Home > Legal Library > Article




Join Matindale-Hubbell Connected


2014 Estimated Tax Calculation for Large Corporations Further Increased




by:
Saba Ashraf
William E. Sheumaker
Troutman Sanders LLP - Atlanta Office

 
April 21, 2010

Previously published on April 12, 2010

Background.  Corporations generally are required to make estimated income tax payments for each tax year in 4 installments that are due on the 15th day of the 4th, 6th, 9th, and 12th month of the tax year.  Until recently, the four installments were equal in amount. 

Under the 2009 Corporate Estimated Tax Shift Act, for a corporation with assets of at least $1 billion (determined as of the end of the previous tax year), the amount of any required installment of corporate estimated tax due in July, August, or September 2014 was increased by .25 percentage points to 100.25% of the payment otherwise due.  Subsequent increases pursuant to the 2009 Assistance Act, the 2009 Preference Extension Act and the 2010 HIRE Act, were made so that amount of any required installment of corporate estimated tax otherwise due in July, August, or September 2014 was increased from 100.25% to 157.75% of the amount otherwise due.

New provision.  Under the Act, in the case of a corporation with assets of at least $1 billion (determined as of the end of the previous tax year), the amount of any required installment of corporate estimated tax otherwise due in July, August, or September 2014 is further increased by 15.75 percentage points to 173.50% of the payment otherwise due.   The amount of the required installment that is due after the increased installment is reduced to reflect the total amount of the increase (i.e., 73.5%).

Therefore, any corporate estimated tax due in July, August, or September 2014 is required to be 73.50% higher than it would have otherwise been, and the following corporate estimated tax is 73.50% lower than it would have otherwise been.  The federal government’s fiscal year begins October 1st, and the apparent purpose of this provision is to move revenues from one fiscal year to another to meet budgetary requirements.  This provision is effective March 30, 2010.



 

The views expressed in this document are solely the views of the author and not Martindale-Hubbell. This document is intended for informational purposes only and is not legal advice or a substitute for consultation with a licensed legal professional in a particular case or circumstance.
 

View More Library Documents By...

 
Practice Area
 
Corporate Law
Taxation
 
Troutman Sanders LLP Overview