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2014

Department of the Treasury

Internal Revenue Service

Instructions for Form 8804-W

(WORKSHEET)

Installment Payments of Section 1446 Tax for Partnerships

must file Form 8813, Partnership

1. Line 1i—See section 1(h)(4) and

Section references are to the Internal Revenue

Code unless otherwise noted.

Withholding Tax Payment Voucher

the instructions for line 18, Schedule D

(Section 1446). Furthermore, the

(Form 1040), for more information

Future Developments

partnership is generally required to notify

regarding 28% rate gain.

each foreign partner of the section 1446

For the latest information about

2. Line 1m—See section 1(h)(6) and

tax paid on the partner's behalf within 10

developments related to Form 8804-W

the instructions for line 19, Schedule D

days of the installment payment due date.

and its instructions, such as legislation

(Form 1040), for more information

See Regulations section 1.1446-3(d) and

enacted after they were published, go to

regarding unrecaptured section 1250 gain.

the Instructions for Forms 8804, 8805, and

3. Line 1q—Adjusted net capital gain

8813 for more information.

is net capital gain, as defined in section

General Instructions

1222(11), reduced (but not below zero) by

Refiguring Estimated

the sum of (a) unrecaptured section 1250

Section 1446 Tax

Purpose of Form

gain and (b) 28% rate gain, plus qualified

dividend income. See section 1(h)(3).

If, after the partnership figures and makes

Partnerships that have effectively

an installment payment of estimated

connected taxable income (ECTI)

If the partnership has net ordinary loss,

section 1446 tax, it finds that its section

allocable to foreign partners can use the

net short-term capital loss, or net 28% rate

1446 tax liability for the year will be more

Form 8804-W (WORKSHEET) to

loss, each net loss should be netted

or less than originally estimated, it may

determine the proper estimated section

against the appropriate categories of

have to refigure its required installments. If

1446 tax payments.

income and gain to determine the

earlier installments were underpaid, the

amounts of income and gain to be entered

Who Must Make Estimated

partnership may owe a penalty for

on lines 1a, 1e, 1i, 1m, and 1q,

underpayment of estimated tax. An

Section 1446 Tax

respectively. Do not enter a negative

immediate catch-up payment should be

number on lines 1a, 1e, 1i, 1m, or 1q. See

Payments

made to reduce the amount of any penalty

section 1(h) and Notice 97-59, 1997-45

resulting from the underpayment of any

Partnerships generally must make

I.R.B. 7, for rules for netting gains and

earlier installments, whether caused by a

installment payments of estimated section

losses.

change in estimate, failure to make a

1446 tax if they expect the aggregate tax

Lines 1b, 1f, 1j, 1n, and 1r. Enter the

payment, or a mistake.

on the ECTI that is allocable to all foreign

reduction amounts for state and local

partners to be $500 or more.

taxes under Regulations section

Specific Instructions

When To Make Estimated

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

State and Local Taxes in the Instructions

Section 1446 Tax

Part I—Determination of

for Forms 8804, 8805, and 8813 for

Payments

Installment Payments

additional information. The netting rules

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

The installments are due by the 15th day

Complete Form 8804-W for each

be considered in determining the category

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

installment payment of section 1446 tax

of income the reduction amounts offset.

partnership's tax year. If any date falls on

based on the information available at the

a Saturday, Sunday, or legal holiday, the

time of the installment payment.

Lines 1c, 1g, 1k, 1o, and 1s. Enter the

installment is due on the next regular

reduction amounts resulting from certified

Lines 1 through 6—Current

business day.

partner-level items received from foreign

Year Safe Harbor

partners using Form 8804-C. See

Underpayment of

Certification of Deductions and Losses in

Lines 1a, 1e, 1i, 1m, and 1q. To

Estimated Section 1446

the Instructions for Forms 8804, 8805, and

determine the allocable share of ECTI for

8813 for additional information. The

Tax

all foreign partners, see Effectively

netting rules under section 1(h) and Notice

Connected Taxable Income in the

A partnership that does not make

97-59 must be considered in determining

Instructions for Forms 8804, 8805, and

estimated section 1446 tax payments

the category of income the reduction

8813. Enter on lines 1i, 1m, and 1q the

when due may be subject to an

amounts offset.

specified types of ECTI allocable to those

underpayment penalty for the period of

Line 8—Prior Year Safe Harbor

partners who would be entitled to use a

underpayment. See Schedule A (Form

preferential rate on such income or gain

Enter the total section 1446 tax that would

8804) for details.

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

have been due for 2013 on ECTI allocable

For tiered partnerships, see Regulations

How To Make Estimated

to all foreign partners for 2013, without any

section 1.1446-5.

reductions for state and local taxes under

Section 1446 Tax

A partner may be entitled to use a

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

Payments

preferential rate on the following types of

certified partner-level items. For the

income or gain.

partnership's first installment payment, if

A partnership that is required to make an

the 2013 Form 8804 has not yet been

installment payment of section 1446 tax

Oct 11, 2013

Cat. No. 51675X

Instructions For Form 8804-W (Worksheet) - Installment Payments Of Section 1446 Tax For Partnerships - 2014

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