Iowa Corporation Income Tax Instructions - 2014 Page 4
ADVERTISEMENT
1
2
3
4
5
6
7the Iowa consolidated return contains different
estimated tax for the entire tax shown on line
members than the federal consolidated return,
19 may be subject to a penalty for this
the federal income tax deduction using the
underpayment. The underpayment penalty is in
formula on Schedule H must be computed.
addition to the penalties on line 26 of page 1.
The underpayment penalty is computed on
Check the appropriate box to indicate the basis
form IA 2220 and the total from that form is
of this federal tax deduction computation. If
placed on line 25, page 1. If the penalty is
filing status 2 or 3, include pages 1-5 of the
computed, the IA 2220 form must be included
consolidated
federal
return,
consolidating
with the return. First return taxpayers are
income statements, and complete the Iowa
subject to this penalty.
Schedule H. All lines on Schedule H must be
completed.
Line 26: Failure to Timely File a Return A
penalty of 10% will be added to the tax due for
Line 6: Other Reductions: Enter the total from
failure to timely file a return if the return is filed
line 16 of Iowa Schedule A, page 2 of IA 1120
after the original due date of the return and if at
return.
least 90% of the correct amount of tax is not
Step 5 - Taxable Income
paid by the original due date of the return.
Line 11: Iowa Percentage Enter the amount
Failure to Timely Pay the Tax Due or
from line 13 of Iowa Schedule E, page 3, or
Penalty for Audit Deficiency A penalty of
100%, if the corporation’s business is entirely
5% will be added to the tax due if the return is
within Iowa. Carry the result to six decimal
filed by the original due date and at least 90%
places.
of the correct amount of tax is not paid by the
Line 15: Net Operating Loss Enter amount
original due date of the return.
from Iowa Schedule F, column E. A copy of
When the failure to file penalty and the failure
Schedule F must be included with the return.
to pay penalty are both applicable, only the
failure to file penalty will apply. Penalties can
Step 6 - Tax, Credits, & Payments
only be waived under limited circumstances.
Line 17: Tax Enter the amount of tax
Penalty for Willful Failure to File A penalty
computed from the tax rate schedule, page 3 of
of 75% will be added to the tax due for willful
the Iowa tax return. If the corporation has
failure to file a return or for filing with intent to
annualized for federal income tax purposes,
evade tax.
the corporation must annualize for Iowa income
Note: Penalties can only be waived under
tax purposes. If tax is annualized, check the
box and include a schedule of the formula used
limited circumstances, as described in Iowa
Code section 421.27.
to compute the tax.
Line 27: Interest If payment is received after
Line 18: Alternative Minimum Tax A small
business corporation or a new corporation for
the due date of the return, interest accrues on
its first year of existence, which through the
the unpaid tax at a rate prescribed by law
from the original due date of the return until
operation of IRC section 55(e) is exempt from
the federal alternative minimum tax, is not
payment is received. Any portion of a month is
subject to Iowa alternative minimum tax. A
considered a full month in calculating interest
due on unpaid tax.
small business corporation may apply any
alternative minimum tax credit carryforward to
Line 28: Total Amount Due Payment options
the extent of its regular corporation income tax
include payment through Modernized eFile
liability.
(MeF), ePay (direct debit), ACH Credit or
payment by check. Go to the Department’s
Enter the amount from line 18 of Schedule IA
website for electronic payment options. Do not
4626, page 4. Complete IA 4626 even if no
send
cash.
Make
checks
payable
to
alternative minimum tax is due or include
“Treasurer, State of Iowa”.
federal form 4626. Check the box if claiming a
small business exemption.
Step 8 - Overpayment
Line 29: Overpayment Underpayment penalty
Step 7 - Balance Due
Line 25: Penalty for Underpayment of
may be applicable. Subtract any 2220 penalty
on line 25; then enter remaining overpayment.
Estimated Tax Corporations underpaying
4
42-002 (09/08/14)
ADVERTISEMENT
0 votes
Related Articles
Related forms
Related Categories
Parent category: Financial