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EFO00026p2

Instructions for Idaho Form 41ES

4-25-07_v1

A. CORPORATE QUARTERLY ESTIMATED TAX

Overpayment of Estimated Tax

PAYMENTS

Excess estimated tax payments will be refunded after the completed

return is filed. You may elect to apply the excess to the subsequent

Who Must Make Estimated Income Tax Payments

year's estimated tax by designating the carryover on the corporation

A corporation is required to make estimated tax payments to the State

income tax return, Form 41, or the S corporation return, Form 41S.

Tax Commission if it is required to make estimated payments to the

Internal Revenue Service and will have an Idaho income tax liability of

Overpayments will be applied to any prior year tax liabilities before

$500 or more. Estimated payments aren't required if the corporation

carryovers or refunds are allowed. You will be notified if your

wasn't required to file an Idaho return the previous tax year.

overpayment is applied to an existing liability, or is used to reduce your

refund or carryover.

If you received personalized payment vouchers, use the appropriate

voucher for each filing period. If any of the preprinted information is

Annualized Income and Estimated Payments

incorrect, draw a line through it and enter the correct information.

If your estimated payments are based on annualized income for federal

Check the box on the voucher if there is a change in your mailing

purposes, you may use that same method for making Idaho estimated

address. If you don't have a preprinted form, use the Form 41ES.

payments. The estimated tax due for the installment period is calcu-

lated by multiplying the applicable percentage (22.5%, 45%, 67.5% and

Estimated Tax Payments

90% for the 1st, 2nd, 3rd and 4th installments, respectively) by the full

Each estimated tax payment must be 25% of the tax required to be

year's tax on the annualized income for the period and deducting any

reported on the corporation's return for the prior year, or 90% of the

prior installments.

tax required to be paid on the current year's return, whichever is less.

Don't include fuels tax due, sales tax due, or fuels tax refunds

Short Tax Year

reported on the income tax returns.

If the short tax year ends prior to any remaining due dates, a final

estimated payment will be made on the 15th day of the last month of

For corporations, the tax required to be reported is defined as Idaho

the short tax year. No estimated tax payment is required if the short

taxable income multiplied by the appropriate tax rate, plus the perma-

tax year is less than four months or if the requirements to make an

nent building fund tax, plus tax from recapture of business income tax

estimated payment aren't met before the first day of the last month in

credits, such as the investment tax credit, broadband equipment

the short tax year.

investment credit, corporate headquarters income tax credits, and the

B. IDAHO BUSINESS EXTENSION OF TIME PAYMENTS

small employer income tax credits, minus allowable income tax credits.

For S corporations, estimated tax payments are computed on the Idaho

General Information

tax due to net recognized built-in gains and excess net passive

If you can't file your Idaho return by the due date, you will be allowed

income. Estimated payments aren't required on the tax due on income

an automatic six-month extension of time to file without sending a

being reported for individual shareholders.

written request. To qualify for an automatic extension, you must pay at

least 80% of the current year income tax liability or 100% of the total

A corporation making estimated payments in a year following the

income tax reported on your income tax return for the preceding year,

revocation of subchapter S status will use $20 as the tax amount

if one was filed. If you will owe $50 or less, a payment isn't required;

required to be reported on the prior year's return.

however, interest will accrue.

Computation of Estimated Tax Payments

Paying less than the required amount will result in a penalty. A penalty

The Form 41ES worksheet will allow you to compare the income tax on

will also result if you pay the required amount but fail to pay the

last year's return with the anticipated income tax for the current year

remainder of the tax due by the extended due date. Interest accrues

and, using the smaller of the two, determine the estimated payment for

on any balance of tax due on the return when it is filed.

each period. If your estimated payments are based on 90% of the

income tax required to be paid on the current year's return and the

Corporations

anticipated income tax for the current year is revised, use the revised

Multiply 7.6% by the estimated taxable income. If this results in less

amount to recompute any remaining estimated tax payments.

than $20, use $20 as the estimated tax. Add the $10 permanent

building fund tax to the estimated income tax and subtract the amount

Due Dates

estimated for income tax credits.

For calendar year taxpayers, estimated payments are due on the 15th

day of April, June, September and December.

S Corporations

S corporations are subject to tax on excess net passive income and

For fiscal year taxpayers, estimated payments are due on the 15th day

net recognized built-in gains. Use 7.6% to compute the estimated tax

of the 4th, 6th, 9th, and 12th months of the tax year.

on this income. If the estimated tax on these items is less than $20 or

the S corporation doesn't report income from these items, use $20 as

The due dates for the federal estimated tax payments and the Idaho

the estimated tax.

estimated tax payments are the same. If the due date is on a Saturday,

Sunday, or legal holiday, substitute the next work day as the due date.

S Corporations, Partnerships, and Fiduciaries with Individual

Shareholders, Partners, and Beneficiaries

Underpayment of Estimated Tax

If the income is reported and the tax paid for the individual sharehold-

Interest is due on the difference between the amount of estimated

ers, partners, or beneficiaries, use 7.6% to compute the estimated tax.

payment required to be made on each quarterly voucher and the

This is in addition to the tax computed for the S corporation and

amount of quarterly payment actually made. Interest is computed from

fiduciaries. Add the $10 permanent building fund tax for each

the due date of the estimated payment until the required amount is paid

individual not filing an Idaho individual income tax return.

or until the due date of the return. The interest rate for 2007 was 7%.

The interest rate for 2008 is ??%.

Fiduciaries

Add the permanent building fund tax to the computed tax unless all

Form 41ESR, Underpayment of Estimated Tax by Corporations, is

income is distributed to beneficiaries, or if the trust is a qualified funeral

provided with your corporate income tax return packet. Use the form

trust.

to determine the amount of any underpayments and interest due when

you file your return.

Form Efo00026 Draft - Idaho Business Income Tax Payments Worksheets/form 41es Draft - Quarterly Estimated Tax / Extension Of Time Payment Idaho Business Income Tax Page 2

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