California Form 5806 - Underpayment Of Estimated Tax By Corporations - 2012 Page 5
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5Line 5b – Enter the overpayment from the previous
Installments 3 and 4 – Because Exception A
on line 13 through line 17 cannot be more than the
installment. However, if an underpayment existed on
for large corporations can only be used for the
number of days shown on line 12.
any prior installment, pay that underpayment first.
1st installment (assuming it also meets the
Line 18 – Divide the number of days shown on
recapture requirement in its 2nd installment), the
Line 7 – If line 7 shows an underpayment for
line 13 by the number of days in the taxable year.
corporation must use the amounts computed in
any installment, complete Part IV, Exceptions
Multiply the result by 4% and by the underpaid
Part I or Exception B or Exception C, column (c)
Worksheets, and Part II, Exceptions to the Penalty,
amount shown on line 7.
and column (d) for the corporation’s remaining
for that installment.
Line 19 – Divide the number of days shown on
installments.
Part II Exceptions to the Penalty
line 14 by the number of days in the taxable year.
Exception B – Tax on Annualized Current Year
Multiply the result by 3% and by the underpaid
The FTB will not assess a penalty if all of the
Income
amount shown on line 7.
estimated tax was paid on time and the payments
This exception applies if the estimated tax paid on
Line 20 – Divide the number of days shown on
satisfied the exception rules. A corporation may
or before the installment due date was equal to or
line 15 by the number of days in the taxable year.
qualify for more than one exception. Complete
more than the amount the corporation would owe
Multiply the result by 3% and by the underpaid
Part IV, Exceptions Worksheets, to see if the
if its estimated tax was computed on annualized
amount shown on line 7.
corporation qualifies to use any of the exceptions.
taxable income for the months preceding an
Line 21 and Line 22 – Divide the number of days
California difference: Under California law, the
installment due date.
shown on line 16 or line 17 by the number of
exceptions are computed on a cumulative basis. This
For each period, in column (a) through column (d),
days in the taxable year. Multiply the result by the
differs from federal law which requires only 25% of
enter the number of months for the annualization
percentage, which the FTB will determine at a later
the annual payment for each installment.
method used based on the table below. For
date. Then multiply the result by the underpaid
example, if a Form 100 is filed and the Standard
Part III Figure the Penalty
amount shown on line 7.
Option was used, enter 3 in column (a), 3 in
Penalty Rates – To get updated penalty rates, go to
If line 7 shows an underpayment for any
column (b), 6 in column (c), and 9 in column (d).
ftb.ca.gov and search for penalty rates or call the
installment and the corporation did not meet any
Annualization Periods and Options
FTB automated phone system using the telephone
of the exceptions in Part II, complete the penalty
number listed below.
Installment
1st
2nd
3rd
4th
computation on line 11 through line 22.
Standard Option
3
3
6
9
For the interest rate for line 21, call after
Figure the penalty on the underpayment on line 7,
March 2013. For the interest rate for line 22, call
Option 1
2
4
7
10
from the installment due date to the return due date
after September 2013.
(excluding extension of time) or to the payment
Option 2
3
5
8
11
date, whichever is earlier.
How to Use the Automated Phone System
Corporations can use the Standard Option or
Additional Payments – If the corporation made
must elect to use Option 1 or Option 2. Exempt
The system is available in English and Spanish to
additional payments for an installment, figure the
callers with touch-tone telephones.
organizations use Option 1 (the Standard Option
penalty on the revised underpaid amount (amount
for exempt organizations) or elect to use Option 2.
General tax information is available 24 hours a day,
on line 7 minus the amount of the last payment)
The election to use an expanded option must be
seven days a week.
from the last payment date to the return due date
made on or before the due date of the first required
Telephone: 800.338.0505 from within
(excluding extension of time) or to the date of
installment payment. Get the instructions for the
the United States
the next payment, whichever is earlier. Attach a
2012 Form 100-ES, Corporation Estimated Tax, for
separate computation for each additional payment.
more information.
916.845.6500 from outside
the United States
Line 11 – Enter the date payment was made or
Line 32 – Enter on line 32, column (a) through
the return due date (excluding extension of time),
column (d), the annualization amounts for the option
After you reach the number, select business entity
whichever is earlier.
used. For example, if a Form 100 is filed and the
information, then frequently asked questions,
Standard Option was used, on line 32, enter 4 in
follow the recorded instructions, and enter code
Form 109 Filers – Enter the date payment was made,
column (a), 4 in column (b), 2 in column (c), and
number 403 to get the updated estimated penalty
or the 15th day of the 5th month after the close of
1.33333 in column (d). (Exempt organizations use
rate.
the taxable year, whichever is earlier.
the annualization amounts for the Standard Option or
Part IV Exceptions Worksheets
When the due date falls on a weekend or holiday,
Option 1.) See the instructions under “Purpose” for
the deadline to file and pay without penalty is
information on where to attach form FTB 5806.
Newly formed or qualified corporations are not
extended to the next business day.
subject to the minimum franchise tax for the first
Annualization Amounts
Days means calendar days unless otherwise noted.
taxable year. However, the corporation is required
Installment
1st
2nd
3rd
4th
Line 12 – Enter the number of days from the
to make estimated tax payments for its first taxable
Standard Option
4
4
2
1.33333
year. The estimated payments will be based on the
installment due date (line 2) to the date shown on
Option 1
6
3
1.71429
1.2
corporation’s expected tax liability after credits. For
line 11.
more information, see page 1, Newly Formed or
Option 2
4
2.4
1.5
1.09091
Line 13 – Enter the number of days on line 12 that
Qualified Corporations under Purpose section.
are before 7/01/12 or the payment date, whichever
Exception C – Tax on Annualized Seasonal Income
Exception A – Prior Year’s Tax
is earlier.
This exception applies if the estimated tax paid on
Line 14 – Enter the number of days on line 12 that
Regular Corporations – Generally, this exception
or before the installment due date was equal to or
fall within the period after 6/30/12 and before
applies if the amount paid or credited on or before
more than the amount the corporation would owe
1/01/13 or the payment due date, whichever is
the installment due date equals or exceeds the
if its estimated tax was computed on annualized
earlier.
tax shown on the return for the preceding year,
seasonal taxable income for the months preceding
prorated to each installment. For banks and
an installment due date. Use Exception C only if
Line 15 – Enter the number of days on line 12 that
financial corporations, the tax shown on the return
the corporation’s base period percentage for any
fall within the period after 12/31/12 and before
includes the amount of the bank and financial tax
six consecutive months of the taxable year equals
7/01/13 or the payment due date, whichever is earlier.
rate adjustment. The return for the preceding year
or exceeds 70%. Get the instructions for federal
Calendar year corporations – Enter the number of
must have covered a full 12 months.
Form 2220, Underpayment of Estimated Tax by
days on line 12 that fall within the period after
Corporations, for more information on the base
“Large” Corporations – A large corporation is any
6/30/12 and before 3/15/13 or the payment date,
period percentage. See the instructions under
corporation, including a predecessor corporation,
whichever is earlier. The total of line 13 through
“Purpose” for information on where to attach form
that had California net income (computed without
line 15 cannot be more than the number of days
FTB 5806.
regard to the net operating loss deduction) of
shown on line 12. Skip line 16 and line 17 and
$1 million or more for any taxable year during the
proceed to line 18.
three taxable years immediately preceding the
Line 16 – For fiscal year corporations only, enter
current taxable year.
the number of days on line 12 that fall within the
Installments 1 and 2 – This exception allows a
period after 6/30/13 and before 1/01/14 or the
large corporation to use prior year’s tax for the 1st
payment date, whichever is earlier.
installment only. The difference between using the
Line 17 – For fiscal year corporations only, enter
prior year’s tax and the current year’s tax for the
the number of days on line 12 that fall within the
1st installment must have been added to the 2nd
period after 12/31/13 and before 2/15/14 or the
installment (calculated using current year’s tax) to
payment date, whichever is earlier. The total days
meet the exception.
Page 2 FTB 5806 Instructions 2012
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