Magazine article The CPA Journal

Estimated Tax Payments by S Corporations

Magazine article The CPA Journal

Estimated Tax Payments by S Corporations

Article excerpt

Prior to 1990, S corporations were generally not required to make estimated tax payments. However, for tax years beginning after 1989 (Ann. 90-44, I.R.B. 1990-13,25), S corporations are required to make estimated tax payments at the corporation level for the following taxes if the total of these taxes for the year is expected to be $500 or more:

1. The built-in gains tax or the tax on certain capital gains imposed under former Sec. 1374;

2. The excess net passive investment income tax imposed by Sec. 1375(d)(2); and

3. The investment credit recapture tax imposed by Sec. 1371(d)(2).

The amount of estimated tax required to be paid annually is the lesser of:

1. 90% of the taxes shown on the return for the tax year (or if no return is filed, 90% of these taxes for the year); or

2. The sum of a) 90% of the sum of the investment credit recapture tax and the built-in gains tax (or the tax on certain capital gains) shown on the return for the tax year (or, if no return is filed, 90% of these taxes for the year); and b) 100% of any excess net passive income tax shown on the return for the preceding tax year. …

Search by... Author
Show... All Results Primary Sources Peer-reviewed

Oops!

An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.