Corporate Estimated Payments: Payments (Rule 821)

Section 63-3036A, Idaho Code 01. Underpayments. A payment of estimated tax is to be applied to previous estimated payments of estimated tax in the order in which the estimated payments were required to be paid. To the extent the payment exceeds previous underpayments, it applies to the estimated payment then due. (4-6-23) 02. Overpayments. (4-6-23) a. If the estimated payments exceed the actual tax due, the overpayment may be claimed as a credit against the next payment only to the extent it exceeds all underpayments of prior estimated payments. (4-6-23) b. The overpayment is to be applied to deficiencies of tax, penalties, and interest prior to refund or application to a subsequent year’s estimated payment or tax liability. (4-6-23) c. A refund or credit may not be made to a corporation that fails to file its Idaho income tax return within three (3) years from the due date of the return for which it made the estimated payments. (4-6-23) 03. Obligation to File Returns. The payment of estimated tax does not relieve a corporation of the obligation to file a return when due pursuant to the Idaho Income Tax Act. An extension of time is not allowed for payment of estimated taxes. Making estimated payments as required in Section 63-3036A, Idaho Code, does not relieve the taxpayer of the requirement to pay the appropriate amount of tax with an application for extension of time to file or with the original return. (4-6-23) 822. CORPORATE ESTIMATED PAYMENTS: ANNUALIZED INCOME INSTALLMENT METHOD (RULE 822). Section 63-3036A, Idaho Code 01. In General. (4-6-23) a. If a corporation uses the annualized income installment method for federal purposes and is required to make estimated payments for Idaho purposes, the corporation may use that method to compute its Idaho estimated tax. If a corporation does not use the annualized income installment method for federal purposes, the corporation may not use that method for Idaho purposes. (4-6-23) b. See Section 6655, Internal Revenue Code, for the determination of annualized income. (4-6-23) 02. Required Installment. The required annualized income installment is the applicable percentage of the tax computed on the annualized income less the aggregate amount of any prior required installments for the reporting period. The applicable percentages for Idaho are: (4-6-23) a. Twenty-two and one-half percent (22.5%) for the first period; (4-6-23) b. Forty-five percent (45%) for the second period; (4-6-23) c. Sixty-seven and one-half percent (67.5%) for the third period; and (4-6-23) d. Ninety percent (90%) for the fourth period. (4-6-23) 03. Computation of Tax. The tax computed on the annualized income includes the annualized income multiplied by the corporate income tax rate, plus the permanent building fund tax, plus recapture of investment tax credit, less any credits excluding estimated payments. (4-6-23)