Instructions For Form 1120-W - Estimated Tax For Corporations - 2016


Department of the Treasury
Internal Revenue Service
Instructions for
Form 1120-W
Electronic Deposit Requirement
Section references are to the Internal Revenue Code unless
otherwise noted.
Corporations must use electronic funds transfer to make all
federal tax deposits (such as deposits of employment, excise,
Future Developments
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
General Instructions
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
$500 or more.
S corporations must make estimated tax payments for certain
Depositing on time. For deposits made by EFTPS to be on
taxes. S corporations should see the Instructions for Form
time, the corporation must submit the deposit by 8 p.m. Eastern
1120S, U.S. Income Tax Return for an S Corporation, to figure
time the day before the date the deposit is due. If the corporation
their estimated tax payments.
uses a third party to make deposits on its behalf, they may have
Tax-exempt corporations, tax-exempt trusts, and domestic
different cutoff times.
private foundations must make estimated tax payments for
Same-day wire payment option. If the corporation fails to
certain taxes. These entities should see the instructions for their
submit a deposit transaction on EFTPS by 8 p.m. Eastern time
tax return, to figure the amount of their estimated tax payments.
the day before the date a deposit is due, it can still make the
When To Make Estimated Tax
deposit on time by using the Federal Tax Collection Service
(FTCS). Before using the same-day wire payment option, the
corporation will need to make arrangements with its financial
institution ahead of time. Please check with the financial
The installments generally are due by the 15th day of the 4th,
institution regarding availability, deadlines, and costs. To learn
6th, 9th, and 12th months of the tax year. If any due date falls on
more about the information the corporation will need to provide
a Saturday, Sunday, or legal holiday, the installment is due on
its financial institution to make a same-day wire payment, visit
the next regular business day.
and click on Same-day wire.
Underpayment of Estimated Tax
Foreign corporations. If a foreign corporation maintains an
A corporation that does not make estimated tax payments when
office or place of business in the United States, it must use
electronic funds transfer (as discussed above) to make
due may be subject to an underpayment penalty for the period of
installment payments of estimated tax.
underpayment. Use Form 2220, Underpayment of Estimated
Tax by Corporations, to see if the corporation owes a penalty
If the foreign corporation does not maintain an office or place
and to figure the amount of the penalty. See Form 2220 and the
of business in the United States, it may pay the estimated tax by
Instructions for Form 2220.
EFTPS if it has a U.S. bank account. The foreign corporation
Overpayment of Estimated Tax
may also arrange for its financial institution to submit a same-day
payment on its behalf or can arrange for either a qualified
A corporation that has overpaid its estimated tax may apply for a
intermediary, tax professional, payroll service, or other trusted
quick refund if the overpayment is at least 10% of its expected
third party to make a deposit on its behalf using a master
income tax liability and at least $500. To apply, file Form 4466,
Corporation Application for Quick Refund of Overpayment of
In addition, the foreign corporation has the option to pay the
Estimated Tax, after the end of the tax year and before the
estimated tax due by check or money order, payable to the
corporation files its income tax return. Form 4466 may not be
“United States Treasury.” To ensure proper crediting, enter the
filed later than the 15th day of the 3rd month after the end of the
foreign corporation's EIN, “Form 1120-F (or 1120-FSC, if
tax year.
applicable) estimated tax payment,” and the tax period to which
Methods of Tax Payment
the payment applies on the check or money order. The
payments must be sent to the Internal Revenue Service Center,
Some corporations (described below) are required to
P.O. Box 409101, Ogden, UT 84409.
electronically deposit all depository taxes, including estimated
Refiguring Estimated Tax
tax payments.
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
Nov 09, 2015
Cat. No. 52102x


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