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Form 41EST — Instructions
Payment of Estimated Business Income Tax
Who Must Make Estimated Tax Payments. A Due Dates. For calendar year taxpayers, estimated
corporation must make estimated tax payments tax payments are due by the 15th day of April, June,
to the Tax Commission if it’s required to make September, and December. For fiscal year taxpayers,
estimated tax payments to the Internal Revenue estimated tax payments are due by the 15th day of the
Service and owes Idaho income tax of $500 or 4th, 6th, 9th, and 12th months of the tax year.
more. Estimated tax payments aren’t required if the The due dates for the federal and Idaho estimated tax
corporation wasn’t required to file an Idaho return payments are the same. If the due date is on a Saturday,
the previous tax year. Sunday or legal holiday, the payment is due on the next
If you received personalized payment vouchers regular business day.
(Form 41EST), use the appropriate voucher
for each filing period. If any of the preprinted Underpayment of Estimated Tax. Interest is due on
information is incorrect, draw a line through it and the difference between the amount of estimated tax
enter the correct information. Check the box on the payment required to be made on each voucher and the
voucher if there’s a change in your mailing address. amount of estimated tax payment actually made. Interest
is computed from the due date of the estimated payment
If you don’t have a preprinted form, use the until the required amount is paid or until the due date of
Form 41ES available at tax.idaho.gov. the return. The interest rate for 2022 is 3%. The interest
Estimated Tax Payments. Each estimated tax rate for 2023 is 5%.
payment must be 25% of the lesser of the tax Use Form 41ESR to determine the amount of any
required to be reported on the corporation’s return underpayments of tax and interest due when you file your
for the prior year, or 90% of the income tax required return.
to be paid on the current year’s return. Don’t include
fuels tax, sales/use tax, fuels tax refunds, tax from Overpayment of Estimated Tax. Excess estimated tax
the recapture of qualified investment exemption payments will be refunded after you file the completed
(QIE) or Tax Reimbursement Incentive Act credit return. You may apply all or part of the excess to next
reported on the income tax returns. year’s estimated tax by designating the amount on the
Idaho Form 41 or the Idaho Form 41S.
For corporations, the tax required to be reported is
defined as Idaho taxable income multiplied by the Overpayments will be applied to any prior year tax
appropriate tax rate, plus the permanent building liabilities before carryovers or refunds are allowed.
fund tax, plus tax from recapture of business income You will be notified if your overpayment is applied to
tax credits, minus allowable income tax credits. A an existing liability or is used to reduce your refund or
corporation making estimated tax payments in a year carryover.
following the revocation of subchapter S status will
Annualized Income and Estimated Tax Payments.
use $20 as the tax amount required to be reported
If your estimated payments are based on annualized
on the prior year’s return.
income for federal purposes, you may use the same
For S corporations, estimated tax payments are method for making Idaho estimated tax payments.
computed on the Idaho tax due to net recognized The estimated tax due for the installment period is
built-in gains and excess net passive income. calculated by multiplying the applicable percentage
Estimated tax payments aren’t required on the tax due (22.5%, 45%, 67.5%, and 90% for the 1st, 2nd, 3rd, and
on income being reported for individual shareholders. 4th installments, respectively) by the full year’s tax on the
annualized income for the period and deducting any prior
Computation of Estimated Tax Payments. The installments.
Form 41EST worksheet allows you to compare the
income tax on last year’s return with the anticipated Short Tax Year. If the short tax year ends before any
income tax for the current year. Use the smaller remaining due dates, you must make a final estimated
of the two amounts to determine the estimated tax payment by the 15th day of the last month of the
tax payment for each period. If your estimated tax short tax year. No estimated tax payment is required
payments are based on 90% of the income tax if the short tax year is less than four months or if the
required to be paid on the current year’s return and requirements to make an estimated tax payment aren’t
the anticipated income tax for the current year is met before the first day of the last month in the short
revised, use the revised amount to recompute any tax year.
remaining estimated tax payments.
EIN00035 12-30-2022 Page 1 of 2
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