Instructions For Alaska Underpayment Of Estimated Tax By Corporations printable pdf download

Instructions for Alaska Underpayment of

Estimated Tax by Corporations

Purpose of the Form

Line 1: Enter on line 1 the net income tax from Form 6000, 6100,

or 6150, Schedule A, line 9 less refundable credits on Schedule A,

A corporation uses Form 6220 to report the use of the annualized

line 11 and line 12. Do not enter an amount less than zero.

income installment method or the adjusted seasonal installment

method of calculating any estimated tax penalty.

Line 3: Subtract line 2d from line 1. If the result is less than $500,

do not complete the rest of this form.

Who Must File

Line 4b: Compute your previous year’s tax in the same way that

the amount on line 3 of this form was determined, using the taxes

A corporation is required to complete and attach Form 6220 to

and credits from your previous year’s tax return. If you did not file

its return, only if the corporation pays its estimated tax based

an Alaska return showing a tax liability for the previous tax year, or

on the annualized income installment method or the adjusted

if that tax year was for less than 12 months, do not complete this

seasonal installment method. If neither of these methods apply,

line. Instead, enter the amount from line 4a on line 4c.

a corporation is not required to use the form, because the DOR

will calculate the amount of any penalty and notify the corporation

Line 4c: Enter the lesser of line 4a or line 4b.

of any amount due.

Line 5: Enter in columns A through D the installment due dates

Who Must Pay the Underpayment Penalty

(the 15th day of the 4th, 6th, 9th and 12th months of the tax year).

If the corporation did not pay sufficient estimated tax by any due

Line 6: Annualized income installment method or adjusted

date for paying estimated tax, it may be charged a penalty. This

seasonal installment method: If the corporation’s income varied

is true even if the corporation is due a refund when its return is

filed. The penalty is computed separately for each installment due

during the year because, for example, it operated its business

on a seasonal basis, it may be able to lower the amount of

date. Therefore, the corporation may owe a penalty for an earlier

one or more required installments by using the annualized

installment due date, even if it paid enough tax later to make up

income installment method or the adjusted seasonal installment

the underpayment.

method. The annualized income installment or adjusted seasonal

installment may be less than the required installment under the

Generally, a corporation is subject to the penalty if its tax liability,

regular method for one or more due dates, thereby reducing or

net of all credits, is $500 or more and it did not pay on time the

eliminating the penalty for those due dates.

lesser of: 100% of its tax liability for this tax year, or 100% of its tax

liability for the previous tax year, if a return was filed showing a tax

To use one or both of these methods to compute one or more

liability, and it covered a full 12 months. (A “large corporation” may

base only its first required installment on 100% of the prior year’s

required installments, use the worksheet for federal Form 2220,

using Alaska figures, rates, and computations. If you use the

tax liability.) A corporation may be able to reduce or eliminate the

worksheet for any payment date, you must use it for all payment

penalty by using the annualized income or adjusted seasonal

due dates. Do not enter an amount less than zero in each

installment method.

column.

Check the applicable box, if the corporation uses the annualized

If you are not using the annualized income installment method or

income installment method or the adjusted seasonal installment

adjusted seasonal installment method, and are completing Form

method, or if the corporation is a “large corporation.” A “large

6220 to estimate the penalty for underpayment of estimated tax,

corporation” is a corporation (or its predecessor) that reported

then follow the instructions below to compute the amount to enter

$1 million or more of Alaska taxable income for any of the three

on line 6, and complete the Penalty Worksheet below.

tax years immediately preceding the tax year involved. For this

purpose, taxable income does not include a net operating loss or

capital loss carryback. Members of a controlled group, as defined

If the corporation is not a Large Corporation, enter 25% of line 4c

in columns A through D.

in IRS Section 1563, must divide the $1 million among themselves

in accordance with IRC Section 1561.

Large Corporation: A Large Corporation may not base its

estimated tax payments on the previous year’s tax, except for the

Amended Returns

first quarter. Any reduction in that first installment must be added

to the second installment, so that the total of columns A–D is equal

A penalty for underpayment of estimated tax is based on the

to line 4a, as follows:

tax liability of the original return. The amendment of the return

does not change the penalty. However, an amended return is

If line 4b is less than line 4a, in column A enter 25% of line 4b. In

considered the original return if the amended return is filed by the

column B, determine the amount to enter by:

filing due date (including extension) of the original return.

(i)

subtracting line 4b from line 4a,

Specific Instructions

(ii)

adding the result to the amount on line 4a, and

(iii)

multiplying the total by 25%

Attach Form 6220 to the income tax return (Form 6000, 6100,

or 6150) if the annualized income installment method or adjusted

In columns C and D, enter 25% of line 4a.

seasonal installment method is used.

0405-6220i Rev 01/01/16 - page 1

Instructions For Alaska Underpayment Of Estimated Tax By Corporations

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