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Formulaire 8804 Instructions pour l'annexe A

Instructions pour l'annexe A (formulaire 8804), Pénalité en cas de sous-paiement de l'impôt prévu à l'article 1446 pour les sociétés de personnes

Rév. 2023

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Department of the Treasury  
Internal Revenue Service  
2023  
Instructions for Schedule A  
(Form 8804)  
Penalty for Underpayment of Estimated Section 1446 Tax for Partnerships  
Section references are to the Internal  
Revenue Code unless otherwise noted.  
the ECTI allocable to foreign partners  
for 2022, provided that (1) this amount Form 8804, line 8.  
is at least 50% of the sum of the If the total section 1446 tax, shown  
8804. Be sure to check the box on  
Future Developments  
amounts shown on lines 4d, 4h, 4l, 4p, on Part II, line 1, is $500 or more,  
and 4t of its 2023 Form 8804; and (2)  
the tax year was for a full 12 months.  
complete the rest of page 1 to  
For the latest information about  
developments related to Schedule A  
(Form 8804) and its instructions, such  
as legislation enacted after they were  
published, go to IRS.gov/About-  
determine the underpayment for any  
See the instructions for line 2, later, for of the installment due dates.  
more details.  
If there is an underpayment on  
line 12 (column (a), (b), (c), or (d)), go  
to Part VII to figure the penalty.  
In these instructions, “Form 8804”  
generally refers to the partnership's  
original Form 8804. However, an  
amended Form 8804 is considered  
the original Form 8804 if the amended  
Form 8804 is filed by the due date  
(including extensions) of the original  
Form 8804.  
Complete Parts IV through VI as  
appropriate if the partnership uses the  
adjusted seasonal installment method  
and/or the annualized income  
installment method.  
General Instructions  
Purpose of Form  
Partnerships that have effectively  
connected taxable income (ECTI)  
allocable to foreign partners use  
Schedule A (Form 8804) to determine:  
Specific Instructions  
Part I. Reasons for Filing  
Adjusted seasonal installment  
method and/or annualized income  
installment method. If the  
Also, for purposes of determining a  
required installment, if an amended  
Form 8804 is filed for the prior tax  
year, then “prior tax year” includes the  
amended Form 8804, but only if the  
amended Form 8804 is filed before  
the applicable installment due date.  
Whether they are subject to the  
penalty for underpayment of  
estimated tax and, if so,  
The amount of the underpayment  
penalty.  
partnership's income varied during the  
year because, for example, it operated  
its business on a seasonal basis, it  
may be able to lower or eliminate the  
amount of one or more required  
installments by using the adjusted  
seasonal installment method and/or  
the annualized income installment  
method.  
Who Must File  
The penalty is figured separately  
for each installment due date.  
Therefore, the partnership may owe a  
penalty for an earlier due date even if  
it paid enough tax later to make up the  
underpayment. This is true even if the  
partnership is due a refund when its  
return is filed. However, the  
Generally, the partnership doesn’t  
have to file this schedule because the  
IRS will figure the amount of the  
penalty and notify the partnership of  
any amount due. However, even if the  
partnership doesn’t owe a penalty,  
complete and attach this schedule to  
the partnership's Form 8804 if Part II,  
line 1 amount is $500 or more and any  
of the following apply.  
Example 1. A ski shop, which  
receives most of its income during the  
winter months, may benefit from using  
one or both of these methods to figure  
its required installments. The  
partnership may be able to reduce or  
eliminate the penalty by using the  
annualized income installment  
method or the adjusted seasonal  
installment method. See the  
1. The adjusted seasonal  
installment method is used.  
annualized income installment or  
adjusted seasonal installment may be  
less than the required installment  
under the current year safe harbor  
(increased by any reduction  
instructions for Parts IV and V for  
details.  
2. The annualized income  
installment method is used.  
Exception to the Penalty  
Who Must Pay the  
A partnership won’t have to pay a  
penalty if the tax shown on line 5f of  
its 2023 Form 8804 is less than $500.  
recaptured under section 6655(e)(1)  
(B)) for one or more due dates. Using  
one or both of these methods may  
reduce or eliminate the penalty for  
those due dates.  
Underpayment Penalty  
Generally, a partnership is subject to  
the penalty if it didn’t timely pay in  
installments at least the smaller of:  
How To Use Schedule A  
1. The tax shown on line 5f of its  
Complete this schedule as follows.  
Use Parts IV through VI of  
2023 Form 8804; or  
Schedule A (Form 8804) to figure one  
or more required installments. If Parts  
IV through VI are used for any  
Check one or both of the boxes in  
2. The total section 1446 tax that  
would have been due for 2022,  
Part I that apply. If the partnership  
checks a box in Part I, attach  
without regard to reductions for  
certified foreign partner-level items, on  
payment due date, Parts IV through VI  
Schedule A (Form 8804) to Form  
Aug 15, 2023  
Cat. No. 36325U  
must be used for all subsequent  
payment due dates. To arrive at the  
amount of each required installment,  
Part VI uses the smallest of:  
partnership income (for example,  
Form 1065) for the prior tax year.  
Instructions for Forms 8804, 8805,  
and 8813.  
The amount of ECTI for the prior tax  
Section 1446(f)(1) tax withheld from  
year isn’t less than 50% of the ECTI  
shown on the current year Form 8804  
that is (or will be) timely filed.  
If the partnership isn’t permitted to  
use the prior year safe harbor method  
because any of the necessary  
conditions described above isn’t met,  
skip line 2 and enter on line 3 the  
amount from line 1.  
the partnership filing this Schedule A  
(Form 8804) during the tax year for a  
disposition of an interest in a  
The adjusted seasonal installment  
(if applicable),  
The annualized income installment  
partnership engaged in the conduct of  
a U.S. trade or business. See the  
instructions for Form 8804, lines 6f  
and 6g, in the Instructions for Forms  
8804, 8805, and 8813.  
(if applicable), or  
The current year safe harbor  
(increased by any reduction  
recaptured under section 6655(e)(1)  
(B)).  
Column (a). Enter payments made  
by the date on line 4, column (a).  
Follow the steps below to  
determine which parts of the form  
have to be completed.  
Note. If the partnership qualifies for  
and uses the exception under  
Columns (b), (c), and (d). Enter  
payments made on or before the date  
on line 4 for that column and after the  
date on line 4 of the preceding  
column.  
Regulations section 1.1446-3(b)(3)(ii)  
to switch to the standard option  
annualization method during the tax  
year, the partnership should include  
on line 2 the total of all installment  
payments that were made during the  
tax year under both the prior year safe  
harbor method and the standard  
option annualization method. Attach a  
statement that explains the  
If the partnership is using only the  
adjusted seasonal installment  
method, check the applicable box in  
Part I and complete Parts IV and VI of  
Schedule A (Form 8804).  
Note. A payment of estimated tax is  
applied against unpaid installments in  
the order in which installments are  
required to be paid, regardless of the  
installment to which the payment  
pertains. See Example 3 under Part  
Line 12. If any of the columns in  
line 12 shows an underpayment,  
complete Part VII to figure the penalty.  
If the partnership is using only the  
annualized income installment  
method, check the applicable box in  
Part I and complete Parts V and VI of  
Schedule A (Form 8804).  
computation.  
If the partnership is using both  
methods, check both of the boxes in  
Part I and complete all three parts  
(Parts IV through VI) of Schedule A  
(Form 8804).  
Part III. Figuring the  
Underpayment  
Line 6. Enter the estimated tax  
payments made by the partnership for  
its tax year as indicated below.  
Parts IV Through VI  
Part II. Current Year and  
Prior Year Safe Harbors  
Extraordinary items. Generally,  
under the annualized income  
installment method, extraordinary  
items must be taken into account after  
annualizing the ECTI for the  
annualization period. Similar rules  
apply in determining ECTI under the  
adjusted seasonal installment  
method. An extraordinary item  
includes:  
Include any overpayment from line 13  
of the partnership's 2022 Form 8804  
that was credited to the partnership's  
first installment period on its 2023  
Form 8804. If an installment is due on  
a Saturday, Sunday, or legal holiday,  
payments made on the next day that  
isn’t a Saturday, Sunday, or legal  
holiday are considered made on the  
due date to the extent the payment is  
Line 2 (prior year safe harbor).  
Enter the total section 1446 tax that  
would have been due for 2022,  
without regard to reductions for  
certified foreign partner-level items on  
the ECTI allocable to foreign partners  
for 2022.  
The partnership can generally use  
the prior year safe harbor only if it paid applied against that required  
Any item identified in Regulations  
the required amount using that  
method for each of its installment  
payments of section 1446 tax during  
the tax year. However, see  
installment.  
Also, include on line 6 any of the  
following:  
section 1.1502-76(b)(2)(ii)(C)(1), (2),  
(3), (4), (7), and (8);  
A section 481(a) adjustment; and  
Net gain or loss from the disposition  
Section 1446 tax paid or withheld  
Regulations section 1.1446-3(b)(3)(ii)  
for an exception. Also, see the Note  
below. In addition, the partnership can  
only use the prior year safe harbor if  
all of the following apply.  
by another partnership in which the  
partnership filing this Schedule A  
(Form 8804) was a partner during the  
tax year. See the instructions for Form  
8804, lines 6b and 6c, in the  
Instructions for Forms 8804, 8805,  
and 8813.  
of 25% or more of the fair market  
value of the partnership's business  
assets during the tax year.  
These extraordinary items must be  
accounted for in the appropriate  
annualization period. However, a  
section 481(a) adjustment (unless the  
partnership makes the alternative  
choice under Regulations section  
1.6655-2(f)(3)(ii)(C)) is treated as an  
extraordinary item occurring on the  
first day of the tax year in which the  
item is taken into account in  
Each installment payment that was  
made during the tax year, when  
averaged with all prior installment  
payments, must have been 25% of the  
partnership's total section 1446 tax  
liability under the prior year safe  
harbor.  
Section 1445(a) or 1445(e) tax  
withheld from or paid by the  
partnership filing this Schedule A  
(Form 8804) during the tax year for a  
disposition of a U.S. real property  
interest. See the instructions for Form  
8804, lines 6d and 6e, in the  
The prior tax year consisted of 12  
months.  
determining ECTI.  
The partnership timely files  
(including extensions) a U.S. return of  
Instructions for Schedule A (Form 8804) (2023)  
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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  
period in which the partnership  
normally receives the largest part of  
its ECTI.  
periods for the option listed below. For  
example, if the partnership elected  
Option 1, enter on line 30 the  
annualization periods 2, 4, 7, and 10,  
in columns (a) through (d),  
Example 2. An amusement park  
with a 2023 calendar tax year receives  
the largest part of its taxable income  
during a 6-month period, May through  
Regulations section 1.6655-3(d)(3).  
respectively.  
Use Option 1 or Option 2 only  
De minimis rule. Extraordinary  
if the partnership elected to do  
items identified above resulting from a October. To figure its base period  
!
CAUTION  
so by filing Form 8842,  
particular transaction that totals less  
than $1 million (other than a section  
percentage for this 6-month period,  
the amusement park figures its ECTI  
Election To Use Different  
Annualization Periods for Corporate  
Estimated Tax, by the due date of the  
first required installment payment.  
Once made, the election is irrevocable  
for the particular tax year.  
481(a) adjustment) can be annualized for each May–October period in 2020,  
using the general rules of Regulations 2021, and 2022. It then divides the  
section 1.6655-2(f), or, if the  
ECTI for each May–October period by  
the total ECTI for that particular tax  
year. The resulting percentages are  
69% (0.69) for May–October 2020,  
74% (0.74) for May–October 2021,  
partnership chooses, can be taken  
into account after annualizing the  
ECTI for the annualization period.  
1st  
Install-  
ment  
2nd  
Install-  
ment  
3rd  
Install-  
ment  
4th  
Install-  
ment  
Part IV. Adjusted Seasonal and 67% (0.67) for May–October  
2022. Because the average of 69%  
Installment Method  
Standard  
Option  
(0.69), 74% (0.74), and 67% (0.67) is  
3
2
3
3
4
5
6
7
8
9
70% (0.70), the base period  
percentage for May–October 2023 is  
70% (0.70). Therefore, the  
amusement park qualifies for the  
adjusted seasonal installment  
method.  
Note. Part IV doesn't reflect the lower  
preferential rates permitted under  
Regulations section 1.1446-3(a)(2).  
These were omitted because, for most  
taxpayers, the income reported in Part  
IV will be predominantly (or  
Option 1  
Option 2  
10  
11  
Line 31. Enter on lines 31a through  
31e the ECTI allocable to all foreign  
partners for the months entered for  
each annualization period in columns  
(a) through (d) on line 30.  
exclusively) ordinary income. If the  
partnership wishes to consider lower  
preferential rates for Part IV (and if the  
requirements outlined in the third  
paragraph of the line 31 instructions  
are met), it must attach a statement  
which appropriately expands lines 15  
and 22 through 25 to show the  
Line 15. If the partnership has certain  
extraordinary items, special rules  
apply. Don’t include on line 15 the de  
minimis extraordinary items that the  
partnership chooses to include on  
line 22b. See Extraordinary items,  
earlier.  
Line 22b. If the partnership has  
certain extraordinary items of $1  
million or more from a transaction, or a  
section 481(a) adjustment, special  
rules apply. Include these amounts on  
line 22b for the appropriate period.  
Also, include on line 22b the de  
minimis extraordinary items that the  
partnership chooses to exclude from  
line 15. See Extraordinary items,  
earlier.  
If the partnership has certain  
extraordinary items, special rules  
apply. Don’t include on line 31a, 31b,  
31c, 31d, or 31e the de minimis  
extraordinary items that the  
applicable special types of income or  
gain and the applicable percentages  
(see, for example, lines 33 and 34 of  
this schedule). Also, Part IV, lines 15  
and 22 through 25, don’t provide the  
separate entries for corporate and  
non-corporate partners necessary to  
apply the rates on lines 25a and 25b.  
A partnership with corporate and  
non-corporate partners completing  
Part IV must attach a statement which  
appropriately expands lines 15 and 22  
through 25 to show the amounts  
partnership chooses to include on  
line 33a, 33e, 33i, 33m, or 33q,  
respectively. See Extraordinary items,  
earlier.  
With respect to lines 31c, 31d, and  
31e, enter the specified types of  
income allocable to non-corporate  
partners if (a) the partners would be  
entitled to use a preferential rate on  
such income or gain (see Regulations  
section 1.1446-3(a)(2)), and (b) the  
partnership has sufficient  
Line 23. Enter the amount by which  
line 22c is being reduced for state and  
local taxes under Regulations section  
1.1446-6(c)(1)(iii) and for certified  
foreign partner-level items submitted  
using Form 8804-C. See Reductions  
for State and Local Taxes and  
allocable to both types of partners.  
documentation to meet the  
requirements of Regulations section  
1.1446-3(a)(2)(ii).  
The partnership can use the  
adjusted seasonal installment method  
only if the partnership's base period  
percentage for any 6 consecutive  
months of the tax year is 70% or more.  
The base period percentage for any  
period of 6 consecutive months is the  
average of the three percentages  
figured by dividing the ECTI for the  
corresponding 6-consecutive-month  
period in each of the 3 preceding tax  
years by the ECTI for each of their  
respective tax years. Figure the base  
period percentage using the 6-month  
If the partnership has net ordinary  
loss, net short-term capital loss, or net  
28% rate loss, each net loss should  
be netted against the appropriate  
categories of income and gain to  
determine the amounts of income and  
gain to be entered on lines 31b, 31c,  
31d, and 31e, respectively. See  
section 1(h) and Notice 97-59,  
Certification of Deductions and  
Losses in the Instructions for Forms  
8804, 8805, and 8813, for additional  
information.  
Part V. Annualized Income  
Installment Method  
Line 30. Annualization periods.  
Enter on line 30, columns (a) through  
(d), respectively, the annualization  
1997-45 I.R.B. 7, available at  
rules for netting gains and losses.  
Instructions for Schedule A (Form 8804) (2023)  
-3-  
extraordinary item, and the net  
amount. Also, include an explanation  
of the item, including the authority  
under which it is being claimed.  
figured for the period of underpayment  
using the underpayment rate  
Line 32. Annualization amounts.  
Enter on line 32, columns (a) through  
(d), respectively, the annualization  
amounts shown in the table below for  
the option used for line 30. For  
example, if the partnership elected  
Option 1, enter on line 32 the  
determined under section 6621(a)(2).  
The period of underpayment runs  
from the installment due date to the  
earlier of the date the underpayment  
is actually paid or the 15th day of the  
3rd month after the close of the 2023  
tax year (the 15th day of the 6th  
month if the partnership keeps its  
books and records outside the United  
States and Puerto Rico). For  
Lines 33b, 33f, 33j, 33n, and 33r.  
Enter the reduction amounts for state  
and local taxes under Regulations  
section 1.1446-6(c)(1)(iii). The netting  
rules under section 1(h) and Notice  
97-59 must be considered in  
annualization amounts 6, 3, 1.71429,  
and 1.2, in columns (a) through (d),  
respectively.  
determining the category of income  
the reduction amounts offset.  
1st  
Install-  
ment  
2nd  
Install-  
ment  
3rd  
Install-  
ment  
4th  
Install-  
ment  
information on obtaining the interest  
rate on underpayments denoted by an  
asterisk, see the footnote on page 5 of  
the schedule.  
Lines 33c, 33g, 33k, 33o, and 33s.  
Enter the reduction amounts resulting  
from certified partner-level items  
received from foreign partners using  
Form 8804-C. See Certification of  
Deductions and Losses in the  
Standard  
Option  
4
6
4
4
3
2
1.33333  
1.2  
Option 1  
Option 2  
1.71429  
1.5  
A payment of estimated tax is  
applied against unpaid required  
installments in the order in which  
installments are required to be paid,  
regardless of the installment to which  
the payment pertains.  
2.4  
1.09091  
Instructions for Forms 8804, 8805,  
and 8813, for additional information.  
The netting rules of section 1(h) and  
Notice 97-59 must be considered in  
determining the category of income  
the reduction amounts offset.  
Lines 33a, 33e, 33i, 33m, and 33q.  
If the partnership has extraordinary  
items that total $1 million or more from  
a particular transaction, or a section  
481(a) adjustment, special rules  
apply. Include these amounts on  
line 33a, 33e, 33i, 33m, or 33q,  
depending on the type of income  
against which the item applies, for the  
appropriate period. Also, include on  
line 33a, 33e, 33i, 33m, or 33q the de  
minimis extraordinary items that the  
partnership chooses to exclude from  
line 31a, 31b, 31c, 31d, or 31e,  
respectively. See Extraordinary items,  
earlier.  
If the partnership has included on  
line 33a, 33e, 33i, 33m, or 33q any of  
the items referred to in the previous  
paragraph, write “EI” and the dollar  
amount of the item next to the affected  
line. Attach a statement which shows  
the income for that line before the  
extraordinary item, the amount of the  
Example 3. A partnership  
underpaid the April 15 installment by  
$1,000. The June 15 installment  
requires a payment of $2,500. On  
June 11, the partnership pays $2,500  
for its June 15 installment. However,  
$1,000 of this payment is applied  
against the April 15 installment. The  
penalty for the April 15 installment is  
figured to June 11 (57 days). The  
remaining $1,500 is applied to the  
June 15 installment as if it were made  
on June 15.  
Part VI. Required  
Installments  
Line 38. Before completing line 38 in  
columns (b) through (d), complete  
lines 39 through 43 in each of the  
preceding columns. For example,  
complete lines 39 through 43 in  
column (a) before completing line 38  
in column (b).  
Line 43. For each installment, enter  
the smaller of line 39 or line 42 on  
line 43. Also, enter the result on line 5.  
If the partnership has made more  
than one payment for a required  
installment, attach a separate  
computation for each payment.  
Part VII. Figuring the  
Penalty  
Complete Part VII to determine the  
amount of the penalty. The penalty is  
Paperwork Reduction Act Notice. We ask for the information on this form to carry out the Internal Revenue laws of the  
United States. You are required to give us the information. We need it to ensure that you are complying with these laws  
and to allow us to figure and collect the right amount of tax.  
You aren’t required to provide the information requested on a form that is subject to the Paperwork Reduction Act  
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retained as long as their contents may become material in the administration of any Internal Revenue law. Generally, tax  
returns and return information are confidential, as required by section 6103.  
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.  
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. See the instructions for the tax return with which this form is filed.  
Instructions for Schedule A (Form 8804) (2023)  
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