Instructions for IRS Form 8804-W "Installment Payments of Section 1446 Tax for Partnerships"

This document contains official instructions for IRS Form 8804-W, Installment Payments of Section 1446 Tax for Partnerships - a tax form released and collected by the Internal Revenue Service (IRS), a subdivision of the U.S. Department of the Treasury. An up-to-date fillable IRS Form 8804-W is available for download through this link.

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Download Instructions for IRS Form 8804-W "Installment Payments of Section 1446 Tax for Partnerships"

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2020
Department of the Treasury
Internal Revenue Service
Instructions for Form 8804-W
(WORKSHEET)
Installment Payments of Section 1446 Tax for Partnerships
must file Form 8813. Furthermore, the
A partner may be entitled to use a
Section references are to the Internal Revenue
Code unless otherwise noted.
partnership is generally required to notify
preferential rate on the following types of
each foreign partner of the section 1446
income or gain.
Future Developments
tax paid on the partner's behalf within 10
1. Line 1i—See section 1(h)(4) and
days of the installment payment due date,
For the latest information about
the instructions for Schedule D (Form
or, if paid later, the date the installment
developments related to Form 8804-W
1040 or 1040-SR), line 18, for more
and its instructions, such as legislation
payment is made. See Regulations
information regarding 28% rate gain.
section 1.1446-3(d)(1)(i) for information
enacted after they were published, go to
2. Line 1m—See section 1(h)(6) and
that must be included in the notification
IRS.gov/Form8804W.
the instructions for Schedule D (Form
and for exceptions to the notification
1040 or 1040-SR), line 19, for more
General Instructions
requirement.
information regarding unrecaptured
section 1250 gain.
Refiguring Estimated
Purpose of Form
3. Line 1q—Adjusted net capital gain
Section 1446 Tax
Partnerships that have effectively
is net capital gain, as defined in section
If, after the partnership figures and makes
connected taxable income (ECTI)
1222(11), reduced (but not below zero) by
an installment payment of estimated
allocable to foreign partners can use the
the sum of (a) unrecaptured section 1250
section 1446 tax, it finds that its section
Form 8804-W (WORKSHEET) to
gain and (b) 28% rate gain, plus qualified
1446 tax liability for the year will be more
determine the proper estimated section
dividend income. See section 1(h)(3).
or less than originally estimated, it may
1446 tax payments.
If the partnership has net ordinary loss,
have to refigure its required installments. If
net short-term capital loss, or net 28% rate
Who Must Make Estimated
earlier installments were underpaid, the
loss, each net loss should be netted
partnership may owe a penalty for
Section 1446 Tax
against the appropriate categories of
underpayment of estimated tax. An
Payments
income and gain to determine the
immediate catch-up payment should be
amounts of income and gain to be entered
made to reduce the amount of any penalty
Partnerships generally must make
on lines 1a, 1e, 1i, 1m, and 1q,
resulting from the underpayment of any
installment payments of estimated section
respectively. Don’t enter a negative
earlier installments, whether caused by a
1446 tax if the aggregate tax on the ECTI
number on line 1a, 1e, 1i, 1m, or 1q. See
change in estimate, failure to make a
that is allocable to all foreign partners will
section 1(h) and Notice 97-59, 1997-45
payment, or a mistake.
be $500 or more.
I.R.B. 7, available at
IRS.gov/pub/irs-irbs/
irb97-45.pdf, for rules for netting gains and
Specific Instructions
When To Make Estimated
losses.
Section 1446 Tax
Lines 1b, 1f, 1j, 1n, and 1r. Enter the
Part I—Determination of
Payments
reduction amounts for state and local
Installment Payments
taxes under Regulations section
The installments are due by the 15th day
1.1446-6(c)(1)(iii). See Reductions for
of the 4th, 6th, 9th, and 12th months of the
Complete Form 8804-W for each
State and Local Taxes in the Instructions
partnership's tax year. If any date falls on
installment payment of section 1446 tax
for Forms 8804, 8805, and 8813 for
a Saturday, Sunday, or legal holiday, the
based on the information available at the
additional information. The netting rules
installment is due on the next regular
time of the installment payment.
under section 1(h) and Notice 97-59,
business day.
Lines 1 Through 6—Current
available at
IRS.gov/pub/irs-irbs/
Underpayment of
Year Safe Harbor
irb97-45.pdf, must be considered in
determining the category of income the
Estimated Section 1446
Lines 1a, 1e, 1i, 1m, and 1q. To
reduction amounts offset.
Tax
determine the allocable share of ECTI for
Lines 1c, 1g, 1k, 1o, and 1s. Enter the
all foreign partners, see Effectively
A partnership that doesn’t make estimated
reduction amounts resulting from certified
Connected Taxable Income in the
section 1446 tax payments when due may
partner-level items received from foreign
Instructions for Forms 8804, 8805, and
be subject to an underpayment penalty for
partners using Form 8804-C. See
8813. Enter on lines 1i, 1m, and 1q the
the period of underpayment. See
Certification of Deductions and Losses in
specified types of ECTI allocable to those
Schedule A (Form 8804) for details.
the Instructions for Forms 8804, 8805, and
partners who would be entitled to use a
8813 for additional information. The
preferential rate on such income or gain
How To Make Estimated
netting rules under section 1(h) and Notice
(see Regulations section 1.1446-3(a)(2)).
Section 1446 Tax
97-59, available at
IRS.gov/pub/irs-irbs/
For tiered partnerships, see Regulations
irb97-45.pdf, must be considered in
Payments
section 1.1446-5.
determining the category of income the
A partnership that is required to make an
reduction amounts offset.
installment payment of section 1446 tax
Nov 18, 2019
Cat. No. 51675X
2020
Department of the Treasury
Internal Revenue Service
Instructions for Form 8804-W
(WORKSHEET)
Installment Payments of Section 1446 Tax for Partnerships
must file Form 8813. Furthermore, the
A partner may be entitled to use a
Section references are to the Internal Revenue
Code unless otherwise noted.
partnership is generally required to notify
preferential rate on the following types of
each foreign partner of the section 1446
income or gain.
Future Developments
tax paid on the partner's behalf within 10
1. Line 1i—See section 1(h)(4) and
days of the installment payment due date,
For the latest information about
the instructions for Schedule D (Form
or, if paid later, the date the installment
developments related to Form 8804-W
1040 or 1040-SR), line 18, for more
and its instructions, such as legislation
payment is made. See Regulations
information regarding 28% rate gain.
section 1.1446-3(d)(1)(i) for information
enacted after they were published, go to
2. Line 1m—See section 1(h)(6) and
that must be included in the notification
IRS.gov/Form8804W.
the instructions for Schedule D (Form
and for exceptions to the notification
1040 or 1040-SR), line 19, for more
General Instructions
requirement.
information regarding unrecaptured
section 1250 gain.
Refiguring Estimated
Purpose of Form
3. Line 1q—Adjusted net capital gain
Section 1446 Tax
Partnerships that have effectively
is net capital gain, as defined in section
If, after the partnership figures and makes
connected taxable income (ECTI)
1222(11), reduced (but not below zero) by
an installment payment of estimated
allocable to foreign partners can use the
the sum of (a) unrecaptured section 1250
section 1446 tax, it finds that its section
Form 8804-W (WORKSHEET) to
gain and (b) 28% rate gain, plus qualified
1446 tax liability for the year will be more
determine the proper estimated section
dividend income. See section 1(h)(3).
or less than originally estimated, it may
1446 tax payments.
If the partnership has net ordinary loss,
have to refigure its required installments. If
net short-term capital loss, or net 28% rate
Who Must Make Estimated
earlier installments were underpaid, the
loss, each net loss should be netted
partnership may owe a penalty for
Section 1446 Tax
against the appropriate categories of
underpayment of estimated tax. An
Payments
income and gain to determine the
immediate catch-up payment should be
amounts of income and gain to be entered
made to reduce the amount of any penalty
Partnerships generally must make
on lines 1a, 1e, 1i, 1m, and 1q,
resulting from the underpayment of any
installment payments of estimated section
respectively. Don’t enter a negative
earlier installments, whether caused by a
1446 tax if the aggregate tax on the ECTI
number on line 1a, 1e, 1i, 1m, or 1q. See
change in estimate, failure to make a
that is allocable to all foreign partners will
section 1(h) and Notice 97-59, 1997-45
payment, or a mistake.
be $500 or more.
I.R.B. 7, available at
IRS.gov/pub/irs-irbs/
irb97-45.pdf, for rules for netting gains and
Specific Instructions
When To Make Estimated
losses.
Section 1446 Tax
Lines 1b, 1f, 1j, 1n, and 1r. Enter the
Part I—Determination of
Payments
reduction amounts for state and local
Installment Payments
taxes under Regulations section
The installments are due by the 15th day
1.1446-6(c)(1)(iii). See Reductions for
of the 4th, 6th, 9th, and 12th months of the
Complete Form 8804-W for each
State and Local Taxes in the Instructions
partnership's tax year. If any date falls on
installment payment of section 1446 tax
for Forms 8804, 8805, and 8813 for
a Saturday, Sunday, or legal holiday, the
based on the information available at the
additional information. The netting rules
installment is due on the next regular
time of the installment payment.
under section 1(h) and Notice 97-59,
business day.
Lines 1 Through 6—Current
available at
IRS.gov/pub/irs-irbs/
Underpayment of
Year Safe Harbor
irb97-45.pdf, must be considered in
determining the category of income the
Estimated Section 1446
Lines 1a, 1e, 1i, 1m, and 1q. To
reduction amounts offset.
Tax
determine the allocable share of ECTI for
Lines 1c, 1g, 1k, 1o, and 1s. Enter the
all foreign partners, see Effectively
A partnership that doesn’t make estimated
reduction amounts resulting from certified
Connected Taxable Income in the
section 1446 tax payments when due may
partner-level items received from foreign
Instructions for Forms 8804, 8805, and
be subject to an underpayment penalty for
partners using Form 8804-C. See
8813. Enter on lines 1i, 1m, and 1q the
the period of underpayment. See
Certification of Deductions and Losses in
specified types of ECTI allocable to those
Schedule A (Form 8804) for details.
the Instructions for Forms 8804, 8805, and
partners who would be entitled to use a
8813 for additional information. The
preferential rate on such income or gain
How To Make Estimated
netting rules under section 1(h) and Notice
(see Regulations section 1.1446-3(a)(2)).
Section 1446 Tax
97-59, available at
IRS.gov/pub/irs-irbs/
For tiered partnerships, see Regulations
irb97-45.pdf, must be considered in
Payments
section 1.1446-5.
determining the category of income the
A partnership that is required to make an
reduction amounts offset.
installment payment of section 1446 tax
Nov 18, 2019
Cat. No. 51675X
Line 8—Prior Year Safe Harbor
the current year safe harbor (because the
at the amount of each required
partnership doesn’t qualify for the relief
installment, Part IV automatically selects
Enter the total section 1446 tax that would
described in the previous paragraph (that
the smallest of (a) the annualized income
have been due for 2019, applying the
is, using the standard option annualization
installment (if applicable), (b) the adjusted
2019 rates (see the 2019 Form 8804-W
method) or the partnership chooses not to
seasonal installment (if applicable), or (c)
for the 2019 rates), on ECTI allocable to all
continue using it), in order to avoid an
the current year safe harbor (increased by
foreign partners for 2019, without any
underpayment penalty on the current
any recapture of a reduction in a required
reductions for state and local taxes under
installment payment, the partnership must
installment under section 6655(e)(1)(B)).
Regulations section 1.1446-6(c)(1)(iii) or
pay the sum of (a) the current installment
Line 12
certified partner-level items. For the
payment based on the current year safe
partnership's first installment payment, if
Include on line 12 any 2019 overpayment
harbor, plus (b) the sum of the amount by
the 2019 Form 8804 hasn’t yet been filed,
that the partnership chose to credit
which the current year safe harbor
an estimate is acceptable. However, if the
against its 2020 tax. The overpayment is
exceeds the prior year safe harbor amount
partnership later determines that this
credited against unpaid required
paid in for each prior installment period
estimate is incorrect, see
Refiguring
installments in the order in which the
during which it qualified for the prior year
Estimated Section 1446
Tax, earlier.
installments are required to be paid.
safe harbor.
Complete line 8 only if all of the
Also include on line 12 the following.
Line 9
following apply.
Section 1446 tax withheld and paid by
You can enter the smaller of line 7 or
The prior tax year consisted of 12
another partnership because the
line 8. However, if, for any installment
months.
partnership preparing this Form 8804-W
payment, line 7 is smaller than line 8 and
The partnership timely files (including
was a partner in that partnership during
you enter that smaller line 7 amount on
extensions) a U.S. return of partnership
the tax year. See the instructions for Form
line 9, you won’t qualify for the prior year
income (for example, Form 1065) for the
8804, line 6b, in the Instructions for Forms
safe harbor when determining any penalty
prior year.
8804, 8805, and 8813.
due on Schedule A (Form 8804) (see the
The amount of ECTI for the prior tax
Section 1445(a) or 1445(e)(1) tax
line 8
instructions, earlier). Therefore, in
year is not less than 50% of the ECTI
withheld from or paid by the partnership
that case, for any subsequent installment
expected for the current tax year.
filing this Form 8804-W during the tax year
payment during the tax year, don’t use the
Furthermore, the Form 8804 on which the
for a disposition of a U.S. real property
line 8 amount.
current year ECTI will be reported must be
interest. See the instructions for Form
Line 10—Installment Due Dates
timely filed.
8804, line 6c, in the Instructions for Forms
8804, 8805, and 8813.
If any of the above does not apply, skip
Calendar-year taxpayers. Enter
line 8 and enter the amount from line 7 on
The partnership generally enters these
4-15-2020, 6-15-2020, 9-15-2020, and
line 9.
amounts in the column that corresponds
12-15-2020, respectively, in columns (a)
to the installment period for which these
through (d).
If the partnership qualifies to use the
amounts were paid or withheld. However,
prior year safe harbor and chooses that
Fiscal-year taxpayers. Enter the 15th
if the partnership learns about the
method, it must use that method to pay
day of the 4th, 6th, 9th, and 12th months
payments or withholding in a subsequent
each of its installments during the tax year.
of the partnership's tax year in columns (a)
installment period, the partnership can
Furthermore, for each installment
through (d). If the regular due date falls on
claim them in that period.
payment, the average of that installment
a Saturday, Sunday, or legal holiday, enter
and prior installments during the tax year
the next business day.
Parts II Through IV
must be at least 25% of the amount that
Line 11
satisfies the partnership's section 1446 tax
If only the adjusted seasonal installment
liability under the prior year safe harbor. If
method (Part II) is used, complete Parts II
Enter 25% (0.25) of line 9 in columns (a)
the partnership doesn’t satisfy both of
and IV. If only the annualized income
through (d). If the partnership uses the
these requirements, it won’t qualify for the
installment method (Part III) is used,
annualized income installment method or
prior year safe harbor when determining
complete Parts III and IV. If both methods
the adjusted seasonal installment method,
any penalty due on Schedule A (Form
are used, complete all three Parts. Enter in
then enter the amount from line 43.
8804).
each column on line 11 the amounts from
Annualized income installment method
the corresponding column of line 43.
If the partnership begins using the prior
and/or adjusted seasonal installment
year safe harbor method and it determines
Don’t figure any required
method. If the partnership's ECTI is
later in the tax year (based upon the
installment until after the end of
expected to vary during the year because,
!
standard option annualization method
the month preceding the due date
for example, it operates its business on a
CAUTION
described later in these instructions) that it
for that installment.
seasonal basis, it may be able to lower the
won’t meet the 50% of ECTI requirement
amount of one or more required
described in the last bulleted item above,
Extraordinary items. Generally, under
installments by using the annualized
it can make all subsequent installment
the annualized income installment
income installment method and/or the
payments using the standard option
method, extraordinary items must be
adjusted seasonal installment method. For
annualization method and it won’t be
taken into account after annualizing the
example, a ski shop, which receives most
subject to the penalty determined on
ECTI for the annualization period. Similar
of its income during the winter months,
Schedule A (Form 8804). This change in
rules apply in determining ECTI under the
may be able to benefit from using one or
method must be disclosed in a statement
adjusted seasonal installment method. An
both of these methods in figuring one or
attached to the Form 8804 the partnership
extraordinary item includes:
more of its required installments.
files for the current tax year and the
Any item identified in Regulations
To use one or both of these methods,
statement must include enough
section 1.1502-76(b)(2)(ii)(C)(1), (2), (3),
complete Part II and/or Part III of the form.
information to allow the IRS to determine
(4), (7), and (8);
If those Parts are used for any payment
whether the change was appropriate.
A section 481(a) adjustment; and
date, those Parts must be used for all
If the partnership begins using the prior
Net gain or loss from the disposition of
subsequent payment due dates. To arrive
year safe harbor method and switches to
25% or more of the fair market value of the
Instructions for Form 8804-W (2020)
-2-
partnership's business assets during the
3 preceding tax years by the ECTI for
Use Option 1 or Option 2 only if
tax year.
each of their respective tax years.
the partnership elected to use one
!
of these options by filing Form
These extraordinary items must be
Example. An amusement park with a
CAUTION
8842, Election To Use Different
accounted for in the appropriate
calendar year as its tax year receives the
Annualization Periods for Corporate
annualization period. However, a section
largest part of its ECTI during a 6-month
Estimated Tax, on or before the due date
481(a) adjustment (unless the partnership
period, May through October. To figure its
of the first required installment payment.
makes the alternative choice under
base period percentage for this 6-month
Once made, the election is irrevocable for
Regulations section 1.6655-2(f)(3)(ii)(C))
period, the amusement park figures its
the particular tax year.
is treated as an extraordinary item
ECTI for each May–October period in
occurring on the first day of the tax year in
2017, 2018, and 2019. It then divides the
which the item is taken into account in
ECTI for each May–October period by the
1st
2nd
3rd
4th
determining ECTI.
total ECTI for that particular tax year. The
Install-
Install-
Install-
Install-
ment
ment
ment
ment
For more information regarding
resulting percentages are 69% (0.69) for
extraordinary items, see Regulations
May–October 2017, 74% (0.74) for May–
Standard
Option
3
3
6
9
section 1.6655-2(f)(3)(ii) and the
October 2018, and 67% (0.67) for May–
examples in Regulations section
October 2019. Because the average of
Option 1
2
4
7
10
1.6655-2(f)(3)(vii). Also see Regulations
69% (0.69), 74% (0.74), and 67% (0.67) is
Option 2
3
5
8
11
section 1.6655-3(d)(3).
70% (0.70), the base period percentage
for May through October 2020 is 70%
De minimis rule. Extraordinary items
(0.70). Therefore, the amusement park
identified above resulting from a particular
qualifies for the adjusted seasonal
Line 31—ECTI Allocable to All
transaction that total less than $1 million
installment method.
Foreign Partners
(other than a section 481(a) adjustment)
Line 15
can be annualized using the general rules
Enter on lines 31a through 31e the ECTI
of Regulations section 1.6655-2(f), or, if
If the partnership has certain extraordinary
allocable to all foreign partners for the
the partnership chooses, can be taken into
items, special rules apply. Don’t include
months entered for each annualization
account after annualizing the ECTI for the
on line 15 the de minimis extraordinary
period in columns (a) through (d) on
annualization period.
items that the partnership chooses to
line 30. To determine the allocable share
include on line 22b. See
Extraordinary
of ECTI for all foreign partners, see
Part II—Adjusted Seasonal
items, earlier.
Effectively Connected Taxable Income in
Installment Method
the Instructions for Forms 8804, 8805, and
Line 22b
8813.
Note. Part II doesn’t reflect the lower
If the partnership has certain extraordinary
preferential rates permitted under
If the partnership has certain
items of $1 million or more from a
Regulations section 1.1446-3(a)(2). These
transaction, or a section 481(a)
extraordinary items, special rules apply.
were omitted because, for most taxpayers,
adjustment, special rules apply. Include
Don’t include on line 31a, 31b, 31c, 31d,
the income reported in Part II will be
or 31e the de minimis extraordinary items
these amounts on line 22b for the
predominantly (or exclusively) ordinary
that the partnership chooses to include on
appropriate period. Also, include on
income. If the partnership wishes to
line 22b the de minimis extraordinary
line 33a, 33e, 33i, 33m, or 33q,
consider lower preferential rates for Part II
items that the partnership chooses to
respectively. See
Extraordinary
items,
(and if the requirements outlined in the
exclude from line 15. See
Extraordinary
earlier.
Note in the line 31 instructions are met), it
items, earlier.
should prepare a statement which
Note. Enter on lines 31c through 31e the
appropriately expands lines 15 and 22
Line 23
specified types of ECTI (a) allocable to
through 25 to show the applicable special
those partners who would be entitled to
Enter the reduction to the line 22c amount
types of income or gain and the applicable
use a preferential rate on such income or
for state and local taxes under
percentages (see, for example, lines 33
gain (see Regulations section 1.1446-3(a)
Regulations section 1.1446-6(c)(1)(iii) and
and 34 of this Form 8804-W). Also, Part II,
(2)), and (b) for whom the partnership has
for certified foreign partner-level items
lines 15 and 22 through 25, don’t provide
sufficient documentation to meet the
submitted under Regulations section
the separate entries for corporate and
requirements of Regulations section
1.1446-6. See Certification of Deductions
non-corporate partners necessary to apply
1.1446-3(a)(2)(ii).
and Losses in the Instructions for Forms
the rates on lines 25a and 25b. A
A partner may be entitled to use a
8804, 8805, and 8813 for additional
partnership with corporate and
preferential rate on the following types of
information.
non-corporate partners completing Part II
income or gain.
should prepare a statement which
Part III—Annualized
1. Line 31c—See section 1(h)(4) and
appropriately expands lines 15 and 22
Income Installment
the instructions for Schedule D (Form
through 25 to show the amounts allocable
1040 or 1040-SR), line 18, for more
Method
to both types of partners.
information regarding 28% rate gain.
Complete this part only if the
Line 30—Annualization Periods
2. Line 31d—See section 1(h)(6) and
partnership's base period percentage for
the instructions for Schedule D (Form
any 6 consecutive months of the tax year
Enter in the space on line 30, columns (a)
1040 or 1040-SR), line 19, for more
equals or exceeds 70%. Figure the base
through (d), respectively, the annualization
information regarding unrecaptured
period percentage using the 6-month
periods that the partnership is using,
section 1250 gain.
period in which the partnership normally
based on the options listed below. For
3. Line 31e—Adjusted net capital gain
receives the largest part of its ECTI. The
example, if the partnership elects Option
is net capital gain, as defined in section
base period percentage for any period of 6
1, enter on line 30 the annualization
consecutive months is the average of the
1222(11), reduced (but not below zero) by
periods 2, 4, 7, and 10, in columns (a)
the sum of (a) unrecaptured section 1250
three percentages figured by dividing the
through (d), respectively.
gain and (b) 28% rate gain, plus qualified
ECTI for the corresponding
dividend income. See section 1(h)(3).
6-consecutive-month period in each of the
Instructions for Form 8804-W (2020)
-3-
If the partnership has net ordinary loss,
these amounts on line 33a, 33e, 33i, 33m,
under section 1(h) and Notice 97-59,
net short-term capital loss, or net 28% rate
or 33q, depending upon the type of
available at
IRS.gov/pub/irs-irbs/
loss, each net loss should be netted
income against which the item applies, for
irb97-45.pdf, must be considered in
against the appropriate categories of
the appropriate period. Also include on
determining the category of income the
income and gain to determine the
line 33a, 33e, 33i, 33m, or 33q the de
reduction amounts offset.
amounts of income and gain to be entered
minimis extraordinary items that the
Lines 33c, 33g, 33k, 33o, and
on lines 31a through 31e, respectively.
partnership chooses to exclude from
33s
Don’t enter a negative number on lines
line 31a, 31b, 31c, 31d, or 31e,
31a through 31e. See section 1(h) and
respectively. See
Extraordinary
items,
Enter the reduction amounts resulting from
Notice 97-59, available at
IRS.gov/pub/irs-
earlier.
certified partner-level items received from
irbs/irb97-45.pdf, for rules for netting gains
foreign partners using Form 8804-C. See
Enter on lines 33i, 33m, and 33q the
and losses.
Certification of Deductions and Losses in
specified types of ECTI if the partner
the Instructions for Forms 8804, 8805, and
would be entitled to use a preferential rate
Line 32—Annualization
8813 for additional information. The
on the income or gain (see Regulations
Amounts
netting rules under section 1(h) and Notice
section 1.1446-3(a)(2)).
Enter the annualization amounts for the
97-59, available at
IRS.gov/pub/irs-irbs/
1. Line 33i—See section 1(h)(4) and
option used on line 30. For example, if the
irb97-45.pdf, must be considered in
the instructions for Schedule D (Form
partnership elects Option 1, enter on
determining the category of income the
1040 or 1040-SR), line 18, for more
line 32 the annualization amounts 6, 3,
reduction amounts offset.
information regarding 28% rate gain.
1.71429, and 1.2, in columns (a) through
2. Line 33m—See section 1(h)(6) and
Part IV—Required
(d), respectively.
the instructions for Schedule D (Form
Installments Under Part II
1040 or 1040-SR), line 19, for more
1st
2nd
3rd
4th
and/or Part III
information regarding unrecaptured
Install-
Install-
Install-
Install-
section 1250 gain.
ment
ment
ment
ment
Line 38
3. Line 33q—Adjusted net capital gain
Standard
Before completing line 38 in columns (b)
is net capital gain, as defined in section
Option
4
4
2
1.33333
through (d), complete lines 39 through 43
1222(11), reduced (but not below zero) by
Option 1
6
3
1.71429
1.2
in each of the preceding columns. For
the sum of (a) unrecaptured section 1250
Option 2
4
2.4
1.5
1.09091
example, complete lines 39 through 43 in
gain and (b) 28% rate gain, plus qualified
column (a) before completing line 38 in
dividend income. See section 1(h)(3).
column (b).
Lines 33b, 33f, 33j, 33n, and 33r
Lines 33a, 33e, 33i, 33m, and
Line 43—Required Installments
Enter the reduction amounts for state and
33q
For each installment, enter the smaller of
local taxes under Regulations section
line 39 or line 42 on line 43. Also enter the
If the partnership has certain extraordinary
1.1446-6(c)(1)(iii). See Reductions for
result on line 11.
items that total $1 million or more from a
State and Local Taxes in the Instructions
particular transaction, or a section 481(a)
for Forms 8804, 8805, and 8813 for
adjustment, special rules apply. Include
additional information. The netting rules
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 (2020)
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