Part II — Calculate the Penalty
Line 23. A payment of estimated income tax is applied against underpayments of required installments in the order that
installments are required to be paid, regardless of the installment to which the payment pertains.
In determining the date of payment on line 23, use the date of the payment which was applied against the underpayment
of income tax on line 22, the due date of the next payment (line 12 of the next column), or the 15th day of the 3rd month
following the close of the taxable year, whichever is earliest. Enter the payment date or next due date in a MMDDCCYY
format. For example, April 15, 2014 should be entered as 04152014.
Example. A corporation has an underpayment for the April 15 installment of $1,000. The June 15 installment requires
a payment of $2,000. On June 15, the corporation deposits $2,000 for its June 15 installment. However, $1,000 of this
payment is considered to be for the April 15 installment. The penalty for the April 15 installment is calculated to June 15
(61 days). The payment of $1,000 should be applied to the June 15 installment.
Line 25. The penalty is calculated at three percent per year for any days in 2014 and 2015. Multiply line 22 by the applicable
interest rate for the number of days on line 24 divided by 365.
If the corporation has made more than one payment for a required installment, make separate penalty calculations through
the date of payment and for the remaining underpayment through the date it is paid, then add the results together and enter
on line 25.