280-RICR-20-25-5. Estimated Tax Payments (version Amendment, 07/01/2012 to 04/23/2018)

State of Rhode Island - Division of Taxation Business Corporation Tax Estimated Tax Payments Regulation CT 12-10 TABLE OF CONTENTS RULE 1. PURPOSE RULE 2. AUTHORITY RULE 3. APPLICATION RULE 4. SEVERABILITY RULE 5. DEFINITIONS RULE 6. DECLARATION – DUE DATE – PAYMENTS – INTEREST RULE 7. CREDIT AGAINST TAX RULE 8. FAILURE TO FILE RULE 9. EFFECTIVE DATE RULE 1. PURPOSE These rules and regulations implement Rhode Island General Law (RIGL) chapter 44-26. That chapter accelerates the payment of the respective taxes imposed under RIGL chapters 11, 12, 13, 14, 15, and 17 of title 44, and chapter 3 of title 27 by requiring that an entity pay a sum equal to the entire amount of its estimated tax during its current taxable year. RULE 2. AUTHORITY These rules and regulations are promulgated pursuant to RIGL §44-1-4 and §44-26-11. The rules and regulations have been prepared in accordance with the requirements of RIGL §§42-35- 1 et. seq. of the Rhode Island Administrative Procedures Act. RULE 3. APPLICATION These rules and regulations shall be liberally construed so as to permit the Division of Taxation to effectuate the purpose of RIGL chapter 44-26 and other applicable state laws and regulations. RULE 4. SEVERABILITY If any provision of these rules and regulations, or the application thereof to any person or circumstances, is held invalid by a court of competent jurisdiction, the validity of the remainder of the rules and regulations shall not be affected thereby. RULE 5. DEFINITIONS "Advance" means a sum equal to one hundred percent (100%) of the full amount of the tax that a corporation estimates it will be required to pay under the provisions of any of the RIGL chapters 11, 12, 13, 14, 15, and 17 of title 44, and chapter 3 of title 27, or in any changes and amendments of those chapters. "Corporation" means every corporation, utility, banking institution, insurance company, organization, association, or individual subject to taxation under RIGL chapters 11, 12, 13, 14, 15, and 17 of title 44, and chapter 3 of title 27, or under any changes and amendments of those chapters. "Taxable year," means: (i) For entities taxed under RIGL chapters 44-11 or 44-12, the calendar year or fiscal year for which a return is filed and; (ii) For entities taxed under RIGL chapter 44-14, referred to as "income period", the calendar year or the fiscal year, or portion of the year to be covered by the filing and; (iii) For entities taxed under RIGL chapters 44-13, 44-15, or 44-17, or under RIGL chapter 27- 3, the calendar year ending December 31st of each year. RULE 6. DECLARATION – DUE DATE – PAYMENTS – INTEREST (a) Every corporation is required to file estimated taxes if their estimated liability for the taxable year can reasonably be expected to exceed five hundred dollars ($500) pursuant to RIGL 44-26- 2.1(a) . For Calendar Year taxpayers: Tax Types Tax Form Used for Filing 1st Installment Due Date 2nd Installment Due Date 3rd Installment Due Date 4th Installment Due Date Corporation and Franchise Tax RI-1120ES 40% March 15th 60% June 15th N/A N/A Public Service Tax T69-ESPS 40% March 15th 60% June 15th N/A N/A Taxation of Banks T69-ESBE 40% March 15th 60% June 15th N/A N/A Bank Deposits T69-ESBD 40% March 15th 60% June 15th N/A N/A Taxation of Insurance Companies T69-ESINS 40% March 15th 60% June 15th N/A N/A Surplus Lines Tax T69- ESSLBDEC 25% April 30th 25% June 30th 25% October 30th 25% December31st For Fiscal Year taxpayers: Tax Types Tax Form Used for Filing 1st Installment Due Date 2nd Installment Due Date 3rd Installment Due Date 4th Installment Due Date Corporation and Franchise Tax RI-1120ES 40% 15th day of 3rd month 60% 15th day of 6th month N/A N/A Taxation of Banks T69-ESBE 40% 15th day of 3rd month 60% 15th day of 6th month N/A N/A (b) If multiple payments are being made for different obligations with one check (for example, an extension and an estimated tax payment), the appropriate separate coupons shall accompany the payment(s). (c) If the required estimated payments are not made, then underestimated interest shall be calculated and reported on Form RI-2220 when filing the annual return. (d) In the event the estimated tax liability increases, an entity may file an amended estimated declaration and shall file and pay an additional amount at the time of the amended declaration. However, underestimating interest may still be assessed. RULE 7. CREDIT AGAINST TAX Credit against tax. – All payments of any advance or installment payment, for any taxable year is allowed as a credit to the corporation against the tax imposed upon the corporation for the taxable year under the provisions of any of the chapters enumerated in § 44-26-1. RULE 8. FAILURE TO FILE If any corporation is required under RIGL chapter 44-26 to file a declaration of estimated tax for any taxable year at any time on or before the fifteenth day of the tenth month of the taxable year and the corporation fails to file any declaration, although the declaration may otherwise be late, on or before that date, there shall be assessed as a penalty against the corporation an amount equal to five percent (5%) of the tax imposed upon the corporation for the taxable year. The tax administrator may waive the penalty, if it is shown to his or her satisfaction that the failure to file the declaration was due to reasonable cause and not to willful neglect. RULE 9. EFFECTIVE DATE This Regulation shall take effect July 1, 2012 and shall amend and supercede regulation CT 01- 10 promulgated January 1, 2001. David M. Sullivan TAX ADMINISTRATOR