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Line 12

filed, an estimate is acceptable. However,

harbor, plus (b) the sum of the amount by

if the partnership later determines that this

which the current year safe harbor

Include on line 12 any 2013 overpayment

estimate is incorrect, see Refiguring

exceeds the prior year safe harbor amount

that the partnership chose to credit

Estimated Section 1446 Tax, earlier.

paid in for each prior installment period

against its 2014 tax. The overpayment is

during which it qualified for the prior year

credited against unpaid required

Complete line 8 only if all of the

safe harbor.

installments in the order in which the

following apply:

Line 9

installments are required to be paid.

The prior tax year consisted of 12

Enter the smaller of line 7 or line 8.

Also include on line 12 any:

months,

However, if, for any installment payment,

The partnership timely files (including

Section 1446 tax withheld and paid by

line 7 is smaller than line 8 and you enter

extensions) a U.S. return of partnership

another partnership because the

that smaller line 7 amount on line 9, you

income (for example, Form 1065) for the

partnership preparing this Form 8804-W

will not qualify for the prior year safe

prior year, and

was a partner in that partnership during

harbor when determining any penalty due

The amount of ECTI for the prior tax

the tax year. See the instructions for Form

on Schedule A (Form 8804) (see the line 8

year is not less than 50% of the ECTI

8804, line 6b, in the Instructions for Forms

instructions, earlier). Therefore, in that

expected for the current tax year.

8804, 8805, and 8813.

case, for any subsequent installment

Furthermore, the Form 8804 on which the

Section 1445(a) or 1445(e)(1) tax

payment during the tax year, do not use

current year ECTI will be reported must be

the line 8 amount.

withheld from or paid by the partnership

timely filed.

filing this Form 8804-W during the tax year

Line 10—Installment Due Dates

for a disposition of a U.S. real property

If any of the above does not apply, skip

interest. See the instructions for Form

Calendar-year taxpayers. Enter

line 8 and enter the amount from line 7 on

8804, line 6c, in the Instructions for Forms

line 9.

4-15-2014, 6-16-2014, 9-15-2014, and

8804, 8805, and 8813.

12-15-2014, respectively, in columns (a)

If the partnership qualifies to use the

through (d).

The partnership generally enters these

prior year safe harbor and chooses that

amounts in the column that corresponds

Fiscal-year taxpayers. Enter the 15th

method, it must use that method to pay

to the installment period for which these

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

each of its installments during the tax year.

amounts were paid or withheld. However,

of the partnership's tax year in columns (a)

Furthermore, for each installment

if the partnership learns about the

through (d). If the regular due date falls on

payment, the average of that installment

payments or withholding in a subsequent

a Saturday, Sunday, or legal holiday, enter

and prior installments during the tax year

installment period, the partnership may

the next business day.

must be at least 25% of the amount that

claim them in that period.

satisfies the partnership's section 1446 tax

Line 11

liability under the prior year safe harbor. If

Parts II Through IV

Enter 25% of line 9 in columns (a) through

the partnership does not satisfy both of

(d). If the partnership uses the annualized

these requirements, it will not qualify for

If only the adjusted seasonal installment

income installment method or the adjusted

the prior year safe harbor when

method (Part II) is used, complete Parts II

seasonal installment method, then enter

determining any penalty due on

and IV. If only the annualized income

the amount from line 43.

Schedule A (Form 8804).

installment method (Part III) is used,

complete Parts III and IV. If both methods

Annualized income installment method

If the partnership begins using the prior

are used, complete all three parts. Enter in

and/or adjusted seasonal installment

year safe harbor method and it determines

each column on line 11 the amounts from

method. If the partnership's ECTI is

later in the tax year (based upon the

the corresponding column of line 43.

expected to vary during the year because,

standard option annualization method

for example, it operates its business on a

described later in these instructions) that it

Do not figure any required

seasonal basis, it may be able to lower the

will not meet the 50% of ECTI requirement

installment until after the end of

amount of one or more required

described in the last bulleted item above,

the month preceding the due date

installments by using the annualized

CAUTION

it may make all subsequent installment

for that installment.

income installment method and/or the

payments using the standard option

adjusted seasonal installment method. For

Extraordinary items. Generally, under

annualization method and it will not be

example, a ski shop, which receives most

the annualized income installment

subject to the penalty determined on

of its income during the winter months,

method, extraordinary items must be

Schedule A (Form 8804). This change in

may be able to benefit from using one or

taken into account after annualizing the

method must be disclosed in a statement

both of these methods in figuring one or

ECTI for the annualization period. Similar

attached to the Form 8804 the partnership

more of its required installments.

rules apply in determining ECTI under the

files for the current tax year and the

To use one or both of these methods,

adjusted seasonal installment method. An

statement must include enough

complete Part II and/or Part III of the form.

extraordinary item includes:

information to allow the IRS to determine

If those Parts are used for any payment

whether the change was appropriate.

Any item identified in Regulations

date, those Parts must be used for all

section 1.1502-76(b)(2)(ii)(C)(1), (2), (3),

If the partnership begins using the prior

subsequent payment due dates. To arrive

(4), (7), and (8);

year safe harbor method and switches to

at the amount of each required

A section 481(a) adjustment; and

the current year safe harbor (because the

installment, Part IV automatically selects

Net gain or loss from the disposition of

partnership does not qualify for the relief

the smallest of (a) the annualized income

25% or more of the fair market value of the

described in the previous paragraph (that

installment (if applicable), (b) the adjusted

partnership's business assets during the

is, using the standard option annualization

seasonal installment (if applicable), or (c)

tax year.

method) or the partnership chooses not to

the current year safe harbor (increased by

continue using it), in order to avoid an

These extraordinary items must be

any recapture of a reduction in a required

underpayment penalty on the current

accounted for in the appropriate

installment under section 6655(e)(1)(B)).

installment payment, the partnership must

annualization period. However, a section

pay the sum of (a) the current installment

481(a) adjustment (unless the partnership

payment based on the current year safe

makes the alternative choice under

Instructions for Form 8804-W (2014)

-2-

Instructions For Form 8804-W (Worksheet) - Installment Payments Of Section 1446 Tax For Partnerships - 2014 Page 2

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