Corporations should make estimated tax payments
if they expect to owe at least $500 on their annual returns. They
should use Form 1120-W, Estimated
Tax for Corporations when they figure and pay these taxes.
Note, however, that the corporate installments are due by the 15th
day of the 4th, 6th, 9th, and 12th months of the tax year: April,
June, September and December.
This is slightly different from the individual
estimated tax payment schedule, which pushes the fourth quarter
payment into January of the next year. But corporations still get
the same consideration if any due date falls on a Saturday, Sunday,
or legal holiday: the payment deadline is due on the next regular
Business owners can make estimated tax payments three ways:
- Credit an overpayment on a return to the
next year's estimated tax.
- Send in a payment with a payment-voucher
from Form 1040-ES.
- Pay electronically using the Electronic
Federal Tax Payment System (EFTPS).
Remember that the key to avoiding penalties
is to pay just enough estimated tax by the due date of each payment
period. The IRS divides the year into four payment periods, each
with its own due date.
Taxpayers who miss a due date risk being penalized,
even if the IRS owes them a refund when it's time to file tax returns.
Listed below are payment periods and due dates for individual (and
affected sole proprietorships, partnerships and S corp shareholders)
estimated tax payments:
- Payments from Jan. 1 through March 31 are
due April 15.
- Payments from April 1 through May 31 are
due June 15.
- Payments from June 1 through Aug. 31 are
due Sept. 15.
- Payments from Sept. 1 through Dec. 31 are
due Jan. 15 of the following year.
Regardless of whether your small business must
file on the individual estimated filing timetable or on the corporate
deadlines, make sure you aren't late with your check to the IRS.
You don't want to be among those taxpayers who use their refunds
to pay late penalties to Uncle Sam, do you?
-- Updated April 16, 2002