Instructions For Form 1120-W - Estimated Tax For Corporations

2017

Department of the Treasury

Internal Revenue Service

Instructions for

Form 1120-W

Methods of Tax Payment

Section references are to the Internal Revenue Code unless

otherwise noted.

Some corporations (described below) are required to

electronically deposit all depository taxes, including estimated

Future Developments

tax payments.

Electronic Deposit Requirement

For the latest information about developments affecting Form

1120-W and its instructions, such as legislation enacted after

Corporations must use electronic funds transfer to make all

they were published, go to

federal tax deposits (such as deposits of employment, excise,

and corporate income tax). This includes installment payments

What’s New

of estimated tax. Generally, electronic funds transfer is made

using the Electronic Federal Tax Payment System (EFTPS).

Corporations with assets of $1 billion or more (determined as of

However, if the corporation does not want to use EFTPS, it can

the end of the corporation's preceding tax year), must increase

arrange for its tax professional, financial institution, payroll

the required installment of estimated tax due in July, August, or

service, or other trusted third party to make electronic deposits

September of 2017 by 0.25% of the amount that otherwise

on its behalf. Also, it may arrange for its financial institution to

would have been due for that installment. The amount of the next

initiate a same-day tax wire payment (discussed below) on its

required installment would be decreased by an equal amount to

behalf. EFTPS is a free service provided by the Department of

reflect the increase in the previous installment.

the Treasury. Services provided by a tax professional, financial

institution, payroll service, or other third party may have a fee.

General Instructions

To get more information about EFTPS or to enroll in EFTPS,

Who Must Make Estimated Tax

visit

Payments

Depositing on time. For deposits made by EFTPS to be on

time, the corporation must submit the deposit by 8 p.m. Eastern

Corporations generally must make estimated tax payments if

time the day before the date the deposit is due. If the corporation

they expect their estimated tax (income tax less credits) to be

uses a third party to make deposits on its behalf, they may have

$500 or more.

different cutoff times.

S corporations must make estimated tax payments for certain

Same-day wire payment option. If the corporation fails to

taxes. S corporations should see the Instructions for Form

submit a deposit transaction on EFTPS by 8 p.m. Eastern time

1120S, U.S. Income Tax Return for an S Corporation, to figure

the day before the date a deposit is due, it can still make the

their estimated tax payments.

deposit on time by using the Federal Tax Collection Service

Tax-exempt corporations, tax-exempt trusts, and domestic

(FTCS). Before using the same-day wire payment option, the

private foundations must make estimated tax payments for

corporation will need to make arrangements with its financial

certain taxes. These entities should see the instructions for their

institution ahead of time. Please check with the financial

tax return, to figure the amount of their estimated tax payments.

institution regarding availability, deadlines, and costs. To learn

When To Make Estimated Tax

more about the information the corporation will need to provide

its financial institution to make a same-day wire payment, visit

Payments

and click on Same-day wire.

The installments generally are due by the 15th day of the 4th,

Foreign corporations. If a foreign corporation maintains an

6th, 9th, and 12th months of the tax year. If any due date falls on

office or place of business in the United States, it must use

a Saturday, Sunday, or legal holiday, the installment is due on

electronic funds transfer (as discussed above) to make

the next regular business day.

installment payments of estimated tax.

Underpayment of Estimated Tax

If the foreign corporation does not maintain an office or place

of business in the United States, it may pay the estimated tax by

A corporation that does not make estimated tax payments when

EFTPS if it has a U.S. bank account. The foreign corporation

due may be subject to an underpayment penalty for the period of

may also arrange for its financial institution to submit a same-day

underpayment. Use Form 2220, Underpayment of Estimated

payment on its behalf or can arrange for either a qualified

Tax by Corporations, to see if the corporation owes a penalty

intermediary, tax professional, payroll service, or other trusted

and to figure the amount of the penalty. See Form 2220 and the

third party to make a deposit on its behalf using a master

instructions for Form 2220.

account.

Overpayment of Estimated Tax

In addition, the foreign corporation has the option to pay the

estimated tax due by check or money order, payable to the

A corporation that has overpaid its estimated tax may apply for a

“United States Treasury.” To ensure proper crediting, enter the

quick refund if the overpayment is at least 10% of its expected

foreign corporation's EIN, “Form 1120-F (or 1120-FSC, if

income tax liability and at least $500. To apply, file Form 4466,

applicable) estimated tax payment,” and the tax period to which

Corporation Application for Quick Refund of Overpayment of

the payment applies on the check or money order. The

Estimated Tax, after the end of the tax year and before the

payments must be sent to the Internal Revenue Service Center,

corporation files its income tax return. See the instructions for

P.O. Box 409101, Ogden, UT 84409.

Form 4466.

Dec 16, 2016

Cat. No. 52102x

Instructions For Form 1120-W - Estimated Tax For Corporations - 2017

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