Corporations - Calculating and Paying Estimated Tax

Beginning with tax year 2023, Form 1120-W, Estimated Tax For Corporations, is no longer used to calculate the estimated tax due.

Who Must Make Estimated Tax Payments

• Corporations generally must make estimated tax payments if they expect their estimated tax (income tax less credits) to be $500 or more. Corporations can use the Estimated Tax Worksheet in Publication 542 to calculate the required estimated tax installments.
• S Corporations must also make estimated tax payments if the total of these three taxes is $500 or more:
  • the tax on built-in gains
  • the excess net passive income tax
  • the investment credit recapture tax
  See the Instructions for Form 1120-S for more information about estimated payments.

When To Make Estimated Tax Payments

The installments are generally due by the 15th day of the 4th, 6th, 9th, and 12th months of the tax year. If any due date falls on a Saturday, Sunday, or legal holiday, the installment is due on the next regular business day.

Electronic Deposit Requirement

Corporations must make all federal tax deposits by electronic funds transfer, whether through a bank, a third-party payment service, or using the Electronic Federal Tax Payment System (EFTPS). See here for more information about the EFTPS.

Additional Information:

IRS: Publication 542, Corporations