Computation of Tax Due — 2025 Inst 1120-F (PDF)

Line 4b. First Installment of Section 1062 Applicable Net Tax Liability Complete and attach Form 1062, Schedule(s) A (Form 1062), and a copy of the covenant if electing to defer the payment of net income tax attributable to the gain from the sale or exchange of qualified farmland property during this tax year under section 1062. Enter the amount from Form 1062, Part III, line 15. See the Instructions for Form 1062 for more information. Also, see section 1062.

Line 5b. Estimated Tax Payments Enter any estimated tax payments the corporation made for the current tax year.

Beneficiaries of trusts. If the corporation is the beneficiary of a trust, and the trust makes a section 643(g) election to credit its estimated tax payments to its beneficiaries, include the corporation’s share of the payment in the total for line 5b. Enter “T” and the amount of the payment on the dotted line next to the entry space.

Line 5c. Refund Applied For on Form 4466 If the corporation overpaid estimated tax, it may be able to get a quick refund by filing Form 4466. The overpayment must be at least 10% of the corporation’s expected income tax liability and at least $500. File Form 4466 after the end of the corporation’s tax year, and no later than the due date for filing the corporation’s tax return (not including extensions). Form 4466 must be filed before the corporation files its tax return. See the instructions for Form 4466.

Instructions for Form 1120-F (2025) 13

Line 5d. Reserved for Future Use This line is reserved for future use.

Line 5f. Credit for Tax Paid on Undistributed Capital Gains Enter any credit from Form 2439, Notice to Shareholder of Undistributed Long-Term Capital Gains, for the corporation’s share of the tax paid by a regulated investment company (RIC) or a real estate investment trust (REIT) on undistributed long-term capital gains included in the corporation’s income. Attach Form 2439.

Line 5g. Credit for Federal Tax on Fuels Enter the total income tax credit claimed on Form 4136, Credit for Federal Tax Paid on Fuels. Attach Form 4136.

Credit for tax on ozone-depleting chemicals. Include on line 5g any credit the corporation is claiming under section 4682(g)(2) for tax on ozone-depleting chemicals. Enter “ODC” on the dotted line to the left of the entry space.

Line 5h. Reserved for Future Use This line is reserved for future use.

Line 5i. U.S. Income Tax Paid or Withheld at Source Enter on line 5i U.S. income tax amounts paid or withheld at source and reported on:

Form 1042-S pertaining to amounts reported on page 4, line 12 (income from U.S. sources not effectively connected with the conduct of a trade or business in the United States). The amount included on line 5i should be the total amount of federal tax withheld reported to you on the applicable Form(s) 1042-S less any amount that was repaid to you by the withholding agent. See the instructions below the title of Section I on page 4 of the form for information pertaining to when amounts should be reported on line 12.
Form 8805 pertaining to amounts reported on Form 1120-F, page 5, Section II, that relate to ECI from a partnership under section 1446.
Form 1042-S pertaining to amounts reported on Form 1120-F, page 5, Section II, that relate to ECI from a publicly traded partnership under section 1446.
Form 8288-A pertaining to amounts reported on Form 1120-F, page 5, Section II, that relate to income from dispositions of U.S. real property interests under section 1445 and income from dispositions of interests in partnerships that are engaged in the conduct of a trade or business in the United States under section 1446(f).

You must attach any Forms 8288-A, 8805, and 1042-S to substantiate amounts withheld or paid that are reported on line 5i.

Include on line 5i only amounts withheld under chapter 3 or 4 of the Code. Do not include other amounts, such as backup withholding, on line 5i. Enter backup withholding on line 5z (see below).

Line 5j. Elective Payment Election Amount From Form 3800 Enter the total elective payment election amount from Form 3800, Part III, line 6, column (j). See the Instructions for Form 3800.

Line 5k. Section 1062 Applicable Net Tax Liability From Form 1062 If the corporation is electing to defer the payment of net income tax attributable to the gain from the sale or exchange of qualified farmland property, complete and attach Form 1062 and Schedule(s) A (Form 1062). Enter the amount from Form 1062, Part III, line 14. See the Instructions for Form 1062 for more information. Also, see section 1062.

Line 5z. Total Payments

Backup withholding. If the corporation had income tax withheld from any payments it received due to backup withholding, include the amount withheld in the total for line 5z. Enter the amount withheld and the words “Backup Withholding” in the blank space in the right-hand column between lines 4b and 5z.

Line 6. Estimated Tax Penalty Generally, the corporation does not have to file Form 2220 because the IRS can figure the penalty amount, if any, and bill the corporation. However, even if the corporation does not owe the penalty, it must complete and attach Form 2220 if:

The annualized income or adjusted method is used, or
The corporation is a large corporation (as defined in the Instructions for Form 2220) computing its first required installment based on the prior year’s tax.

If Form 2220 is attached, check the box on line 6, and enter any penalty on this line.

If the corporation’s tax liability includes a CAMT liability, the corporation must complete and attach Form 2220. The affected corporation must also include an amount of estimated tax penalty on Form 1120-F, page 1, line 6, even if that amount is zero. Failure to follow these instructions could result in the corporation receiving a penalty notice that will require an abatement request to apply any penalty relief. See Notice 2025-27.

Line 7. Amount Owed If the corporation cannot pay the full amount of tax owed, it can apply for an installment agreement online. The corporation can apply for an installment agreement online if:

It cannot pay the full amount shown on line 7,
The total amount owed is $25,000 or less, and
The corporation can pay the liability in full in 24 months. To apply using the Online Payment Agreement Application, go to IRS.gov/OPA .

Under an installment agreement, the corporation can pay what it owes in monthly installments. There are certain conditions that must be met to enter into and maintain an installment agreement, such as paying the liability within 24 months and making all required deposits and timely filing tax returns during the length of the agreement.

If the installment agreement is accepted, the corporation will be charged a fee and it will be subject to penalties and interest on the amount of tax not paid by the due date of the return.

Line 8b If there is an overpayment on line 8a, enter on line 8b the amount of overpayment on line 8a resulting from tax deducted and withheld under chapters 3 and 4. This amount is computed by completing Schedule W on page 9 of Form 1120-F.

Line 9a. Credited to Estimated Tax The corporation can elect to apply all or part of the corporation’s overpayment to next year’s estimated taxes.

14 Instructions for Form 1120-F (2025)

Enter the amount of any overpayment from line 8a that should be applied to next year’s estimated tax.

This election to apply some or all of the overpayment amount to the corporation’s 2026 estimated tax cannot be changed at a later date.

You can credit any or all of the line 8a overpayment to your 2026 estimated tax, even those amounts on line 8b resulting from tax deducted and withheld under chapters 3 and 4.

Line 9b. Refunded Enter the amount to be refunded to the corporation on line 9b. If the corporation has access to U.S. banking services, it should use direct deposit for any refunds, whenever possible.

The benefits of a direct deposit include a faster refund, the added security of a paperless payment, and the savings of tax dollars associated with the reduced processing costs.

Direct deposit of refund. If the corporation wants its refund directly deposited into its checking or savings account at any U.S. bank or other financial institution, complete lines 9c through 9e. See the instructions for lines 9c, 9d, and 9e, later. The corporation is not eligible to request a direct deposit if:

The receiving financial institution is a foreign bank or a foreign branch of a U.S. bank, or
The corporation has applied for an EIN but is filing its tax return before receiving one.

Conditions resulting in a refund by check. If the IRS is unable to process the request for a direct deposit, a refund by check will be generated instead. Reasons for not processing a request include the following.

The name of the corporation on the tax return does not match the name on the account.
The financial institution rejects the direct deposit because of an incorrect routing or account number.
The corporation fails to indicate the type of account the deposit is to be made to (that is, checking or savings).

Note: The IRS isn’t responsible for a lost refund if the corporation enters the wrong account information. Check with the corporation’s financial institution to get the correct routing and account numbers and to make sure the direct deposit will be accepted.

Note: Refunds of certain overpayments (for example, those which pertain to tax withheld and reported on Forms 1042-S, 8805, and 8288-A) may require additional time to be processed. Therefore, please allow up to 6 months for these refunds to be issued.

Line 9c. Routing Number The routing number must be nine digits. The first two digits must be between 01 and 12 or 21 through 32. Ask the corporation’s financial institution for the correct routing number to enter on line 9c if:

The routing number on a deposit slip is different from the routing number on the corporation’s checks,
The deposit is to a savings account that does not allow the corporation to write checks, or
The corporation’s checks state that they are payable through a financial institution different from the one at which the corporation has its checking account.

Line 9e. Account Number The account number can be up to 17 characters (both numbers and letters). Include hyphens but omit spaces and special symbols. Enter the number from left to right and leave any unused boxes blank. Don’t include the check number.

If the direct deposit to the corporation’s account is different from the amount it expected, the corporation will receive an explanation in the mail about 2 weeks after the refund is deposited.