Corp Tax 2

Question 1

Estimated tax payments

Answer 1

must be made by every corporation whose estimated tax is expected to be $500 or more

Question 2

Estimated tax payment

Answer 2

Is its expected tax liability including AMT and Environmental tax, less its allowable tax credits

Question 3

No penalty for underpayment of estimated tax will be imposed if payments at least equal the lesser of:

Answer 3

(a) 100% of the current year’s tax (determined on the basis of actual income or annualized income) or
(b) 100% of the preceding year’s tax (if the preceding year was a full twelve months and showed a tax liability)