Estimated Tax Instructions For Unrelated Business Income Tax (Ubit) - Minnesota Department Of Revenue

Estimated Tax Instructions for Unrelated Business Income Tax (UBIT)

Filing Requirements

Paying Electronically

Credit card.

For a fee, you can use your

credit or debit card to make a payment

A tax-exempt organization with an estimated

You’re required to pay electronically if your

through Value Payment Systems, a national

unrelated business income tax of more than

total unrelated business income tax liability

company that partners with federal, state

$500 must make quarterly payments based

for the last 12-month period ending June 30

and local governments to provide credit and

on its required annual payment. An organi-

is $10,000 or more. Also, if you’re required

debit card payment services.

zation is not required to pay estimated taxes

to pay any Minnesota business tax elec-

the first year it is subject to tax in Minnesota.

tronically, such as sales or withholding tax,

To do so:

you’re required to pay all Minnesota taxes

• Go to payMNtax.com; or

Required annual payment. The required

electronically.

• Call 1-855-9-IPAY-MN.

annual payment is the lesser of 100 percent

of the prior year’s tax liability or 100 percent

Failure to pay electronically when required

Paying by Check

of the current year’s tax liability. The required

may result in a penalty being assessed. The

If you’re not required to pay electronically

annual payment must be paid in equal install-

penalty is 5 percent of each payment that

and are paying by check, visit our website

ments unless certain exceptions apply (see

should have been remitted electronically,

at and click on

instructions for Schedule M15NP, Additional

but was remitted by some other means.

“Make a Payment” and then “By check” to

Charge for Underpayment of Estimated Tax).

Electronic Payment Options

create a voucher. Print and mail the voucher

Due dates. Quarterly installments are due

To pay, go to and

with a check made payable to Minnesota

by the 15th day of the third, sixth, ninth and

log in. If you don’t have Internet access, you

Revenue.

12th months of your tax year. Installments

can pay by phone at 1-800-570-3329. When

Do not send a deposit form if you paid elec-

for a short tax year are due in equal pay-

paying electronically, you must use an ac-

tronically or if no payment is due.

ments on the 15th day of the third, sixth,

count not associated with any foreign banks.

ninth and final months. No installments are

Information and Assistance

Note: If you’re using the system for the first

required for a short tax year of fewer than

time and you need a temporary password,

four months.

Website:

call our Business Registration Office at 651-

Email:

ubi.taxes@state.mn.us

Underpaying installments. If you underpay

282-5225 or 1-800-657-3605.

Phone: 651-297-5199

or did not pay any installment by the due

ACH credit or Fed Wire. If you use other

date, an additional charge for underpay-

electronic payment methods, such as ACH

ment will be added to your tax (see Schedule

credit method or Fed Wire, be sure to check

M15NP).

with your bank or Fed Wire representative

Determining your estimated tax. Complete

to find out when to initiate the payment in

federal Form 990W to determine your fed-

order for it to be received on time. Some

eral estimated tax. Then use your prior year

banks require up to three business days to

Form M4NP as a worksheet to determine

transfer funds.

your current year Minnesota estimated tax.

Record of Estimated Tax Payments

Enter the payments you make during the year below, and use this record to prepare your Form M4NP for the current year.

Do not attach this record to your return. Keep it with your tax records.

Do not include payments made to the Internal Revenue Service, payments for a balance due on previous years’ Minnesota income tax

returns, payments on an audit report or amended return, or payments for penalties or interest.

1 Amount of your prior year’s refund that was applied to this year’s estimated tax (from prior year’s Form M4NP) . 1

2 Payments made:

a. First quarter:

check or confirmation #

date

amount

b. Second quarter:

check or confirmation #

date

amount

c. Third quarter:

check or confirmation #

date

amount

d. Fourth quarter:

check or confirmation #

date

amount

Line 2 total (add payment amounts for all four quarters) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2

3 Total (add lines 1 and 2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

Enter this amount on your current year’s Form M4NP as your total estimated tax payments made.