Form 990-W (Worksheet) 2017
Page 6
Line 5
The estimated tax credits include the sum of any credits allowable against
unrelated business income tax (except the credits reported on line 9). See
Form 990-T and its instructions for information on the credits that may be
taken.
Line 7
Other taxes include the sum of any recaptured tax credits. See Form 990-T
and its instructions for information on recapture of tax credits that must be
included on this line. Fiscal-year corporate filers, see the 2017 Instructions
for Form 990-T.
Line 9
Complete Form 4136, Credit for Federal Tax Paid on Fuels, if the
organization qualifies to take this credit. Also include on line 9 any credit the
organization is claiming under section 4682(g)(2) for taxes paid on chemicals
used as propellants in metered-dose inhalers.
Line 10a
Subtract line 9 from line 8. Private foundations figure the estimated tax by
multiplying their estimated net investment income by the tax rate (1% or 2%,
whichever applies). Taxable private foundations and nonexempt charitable
trusts treated as private foundations, see O. Figuring and Paying Estimated
Tax and Part VI. Excise Tax Based on Investment Income (Section 4940(a),
4940(b), 4940(e), or 4948), in the Instructions for Form 990-PF, for help in
figuring the estimated tax. Enter that amount on line 10a. See Form 990-PF,
Part VI.
Note: If less than $500, the organization is not required to make estimated
tax payments.
Line 10b
Figure the organization’s 2016 tax the same way you figured line 10a, using
the taxes and credits from your 2016 tax return. If you did not file a return
showing a liability for at least some amount of tax for the 2016 tax year, or if
your 2016 tax year was less than 12 months, do not complete this line.
Instead, enter the amount from line 10a on line 10c. “Large organizations”
see the instructions for line 12 below.
Line 11
Calendar year taxpayers. Enter 4-17-2017 (5-15-2017 for private
foundations), 6-15-2017, 9-15-2017, and 12-15-2017, respectively, in
columns (a) through (d).
Fiscal year taxpayers. Enter the 15th day of the 4th (5th for private
foundations), 6th, 9th, and 12th months of your tax year in columns (a)
through (d).
If any date falls on a Saturday, Sunday, or legal holiday, substitute the next
business day.
Line 12
Annualized income installment method and/or adjusted seasonal
installment method. If the organization’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 shop operated by a museum,
which because of its location in an area frequented by tourists receives most
of its income during the summer 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 you use
Schedule A for any payment due date, you must use it for all payment due
dates. To arrive at the amount of each required installment, Schedule A
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 reduction recapture
under section 6655(e)(1)(B)).
Large organization. A “large organization” is any tax-exempt corporation or
other organization subject to the tax on unrelated business income or any
private foundation subject to the section 4940 tax on net investment income,
that had, or whose predecessor had, taxable income (net investment income
for purposes of the section 4940 tax) of $1 million or more for any of the 3 tax
years immediately preceding the 2017 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. Members of a controlled group, as
defined in section 1563, must divide the $1 million amount among
themselves in accordance with rules similar to those in section 1561. For
more details, see sections 6655(g)(2) and (3).
A large organization not using Schedule A figures the amounts to enter on
Form 990-W, line 12, as follows.
• If line 10a is smaller than line 10b: Enter 25% (0.25) of line 10a in columns
(a) through (d) of line 12.
• If line 10b is smaller than line 10a: In column (a) of line 12, enter 25% (0.25)
of line 10b. In column (b), determine the amount to enter by:
(i) subtracting line 10b from line 10a,
(ii) adding the result to the amount on line 10a, and
(iii) multiplying the total by 25% (0.25). In columns (c) and (d), enter 25%
(0.25) of line 10a.
A large organization using Schedule A follows the foregoing instructions to
figure the amounts to enter on Schedule A, line 37.
Large organizations meeting other criteria may also have to follow special
rules. For organizations with assets of $1 billion or more (determined as of
the end of the preceding tax year), the amount of any required installment
(line 12) of estimated tax otherwise due in July, August, or September of
2017 must be increased by 0.25% (0.0025). The amount of the next required
installment is reduced by the amount of the increase. Take this rule into
account in completing line 12.
Line 13
Enter any 2016 overpayment that the organization chose to credit against its
2017 tax. The overpayment is credited against unpaid required installments
in the order in which the installments are required to be paid.
Line 14
See Federal Tax Deposits Must be Made by Electronic Funds Transfer,
earlier, for the required method for making the line 14 payments.
Schedule A
If you are using only the annualized income installment method (Part I),
complete Parts I and III. If you are using only the adjusted seasonal
installment method (Part II), complete Parts II and III. If you are using both
methods, complete all three parts. Enter in each column on Form 990-W, line
12, the amounts from the corresponding column of Schedule A, line 40.
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CAUTION
Do not figure any required installment until after the end of the
month immediately preceding the due date for that installment.
For each part that applies to you, complete each column in its entirety
before going to the next column. For example, if Parts I and III are required,
complete column (a), lines 1 through 13, and lines 36 through 40, before
starting column (b).
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:
• Any item identified in Regulations section 1.1502-76(b)(2)(ii)(C)(1), (2), (3),
(4), (7), and (8);
• A net operating loss carryover;
• A section 481(a) adjustment; and
• Net gain or loss from the disposition of 25% or more of the fair market
value of the corporation’s business assets during the tax year.
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. At the option of the corporation, extraordinary items
identified earlier that are less than $1 million (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), rather than being treated
under the special rules for extraordinary items.
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).
In Schedule A, Part I, make the appropriate adjustments to annualized
taxable income before figuring the estimated tax for each reporting period.
Similar adjustments must be made, if applicable, to Schedule A, Part II, if the
adjusted seasonal installment method applies.
