Form Sc2220 - Underpayment Of Estimated Tax By Corporations

Instructions for SC2220 - 2015

PURPOSE OF FORM

SC2220 is used by corporations (including S corporations, limited liability companies (LLCs) taxed as corporations, and

tax exempt organizations subject to the unrelated business income tax) to determine whether they paid enough estimated

tax, whether they are subject to the penalty for underpayment of estimated tax and, if so, the amount of penalty.

Estimated tax is a corporation's expected income tax liability minus its credits. A corporation must make estimated tax

payments if it can reasonably expect its estimated tax to be $100 or more.

HOW TO USE SC2220

Complete lines 1 through 3 of Part I. If line 1 is $100 or more, complete the rest of Part I to determine the required annual

payment. Complete Part II if boxes 4, 5 or 6 apply.

Complete Part III to find out if you have an underpayment for any of the four installment due dates. If you have an

underpayment on line 15 (column a, b, c, or d) go to part IV, Figuring the Penalty.

Specific Instructions

Part I. Required Annual Payment

Line 2

Figure your 2014 tax in the same manner as line 1 of this form was determined, using the tax and credit from

your 2014 tax return. If you did not file a return showing at least some amount of tax for the 2014 tax year, or if your 2014

tax year was for less than 12 months, do not complete this line. Instead, enter the amount from line 1 on line 3.

'S' corporations can refer to federal Form 2220 instructions for amount to enter on line 3. "Large corporations" can refer to

line 8 instructions for the amount to enter on line 2.

Part III. Figuring Your Underpayment

Complete lines 7 through 16 in Part III. The instructions for most of these lines are on the form itself. Follow the

instructions below for lines 8, 9 and 15.

Line 8

If the corporation's income varied during the year because, for example, it operated its business on a seasonal

basis, it may be able to lower the amount of one or more required installments by using the annualized income installment

method or the adjusted seasonal installment method. To use either of these methods to figure your required installments,

use the federal forms, worksheets and instructions with the necessary South Carolina adjustments. Write either "adjusted"

or "annualized" to the left of line 8 to indicate use of either of these methods. Attach a copy of the worksheet to SC2220. If

you are a "large corporation", as defined in the Internal Revenue Code Section 6655, refer to federal Form 2220

instructions for the amounts to enter in columns (a) through (d) of line 8.

Line 9

In column (a), enter the estimated tax payments deposited by the 15th day of the 4th month of your tax year; in

column (b), enter payments you made after the 15th day of the 4th month through the 15th day of the 6th month of your

tax year; in column (c), enter payments you made after the 15th day of the 6th month through the 15th day of the 9th

month of your tax year; and, in column (d), enter payments made after the 15th day of the 9th month through the 15th day

of the 12th month of your tax year. Include in your estimated tax payments any overpayment of tax from your 2014 return

that you elected to apply to your 2015 estimated tax.

Line 15

If any of the columns in line 15 shows an underpayment, complete Part IV to figure the penalty.

Part IV. Figuring the Penalty

Complete lines 17 through 36 to determine the amount of the penalty. The penalty for the period of underpayment is

determined under Internal Revenue Code Section 6655 at a rate determined under Internal Revenue Code Section 6621.

See Section 12-54-25(D) of South Carolina Code of Laws.

30993026

Form Sc2220 - Underpayment Of Estimated Tax By Corporations - 2015 Page 3

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