Corporate Estimated Tax

• No penalty for underpaying estimates if the corporate tax is less than $500.
• No penalty if four equal estimated payments total at least 100% of the current year corporate tax liability.
• No penalty for underpaying estimates if four equal estimated payments total at least 100% of the prior year corporate tax liability. This provision does not apply if:
1) Prior corporate tax year was less than 12 months,
2) Corporation did not file a return for the prior year,
3) Prior year corporate return did not show a liability for tax, or
4) Corporation had at least $1 million of taxable income in any of the last 3 corporate tax years.
• A corporation that had at least $1 million of taxable income in any of the last 3 years can use prior year corporate tax liability for the 1st installment, and current year corporate tax liability for installments 2, 3, and 4.
• Instead of four equal installment payments, estimates can be based on the annualized income method. 
• Estimated payments must be made by the following dates for a fiscal year corporation:
1st payment  – 15th day of the 4th month
2nd payment – 15th day of the 6th month
3rd payment  – 15th day of the 9th month
4th payment  – 15th day of the 12th month
• If the corporation is a calendar year taxpayer, the due date for each estimate is:
1st payment  – April 15th
2nd payment – June 15th
3rd payment  – September 15th
4th payment  – December 15th

Note: See IRS Publication 542 for special rules for recurring seasonal income, and certain tax-exempt organizations.

A corporation that has overpaid its estimated tax may apply for a "quick refund" if the overpayment is:
1) At least 10% of its expected corporate income tax liability, and
2) At least $500.