Department of the Treasury
Internal Revenue Service
Electronic Deposit Requirement
Section references are to the Internal Revenue Code unless
Corporations must use electronic funds transfer to make all
federal tax deposits (such as deposits of employment, excise,
and corporate income tax). This includes installment payments
of estimated tax. Generally, electronic funds transfer is made
For the latest information about developments affecting Form
using the Electronic Federal Tax Payment System (EFTPS).
1120-W and its instructions, such as legislation enacted after
However, if the corporation does not want to use EFTPS, it can
they were published, go to
arrange for its tax professional, financial institution, payroll
service, or other trusted third party to make deposits on its
behalf. Also, it may arrange for its financial institution to initiate a
same-day tax wire payment (discussed below) on its behalf.
Who Must Make Estimated Tax
EFTPS is a free service provided by the Department of the
Treasury. Services provided by a tax professional, financial
institution, payroll service, or other third party may have a fee.
Corporations generally must make estimated tax payments if
To get more information about EFTPS or to enroll in EFTPS,
they expect their estimated tax (income tax less credits) to be
or call 1-800-555-4477.
$500 or more.
Depositing on time. For deposits made by EFTPS to be on
S corporations must make estimated tax payments for certain
time, the corporation must initiate the deposit by 8 p.m. Eastern
taxes. S corporations should see the Instructions for Form
time the day before the date the deposit is due. If the corporation
1120S, U.S. Income Tax Return for an S Corporation, to figure
uses a third party to make deposits on its behalf, they may have
their estimated tax payments.
different cutoff times.
Tax-exempt corporations, tax-exempt trusts, and domestic
private foundations must make estimated tax payments for
Same-day payment option. If the corporation fails to initiate a
certain taxes. These entities should see the instructions for their
deposit transaction on EFTPS by 8 p.m. Eastern time the day
tax return, to figure the amount of their estimated tax payments.
before the date a deposit is due, it can still make the deposit on
time by using the Federal Tax Application (FTA). Before using
When To Make Estimated Tax
the same-day payment option, the corporation will need to make
arrangements with its financial institution ahead of time. Please
check with the financial institution regarding availability,
The installments generally are due by the 15th day of the 4th,
deadlines, and costs. To learn more about making a same-day
6th, 9th, and 12th months of the tax year. If any due date falls on
payment and download the Same-Day Payment Worksheet, visit
a Saturday, Sunday, or legal holiday, the installment is due on
the next regular business day.
Foreign corporations. If a foreign corporation maintains an
Underpayment of Estimated Tax
office or place of business in the United States, it must use
electronic funds transfer (as discussed above) to make
A corporation that does not make estimated tax payments when
installment payments of estimated tax.
due may be subject to an underpayment penalty for the period of
If the foreign corporation does not maintain an office or place
underpayment. Use Form 2220, Underpayment of Estimated
Tax by Corporations, to see if the corporation owes a penalty
of business in the United States, it may pay the estimated tax by
and to figure the amount of the penalty. See Form 2220 and the
EFTPS if it has a U.S. bank account. The foreign corporation
Instructions for Form 2220.
may also arrange for its financial institution to initiate a same-day
payment on its behalf or can arrange for either a qualified
Overpayment of Estimated Tax
intermediary, tax professional, payroll service, or other trusted
third party to make a deposit on its behalf using a master
A corporation that has overpaid its estimated tax may apply for a
quick refund if the overpayment is at least 10% of its expected
income tax liability and at least $500. To apply, file Form 4466,
In addition, the foreign corporation has the option to pay the
Corporation Application for Quick Refund of Overpayment of
estimated tax due by check or money order, payable to the
Estimated Tax, after the end of the tax year and before the
“United States Treasury.” To ensure proper crediting, enter the
corporation files its income tax return. Form 4466 may not be
foreign corporation's EIN, “Form 1120-F (or 1120-FSC, if
filed later than the 15th day of the 3rd month after the end of the
applicable) estimated tax payment,” and the tax period to which
the payment applies on the check or money order. The
payments must be sent to the Internal Revenue Service Center,
Methods of Tax Payment
P.O. Box 409101, Ogden, UT 84409.
Some corporations (described below) are required to
Refiguring Estimated Tax
electronically deposit all depository taxes, including estimated
If, after the corporation figures and deposits estimated tax, it
finds that its tax liability for the year will be more or less than
originally estimated, it may have to refigure its required
Aug 20, 2013
Cat. No. 52102x