Iowa Free Printable IA 2220 underpayment of estimated tax by corporations, financial institutions, 45-006 for 2017 Iowa Underpayment of Estimated Tax 45-006

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Underpayment of Estimated Tax 45-006
IA 2220 underpayment of estimated tax by corporations, financial institutions, 45-006

2016 IA 2220 Underpayment of Estimated Tax by Corporations and Financial Institutions https://tax.iowa.gov Name Tax Period Federal Employer Identification Number (FEIN) Computation of Underpayment Note: If you meet any of the exceptions (see Instruction D) that avoid the underpayment penalty for all quarters, skip lines 1 through 8, and go directly to line 9. 1. 2016 tax from line 19, IA 1120, or line 15, IA 1120F ..................................1. 2. Total credits from line 20, IA 1120, or line 16, IA1120F .............................2. 3. Balance. Subtract line 2 from line 1. ..........................................................3. st 1 Quarter nd 2 Quarter rd 3 Quarter th 4 Quarter 4. Enter in columns 1 through 4 the installment dates that correspond to the last day of the 4th, 6th, 9th, and 12th months of your taxable year 5. Enter 25% of line 3 in columns 1 through 4 6. (a) Amount paid or credited for each period 6. (b) Overpayment of previous installment. An overpayment on line 8 in excess of all prior underpayments is to be applied as a credit against the next installment. 7. Total of lines 6(a) and 6(b) 8. Underpayment: Subtract line 7 from line 5 Overpayment: Subtract line 5 from line 7 Exceptions that avoid the underpayment penalty (See Instruction D); Exceptions 1 and 2 not applicable for initial year filers. 9. Total cumulative amount paid or credited from the beginning of the taxable year through the installment dates that correspond to the last day of the 4th, 6th, 9th and 12th months of your taxable year 25% of tax 50% of tax 75% of tax 100% of tax 25% of tax 50% of tax 75% of tax 100% of tax 25% of tax 50% of tax 75% of tax 100% of tax 10. Exception 1: Prior year’s tax 11. Exception 2: Tax on prior year’s income using current year’s rates 12. Exception 3: Tax on annualized income. Include schedule. Computation of Underpayment Penalty 13. Enter same installment dates used in line 4 14. Amount of underpayment from line 8 15. Date of payment. See Instructions. 16. (a) Number of days from due date of installment to date of payment or 12/31/16, whichever is earlier 16. (b) Number of days inclusively from 01/01/17, or due date of installment, whichever is later, to the date of payment or the last day of the 4th month after the close of the tax year, whichever is earlier 17. (a) 5% a year on the amount shown on line 14, for the number of days shown on line 16(a). See Instructions. 17. (b) 5% a year on the amount shown on line 14 for the number of days shown on line 16(b). See Instructions. 18. Total of lines 17(a) and 17(b). 19. Penalty: Add the four columns of line 18 and enter here. Also, show the amount on line 25, form IA 1120, or line 20, form IA 1120 F. 45-006a (10/11/16) 2016 IA 2220 Instructions Purpose of Form Form IA 2220 will enable corporations and financial institutions to determine if they paid the correct amount of estimated tax by the proper due date. If the minimum amount was not paid timely, an underpayment penalty is imposed for the period of the underpayment. This form helps you to determine whether or not you are subject to such a penalty. Estimated Tax Every corporation or financial institution with $1,000 or more in tax due after credits is required to file estimated tax. Exceptions that Avoid the Underpayment Penalty No penalty will be charged for any underpayment on line 8 if: 1. All of the payments were made on or before the due date of the installment; and 2. The total payments made by that installment date equal or exceed the amount which would have been due if the estimated tax were calculated using any of the exceptions listed below. A different exception may be applied to each underpayment. If there has been an underpayment of the amount of the estimated tax, and the taxpayer believes that one or more of the exceptions to the penalty precludes the assertion of the underpayment penalty, the taxpayer should complete lines 9 through 12 showing the applicability of any exception upon which the taxpayer relies. If no exception applies, complete lines 13 through 19 to determine the amount of the penalty on the underpayment from line 8. Line 10: Exception 1 - Prior year’s tax This exception allows corporations and financial institutions to substitute for the current year’s estimate the amount of the tax shown on the return for the preceding taxable year. This exception may be utilized only if the preceding taxable year was a taxable year of 12 months and a return showing a tax liability (including a “zero” liability) was filed for that year. Corporations or financial institutions filing an initial year Iowa return may not use Exception 1. Line 11: Exception 2 - Tax on prior year’s income using current year’s rates This exception allows corporations and financial institutions to use a tax computed by using the current year’s rates but otherwise on the basis of the facts and law applicable to the prior year. Corporations and financial institutions filing an initial year Iowa return may not use Exception 2. Line 12: Exception 3 - Tax on Annualized Income This section applies if the corporation or financial institution made an estimated tax payment of at least 100% of the amount it would owe if its estimated tax were a tax computed on annualized taxable income for the months preceding an installment date. A corporation or financial institution may thus annualize its income: 1. For the first 3 months if the installment was required to be paid in the 4th month; 2. For the first 3 months or the first 5 months if the installment was required to be paid in the 6th month; 3. For the first 6 months or the first 8 months if the installment was required to be paid in the 9th month; and 4. For the first 9 months or for the first 11 months if the installment was required to be paid in the 12th month. To annualize, multiply taxable income for the period by 12 and divide the resulting amount by the number of months in the period (3, 5, 6, 8, 9, or 11, as the case may be). Enclose corporation income statements for appropriate months in the tax period. Overpayment A payment of estimated tax on any installment date is considered a payment of any previous underpayment only to the extent the payment exceeds the amount of the installment as computed on line 5. Date of payment (line 15): Once a payment is made to cover an exception to the penalty, the underpayment is no longer outstanding, so the penalty computation stops at the date that payment is made. To Compute Penalty Use the following formula: Penalty Daily % Number of Underpayment rate days = x x (line 14) (line 17) (line 16) The daily percentage rate is: 5% per annum = 0.013699% per day (1/1/16 - 12/31/16) 5% per annum = 0.013699% per day (1/1/17 - 12/31/17) Please enclose this form with your corporation income tax return, form IA 1120 or form IA 1120F. Questions: Call 515-281-3114 or 800-367-3388 Additional information can be found on the Department website (https://tax.iowa.gov/). Email: idr@iowa.gov 45-006b (10/11/16)
Extracted from PDF file 2016-iowa-form-ia-2220.pdf, last modified October 2016

More about the Iowa Form IA 2220 Corporate Income Tax Estimated TY 2016

We last updated the Underpayment of Estimated Tax 45-006 in February 2017, so this is the latest version of Form IA 2220, fully updated for tax year 2016. You can download or print current or past-year PDFs of Form IA 2220 directly from TaxFormFinder. You can print other Iowa tax forms here.

Other Iowa Corporate Income Tax Forms:

TaxFormFinder has an additional 43 Iowa income tax forms that you may need, plus all federal income tax forms.

Form Code Form Name
Form IA 130 Out-of-State Tax Credit 41-130
Form IA 147 Franchise Tax Credit 41-147
Form IA 4136 Computation of Iowa Motor Fuel Tax Credit 41-036
Form IA 1120 Iowa Corporation Income Tax Return
Form IA 128 Iowa Research Activities Credit 41-128

Download all IA tax forms View all 44 Iowa Income Tax Forms


Form Sources:

Iowa usually releases forms for the current tax year between January and April. We last updated Iowa Form IA 2220 from the Department of Revenue in February 2017.

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Form IA 2220 is an Iowa Corporate Income Tax form. While most taxpayers have income taxes automatically withheld every pay period by their employer, taxpayers who earn money that is not subject to withholding (such as self employed income, investment returns, etc) are often required to make estimated tax payments on a quarterly basis. Failure to make correct estimated payments can result in interest or penalties.

About the Corporate Income Tax

The IRS and most states require corporations to file an income tax return, with the exact filing requirements depending on the type of company.

Sole proprietorships or disregarded entities like LLCs are filed on Schedule C (or the state equivalent) of the owner's personal income tax return, flow-through entities like S Corporations or Partnerships are generally required to file an informational return equivilent to the IRS Form 1120S or Form 1065, and full corporations must file the equivalent of federal Form 1120 (and, unlike flow-through corporations, are often subject to a corporate tax liability).

Additional forms are available for a wide variety of specific entities and transactions including fiduciaries, nonprofits, and companies involved in other specific types of business.

Historical Past-Year Versions of Iowa Form IA 2220

We have a total of six past-year versions of Form IA 2220 in the TaxFormFinder archives, including for the previous tax year. Download past year versions of this tax form as PDFs here:


2016 Form IA 2220

IA 2220 underpayment of estimated tax by corporations, financial institutions, 45-006

Underpayment of Estimated Tax 45-006 2015 Form IA 2220

IA 2220, Underpayment of Estimated Tax by Corporations and Financial Institutions

Underpayment of Estimated Tax 45-006 2014 Form IA 2220

IA 2220, Underpayment of Estimated Tax by Corporations and Financial Institutions

Underpayment of Estimated Tax 45-006 2013 Form IA 2220

Iowa 2220 underpayment of estimated tax by corporations, financial institutions

2012 Form IA 2220

Iowa 2220 underpayment of estimated tax by corporations, financial institutions

2011 Form IA 2220

Iowa 2220 underpayment of estimated tax by corporations, financial institutions


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