Looking for a Delaware Tax Forms And Templates? Download it for free!

“S” corporation to make estimated payments on behalf of the “s”

“S”

“s” corporation’s estimated tax liability, are due on or before the first day of the fourth month of the taxable year.

20%on the 15th day of the 6th month

lf the “s” corporation fails to make estimated tax payments on behalf of each non-resident shareholder, Section 1158(c)

the”S” corporation.

ESTIMATED TAX FILING REQUIREMENTS

Section 1158 requires every

corporation’s non-resident

shareholders.

The amount of estimated tax to be paid on behalf of the non-resident shareholders is equal to the highest

marginal rate of tax set forth in Section 1102(a) (5.95%) multiplied by the non-resident’s Delaware distributive share of the

income of the “s”

corporation. The computation of the estimated tax does not include distributions from other Delaware

corporations or partnerships, net operating loss deductions or capital losses which may reduce the total Delaware

personal income tax of the non-resident shareholder. Each corporation must estimate the amount of Delaware personal

income tax for each non-resident shareholder based solely on the distribution from each “S”

corporation.

Every “s” corporation with non-resident shareholders is required to declare the amount of its estimated tax liability and

prepay the amount of its estimated tax liability in four installments. The declaration, and remittance equal to 50% of the

T h e

declaration (Form P-1) is due even if the estimated tax liability is zero and no remittance is required.

The remaining

coupons -- P-2, P-3 and P-4 -- are not required to be filed if the estimated tax liability remains at zero for the remainder of

the taxable year. If the estimated tax liability is greater than zero during any of the remaining three quarters of the taxable

year, quarterly tentative tax payments are due according to the following schedule:

of the taxable year; 2 0 % on the 15th day of the 9th month of the taxable year and 10% on the 15th day of the 12th

month of the taxable year.

Failure to make a declaration or file and pay the required payments of personal income tax will result in a penalty. A

penalty of 1X% per month is imposed on any underpayment or late payment of estimated tax. Such penalty will not be

imposed if the total estimated tax paid equals or exceeds 80% of the current year’s liability or equals or exceeds 100%

of the tax liability of the first preceding taxable year.

Corporations whose Delaware taxable income was $200,000 or more in any of the last three preceding taxable years must

make estimated payments equal to 80% of the current years tax liability.

requires the “S” corporation to be responsible for any penalties, interest and additions to tax as a result of the nonpayment

of the estimated tax. Section 1158(c) exempts the non-resident shareholder from any penalties, interest and additions to

tax as a result of the nonpayment of the estimated tax with respect to the non-resident’s Delaware distributive share from

Any overpayment of estimated tax paid on behalf of the non-resident shareholders must be included proportionally in the

amount of estimated tax claimed by the non-resident shareholders upon the filing of their Delaware non-resident personal

income tax return. A refund will not be issued directly to the “S” corporation for any overpayment of estimated tax

paid on behalf of the non-resident shareholders. Estimated tax paid on behalf of the non-resident shareholders should

claimed by the non-resident shareholders on their Delaware personal income tax return.

ELECTRONIC FUNDS TRANSFER PROGRAM

A program has been

established enabling an “s”

corporation to remit personal estimated tax payments electronically. This

program is made available to all “s” corporations on a voluntary basis. To participate in the EFT program, you must complete

the State of Delaware Electronic Funds Transfer Program ACH Authorization Form. This form and its instructions are available

by contacting the Division of Revenue, Electronic Funds Coordinator, Carve1 State Office Building, PO Box 8911, Wilmington,

DE 19899-8911, by telephone at (302) 577-8231, or by email

at dasullfvan@state.de.us.

Form 1100-P - Instructions For Personal Income Tax Payments By "S" Corporations - State Of Delaware Page 7

Related Articles

Related forms

Related Categories