Form 112-Ep - Colorado Estimated Tax Vouchers For Corporations

INSTRUCTIONS FOR

2002 CORPORATION ESTIMATED INCOME TAX, FORM 112-EP

Corporations that must pay estimated tax. Corporations

Payments. File your estimated tax payments in the same

are required to pay Colorado estimated income tax during

manner (separate, consolidated, combined) and using the

the taxable year if it can reasonably be anticipated that the

corporation's Colorado tax liability for the tax year will

same account number that you expect to use in filing your

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

income tax return.

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

Tax rate. The Colorado Corporation income tax rate is

4.63% of Colorado taxable income.

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

estimated credits. If the short taxable year results from a

change in the accounting period, the income must be placed

Application of overpayment credit. An estimated tax

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

credit resulting from an overpayment of tax on the

will be the same as instruction 1.

corporation's income tax return for the immediately preced-

ing taxable year must be applied in its entirety against the

first estimated tax payments coming due.

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

equal installments on April 15, 2002, June 15, 2002, Sep-

tember 15, 2002 and December 15, 2002. The payments will

Penalty for failure to pay estimated tax. The estimated tax

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

penalty will be assessed if the required estimated tax pay-

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

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

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

appropriate Colorado income tax interest rate time the un-

derpayment for each quarter times the underpayment period.

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

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

This penalty is computed on Form 205.

the earliest quarterly installment that is due for the tax year

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

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

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

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

business day will be accepted as having been made on the

than $5,000.

due date.

Where to file. Estimated tax payments should be filed with

Required annual payment. The required annual payment

the Colorado Department of Revenue, Denver, Colorado

is the lesser of:

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

1.) 70% of actual Colorado tax liability (net tax + recapture

Colorado Department of Revenue.

of prior year credits), or

10.

Additional information. All forms, FYI's, and other infor-

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

mation are available at or you can call

This only applies if

for forms (303) 238-FAST (3278) or information (303) 238-

•

The preceding year was 12 month tax year, and

SERV (7378).

•

The corporation filed a Colorado return, and

•

The corporation is not defined under section 6655

of the federal IRS code as a large corporation*.

* Large corporations can base their first quarter estimated

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

However, future payments must be based on the actual tax

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 - 2002 Page 3

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