Wisconsin Wisconsin Corporation Estimated Tax Voucher - Instructions
Extracted from PDF file 2022-wisconsin-form-corp-es-instructions.pdf, last modified February 2022
Wisconsin Corporation Estimated Tax Voucher - InstructionsInstructions for 2022 Wisconsin Form Corp-ES – Corporation Estimated Tax GENERAL INSTRUCTIONS Purpose of Form Corporations use the 2022 Form Corp-ES to make estimated tax and economic development surcharge payments for taxable years that begin in 2022. Tax-exempt corporations filing Form 4T, Exempt Organization Business Franchise or Income Tax Return, use Form Corp-ES to make estimated payments with respect to their unrelated business taxable income. Tax-exempt trusts filing Form 4T use Form 1-ES to make estimated payments. The corporate estimated tax rules apply to tax-exempt organizations except as noted in these instructions. If you receive an extension of time to file your return, use a voucher for making an estimated tax and surcharge payment by the unextended due date of the return. If you did not receive vouchers by mail, you may obtain personalized vouchers by downloading them from the Department’s web site at www. revenue.wi.gov or by calling (608) 266-1961. Federal Employer Identification Number Enter the corporation’s federal employer identification number (EIN). If you have not yet applied for a federal EIN, you may do so by filing federal Form SS-4 with the Internal Revenue Service, calling (800) 829-4933, or applying online at www.irs.gov. Who Must Pay Estimated Tax and Economic Development Surcharge Corporations must make estimated tax and surcharge installment payments if the sum of the net tax and economic development surcharge for the taxable year that begins in 2022 will be $500 or more. Exception: You do not have to make estimated paymentsif the taxable year that began in 2021 was a taxable year of 12 months, you did not have any liability for tax for the taxable year that began in 2021, and you will have net incomeof less than $250,000 for the taxable year that begins in 2022. For a tax-option (S) corporation, net income for purposes of the $250,000 threshold is the amount from Form 5S, Schedule S, line 3, plus income from the election to be taxed at the entity level from Schedule 5S-ET, line 17. When to Pay Estimated Tax and Economic Development Surcharge In general, the first estimated tax and surcharge payment is due the 15th day of the 4th month of the taxable year and is equal to 1/4 of the total estimated tax and surcharge due (1/4 of the amount on Schedule A, line 8). Exception: For fiscal years beginning in April, the first estimated tax due date is the 15th day of the 3rd month of the taxable year (June 15th). The payment amounts and due dates for a calendar-year corporation that first meets the filing requirements after February 28 are as follows: If the requirement is met after: Payment is due: February 28 and before June 1 .................... June 15 May 31 and before September 1 ......... September 15 August 31 ............................. December 15 DC-045A (R. 2-22) If the first payment required to be made is due June 15, enter 1/2; September 15, enter 3/4; December 15, enter all of the estimated tax and surcharge due (Schedule A, line 8) on Schedule B, line 2, in the appropriate column. Corporations filing returns on other than a calendar-year basis should substitute the 15th day of the 4th, 6th, 9th, and 12th months of the taxable year for the payment due dates of April 15, June 15, September 15, and December 15, respectively. Exception: For fiscal years beginning in April, the first estimated tax due date is the 15th day of the 3rd month of the taxable year (June 15th). Likewise, the last day of the 2nd, 5th, and 8th months should be substituted for February 28, May 31, and September 30, for purposes of determining when the filing requirement is first met. Short Taxable Year No estimated tax and surcharge installment is required if the short taxable year is a period of 1 month or less. If the short taxable year is more than 1 month, installments are due as shown: Number of Months in Short Taxable Year 2-3 4-6 7-9 10-11 Number of Required Installments Installment Due Dates 1 2 3 4 D A D AB D ABCD A = the 15th day of the 4th month of the taxable year* B = the 15th day of the 6th month of the taxable year C = the 15th day of the 9th month of the taxable year D = the 15th day of the last month of the taxable year *Exception: For fiscal years beginning in April, the first estimated tax due date is the 15th day of the 3rd month of the taxable year (June 15th). If any due date falls on a Saturday, Sunday, or legal holiday, use the next business day. For more information, see section Tax 2.89, Wisconsin Administrative Code. New Corporations The first franchise or income tax return filed by a corporation is considered to cover an entire 12-month period for purposes of determining estimated tax and surcharge installment due dates, even though the corporation’s first year of Wisconsin operations may cover less than 12 months. The portion of the estimated tax and surcharge due for each payment period varies, depending on the number of installments required. If 3 installments are required, 1/2 of the estimated tax and surcharge is due for the first installment and 1/4 is due for each of the 2 remaining installments. For example, a new corporation, which begins operations in Wisconsin on March 1, 2022, and which elects to file franchise or income tax returns on a calendar-year basis, will be required to make 3 installment payments due June 15, September 15, and December 15. If this new corporation’s 2022 estimated tax and surcharge is $4,000, $2,000 would be due June 15 and $1,000 would be payable for each of the installments due September 15 and December 15. Page 2 Schedule A Computation of Estimated Tax and Economic Development Surcharge 1 2 3 4 5 6 7 8 (A) Original Computation (B) Amended Computation Amount of total estimated net income expected in taxable year that begins in 2022 Percentage of line 1 attributable to Wisconsin Amount of estimated net income attributable to Wisconsin (multiply line 1 by line 2) Franchise or income tax (for corporations, 7.9% of income on line 3; trusts use trust rates) Total estimated credits Net franchise or income tax (subtract line 5 from line 4) Economic development surcharge (3% of line 4 for C corporations; S corporations and trusts see tax return instructions) Total estimated tax and economic development surcharge (add lines 6 and 7) Schedule B Computation of Installments Due Installment Number 1 2 3 4 1 Enter in columns 1 through 4 the installment due dates that correspond to the 15th day of the 4th, 6th, 9th, and 12th months of the taxable year.* 2 If 4 installments are due, enter in each column 1/4 of Schedule A, line 8, col. A. If less than 4 installments are due, see instructions under “When to Pay.” 3 Enter any overpayment from your 2021 Form 4, 4T, 5S, or 6 (apply first to col. 1 and carry any unused balance to col. 2, then col. 3, etc.). 4 Installment amount (subtract line 3 from line 2). Enter here and on installment vouchers. Schedule C Computation of Amended Installments Due 1 Enter amended estimated tax and economic development surcharge from Schedule A, line 8, column B 2 Enter: a Amount of overpayment from 2021 Form 4, 4T, 5S, or 6 offset against installments paid to date b Amount of payments made to date 3 Total of payments and credits claimed to date (add line 2a and line 2b) 4 Unpaid balance (subtract line 3 from line 1) 5 Enter the due dates of remaining installments due (from Schedule B, line 1) 6 To determine the portion of line 4 to enter for each remaining installment, see instructions under “Amended Installments” 7 Enter the balance of 2021 overpayment – total overpayment credited from 2021 Form 4, 4T, 5S, or 6 less amount entered on line 2a above (apply first to next installment due and carry any unused balance to the next installment due, etc.) a b 8 Amended installments due (subtract line 7 from line 6) Schedule D Record of Payments 1 2 3 4 2021 overpayment from Form 4, 4T, 5S, or 6 Date paid Amount paid Total 2022 payments (add line 1 and line 3) Total + + + + = Keep Schedules A Through D for Your Records *Exception: For fiscal years beginning in April, the first estimated tax due date is the 15th day of the 3rd month of the taxable year (June 15th). Amended Installments If the original estimate of tax and surcharge liability is materi- ally altered, you should amend remaining installment payments to reflect the change in estimated tax and surcharge liability. Complete column B of Schedule A to compute your amended estimated tax and surcharge and Schedule C to compute your amended installments due. Determine the amount to enter on Schedule C, line 6, as follows: a. If all 4 installments are being amended, enter 1/4 of Schedule C, line 4, for all 4 periods. b. If only the last 3 installments are being amended, enter 1/2 of Schedule C, line 4, on line 6 for the first amended installment and 1/4 for each of the last 2 installments. c. If only the last 2 installments are being amended, enter 3/4 of Schedule C, line 4, for the first amended installment and 1/4 for the last installment. d. If only the last installment is being amended, enter all of Schedule C, line 4, on line 6. Interest on Underpayment of Estimated Tax and Economic Development Surcharge If a required installment is not paid by its due date, 12% annual interest may be imposed. The interest is computed on the underpayment of each installment for the period of the underpayment. Use Wisconsin Form U to compute underpayment interest. The period of the underpayment is the time from the due date of the installment to the earlier of either the date on which it is paid or the unextended due date of the tax return. Underpayment interest will not be due if each required installment is for the correct amount and is timely paid, and the total tax and surcharge paid meets one of the following: a. Is at least equal to 90% of the amount of tax and surcharge shown on the 2022 franchise or income tax return filed. Page 3 b. Is, for corporations with less than $250,000 of Wisconsin net income, 100% of the tax shown on the 2021 return (a 2021 return must have been filed covering a full 12-month year). c. Is at least equal to 90% of the tax and surcharge figured by annualizing the taxable income earned for the months ending before the due date of the installment. (Note: Tax-exempt organizations may annualize income for the months of the taxable year ending one month before the installment due date.) Corporations that compute any installment using the annualized income installment method must increase the next installment due which is not annualized by the amount which the annualized installment was less than a or b above. Corporations that file returns using the apportionment method may use the apportionment percentage from the return filed for the previous taxable year for computing annualized income installments if (1) the previous year’s return is filed by the due date of the installment for which the income is being annualized, and (2) the apportionment percentage on that return is greater than zero. A multistate corporation that has at least $250,000 of Wisconsin net income may use the apportionment percentage from its return filed for the previous taxable year for computing annualized income installments if (1) the previous year’s return is filed by the due date of the 3rd installment, (2) the apportionment percentage on that return is greater than zero, and (3) the apportionment percentage used in computing the first 2 installments is not less than the apportionment percentage used on that return. Underpayment interest will be increased or decreased based on any changes made to the tax and surcharge originally reported. Refunds of Estimated Tax and Economic Development Surcharge Payments If your installment payments and credits exceed the tax and surcharge liability for 2022, the overpayment may be refunded, or all or part may be credited to your 2023 estimated tax and surcharge with any remainder being refunded. A corporation that has overpaid its estimated tax andsurcharge may apply for a refund before filing its tax return if the overpayment is: a. at least 10% of its estimated Wisconsin franchise or income tax and surcharge liability and b. at least $500. To apply, file Form 4466W, Corporation or Pass-Through Entity Application for Quick Refund of Overpayment of EstimatedTax, after the end of the taxable year and before filing yourtax return. You must subtract refunds obtained through this process from the estimated tax and surcharge payments that you claim on your tax return. (Note: Exempt trusts cannot file Form 4466W.) A corporation that has a tax or surcharge due when filing its tax return as a result of receiving a “quick refund” will be charged 12% annual interest on the amount of unpaid tax or surcharge from the date the refund is issued to the earlier of the 15th day of the 4th month after the close of the taxable year or the date the tax and surcharge liability is paid. Any tax or surcharge that remains unpaid after the unextended due date of the tax return continues to be subject to 18% or 12% annual interest, as appropriate. Where to Obtain Assistance If you need help, call (608) 266-0800 or contact any Department of Revenue office. Telephone help is also available using TTY equipment. Call the Wisconsin Telecommunications Relay System at 711 or, if no answer, (800) 947-3529. These numbers are to be used only when calling with TTY equipment. PAYMENT INSTRUCTIONS You may make estimated tax and surcharge payments using electronic funds transfer (EFT) or through My Tax Account , the department’s free electronic filing option. If making estimated payments by EFT, do not complete and submit Form Corp-ES. For more information and EFT registration forms, visit the Department’s web site at evenue.wi.gov/Pages/FAQS/pcseft.aspx e-mail [email protected], call (608) 264-9918,or write to the EFT Unit, Wisconsin Department of Revenue, PO Box 8949, Madison, WI 53708-8949. For EFT payments of estimated tax, enter the last day of your taxable year, not the last day of the quarter, for which the payment is being made. Otherwise, make your check payable to the Wisconsin Department of Revenue, and mail your estimated tax voucher and payment to: Wisconsin Department of Revenue PO Box 3028 Milwaukee, WI 53201-3028 Do not mail your 2022 estimated tax voucher with your franchise or income tax return. They are to be mailed to different locations.
2022 DC-045a Instructions for 2022 Wisconsin Form Corp-ES - Corporation Estimated Tax
More about the Wisconsin Form Corp-ES - Instructions Individual Income Tax TY 2022
All corporations can use this form to file their tax liability on the Economic Development Surcharge Payments for the current tax year.
We last updated the Wisconsin Corporation Estimated Tax Voucher - Instructions in July 2022, so this is the latest version of Form Corp-ES - Instructions, fully updated for tax year 2022. You can download or print current or past-year PDFs of Form Corp-ES - Instructions directly from TaxFormFinder. You can print other Wisconsin tax forms here.
Other Wisconsin Individual Income Tax Forms:
TaxFormFinder has an additional 88 Wisconsin income tax forms that you may need, plus all federal income tax forms.
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View all 89 Wisconsin Income Tax Forms
Wisconsin usually releases forms for the current tax year between January and April. We last updated Wisconsin Form Corp-ES - Instructions from the Department of Revenue in July 2022.
About the Individual Income Tax
The IRS and most states collect a personal income tax, which is paid throughout the year via tax withholding or estimated income tax payments.
Most taxpayers are required to file a yearly income tax return in April to both the Internal Revenue Service and their state's revenue department, which will result in either a tax refund of excess withheld income or a tax payment if the withholding does not cover the taxpayer's entire liability. Every taxpayer's situation is different - please consult a CPA or licensed tax preparer to ensure that you are filing the correct tax forms!
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