Line 14k. Total payments. Add the
took the low-income housing credit, it may
line 27, special estimated tax payments
owe a tax. See Form 8611, Recapture of
must be made in an amount equal to the
amounts on lines 14f through 14j and
Low-Income Housing Credit.
tax benefit of the deduction. These
enter the total on line 14k.
payments must be made on or before the
Other. Additional taxes and interest
Line 15. Estimated tax penalty.
due date (without regard to extensions) of
amounts can be included in the total
Generally, the corporation does not have
this tax return. See Form 8816 and
entered on line 12. Check the box for
to file Form 2220 because the IRS can
section 847(2) for additional information.
“Other” if the corporation includes any
figure the penalty amount, if any, and bill
additional taxes and interest such as the
the corporation. However, even if the
Tax benefit rule. Section 847(8)
items discussed below. See How to report
corporation does not owe the penalty, it
requires that if a corporation carries back
below, for details on reporting these
must complete and attach Form 2220 if:
net operating losses or capital losses that
•
amounts on an attached schedule.
The annualized income or adjusted
arise in years after a year in which a
•
Recapture of Indian employment credit.
method is used, or
section 847 deduction was claimed, then
•
Generally, if an employer terminates the
The corporation is a large corporation
the corporation must recompute the tax
employment of a qualified employee less
(as defined in the Instructions for Form
benefit attributable to the previously
than 1 year after the date of initial
2220) computing its first required
claimed section 847 deduction taking into
employment, any Indian employment
installment based on the prior year’s tax.
account the loss carrybacks. Tax benefits
credit allowed for a prior tax year because
also include those derived from filing a
If Form 2220 is attached, check the
of wages paid or incurred to that
consolidated return with another
box on line 15 and enter any penalty on
employee must be recaptured. See Form
insurance company (without regard to
this line. See Estimated tax penalty on
8845 and section 45A.
section 1503(c)).
page 3.
•
Recapture of new markets credit (see
Line 18. Electronic deposit of tax
Therefore, if the recomputation
Form 8874, New Markets Credit, and
refund of $1 million or more. If the
changes the amount of the section 847
Form 8874-B, Notice of Recapture Event
corporation is due a refund of $1 million
tax benefit, then the taxpayer must
for New Markets Credit).
or more and wants it electronically
•
provide a computation schedule and
Recapture of employer-provided
deposited into its checking or savings
attach it to Form 8816.
childcare facilities and services credit
account at any U.S. bank or other
(see Form 8882).
Line 14e. Overpaid Estimated Tax. If
financial institution instead of having a
•
Interest on deferred tax attributable to
the corporation overpaid estimated tax, it
check sent to the corporation, complete
certain nondealer installment obligations
may be able to get a quick refund by filing
Form 8302 and attach it to the
(section 453A(c)).
Form 4466. The overpayment must be at
corporation’s tax return.
•
Interest due on deferred gain (section
least 10% of the corporation’s expected
1260(b)).
income tax liability and at least $500. File
•
Alternative tax on qualifying shipping
Form 4466 after the end of the
Schedule A—Taxable
activities (see Form 8902).
corporation’s tax year, and no later than
Income
How to report. If the corporation
the 15th day of the third month after the
checked the “Other” box, attach a
end of the tax year. Form 4466 must be
Gross income. Under section 832,
schedule showing the computation of
filed before the corporation files its tax
gross amounts of underwriting and
each item included in the total for line 12
return.
investment income should be computed
and identify the applicable Code section
Line 14h. Credit by reciprocal for tax
on the basis of the Statement of Income
and the type of tax or interest.
paid by attorney-in-fact under section
of the NAIC annual statement to the
Line 13. Total Tax
835(d). Enter the amount of tax paid by
extent not inconsistent with the Internal
an attorney-in-fact as a result of income
Revenue Code and its Regulations.
Include any deferred tax on the
received by the attorney-in-fact from the
termination of a section 1294 election
Income from qualifying shipping
reciprocal during the tax year. For more
applicable to shareholders in a qualified
activities. Gross income does not
information, see section 835, the related
electing fund in the amount entered on
include income from qualifying shipping
regulations, and the instructions for line 5
line 13. See the instructions for Form
activities if the corporation makes an
on page 7.
8621, Part V, line 7, and How to report
election under section 1354 to be taxed
below.
Line 14i. Other credits and payments.
on its notional shipping income (as
Enter the amount of any other credits the
defined in section 1353) at the highest
Subtract any deferred tax on the
corporation may take and/or payments
corporate tax rate (35%). If the election is
corporation’s share of undistributed
made. Write an explanation of the entry to
made, the corporation generally may not
earnings of a qualified electing fund (see
the left of the entry space.
claim any loss, deduction, or credit with
Form 8621, Part II).
respect to qualifying shipping activities. A
How to report. Attach a schedule
Backup withholding. If the corporation
corporation making this election also may
showing the computation of each item
had federal income tax withheld from any
elect to defer gain on the disposition of a
included in, or subtracted from, the total
payments it received because, for
qualifying vessel.
for line 13. On the dotted line next to line
example, it failed to give the payer its
13, specify (a) the applicable Code
Use Form 8902, Alternative Tax on
correct EIN, include the amount withheld
section, (b) the type of tax, and (c) the
Qualifying Shipping Activities, to figure
in the total for line 14i. Write the amount
amount of tax.
the tax. Include the alternative tax on line
withheld and the words “Backup
12, page 1 of the Form 1120-PC.
Line 14b. Prior year(s) special
Withholding” on the dotted line to the left
estimated tax payments to be applied.
of the entry space for line 14i.
Note. In computing the amounts for lines
The amount entered on line 14b must
2, 3, and 4, take all interest, dividends, or
Line 14j. Refundable Credits from
agree with the amount(s) from Form
rents received during the year, add
Forms 3800 and 8827. If the
8816, Part III, line 11. See Form 8816 and
interest, dividends, or rents due and
corporation elected to claim certain
section 847 for additional information.
accrued at the end of the tax year, and
unused research or minimum tax credits
deduct interest, dividends, or rents due
Line 14c. Estimated tax payments.
instead of claiming any additional
and accrued at the end of the preceding
Enter any estimated tax payments the
first-year special depreciation allowance
tax year. For rules regarding the accrual
corporation made for the tax year. Do not
for eligible property, see the instructions
of dividends, see Regulations section
include any amount being applied on line
for Forms 3800 and 8827. Enter on line
1.301-1(b).
14d.
14j the amounts from line 17c of Form
Line 14d. Special estimated tax
3800 and line 8c of Form 8827, if
Line 3a, column (a). Gross interest.
payments. If the deduction under
applicable. See the instructions for these
Enter the gross amount of interest
section 847 is claimed on Schedule A,
forms.
income, including all tax-exempt interest.
-8-
Instructions for Form 1120-PC (2011)