Form D-2220 - Underpayment Of Estimated Franchise Tax By Businesses - 2015 Page 2
Download a blank fillable Form D-2220 - Underpayment Of Estimated Franchise Tax By Businesses - 2015 in PDF format just by clicking the "DOWNLOAD PDF" button.
Open the file in any PDF-viewing software. Adobe Reader or any alternative for Windows or MacOS are required to access and complete fillable content.
Complete Form D-2220 - Underpayment Of Estimated Franchise Tax By Businesses - 2015 with your personal data - all interactive fields are highlighted in places where you should type, access drop-down lists or select multiple-choice options.
Some fillable PDF-files have the option of saving the completed form that contains your own data for later use or sending it out straight away.
ADVERTISEMENT
1
2Instructions for Underpayment of Estimated Tax by D-20 or D-30 Filers
Completing this form
Estimated Tax Interest
Line 1
DC law requires any business that expects its DC franchise tax liability to
exceed $1000 for the tax year to file a declaration of estimated franchise
Enter the amount from your 2015 D-20 or D-30 (Line 37).
Line 2
tax using the payment vouchers in:
Multiply the amount on Line 1 by 90% (.90). Your estimated franchise
• D-20ES – Declaration of Estimated Franchise Tax for Corporations; or
• D-30ES – Declaration of Estimated Franchise Tax for Unincorporated
tax payments must be equal to or greater than this amount.
Line 3
Businesses.
Enter 110% of the amount from your 2014 DC Forms D-20 or D-30,
Line 37. If your 2014 return was amended or corrected, multiply 110%
The law states that any business required to file and pay estimated tax
that fails to pay the amount required by the due date is subject to interest
times the corrected amount.
on the underpayment of estimated franchise tax.
Line 4
Enter the lesser of the amounts on Line 2 and Line 3. If you did not file a
When is interest assessed for Underpayment of Estimated
DC franchise tax return for 2014, you may only use Line 2. This is your
Franchise Tax?
minimum estimated franchise tax payment for 2015.
A 10% interest, compounded daily, is assessed if your total DC estimated
Line 5
franchise tax payments compared to your DC franchise tax liability do
Multiply the amount on Line 4 by 25% (.25). This gives you an even
not equal at least the smaller of:
distribution of your tax liability over the four periods of the tax year.
• 90% of the tax due (Line 37) on your 2015 DC franchise tax return;
Line 6
or
Enter the amount required from Line 5 under each of the payment
• 110% of the tax due (Line 37) on your 2014 DC franchise tax return
columns. For example, if Line 5 is $2000, you would enter $2000 for
(consisting of 12 months).
the 1
period, $4000 for the 2
period, $6,000 for the 3
period and
st
nd
rd
You must have filed a 2014 DC franchise tax return to use the 110%
$8,000 for the 4
period.
th
exception.
Annualized income method: If your income was different for each
period, determine the percentage for each period (divide the period income
A penalty will be assessed if any statement made on an estimated tax
by the full year’s income). Multiply Line 4 by each period’s percentage and
payment voucher is not true and accurate to the best of the signatory’s
enter the amounts earned by period on Line 6. Accumulate the periodic
knowledge.
amounts as shown above. Check the “Annualized Income” box.
Line 7
Are there any exceptions?
Enter the amount of estimated franchise tax payments made in each
You are not subject to interest for underpayment of estimated franchise
period. Include the amounts from the previous period with the 2
, 3
and
nd
rd
tax if:
4
periods. For example, if your estimated payment amount is $1,000
th
• You had no DC franchise tax liability for the tax year 2014 and in that
in each period, you would enter $1,000 in the 1
period, $2,000 in
st
year, you did business in DC for the entire 12 months;
the 2
period, $3,000 in the 3
period and $4,000 in the 4
period.
nd
rd
th
• The franchise tax due for 2015, minus any estimated tax payments,
Line 8 Underpayment each period
is less than $1001;
For each column, subtract Line 7 from Line 6. If Line 7 exceeds Line 6,
• Your total DC estimated franchise tax payments are equal to or greater
you have no underpayment interest. If there is an amount remaining,
than 110% of your 2014 DC franchise tax liability for the entire year; or
this is your periodic underpayment amount.
• Your remaining tax due after totaling all credits and estimated tax
Line 9 Underpayment Interest Factors
payments is less than 10% of your total DC franchise tax liability (Line
These are the underpayment interest factors by period.
43 of the D-20 and D-30) for the year.
Line 10
For each period, multiply the amount on Line 8 by the factor on Line 9.
When do you use this form?
This is your underpayment interest amount by period.
Line 11 Underpayment Interest
• You may use this form to calculate your underpayment interest. If you
Add the amounts on Line 10 for each period. This is your total
do, attach it to your tax return and enter the underpayment interest
underpayment of estimated franchise tax penalty.
on Line 47 of Forms D-20 or D-30. Fill-in the oval if the D-2220 is
• If you are filing the D-2220 with your D-20 or D-30 return, include
attached. If you do not wish to calculate the interest, OTR will do it
the underpayment interest in the amount you owe, enter the amount
when your return is processed and will notify you of the amount due.
on Line 43 and pay the total amount with the return. Fill in the oval
• You may also complete this form if you believe the interest amount
on Line 47 and attach the D-2220 to the return.
assessed by OTR for underpayment of estimated franchise tax is
• If you are filing the D-2220 form separately, pay the amount you owe
incorrect.
and attach to the D-2030P Payment Voucher, using the applicable
How do you file this form?
mailing address.
Attach it to your return if you complete the form before filing your tax
Make the check or money order payable to the DC Treasurer.
return. If you complete the D-2220 after filing and receiving a notice of
interest assessment, send it to:
Office of Tax and Revenue
1101 4th St SW, 2nd Floor
Washington DC 20024
D-2220 page 2
Revised 11/15
ADVERTISEMENT
0 votes
Related Articles
Related forms
Related Categories
Parent category: Financial