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Formulaire 1120-W Instructions

Instructions pour le formulaire 1120-W

Rév. 2022

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Department of the Treasury  
Internal Revenue Service  
2022  
Instructions for  
Form 1120-W  
Section references are to the Internal Revenue Code unless  
otherwise noted.  
Electronic Deposit Requirement  
Corporations must use electronic funds transfer to make all  
federal tax deposits (such as deposits of employment, excise,  
and corporate income tax). This includes installment payments  
of estimated tax. Generally, electronic funds transfer is made  
using the Electronic Federal Tax Payment System (EFTPS).  
However, if the corporation does not want to use EFTPS, it can  
arrange for its tax professional, financial institution, payroll  
service, or other trusted third party to make electronic deposits  
on its behalf. Also, it may arrange for its financial institution to  
initiate a same-day tax wire payment (discussed below) on its  
behalf. EFTPS is a free service provided by the Department of  
the Treasury. Services provided by a tax professional, financial  
institution, payroll service, or other third party may have a fee.  
Future Developments  
For the latest information about developments affecting Form  
1120-W and its instructions, such as legislation enacted after  
they were published, go to IRS.gov/Form1120W.  
General Instructions  
Who Must Make Estimated Tax  
Payments  
Corporations must generally make estimated tax payments if  
To get more information about EFTPS or to enroll in EFTPS,  
they expect their estimated tax (income tax less credits) to be  
$500 or more.  
visit eftps.gov.  
Depositing on time. For deposits made by EFTPS to be on  
time, the corporation must submit the deposit by 8 p.m. Eastern  
time the day before the date the deposit is due. If the corporation  
uses a third party to make deposits on its behalf, they may have  
different cutoff times.  
S corporations must make estimated tax payments for certain  
taxes. S corporations should see the Instructions for Form  
1120-S, U.S. Income Tax Return for an S Corporation, to figure  
their estimated tax payments.  
Tax-exempt corporations, tax-exempt trusts, and domestic  
private foundations must make estimated tax payments for  
certain taxes. These entities should see the instructions for their  
tax return to figure the amount of their estimated tax payments.  
Same-day wire payment option. If the corporation fails to  
submit a deposit transaction on EFTPS by 8 p.m. Eastern time  
the day before the date a deposit is due, it can still make the  
deposit on time by using the Federal Tax Collection Service  
(FTCS). Before using the same-day wire payment option, the  
corporation will need to make arrangements with its financial  
institution ahead of time. Please check with the financial  
institution regarding availability, deadlines, and costs. To learn  
more about the information the corporation will need to provide  
its financial institution to make a same-day wire payment, visit  
When To Make Estimated Tax  
Payments  
The installments are generally due by the 15th day of the 4th,  
6th, 9th, and 12th months of the tax year. If any due date falls on  
a Saturday, Sunday, or legal holiday, the installment is due on  
the next regular business day.  
Underpayment of Estimated Tax  
Foreign corporations. If a foreign corporation maintains an  
office or place of business in the United States, it must use  
electronic funds transfer (as discussed above) to make  
installment payments of estimated tax.  
If the foreign corporation does not maintain an office or place  
of business in the United States, it may pay the estimated tax by  
EFTPS if it has a U.S. bank account. The foreign corporation  
may also arrange for its financial institution to submit a same-day  
payment on its behalf or can arrange for a qualified intermediary,  
tax professional, payroll service, or other trusted third party to  
make a deposit on its behalf using a master account.  
In addition, the foreign corporation has the option to pay the  
estimated tax due by check or money order, payable to the  
“United States Treasury.” To ensure proper crediting, enter the  
foreign corporation's EIN, “Form 1120-F (or 1120-FSC, if  
applicable) estimated tax payment,” and the tax period to which  
the payment applies on the check or money order. The  
payments must be sent to the Internal Revenue Service Center,  
P.O. Box 409101, Ogden, UT 84409.  
A corporation that does not make estimated tax payments when  
due may be subject to an underpayment penalty for the period of  
underpayment. Use Form 2220, Underpayment of Estimated  
Tax by Corporations, to see if the corporation owes a penalty  
and to figure the amount of the penalty. See Form 2220 and the  
Instructions for Form 2220.  
Overpayment of Estimated Tax  
A corporation that has overpaid its estimated tax may apply for a  
quick refund if the overpayment is at least 10% of its expected  
income tax liability and at least $500. To apply, file Form 4466,  
Corporation Application for Quick Refund of Overpayment of  
Estimated Tax, after the end of the tax year and on or before the  
15th day of the fourth month thereafter, and before the  
corporation files its income tax return. See the Instructions for  
Form 4466.  
Methods of Tax Payment  
Some corporations (described below) are required to  
electronically deposit all depository taxes, including estimated  
tax payments.  
Refiguring Estimated Tax  
If, after the corporation figures and deposits estimated tax, it  
finds that its tax liability for the year will be more or less than  
originally estimated, it may have to refigure its required  
Oct 21, 2021  
Cat. No. 52102X  
installments. If earlier installments were underpaid, the  
corporation may owe a penalty.  
Line 11. Required Installments  
Payments of estimated tax should reflect any 2021 overpayment  
that the corporation chose to credit against its 2022 tax. The  
overpayment is credited against unpaid required installments in  
the order in which the installments are required to be paid.  
An immediate catchup payment should be made to reduce  
the amount of any penalty resulting from the underpayment of  
any earlier installments, whether caused by a change in  
estimate, failure to make a deposit, or a mistake.  
If the corporation uses the annualized income installment  
method and/or the adjusted seasonal installment method, or is a  
"large corporation," see the instructions below.  
Specific Instructions  
Annualized income installment method and/or adjusted  
seasonal installment method. If the corporation's income is  
expected to vary during the year because, for example, it  
operates its business on a seasonal basis, it may be able to  
lower the amount of one or more required installments by using  
the annualized income installment method and/or the adjusted  
seasonal installment method. For example, a ski shop, which  
receives most of its income during the winter months, may be  
able to benefit from using one or both of these methods in  
figuring one or more of its required installments.  
To use one or both of these methods, complete Schedule A.  
If Schedule A is used for any payment date, it must be used for  
all payment due dates. To get the amount of each required  
installment, Schedule A automatically selects the smallest of (a)  
the annualized income installment (if applicable), (b) the  
adjusted seasonal installment (if applicable), or (c) the regular  
installment under section 6655(d)(1) (increased by any  
recapture of a reduction in a required installment under section  
6655(e)(1)(B)).  
All line references on Form 1120-W are references to  
Form 1120, U.S. Corporation Income Tax Return. All  
!
CAUTION  
other entities must determine their estimated tax liability  
by using the applicable line from their income tax return and the  
maximum rate that is in effect for their applicable tax year.  
Lines 1 and 2  
Corporations, including qualified personal service corporations  
and members of a controlled group, are taxed at a flat rate of  
21% of taxable income. Multiply the expected taxable income  
from line 1 by 21%. Enter this amount on line 2.  
Line 3. Tax Credits  
For information on tax credits the corporation can take, see the  
Instructions for Form 1120, Schedule J, Part I, lines 5a through  
5e, or the instructions for the applicable lines and schedule of  
other income tax returns.  
Line 5. Other Taxes  
Large corporations. A large corporation is a corporation that  
had, or whose predecessor had, taxable income of $1 million or  
more for any of the 3 tax years immediately preceding the 2022  
tax year, or if less, the number of years the corporation has been  
in existence. For this purpose, taxable income is modified to  
exclude net operating loss and capital loss carrybacks or  
carryovers.  
Large corporations figure the amount to enter on line 11 as  
follows. If Schedule A is used, also follow these instructions to  
figure the amounts to enter on Schedule A, Part III, line 35.  
Other taxes include the base erosion minimum tax amount and  
any recaptured tax credits. For information on other taxes the  
corporation may owe, see the Instructions for Form 1120,  
Schedule J, Part I, line 9, or the instructions for the applicable  
line and schedule of other income tax returns.  
Line 7. Credit for Federal Tax Paid on  
Fuels and Other Refundable Credits  
See Form 4136, Credit for Federal Tax Paid on Fuels, to find out  
if the corporation qualifies to take this credit. Also include on  
line 7 any other refundable credit, including any credit the  
corporation is claiming under section 4682(g)(2) for tax on  
ozone-depleting chemicals. For information on other refundable  
credits, see the Instructions for Form 1120, Schedule J, or the  
instructions for the applicable line or schedule of other income  
tax returns.  
If line 8 is smaller than line 9a: Enter 25% of line 8 in columns  
(a) through (d) of line 11.  
If line 9a is smaller than line 8: Enter 25% of line 9a in column  
(a) of line 11. In column (b), determine the amount to enter as  
follows:  
1. Subtract line 9a from line 8,  
2. Add the result to the amount on line 8, and  
Line 9a. 2021 Tax  
3. Multiply the result in 2 above by 25% and enter the result  
in column (b). Enter 25% of line 8 in columns (c) and (d).  
Figure the corporation's 2021 tax in the same way that line 8 of  
this worksheet was figured, using the taxes and credits from the  
2021 income tax return. See the instructions for the 2021 Form  
1120. Large corporations, see the instructions for line 11 below.  
Schedule A  
If only the adjusted seasonal installment method (Part I) is used,  
complete Parts I and III of Schedule A. If only the annualized  
income installment method (Part II) is used, complete Parts II  
and III. If both methods are used, complete all three parts. Enter  
in each column on page 1, Part I, line 11, the amounts from the  
corresponding column of line 38. If Schedule A is used for any  
payment date, it must be used for all payment dates.  
If a return was not filed for the 2021 tax year showing a  
liability for at least some amount of tax or the 2021 tax year was  
for less than 12 months, do not complete line 9a. Instead, skip  
line 9a and enter the amount from line 8 on line 9b.  
Line 10. Installment Due Dates  
Calendar-year taxpayers. Enter 4-15-2022, 6-15-2022,  
9-15-2022, and 12-15-2022, respectively, in columns (a) through  
(d). If the due date falls on a Saturday, Sunday, or legal holiday,  
enter the next business day.  
Fiscal-year taxpayers. Enter the 15th day of the 4th, 6th, 9th,  
and 12th months of your tax year in columns (a) through (d). If  
the due date falls on a Saturday, Sunday, or legal holiday, enter  
the next business day.  
Do not figure any required installment until after the end  
of the month preceding the due date for that installment.  
!
CAUTION  
Extraordinary items. Generally, under the annualized income  
installment method, extraordinary items must be taken into  
account after annualizing the taxable income for the  
annualization period. Similar rules apply in determining taxable  
income under the adjusted seasonal installment method. An  
extraordinary item includes:  
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Instructions for Form 1120-W (2022)  
 
Any item identified in Regulations section 1.1502-76(b)(2)(ii)  
adjustment, special rules apply. Include these amounts on  
line 9b for the appropriate period. Also include on line 9b the de  
minimis items that the corporation chooses to exclude from  
line 2. See Extraordinary items, earlier.  
(C)(1), (2), (3), (4), (7), and (8);  
A net operating loss carryover;  
A section 481(a) adjustment;  
Net gain or loss from the disposition of 25% or more of the fair  
Line 10  
market value of the corporation's business assets during the tax  
year; and  
Figure the tax on the amount on line 9c by following the same  
steps used to figure the tax on Form 1120-W, page 1, line 2.  
Any other item designated as an extraordinary item in the  
Internal Revenue Bulletin.  
Line 15. Reserved  
These extraordinary items must be accounted for in the  
appropriate annualization period. However, a net operating loss  
deduction and a section 481(a) adjustment (unless the  
corporation makes the alternative choice under Regulations  
section 1.6655-2(f)(3)(ii)(C)) are treated as extraordinary items  
occurring on the first day of the tax year in which the item is  
taken into account in determining taxable income.  
De minimis rule. Extraordinary items identified above that  
are de minimis as described below (other than a net operating  
loss carryover or a section 481(a) adjustment) may be  
annualized using the general rules of Regulations section  
1.6655-2(f), or if the corporation chooses, may be taken into  
account after annualizing the taxable income for the  
annualization period. A de minimis extraordinary item is any  
extraordinary item resulting from a transaction in which the total  
extraordinary items resulting from such transaction is less than  
$1 million.  
Reserved.  
Line 16. Other Taxes  
For the same taxes used to figure page 1, Part I, line 5, figure the  
amounts for the months shown in the column headings above  
line 1.  
Line 18. Credits  
Enter the credits to which the corporation is entitled for the  
months shown in the column headings above line 1.  
Part II. Annualized Income Installment  
Method  
Line 20. Annualization Periods  
For more information regarding extraordinary items, see  
Regulations section 1.6655-2(f)(3)(ii) and the examples in  
Regulations section 1.6655-2(f)(3)(vii). Also see Regulations  
section 1.6655-3(d)(3).  
Enter in the space on line 20, columns (a) through (d),  
respectively, the annualization periods that the corporation is  
using, based on the options listed below. For example, if the  
corporation elects Option 1, enter on line 20 the annualization  
periods 2, 4, 7, and 10 in columns (a) through (d), respectively.  
Part I. Adjusted Seasonal  
Installment Method  
Use Option 1 or Option 2 only if the corporation elected  
to use one of these options by filing Form 8842, Election  
!
CAUTION  
To Use Different Annualization Periods for Corporate  
Complete this part only if the corporation's base period  
percentage for any 6 consecutive months of the tax year equals  
or exceeds 70% (0.70). Figure the base period percentage using  
the 6-month period in which the corporation normally receives  
the largest part of its taxable income. The base period  
percentage for any period of 6 consecutive months is the  
average of the three percentages figured by dividing the taxable  
income for the corresponding 6-consecutive-month period in  
each of the 3 preceding tax years by the taxable income for each  
of their respective tax years.  
Estimated Tax, on or before the due date of the first required  
installment payment. Once made, the election is irrevocable for  
the particular tax year.  
1st  
2nd  
3rd  
4th  
Installment Installment Installment Installment  
Standard option  
3
2
3
3
4
5
6
7
8
9
Option 1  
Option 2  
.
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.
.
.
.
.
.
.
.
10  
11  
Example. An amusement park with a calendar year as its tax  
year receives the largest part of its taxable income during the  
6-month period from May through October. To compute its base  
period percentage for this 6-month period in 2022, the  
amusement park figures its taxable income for each May–  
October period in 2019, 2020, and 2021. It then divides the  
taxable income for each May–October period by the total taxable  
income for that particular tax year. The resulting percentages are  
69% (0.69) for May–October 2019, 74% (0.74) for May–October  
2020, and 67% (0.67) for May–October 2021. Because the  
average of 69%, 74%, and 67% is 70%, the base period  
percentage for May through October 2022 is 70%. Therefore,  
the amusement park qualifies for the adjusted seasonal  
installment method.  
Line 21. Taxable Income  
If a corporation has income includible under section 951(a)  
(controlled foreign corporation income), special rules apply.  
Amounts includible in income under section 951(a) must  
generally be taken into account in figuring the amount of any  
annualized income installment as the income is earned. The  
amounts are figured in a manner similar to the way in which  
partnership income inclusions are taken into account in figuring  
a partner's annualized income installments as provided in  
Regulations section 1.6654-2(d)(2).  
Line 2  
If the corporation has certain extraordinary items, special rules  
apply. Do not include on line 2 the de minimis extraordinary  
items that the corporation chooses to include on line 9b. See  
Extraordinary items, earlier.  
Safe harbor election. Corporations may be able to make a  
prior-year safe harbor election. Under the election, an eligible  
corporation is treated as having received ratably during the tax  
year items of income under section 951(a) equal to 115% (100%  
for a noncontrolling shareholder) of the amounts shown on the  
corporation's return for the first preceding tax year (the second  
preceding tax year for the first and second required  
installments).  
Line 9b  
If the corporation has extraordinary items that are not de  
minimis, a net operating loss deduction, or a section 481(a)  
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Instructions for Form 1120-W (2022)  
For more information, see section 6655(e)(4)(B) and  
Regulations section 1.6655-2(f)(3)(v)(B)(2).  
credit. However, when figuring the credits, annualize any item of  
income or deduction used to figure the credit.  
Extraordinary items. If the corporation has extraordinary  
items, special rules apply. Do not include on line 21 the de  
minimis extraordinary items that the corporation chooses to  
include on line 23b. See Extraordinary items, earlier.  
Part III. Required Installments  
Line 33  
Before completing line 33 in columns (b) through (d), complete  
lines 34 through 38 in each of the preceding columns. For  
example, complete lines 34 through 38 in column (a) before  
completing line 33 in column (b).  
Line 22. Annualization Amounts  
Enter the annualization amounts for the option used on line 20.  
For example, if the corporation elects Option 1, enter on line 22  
the annualization amounts 6, 3, 1.71429, and 1.2 in columns (a)  
through (d), respectively.  
Line 35  
“Large corporations,” see the instructions for page 1, line 11, for  
the amount to enter.  
1st  
2nd  
3rd  
4th  
Installment Installment Installment Installment  
Line 38. Required Installments  
Standard option  
4
6
4
4
3
2
1.33333  
1.2  
For each installment, enter the smaller of line 34 or line 37 on  
line 38. Also enter the result on page 1, Part I, line 11.  
Option 1  
Option 2  
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1.71429  
1.5  
2.4  
1.09091  
Paperwork Reduction Act Notice. Your use of this form is  
optional. It is provided to aid the corporation in determining its  
tax liability.  
Line 23b  
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  
If the corporation has extraordinary items that are not de  
minimis, a net operating loss deduction, or a section 481(a)  
adjustment, special rules apply. Include these amounts on  
line 23b. Also include on line 23b the de minimis extraordinary  
items that the corporation chooses to exclude from line 21. See  
Extraordinary items, earlier.  
information are confidential, as required by section 6103.  
Line 24  
The time needed to complete and file this form will vary  
depending on individual circumstances. The estimated burden  
for business taxpayers filing this form is approved under OMB  
control number 1545-0123 and is included in the estimates  
shown in the instructions for their business income tax return.  
Figure the tax on the amount in each column on line 23c by  
following the same steps used to figure the tax on Form 1120-W,  
page 1, line 2.  
Line 25. Reserved  
If you have comments concerning the accuracy of these time  
estimates or suggestions for making this form simpler, we would  
be happy to hear from you. You can send us comments through  
IRS.gov/FormComments. Or you can write to the Internal  
Revenue Service, Tax Forms and Publications Division, 1111  
Constitution Ave. NW, IR-6526, Washington, DC 20224. Do not  
send the tax form to this office. Instead, keep the form for your  
records.  
Reserved.  
Line 26. Other Taxes  
Figure the amounts for the months shown on line 20 for the  
same taxes used to figure page 1, line 5.  
Line 28. Credits  
Enter the credits to which the corporation is entitled for the  
months shown in each column on line 20. Do not annualize any  
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Instructions for Form 1120-W (2022)