Form 1120es - Maine Corporate Income Tax Estimated Tax Worksheet

FORM 1120ES-ME INSTRUCTIONS

Estimated Tax Payment Voucher

1. WHO MUST PAY ESTIMATED TAX?

3. DUE DATES FOR ESTIMATED TAX IN-

5. UNDERPAYMENT PENALTY.

STALLMENTS.

Every corporation subject to taxation under 36

A penalty equal to the interest rate on overdue

M.R.S.A., Part 8 (Income Taxes) must pay esti-

Installment payments are due on the 15th day of

taxes accrues automatically on underpayments of

mated tax. If the income tax liability for the tax-

the 4th, 6th, 9th and 12th months following the

the required installment amount for the period of

able year or for the prior tax year reduced by any

beginning of the corporation’s fiscal year. If the

underpayment. The period of underpayment is the

allowable credits is less than $1,000, the require-

due date falls on a Saturday, Sunday or legal holi-

period of time from the date the installment is due

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

day, substitute the next succeeding day which is

until the underpayment is satisfied or until the tax

not a Saturday, Sunday or legal holiday.

return to which the estimate installment applies is

due, whichever occurs earlier.

2. AMOUNT OF ESTIMATED TAX TO BE

PAID.

4. AMOUNT OF INSTALLMENTS.

The estimated tax must be no less than the smaller

The amount of estimated tax due for the taxable

6. SHORT TAXABLE YEAR.

of the following:

year must be paid in four equal installments un-

For a corporation having a taxable year of less

less:

than 12 months, the estimated tax must be paid in

a. An amount equal to the preceding year’s tax

full by the 15th day of the last month of the tax-

liability, if that preceding year was a taxable year

a. The taxpayer establishes by adequate record

able year. If you are filing a tax return for a short

of 12 months; or

the actual distribution of tax liability and allowable

taxable year, identify your next filing period in the

credits during the tax year; or

space provided on the voucher.

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

the current taxable year. However, taxpayers

b. The taxpayer is a large corporation as defined

cannot use the machinery and equipment invest-

by IRC § 6655(g)(2)(A). Such large corporations

ment tax credit in the determination of the esti-

may elect to determine the first required install-

mated corporate income tax liability.

ment for any taxable year based on the preceding

year’s state income tax liability, if that preceding

Exception: Large corporations as defined by IRC

year was a taxable year of 12 months. However,

§ 6655(g)(2)(A), are required to pay estimated

if the corporation so elects, the second required

taxes in accordance with paragraph b, except as

installment for the taxable year must equal 90%

provided in 36 M.R.S.A. § 5228(5)(C).

of the corporation’s income tax liability for the first

half of the current year, less the amount of the

first installment for the taxable year as determined

under this provision.

Form 1120es - Maine Corporate Income Tax Estimated Tax Worksheet - 2005

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