Estimated Tax Worksheet For Form 1120es-Me printable pdf download

INSTRUCTIONS FOR FORM 1120ES-ME

Estimated Tax Payment Voucher

1. WHO MUST PAY ESTIMATED TAX?

ration so elects, the second required installment for the taxable year must equal

90% of the corporation’s income tax liability for the first half of the current

Every corporation subject to taxation under 36 M.R.S.A., Part 8 (Income

year, less the amount of the first installment for the taxable year as deter-

Taxes) must pay estimated tax. If the income tax liability for the taxable year

mined under this provision.

or for the prior tax year reduced by any allowable credits is less than $1,000,

the requirement is waived. See 36 M.R.S.A. § 5228(2).

5. UNDERPAYMENT PENALTY.

A penalty equal to the interest rate on overdue taxes accrues automatically on

2. AMOUNT OF ESTIMATED TAX TO BE PAID.

underpayments of the required installment amount for the period of underpay-

The estimated tax must be no less than the smaller of the following:

ment. The period of underpayment is the period of time from the date the

installment is due until the underpayment is satisfied or until the tax return to

a. An amount equal to the preceding year’s tax liability, if that preceding year

which the estimate installment applies is due, whichever occurs earlier.

was a taxable year of 12 months; or

b. An amount equal to 90% of the tax liability for the current taxable year.

6. SHORT TAXABLE YEAR.

However, taxpayers cannot use the machinery and equipment investment tax

For a corporation having a taxable year of less than 12 months, the estimated

credit in the determination of the estimated corporate income tax liability.

tax must be paid in full by the 15th day of the last month of the taxable year.

If you are filing a tax return for a short taxable year, identify your next filing

Exception: Large corporations as defined in IRC § 6655(g)(2)(A), are required

to pay estimated taxes in accordance with paragraph b, except as provided in

period in the space provided on the voucher.

36 M.R.S.A. § 5228(5)(C).

3. DUE DATES FOR ESTIMATED TAX INSTALLMENTS.

Installment payments are due on the 15th day of the 4th, 6th, 9th and 12th

months following the beginning of the corporation’s fiscal year. If the due

date falls on a Saturday, Sunday, or legal holiday, substitute the next succeeding

day which is not a Saturday, Sunday, or legal holiday.

4. AMOUNT OF INSTALLMENTS.

The amount of estimated tax due for the taxable year must be paid in four equal

installments unless:

a. The taxpayer establishes by adequate record the actual distribution of tax

liability and allowable credits during the tax year; or

b. The taxpayer is a large corporation as defined by IRC § 6655(g)(2)(A).

Such large corporations may elect to determine the first required installment

for any taxable year based on the preceding year’s state income tax liability, if

that preceding year was a taxable year of 12 months. However, if the corpo-

Estimated Tax Worksheet For Form 1120es-Me

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