Form 8752 is the separate return a partnership or S corporation files each year while it has a section 444 election in effect, the election that lets it keep a tax year other than its required tax year. It works out the section 7519 required payment, a deposit that roughly offsets the tax deferral the owners get from the fiscal year, or claims a refund of earlier payments. For applicable election years beginning in 2025, it's due with any payment by May 15, 2026.
Everything below comes from the IRS Form 8752 (Rev. December 2025) and its December 2025 instructions, as of October 2026.
Who must file Form 8752
- A partnership or S corporation that made a section 444 election by filing Form 8716 and whose election is in effect for the tax year
- One that terminates its section 444 election or liquidates, to claim a refund of its net required payment balance
- Every year the election is in effect, even when the required payment is zero
Personal service corporations don't use Form 8752; they file Schedule H (Form 1120) with their return instead. And the form isn't attached to Form 1065 or Form 1120-S: it's filed on its own, at the Kansas City or Ogden address that matches the entity's principal place of business.
How the required payment is worked out
| Line | What goes there |
|---|---|
| 1 | Net income for the base year, the tax year before the applicable election year, not below zero |
| 2 | Applicable payments made during the base year, such as officer pay, wages and rent paid to partners or shareholders (guaranteed payments excluded) |
| 3 | Deferral ratio: months in the deferral period divided by 12, as a percentage |
| 4 to 8 | Deferred amounts and net base year income |
| 9a | Line 8 multiplied by 38% |
| 9b | Line 9a, but only if it's more than $500 or a prior year's required payment was more than $500; otherwise zero |
| 10 to 12a | Net required payment balance, amount due or refund |
The deferral period is the number of months between the start of the elected tax year and the close of the first required tax year inside it. The instructions' example: an S corporation must use the calendar year, so if it elects a year starting November 1, the deferral period is 2 months.
The $500 threshold and the zero-payment filing
Here's the part many small fiscal-year entities misread. Line 9b only carries an amount if line 9a is more than $500, or if any prior year's required payment was more than $500. So a small entity can owe nothing at all. But the instructions are clear that the form still has to be filed every year the election is in effect, to show a zero liability. Not owing isn't the same as not filing.
Deadlines and penalties, as of October 2026
- Due date: May 15, 2026, for applicable election years beginning in 2025. The form header says it's due by May 15.
- Use the 2025 Form 8752 for a base year ending in 2025; you can't use it for a base year ending in 2026.
- Penalty: if the required payment isn't made by the due date, the entity may owe 10% of the underpayment, unless it shows reasonable cause and not willful neglect.
- A special rule in the temporary regulations extends the due date for certain back-up section 444 elections.
If you include the penalty with the payment, write the penalty amount in the bottom margin of page 1 rather than in the amount-due space on line 11.
Getting the deposits back
The payment isn't a tax that's gone for good. When the entity terminates its section 444 election or liquidates, it checks box C, enters zero on line 9b and claims a full refund of the net required payment balance on line 10. A refund also comes back on line 12a in any year the balance of prior payments is larger than this year's requirement, and new direct deposit fields on lines 12b to 12d speed that up.
One warning from the instructions: once a section 444 election is terminated, the entity may never make another one. An election also ends if a partnership switches to its required tax year, an S corporation moves to a calendar year, the entity becomes part of a tiered structure without the same-year exception, or it's penalized for willfully failing to comply with section 7519.
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Filing it step by step
- Confirm the section 444 election is still in effect and check box A for partnership or S corporation.
- If this is the first tax year, skip lines 1 to 10, enter zero on line 11 and check box B.
- Take base year net income from the 2024 return figures the instructions point to, plus applicable payments.
- Work out the deferral ratio and lines 4 to 9b.
- Compare with the net required payment balance on line 10, pay what's due electronically or request the refund, and sign.
The verdict
If your partnership or S corporation keeps a fiscal year under section 444, Form 8752 is a yearly fixture, due May 15 whether or not anything's owed. Put it in the calendar alongside the main return, because it's filed separately and easy to forget. If the fiscal year no longer earns its keep, ending the election gets the deposits back, but remember there's no second election later.
Frequently asked questions
What is Form 8752?
It's the form partnerships and S corporations with a section 444 election use to figure and report the section 7519 required payment, or to get a refund of net prior-year payments.
When is Form 8752 due?
For applicable election years beginning in 2025, Form 8752 must be filed and the payment made by May 15, 2026.
Do you have to file Form 8752 if you owe nothing?
Yes. It must be filed for each year the section 444 election is in effect, even if the required payment is zero.
What rate is used on Form 8752?
Line 9a multiplies net base year income by 38%. The result only counts on line 9b if it's more than $500 or a prior year's payment was more than $500.
Is Form 8752 attached to Form 1065 or 1120-S?
No. The form says not to attach it to Form 1065 or Form 1120-S; it's filed separately.
