Form Ct-1120i - Computation Of Interest Due On Underpayment Of Estimated Tax

General Instructions

Line 7 - Enter the corporation’s estimated allowable Connecticut

corporation business tax credits for the year. Generally,

Complete this form in blue or black ink only. Use Form CT-1120

the amount of tax credits allowable against the corporation

to determine interest due on underpayments of estimated

business tax shall not exceed 70% of the amount of tax due

Connecticut corporation business tax or unrelated business

prior to the application of the tax credits. However, for the 2012

income tax for Form CT-1120, Corporation Business Tax

income year, tax credits can exceed the 70% limitation if the

Return; Form CT-1120U, Unitary Corporation Business Tax

taxpayer has an average monthly net employment gain of

Return; Form CT-1120CR, Combined Corporation Business

greater than zero, as calculated on Form CT-1120 TCE, Tax

Tax Return; or Form CT-990T, Connecticut Unrelated Business

Credit Cap Expansion. In addition, no tax credit shall reduce an

Income Tax Return.

included corporation’s tax calculated under Conn. Gen. Stat.

If the taxpayer made timely installment tax payments (Forms

§12-219 to an amount less than $250.

CT-1120 ESA, ESB, ESC, and ESD or Forms CT-990T ESA,

Line 11 - Do not enter an amount in Column A. Enter in Column B

ESB, ESC, and ESD) and paid at least 90% of the current year

the amount from Line 17, Column A. Enter in Column C the sum

tax or 100% of the prior year tax before the application of any

of Line 17, Column A, plus Line 17 Column B. Enter in Column D

tax credits at the required installment rate, the taxpayer is not

the sum of Line 17, Column A, plus Line 17, Column B, plus

subject to interest on underpaid installments. If the current year

Line 17, Column C.

tax is $1,000 or less, it is not necessary to complete this form.

Estimated tax payments may be based on the applicable

Line 13 - Enter the appropriate amount of your required

percentage of the current year tax determined by annualizing

installment as calculated in Part II, Lines 6 through 9, above.

net income. See Informational Publication 2012(10),

Line 19 - Enter all estimated tax payments made through the

Q & A on Estimated Corporation Business Tax and Worksheet

payment due date for the period. Include overpayments of the

CT-1120AE.

prior year tax applied to the current year. If the tax return for

the prior year was filed on time or within the extension period

Surtax

if a timely request for an extension was filed, the overpayment

A surtax of 20% of the tax on net income and a surtax of 20%

will be treated as estimated tax paid on the fifteenth day of the

of the tax on capital will apply for income years beginning on or

third month (March 15 for calendar year filers). Otherwise, the

after January 1, 2012, and before January 1, 2014. The surtax

overpayment will be treated as estimated tax paid on the date

does not apply to companies whose tax is equal to $250.

the prior year tax return was filed.

Companies whose gross income is less than $100 million are

exempt from the surtax unless they file as part of a combined

Part IV – Computation of Interest

or unitary return. The surtax is calculated without any reduction

Lines 10a, 13c, 16c, and 19c - Enter on the appropriate line

on account of any credit against the corporation business tax.

the required installment amount due. The required installment

amounts are computed as follows:

Line Instructions

Part I – Computation of Required Annual Payment

Regular Filers

Line 1 - Enter the tax liability for the current income year from

Enter the amount from Part II, Lines 6 through 9; or

Form CT-1120 or Form CT-1120U, Schedule C, Line 6, minus

Annualized Filers

Schedule C, Line 1c; Form CT-1120CR, Part IV, Line 13, minus

Part IV, Line 4; or Form CT-990T, Computation of Amount

Enter the amount from Part III, Line 17, Column A, on Line 10a.

Payable, Line 5.

Enter the amount from Part III, Line 17, Column B, on Line 13c.

Enter the amount from Part III, Line 17, Column C, on Line 16c.

The amount entered on Line 1 should not include any recapture

Enter the amount from Part III, Line 17, Column D, on Line 19c.

of tax credits.

Lines 10b, 11a, 12a, 13a, 14a, 15a, 16a, 17a, 18a, 19a, 20a,

Line 3 - Enter the total tax from the prior income year before the

21a, and 22a - Enter the payment amounts on the appropriate

application of any tax credits. The amount entered on this line

line according to the date of payment. Payments are first applied

should not include any recapture of tax credits.

to any remaining unpaid installment balances that are due, and

Part II – Computation of Required Installments

then are applied to the next required installment due.

The required installment payments are due on or before the

Lines 10 through 22 - Interest is calculated monthly on the

fifteenth day of the third, sixth, ninth, and twelfth months of the

accumulated unpaid required installment balance due at 1%

income year. If the due date falls on a Saturday, Sunday, or legal

per month or fraction of a month.

holiday, the next business day is the due date.

Line 23 - Enter the total interest due on unpaid required

Lines 6 through 9 - Calculate the required minimum installment

installment balances by adding the amounts on Lines 10

payments due. Multiply the required annual payment from

through 22. This amount is also entered on the appropriate

Part I, Line 5, by the required installment rate and enter the

Connecticut tax form.

result on the appropriate line.

Payments accompanying an estimated installment Form

CT-1120 ESA, ESB, ESC, and ESD or Form CT-990T ESA,

Part III – Annualized Income Installment Schedule

ESB, ESC, and ESD, will be credited as of the U.S. Postal

You must complete one entire column before

Service cancellation mark on the payment. The payment must

continuing to the next column.

be made or credit established on or before the due date of the

Line 1 - Enter the corporation’s total net income for the period.

required installment. Payments of estimated tax are credited

first against underpaid installments in the order in which such

Line 4 - The Connecticut corporation business tax rate is 7.5%.

installments are required to be paid. The overpayment from the

Multiply Line 3 by 7.5% (.075).

filing of a corporation business tax return is established as of the

Line 5 - If the corporation is subject to the surtax or preference

U.S. Postal Service cancellation mark on the completed return.

tax, include the amounts on Line 5.

Page 3 of 4

Form CT-1120I (Rev. 01/13)

Form Ct-1120i - Computation Of Interest Due On Underpayment Of Estimated Tax - 2012 Page 3

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