaction, or a

the three percentages figured by dividing

Annualization Periods for Corporate

section 481(a) adjustment, special rules

the ECTI for the corresponding

Estimated Tax, on or before the due date

apply. Include these amounts on line 32a,

6-consecutive-month period in each of the

of the first required installment payment.

3 preceding tax years by the ECTI for

32e, 32i, or 32m, depending upon the

Once made, the election is irrevocable for

each of their respective tax years.

the particular tax year.

type of income against which the item

applies, for the appropriate period. Also

1st

2nd

3rd

4th

Example. An amusement park with a

include on line 32a, 32e, 32i, or 32m the

Installment Installment Installment Installment

calendar year as its tax year receives the

de minimis extraordinary items that the

largest part of its ECTI during a 6-month

Standard

partnership chooses to exclude from line

Option

period, May through October. To compute

30a, 30b, 30c, or 30d, respectively. See

its base period percentage for this

Option 1

Extraordinary items on page 2.

6-month period, the amusement park

Option 2

figures its ECTI for each May – October

Lines 32b, 32f, 32j, and 32n

period in 2009, 2010, and 2011. It then

divides the ECTI for each May – October

Enter the reduction amounts for state and

Line 30—Foreign Partner’s

period by the total ECTI for that particular

local taxes under Regulations section

Allocable Share of ECTI

tax year. The resulting percentages are

1.1446-6(c)(1)(iii). See Reductions for

69% (.69) for May – October 2009, 74%

Enter on lines 30a through 30d the

State and Local Taxes in the Instructions

(.74) for May – October 2010, and 67%

foreign partner’s allocable share of ECTI

for Forms 8804, 8805, and 8813 for

(.67) for May – October 2011. Because the

for the months entered for each

additional information. The netting rules

average of 69%, 74%, and 67% is 70%,

annualization period in columns (a)

the base period percentage for May

under section 1(h) and Notice 97-59 must

through (d) on line 29. To determine the

through October 2012 is 70%. Therefore,

be considered in determining the category

foreign partner’s allocable share of ECTI,

the amusement park qualifies for the

of income the reduction amounts offset.

see Effectively Connected Taxable

adjusted seasonal installment method.

Income in the Instructions for Forms

8804, 8805, and 8813.

Lines 32c, 32g, 32k, and 32o

Line 14

Enter the reduction amounts resulting

If the partnership has certain

from certified partner-level items received

extraordinary items, special rules apply.

from foreign partners using Form 8804-C.

Do not include on line 30a, 30b, 30c, or

Do not include on line 14 the de minimis

See Certification of Deductions and

30d the de minimis extraordinary items

extraordinary items that the partnership

Losses in the Instructions for Forms 8804,

that the partnership chooses to include on

chooses to include on line 21b. See

line 32a, 32e, 32i, or 32m, respectively.

8805, and 8813 for additional information.

Extraordinary items, earlier.

See Extraordinary items on page 2.

The netting rules under section 1(h) and

Notice 97-59 must be considered in

Line 21b

Note. With respect to lines 30b through

determining the category of income the

If the partnership has certain

30d, enter the specified types of ECTI if

reduction amounts offset.

extraordinary items of $1 million or more

(a) such partner would be entitled to use

from a transaction, or a section 481(a)

a preferential rate on such income or gain

adjustment, special rules apply. Include

Part IV—Required

(see Regulations section 1.1446-3(a)(2))

these amounts on line 21b for the

and (b) the partnership has sufficient

Installments Under Part II

appropriate period. Also, include on line

documentation to meet the requirements

21b the de minimis extraordinary items

of Regulations section 1.1446-3(a)(2)(ii).

and/or Part III

that the partnership chooses to exclude

from line 14. See Extraordinary items on

Line 37

If the partnership has net ordinary loss,

page 2.

net short-term capital loss, or net 28%

Before completing line 37 in columns (b)

rate loss, each net loss should be netted

through (d), complete lines 38 through 42

Line 22

against the appropriate categories of

in each of the preceding columns. For

Enter the reduction to the line 21c amount

income and gain to determine the

example, complete lines 38 through 42 in

for state and local taxes under

amounts of income and gain to be

column (a) before completing line 37 in

Regulations section 1.1446-6(c)(1)(iii) and

entered on lines 30e, 30i, and 30m,

column (b).

for certified foreign partner-level items

respectively. See section 1(h) and Notice

submitted under Regulations section

97-59, 1997-45 I.R.B. 7, for rules for

1.1446-6. See Certification of Deductions

netting gains and losses.

Line 39

and Losses in the Instructions for Forms

Partnerships with assets of $1 billion or

8804, 8805, and 8813 for additional

Line 31—Annualization

more (determined as of the end of the

information.

Amounts

preceding tax year) must increase the

Enter the annualization amounts for the

required installment of estimated tax due

Part III—Annualized

option used on line 29. For example, if the

in July, August, or September of 2012,

partnership elects Option 1, enter on line

Income Installment Method

and the next required installment must be

31 the annualization amounts 6, 3,

decreased in an amount to reflect the

1.71429, and 1.2, in columns (a) through

Line 29—Annualization Periods

increase in the previous installment. See

(d), respectively.

the instructions for line 10 for the amounts

Enter in the space on line 29, columns (a)

to enter.

through (d), respectively, the

1st

2nd

3rd

4th

Installment Installment Installment Installment

annualization periods that the partnership

is using, based on the options listed

Standard

Line 42—Required Installments

Option

1.33333

below. For example, if the partnership

For each installment, enter the smaller of

elects Option 1, enter on line 29 the

Option 1

1.71429

1.2

line 38 or line 41 on line 42. Also enter

annualization periods 2, 4, 7, and 10, in

Option 2

2.4

1.5

1.09091

the result on line 10.

columns (a) through (d), respectively.

-3-

Instructions for Form 8804-W (2012)

Instructions For Form 8804-W - Estimated Section 1446 Tax Payments - Internal Revenue Service - 2012 Page 3

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