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Form 8804-W Instruktioner

Instruktioner för formulär 8804-W (WORKSHEET), installationsbetalningar av avsnitt 1446 Skatt för partnerskap

Rev 2024

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  • Form 8804-W - Betalning av avsnitt 1446 Skatt för partnerskap
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Department of the Treasury  
Internal Revenue Service  
2024  
Instructions for Form 8804-W  
(WORKSHEET)  
Installment Payments of Section 1446 Tax for Partnerships  
Section references are to the Internal Revenue  
Code unless otherwise noted.  
must file Form 8813. Furthermore, the  
partnership is generally required to notify  
each foreign partner of the section 1446  
tax paid on the partner's behalf within 10  
days of the installment payment due date,  
or, if paid later, the date the installment  
payment is made. See Regulations  
section 1.1446-3(d)(1)(i) for information  
that must be included in the notification  
and for exceptions to the notification  
requirement.  
A partner may be entitled to use a  
preferential rate on the following types of  
income or gain.  
1. Line 1i—See section 1(h)(4) and  
the instructions for Schedule D (Form  
1040), line 18, for more information  
regarding 28% rate gain.  
Future Developments  
For the latest information about  
developments related to Form 8804-W  
and its instructions, such as legislation  
enacted after they were published, go to  
2. Line 1m—See section 1(h)(6) and  
the instructions for Schedule D (Form  
1040), line 19, for more information  
General Instructions  
regarding unrecaptured section 1250 gain.  
3. Line 1q—Adjusted net capital gain  
is net capital gain, as defined in section  
1222(11), reduced (but not below zero) by  
the sum of (a) unrecaptured section 1250  
gain, and (b) 28% rate gain, plus qualified  
dividend income. See section 1(h)(3).  
Refiguring Estimated  
Section 1446 Tax  
Purpose of Form  
Partnerships that have effectively  
connected taxable income (ECTI)  
allocable to foreign partners can use the  
Form 8804-W (WORKSHEET) to  
determine the proper estimated section  
1446 tax payments.  
If, after the partnership figures and makes  
an installment payment of estimated  
section 1446 tax, it finds that its section  
1446 tax liability for the year will be more  
or less than originally estimated, it may  
have to refigure its required installments. If  
earlier installments were underpaid, the  
partnership may owe a penalty for  
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 1a, 1e, 1i, 1m, and 1q,  
Who Must Make Estimated  
Section 1446 Tax  
Payments  
underpayment of estimated tax. An  
immediate catch-up 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  
payment, or a mistake.  
Partnerships must generally make  
installment payments of estimated section  
1446 tax if the aggregate tax on the ECTI  
that is allocable to all foreign partners will  
be $500 or more.  
respectively. Don’t enter a negative  
number on line 1a, 1e, 1i, 1m, or 1q. See  
section 1(h) and Notice 97-59, 1997-45  
I.R.B. 7, available at IRS.gov/pub/irs-irbs/  
irb97-45.pdf, for rules for netting gains and  
losses.  
When To Make Estimated  
Section 1446 Tax  
Payments  
Specific Instructions  
Lines 1b, 1f, 1j, 1n, and 1r. Enter the  
reduction amounts for state and local  
taxes under Regulations section  
Part I—Determination of  
1.1446-6(c)(1)(iii). See Reductions for  
State and Local Taxes in the Instructions  
for Forms 8804, 8805, and 8813 for  
additional information. The netting rules  
under section 1(h) and Notice 97-59 must  
be considered in determining the category  
of income the reduction amounts offset.  
Installment Payments  
The installments are due by the 15th day  
of the 4th, 6th, 9th, and 12th months of the  
partnership's tax year. If any date falls on a  
Saturday, Sunday, or legal holiday, the  
installment is due on the next regular  
business day.  
Complete Form 8804-W for each  
installment payment of section 1446 tax  
based on the information available at the  
time of the installment payment.  
Lines 1 Through 6—Current  
Year Safe Harbor  
Underpayment of  
Estimated Section 1446  
Tax  
Lines 1c, 1g, 1k, 1o, and 1s. Enter the  
reduction amounts resulting from certified  
partner-level items received from foreign  
partners using Form 8804-C. See  
Lines 1a, 1e, 1i, 1m, and 1q. To  
determine the allocable share of ECTI for  
all foreign partners, see Effectively  
Connected Taxable Income in the  
Instructions for Forms 8804, 8805, and  
8813. Enter on lines 1i, 1m, and 1q the  
specified types of ECTI allocable to those  
partners who would be entitled to use a  
preferential rate on such income or gain  
(see Regulations section 1.1446-3(a)(2)).  
For tiered partnerships, see Regulations  
section 1.1446-5.  
A partnership that doesn’t make estimated  
section 1446 tax payments when due may  
be subject to an underpayment penalty for  
the period of underpayment. See  
Certification of Deductions and Losses in  
the Instructions for Forms 8804, 8805, and  
8813 for additional information. The  
netting rules under section 1(h) and Notice  
97-59 must be considered in determining  
the category of income the reduction  
amounts offset.  
Schedule A (Form 8804) for details.  
How To Make Estimated  
Section 1446 Tax  
Payments  
Line 8—Prior Year Safe Harbor  
Enter the total section 1446 tax that would  
have been due for 2023, applying the  
2023 rates (see the 2023 Form 8804-W for  
A partnership that is required to make an  
installment payment of section 1446 tax  
Jul 25, 2023  
Cat. No. 51675X  
   
the 2023 rates), on ECTI allocable to all  
foreign partners for 2023, without any  
reductions for state and local taxes under  
Regulations section 1.1446-6(c)(1)(iii) or  
certified partner-level items. For the  
partnership's first installment payment, if  
the 2023 Form 8804 hasn’t yet been filed,  
an estimate is acceptable. However, if the  
partnership later determines that this  
estimate is incorrect, see Refiguring  
method) or the partnership chooses not to  
continue using it), in order to avoid an  
underpayment penalty on the current  
installment payment, the partnership must  
pay the sum of (a) the current installment  
payment based on the current year safe  
harbor, plus (b) the sum of the amount by  
which the current year safe harbor  
exceeds the prior year safe harbor amount  
paid in for each prior installment period  
during which it qualified for the prior year  
safe harbor.  
installment (if applicable), or (c) the  
current year safe harbor (increased by any  
recapture of a reduction in a required  
installment under section 6655(e)(1)(B)).  
Line 12  
Include on line 12 any 2023 overpayment  
that the partnership chose to credit  
against its 2024 tax. The overpayment is  
credited against unpaid required  
installments in the order in which the  
installments are required to be paid.  
Complete line 8 only if all of the  
following apply.  
Also, include on line 12 the following:  
Line 9  
Section 1446 tax withheld and paid by  
You can enter the smaller of line 7 or  
line 8. However, if, for any installment  
payment, line 7 is smaller than line 8 and  
you enter that smaller line 7 amount on  
line 9, you won’t qualify for the prior year  
safe harbor when determining any penalty  
due on Schedule A (Form 8804) (see the  
line 8 instructions, earlier). Therefore, in  
that case, for any subsequent installment  
payment during the tax year, don’t use the  
line 8 amount.  
The prior tax year consisted of 12  
another partnership because the  
partnership preparing this Form 8804-W  
was a partner in that partnership during  
the tax year. See the instructions for Form  
8804, line 6b and line 6c, in the  
Instructions for Forms 8804, 8805, and  
8813.  
months.  
The partnership timely files (including  
extensions) a U.S. return of partnership  
income (for example, Form 1065) for the  
prior year.  
The amount of ECTI for the prior tax  
year is not less than 50% of the ECTI  
expected for the current tax year.  
Furthermore, the Form 8804 on which the  
current year ECTI will be reported must be  
timely filed.  
Section 1445(a) or 1445(e)(1) tax  
withheld from or paid by the partnership  
filing this Form 8804-W during the tax year  
for a disposition of a U.S. real property  
interest. See the instructions for Form  
8804, line 6d and line 6e, in the  
Instructions for Forms 8804, 8805, and  
8813.  
Line 10—Installment Due Dates  
If any of the above does not apply, skip  
line 8 and enter the amount from line 7 on  
line 9.  
Calendar-year taxpayers. Enter  
4-15-2024, 6-17-2024, 9-16-2024, and  
12-16-2024, respectively, in columns (a)  
through (d).  
Section 1446(f)(1) tax withheld from the  
If the partnership qualifies to use the  
prior year safe harbor and chooses that  
method, it must use that method to pay  
each of its installments during the tax year.  
Furthermore, for each installment  
partnership filing this Form 8804-W during  
the tax year for a disposition of an interest  
in a 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.  
Fiscal-year taxpayers. Enter the 15th  
day of the 4th, 6th, 9th, and 12th months  
of the partnership's tax year in columns (a)  
through (d). If the regular due date falls on  
a Saturday, Sunday, or legal holiday, enter  
the next business day.  
payment, the average of that installment  
and prior installments during the tax year  
must be at least 25% of the amount that  
satisfies the partnership's section 1446 tax  
liability under the prior year safe harbor. If  
the partnership doesn’t satisfy both of  
these requirements, it won’t qualify for the  
prior year safe harbor when determining  
any penalty due on Schedule A (Form  
8804).  
Line 11  
The partnership generally enters these  
amounts in the column that corresponds to  
the installment period for which these  
amounts were paid or withheld. However,  
if the partnership learns about the  
Enter 25% (0.25) of line 9 in columns (a)  
through (d). If the partnership uses the  
annualized income installment method or  
the adjusted seasonal installment method,  
then enter the amount from line 43.  
payments or withholding in a subsequent  
installment period, the partnership can  
claim them in that period.  
Annualized income installment method  
and/or adjusted seasonal installment  
method. If the partnership's ECTI 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  
If the partnership begins using the prior  
year safe harbor method and it determines  
later in the tax year (based upon the  
standard option annualization method,  
described later in these instructions) that it  
won’t meet the 50% of ECTI requirement  
described in the last bulleted item above, it  
can make all subsequent installment  
payments using the standard option  
annualization method and it won’t be  
subject to the penalty determined on  
Schedule A (Form 8804). This change in  
method must be disclosed in a statement  
attached to the Form 8804 filed by the  
partnership for the current tax year. The  
statement must include enough  
Parts II Through IV  
If only the adjusted seasonal installment  
method (Part II) is used, complete Parts II  
and IV. If only the annualized income  
installment method (Part III) is used,  
complete Parts III and IV. If both methods  
are used, complete all three Parts. Enter in  
each column on line 11 the amounts from  
the corresponding column of line 43.  
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 Part II and/or Part III of the form.  
If those Parts are used for any payment  
date, those Parts must be used for all  
subsequent payment due dates. To arrive  
at the amount of each required installment,  
Part IV automatically selects the smallest  
of (a) the annualized income installment (if  
applicable), (b) the adjusted seasonal  
Don’t figure any required  
installment until after the end of  
!
CAUTION  
the month preceding the due date  
for that installment.  
information to allow the IRS to determine  
whether the change was appropriate.  
Extraordinary items. Generally, under  
the annualized income installment  
If the partnership begins using the prior  
year safe harbor method and switches to  
the current year safe harbor (because the  
partnership doesn’t qualify for the relief  
described in the previous paragraph (that  
is, using the standard option annualization  
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:  
Instructions for Form 8804-W (2024)  
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Any item identified in Regulations  
period in which the partnership normally  
receives the largest part of its ECTI. The  
example, if the partnership elects Option  
1, enter on line 30 the annualization  
section 1.1502-76(b)(2)(ii)(C)(1), (2), (3),  
(4), (7), and (8);  
base period percentage for any period of 6 periods 2, 4, 7, and 10, in columns (a)  
A section 481(a) adjustment; and  
consecutive months is the average of the  
three percentages figured by dividing the  
ECTI for the corresponding  
through (d), respectively.  
Net gain or loss from the disposition of  
Use Option 1 or Option 2 only if  
25% or more of the fair market value of the  
partnership's business assets during the  
tax year.  
the partnership elected to use one  
!
6-consecutive-month period in each of the  
3 preceding tax years by the ECTI for each  
of their respective tax years.  
CAUTION  
of these options by filing Form  
8842, Election To Use Different  
These extraordinary items must be  
Annualization Periods for Corporate  
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.  
accounted for in the appropriate  
Example. An amusement park with a  
calendar year as its tax year receives the  
largest part of its ECTI during a 6-month  
period, May through October. To figure its  
base period percentage for this 6-month  
period, the amusement park figures its  
ECTI for each May–October period in  
2021, 2022, and 2023. It then divides the  
ECTI for each May–October period by the  
total ECTI for that particular tax year. The  
resulting percentages are 69% (0.69) for  
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  
determining ECTI.  
1st  
Install-  
ment  
2nd  
Install-  
ment  
3rd  
Install-  
ment  
4th  
Install-  
ment  
Standard  
Option  
For more information regarding  
3
2
3
3
4
5
6
7
8
9
extraordinary items, see Regulations  
Option 1  
Option 2  
10  
11  
section 1.6655-2(f)(3)(ii) and the examples May–October 2021, 74% (0.74) for May–  
in Regulations section 1.6655-2(f)(3)(vii).  
Also, see Regulations section 1.6655-3(d)  
(3).  
October 2022, and 67% (0.67) for May–  
October 2023. Because the average of  
69% (0.69), 74% (0.74), and 67% (0.67) is  
70% (0.70), the base period percentage  
for May–October 2024 is 70% (0.70).  
Therefore, the amusement park qualifies  
for the adjusted seasonal installment  
method.  
De minimis rule. Extraordinary items  
identified above resulting from a particular  
transaction that total less than $1 million  
(other than a section 481(a) adjustment)  
can be annualized using the general rules  
of Regulations section 1.6655-2(f), or, if  
the partnership chooses, can be taken into  
account after annualizing the ECTI for the  
annualization period.  
Line 31—ECTI Allocable to All  
Foreign Partners  
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. To determine the allocable share  
of ECTI for all foreign partners, see  
Effectively Connected Taxable Income in  
the Instructions for Forms 8804, 8805, and  
8813.  
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.  
Part II—Adjusted Seasonal  
Installment Method  
Line 22b  
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 partnership chooses to include on  
line 33a, 33e, 33i, 33m, or 33q,  
respectively. See Extraordinary items,  
earlier.  
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.  
Note. Part II 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 II will be  
predominantly (or exclusively) ordinary  
income. If the partnership wishes to  
consider lower preferential rates for Part II  
(and if the requirements outlined in the  
Note in the line 31 instructions are met), it  
should prepare a statement which  
Note. Enter on lines 31c through 31e the  
specified types of ECTI (a) allocable to  
those partners who would be entitled to  
use a preferential rate on such income or  
gain (see Regulations section 1.1446-3(a)  
(2)), and (b) for whom the partnership has  
sufficient documentation to meet the  
requirements of Regulations section  
1.1446-3(a)(2)(ii).  
A partner may be entitled to use a  
preferential rate on the following types of  
income or gain.  
1. Line 31c—See section 1(h)(4) and  
the instructions for Schedule D (Form  
1040), line 18, for more information  
regarding 28% rate gain.  
Line 23  
appropriately expands lines 15 and 22  
through 25 to show the applicable special  
types of income or gain and the applicable  
percentages (see, for example, lines 33  
and 34 of this Form 8804-W). Also, Part II,  
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  
Enter the reduction to the line 22c amount  
for state and local taxes under Regulations  
section 1.1446-6(c)(1)(iii) and for certified  
foreign partner-level items submitted  
under Regulations section 1.1446-6. See  
Certification of Deductions and Losses in  
the Instructions for Forms 8804, 8805, and  
8813 for additional information.  
partnership with corporate and  
Part III—Annualized  
Income Installment  
Method  
non-corporate partners completing Part II  
should prepare a statement which  
appropriately expands lines 15 and 22  
through 25 to show the amounts allocable  
to both types of partners.  
2. Line 31d—See section 1(h)(6) and  
the instructions for Schedule D (Form  
1040), line 19, for more information  
Line 30—Annualization Periods  
Complete this part only if the  
Enter in the space on line 30, columns (a)  
through (d), respectively, the annualization  
periods that the partnership is using,  
based on the options listed below. For  
regarding unrecaptured section 1250 gain.  
partnership's base period percentage for  
any 6 consecutive months of the tax year  
equals or exceeds 70%. Figure the base  
period percentage using the 6-month  
3. Line 31e—Adjusted net capital gain  
is net capital gain, as defined in section  
1222(11), reduced (but not below zero) by  
Instructions for Form 8804-W (2024)  
-3-  
the sum of (a) unrecaptured section 1250  
gain, and (b) 28% rate gain, plus qualified  
dividend income. See section 1(h)(3).  
particular transaction, or a section 481(a)  
adjustment, special rules apply. Include  
these amounts on line 33a, 33e, 33i, 33m,  
or 33q, depending upon 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,  
additional information. The netting rules  
under section 1(h) and Notice 97-59 must  
be considered in determining the category  
of income the reduction amounts offset.  
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 31a through 31e, respectively.  
Don’t enter a negative number on lines  
31a through 31e. See section 1(h) and  
Notice 97-59 for rules for netting gains and  
losses.  
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 Instructions for Forms 8804, 8805, and  
8813 for additional information. The  
netting rules under section 1(h) and Notice  
97-59 must be considered in determining  
the category of income the reduction  
amounts offset.  
respectively. See Extraordinary items,  
earlier.  
Enter on lines 33i, 33m, and 33q the  
specified types of ECTI if the partner  
would be entitled to use a preferential rate  
on the income or gain (see Regulations  
section 1.1446-3(a)(2)).  
1. Line 33i—See section 1(h)(4) and  
the instructions for Schedule D (Form  
1040), line 18, for more information  
regarding 28% rate gain.  
Line 32—Annualization  
Amounts  
Enter the annualization amounts for the  
option used on line 30. For example, if the  
partnership elects Option 1, enter on  
line 32 the annualization amounts 6, 3,  
1.71429, and 1.2, in columns (a) through  
(d), respectively.  
Part IV—Required  
Installments Under Part II  
and/or Part III  
2. Line 33m—See section 1(h)(6) and  
the instructions for Schedule D (Form  
1040), line 19, for more information  
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).  
1st  
Install-  
ment  
2nd  
Install-  
ment  
3rd  
Install-  
ment  
4th  
Install-  
ment  
regarding unrecaptured section 1250 gain.  
3. Line 33q—Adjusted net capital gain  
is net capital gain, as defined in section  
1222(11), reduced (but not below zero) by  
the sum of (a) unrecaptured section 1250  
gain, and (b) 28% rate gain, plus qualified  
dividend income. See section 1(h)(3).  
Standard  
Option  
4
6
4
4
3
2
1.33333  
1.2  
Option 1  
Option 2  
1.71429  
1.5  
Line 43—Required Installments  
2.4  
1.09091  
For each installment, enter the smaller of  
line 39 or line 42 on line 43. Also, enter the  
result on line 11.  
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). See Reductions for  
Lines 33a, 33e, 33i, 33m, and  
33q  
If the partnership has certain extraordinary State and Local Taxes in the Instructions  
items that total $1 million or more from a  
for Forms 8804, 8805, and 8813 for  
Paperwork Reduction Act Notice. Your use of this form is optional. It is provided to aid the partnership in determining its tax liability.  
You aren’t 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 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’d be happy  
to hear from you. You can send us comments from 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. Don’t send the tax form to this office.  
Instead, keep the form for your records.  
Instructions for Form 8804-W (2024)  
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