Instructions For Nebraska Corporation Estimated Income Tax

1999 Nebraska Corporation Estimated Income Tax

INSTRUCTIONS

WHO MUST MAKE ESTIMATED PAYMENTS. A Nebraska

PENALTY FOR NOT PAYING ENOUGH ESTIMATED

Corporation Estimated Income Tax Payment Voucher, Form

INCOME TAX. A penalty at the statutory rate is imposed for

1120N-ES, must be filed by every corporation subject to taxation

underpayment of estimated tax installments. The penalty is not

under the Internal Revenue Code which derives income from

due if the corporation qualifies for any of the methods that avoid

Nebraska if the Nebraska income tax liability can reasonably be

penalty listed on the Corporation Underpayment of Estimated

expected to exceed allowable credits by $400.00 or more. The

Tax, Form 2220N.

allowable credits are the credits for in lieu of intangible tax paid,

Each corporation with an underpayment of estimated tax must file

the Nebraska nonhighway use motor vehicle fuels tax credit, the

a Form 2220N with its Nebraska Corporation Income Tax Return,

Community Development Assistance Act credit, and the

Form 1120N. The estimated tax has been underpaid if the amount

employment and investment credits.

of payments are less than 100 percent of the tax shown on the

WHEN AND WHERE TO FILE. The first payment voucher

return for the year after reduction by the credits other than

must be filed on or before the 15th day of the fourth month of the

estimated payments.

taxable year, or such later date as is specified in the instruction

HOW TO USE THE PAYMENT VOUCHER.

labeled “Changes in Estimated Tax.” Mail the payment voucher

Complete the enclosed worksheet to compute your 1999

with remittance to the Nebraska Department of Revenue, P.O.

estimated tax. If line 9 is less than $400.00, estimated

Box 94818, Lincoln, Nebraska 68509-4818. Mailing labels are

tax payments are not required.

enclosed for your convenience.

Enter the amount shown on line 9 of the worksheet on

PAYMENT OF ESTIMATED TAX. The estimated tax may be

line 1 of the payment voucher.

paid in full with the first payment voucher or in equal

installments on or before the 15th day of the fourth, sixth, ninth,

Enter the amount shown on line 10 of the worksheet on

and twelfth months of the taxable year. Make checks or money

line 2 of the payment voucher.

orders payable to the Nebraska Department of Revenue. Please

Enter on line 3 of the payment voucher the amount of

type or print your Nebraska identification number on the check or

overpayment from 1998 to be credited to the installment

money order.

payment.

OVERPAYMENT CREDIT FROM 1998. The amount of the

Attach a check or money order to the payment voucher

overpayment may be applied in full or in part to any installment if

and mail by its due date to the Nebraska Department of

the corporation:

Revenue, P.O. Box 94818, Lincoln, Nebraska 68509-

Had an overpayment on the 1998 Nebraska Corporation

4818. Make appropriate entries in the Record of

Income Tax Return, Form 1120N; and

Estimated Tax Payments.

Elected to apply the overpayment to the 1999 estimated

For each later installment, complete lines 2, 3, and 4 of

tax.

the payment voucher, attach remittance, and mail. No

installment is required when the amount of unused 1998

CHANGES IN ESTIMATED TAX. Even though conditions

overpayment is equal to or greater than the amount of

existing on the 15th day of the fourth month of the taxable year

installment due.

are such that it is not necessary to file a payment voucher, the

circumstances may change so that it will be necessary to file

LATE PAYMENTS. If you miss a payment of estimated tax or if

estimated tax payments at a later date. In this case, the time for

you made a mistake which caused an underpayment in earlier

filing is as follows:

installments, make an immediate “catchup” payment with your

next installment payment or send the additional payment to the

15th day of the sixth month of the taxable year if the

Nebraska Department of Revenue with a letter of explanation.

change occurs after the last day of the third month but

The Nebraska identification number must be referenced in the

before the first day of the sixth month;

letter.

15th day of the ninth month of the taxable year if the

OVERPAYMENT OF ESTIMATED TAX. A corporation that

change occurs after the last day of the fifth month but

has overpaid its estimated tax may apply for a reimbursement of

before the first day of the ninth month; and

the overpayment if the overpayment is:

15th day of the twelfth month of the taxable year if the

At least ten percent of the corporation’s expected

change occurs after the last day of the eighth month but

income tax liability; and

before the first day of the twelfth month.

At least $500.00.

When the first payment voucher is filed after the 15th day of the

fourth month, the estimated tax may be paid in equal installments

To apply for an adjustment, a corporation must file a Corporation

on the remaining payment dates.

Application for Adjustment of Overpayment of Estimated Tax,

Form 4466N, on or before the 15th day of the third month after the

Use the Amended Computation Schedule if, after having filed

end of its tax year, and before it files its tax return.

estimated payments, it is determined that the estimated tax is

substantially increased or decreased. Show the amended

UNITARY BUSINESS. Corporate taxpayers that are required to

estimated tax on line 1 of the next payment voucher filed.

file a single Nebraska return for a unitary business may file

combined estimated tax payments for the group. A combined

FISCAL YEAR TAX RATE. Use the tax rate in effect on the

Nebraska identification number is used for the group and can be

first day of the fiscal year. The tax rate in effect for January 1 to

requested by writing the Nebraska Department of Revenue. The

December 31, 1999 is printed on the payment vouchers. A

corporation using a 52-53 week fiscal year beginning in the last

same combined identification number used to file estimated tax

payments is assigned to the corporate taxpayer’s Nebraska

week of December must use the rate in effect on the following

corporation income tax return.

January 1st.

Instructions For Nebraska Corporation Estimated Income Tax - 1999

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