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IRS.gov Website
Publication 542
taxmap/pubs/p542-008.htm#en_us_publink1000257883

Figuring Tax(p16)

rule
After you figure a corporation's taxable income, you figure its tax. This section discusses the tax rates, credits, recapture taxes, and alternative minimum tax.
taxmap/pubs/p542-008.htm#en_us_publink1000257885

Tax Rate Schedule(p16)

rule
Most corporations figure their tax by using the following tax rate schedule. An exception to that rule applies to qualified personal service corporations. Other exceptions are discussed in the instructions for Form 1120, Schedule J. If the corporation is a member of a controlled group, the corporation must also complete Schedule O (Form 1120), Consent Plan and Apportionment Schedule for a Controlled Group.
Tax Rate Schedule
If taxable income (line 30, Form 1120) is:
Over—But not over—Tax is:Of the amount over—
$050,00015%-0-
50,00075,000$ 7,500 + 25%$50,000
75,000100,00013,750 + 34%75,000
100,000335,00022,250 + 39%100,000
335,00010,000,000113,900 + 34%335,000
10,000,00015,000,0003,400,000 + 35%10,000,000
15,000,00018,333,3335,150,000 + 38%15,000,000
18,333,33335%-0-
taxmap/pubs/p542-008.htm#en_us_publink1000257886

Qualified personal service corporation.(p17)

rule
A qualified personal service corporation is taxed at a flat rate of 35% on taxable income. A corporation is a qualified personal service corporation if it meets both of the following tests.
  1. Substantially all the corporation's activities involve the performance of personal services (as defined earlier under Personal services).
  2. At least 95% of the corporation's stock, by value, is owned, directly or indirectly, by any of the following.
    1. Employees performing the personal services.
    2. Retired employees who had performed the personal services.
    3. An estate of the employee or retiree described above.
    4. Any person who acquired the stock of the corporation as a result of the death of an employee or retiree (but only for the 2-year period beginning on the date of the employee's or retiree's death).
taxmap/pubs/p542-008.htm#en_us_publink1000257887

Alternative Minimum
Tax (AMT)(p17)

rule
The tax laws give special treatment to some types of income and allow special deductions and credits for some types of expenses. These laws enable some corporations with substantial economic income to significantly reduce their regular tax. The corporate alternative minimum tax (AMT) targets these corporations and attempts to ensure that they pay at least a minimum amount of tax on their economic income. A corporation (other than a small corporation exempt from the AMT, as discussed below) owes AMT if its tentative minimum tax is more than its regular tax.
Deposit
The tentative minimum tax of a small corporation is zero. This means that a small corporation will not owe AMT.
taxmap/pubs/p542-008.htm#en_us_publink1000257889
Small corporation exemption.(p17)
A corporation is treated as a small corporation exempt from the AMT for its current tax year if that year is the corporation's first tax year in existence (regardless of its gross receipts for the year) or:
  1. It was treated as a small corporation exempt from the AMT for all prior tax years beginning after 1997, and
  2. Its average annual gross receipts for the 3-tax-year period (or portion thereof during which the corporation was in existence) ending before its current tax year did not exceed $7.5 million ($5 million for the corporation's first 3-tax-year period).
taxmap/pubs/p542-008.htm#en_us_publink1000257890

Form 4626.(p17)

rule
Use Form 4626, Alternative Minimum Tax – Corporations, to figure the tentative minimum tax of a corporation that is not a small corporation for AMT purposes. For more information, see the Instructions for Form 4626.
taxmap/pubs/p542-008.htm#en_us_publink1000257891

Credits(p17)

rule
A corporation's tax liability is reduced by allowable credits. The following list includes some of the credits available to corporations.
A corporation is also allowed certain refundable credits such as the credit for federal tax on fuels used for certain nontaxable purposes (Form 4136). See the instructions for the corporation's income tax return for a list of other refundable credits that may be allowed for the current tax year.
taxmap/pubs/p542-008.htm#en_us_publink1000257892

Recapture Taxes(p17)

rule
A corporation's tax liability is increased if it recaptures credits it has taken in prior years. The following list includes some credits a corporation may need to recapture.
See the credits listed in the Instructions to Form 3800 for additional credits which may be subject to recapture.