Form 112-Ep - Colorado Estimated Tax Vouchers For Corporations

INSTRUCTIONS FOR

2005 CORPORATION ESTIMATED INCOME TAX, FORM 112-EP

Corporations that must pay estimated tax. Corporations

Payments. Estimated tax payments must be submitted in the

are required to pay Colorado estimated income tax during

same manner (separate, consolidated, combined) and using

the same account number that the corporation expects to use

the taxable year if it can reasonably be anticipated that the

corporation's Colorado tax liability for the tax year will

when filing the income tax return. If payments are made on

exceed $5,000. See FYI Income 51 for more information.

an account number other than the number used to file the

income tax return, the Department of Revenue must be

Short taxable year. Estimated tax must be filed for a short

notified of this discrepancy in writing prior to the filing of the

taxable year if the tax is expected to exceed $5,000 plus

tax return.

Send the information to:

estimated credits. If the short taxable year results from a

change in the accounting period, the income must be placed

Taxpayer Services

on an annual basis, in which case the requirement for paying

Income Tax Section

will be the same as instruction 1.

Denver CO 80261-0005

Due date for filing. Estimated tax payments are due in four

Tax rate. The Colorado Corporation income tax rate is

equal installments on April 15, 2005, June 15, 2005, Sep-

4.63% of Colorado taxable income.

tember 15, 2005 and December 15, 2005. The payments will

be due for a fiscal year filer on the 15th day of 4th, 6th, 9th

Application of overpayment credit. An estimated tax

and 12th month of the tax year. The payments will be due for

credit resulting from an overpayment of tax on the

corporation's income tax return for the immediately preced-

a short tax year on the 15th day of 4th, 6th, and 9th months,

whichever apply, plus a final payment on the 15th day of the

ing taxable year must be applied in its entirety against the

last month of the tax year. Payments will be credited against

first estimated tax payments due during the year.

the earliest quarterly installment that is due for the tax year

regardless of when the payment is received. If the due date

Penalty for failure to pay estimated tax. The estimated tax

is a Saturday, Sunday, or legal holiday, payment on the next

penalty will be assessed if the required estimated tax pay-

business day will be accepted as having been made on the

ments are not paid in a timely manner. The penalty will be the

appropriate Colorado income tax interest rate times the

due date.

underpayment for each quarter times the underpayment

Required annual payment. The required annual payment

period. This penalty is computed on Form 205.

is the lesser of:

1.) 70% of actual Colorado tax liability, or

No penalty is due if the net tax plus the recapture of prior year

credits, minus the estimated tax credits and payments, is less

2.) 100% of preceding years Colorado tax liability.

than $5,000.

This only applies if

•

The preceding year was 12 month tax year, and

Where to file. Estimated tax payments should be filed with

•

The corporation filed a Colorado return, and

the Colorado Department of Revenue, Denver, Colorado

80261-0008. Make checks or money orders payable to the

•

The corporation is not defined under section 6655

of the federal IRS code as a large corporation*.

Colorado Department of Revenue.

10.

Additional information. All forms, FYIs, and other infor-

* Large corporations can base their first quarter estimated

tax payment on 25% of the previous year's tax liability.

mation are available at or you can call

However, future payments must be based on the actual tax

for information at (303) 238-SERV (7378).

liability for the current tax year and any underpayment

occurring in the first quarter as a result of this estimation

must be repaid with the second quarterly payment.

Form 112-Ep - Colorado Estimated Tax Vouchers For Corporations - 2005 Page 3

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