Annualized income installment method and/or adjusted seasonal installment method. If the corporation’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 annualized income installment method or the adjusted seasonal installment method. The annualized income installment or adjusted seasonal installment may by less than the required installment under the regular method for one or more due dates. This will reduce or eliminate the penalty for those installment due dates.
To use one or both of these methods to figure one or more required installments, use Schedule A of Form N-220. If Schedule A is used for any payment due date, it must be used for all payment due dates. To arrive at the amount of each required installment, Schedule A automatically selects the smallest of: (a) the annualized income installment, (b) the adjusted seasonal installment, if applicable, or (c) the regular installment under IRC section 6655(d) (increased by any reduction recaptured under IRC section 6655(e)(1)(B)).
N 220 Instructions
