FORM 2220ME

FORM 2220ME
2012
UNDERPAYMENT OF ESTIMATED TAX
MAINE REVENUE SERVICES, P.O. BOX 1062, AUGUSTA, ME 04332-1062
This form is used for the computation of penalty for underpayment of estimated tax for the
Maine corporate income tax and Maine franchise tax. Enclose with the appropriate Maine return.
For calendar year 2012, or fiscal year beginning ________________ , 2012 and ending _______________ , 20 ____ .
NAME
FEDERAL IDENTIFICATION NUMBER
NUMBER AND STREET
CITY OR TOWN, STATE AND ZIP CODE
Part I - Calculating Your Underpayment
1
2012 tax (check the applicable space below) ........................................................................................................................................... 1. ___________________________
Form 1120ME, line 7c (Total Tax) minus lines 8c (Tax Credits), 8d (Income Tax Withheld) and 8e (refundable credit)
Form 1120B-ME, line 3c (Total Tax) minus line 4d (Net Operating Loss Credit) and line 4e (Other Credits)
2.
Multiply line 1 by 90% ............................................................................................................................................................................... 2. ___________________________
3.
2011 tax (If 2011 is short-year, enter amount from line 2)(If this line or line 1 is less than $1,000, do not complete rest of form) ........... 3. ___________________________
4.
Enter the smaller of line 2 or line 3 ........................................................................................................................................................... 4. ___________________________
PAYMENT DUE DATES
A
B
C
D
Enter in columns A through D the installment dates that correspond to the 15th
day of the 4th, 6th, 9th and 12th months of the taxable year.
5.
6.
Enter 25% of line 4 in columns A through D, unless (a) or (b) below applies:
a.
Actual liability: Check here and on line 9b, page 2, Form 1120ME.
Enter amount from line 19 of the annualization worksheet.
b.
If the corporation is a “large” corporation under IRC § 6655(g)
(2)(A), enter the required estimated tax amount by statute
and check this box ...................................................................5.
a.
Estimated tax paid and carryover of prior year overpayment............6a.
b.
Overpayment on line 8b from prior column .......................................6b.
7.
Line 6a plus line 6b ....................................................................................7.
8.
a.
Underpayment (line 5 minus line 7) or ..............................................8a.
b.
Overpayment (line 7 minus line 5) ....................................................8b.
Part II - Calculating the Penalty
9.
Enter the due date of the return (or the date the underpayment on line 8a
was paid to MRS, if earlier) ........................................................................9.
10. Number of months or fraction thereof from the payment due date to
the date shown on line 9 ..........................................................................10.
11. Enter the rate from the table on reverse side ...........................................11.
12. Underpayment penalty. Underpayment on line 8a multiplied by rate on
line 11 .......................................................................................................12.
13. Total of amounts shown on line 12. Enter result here and on Form 1120ME, line 9b or Form 1120B-ME, line 5b ............................................... 13.
Rev. 09/12
INSTRUCTIONS FOR FORM 2220ME
PURPOSE OF FORM: Form 2220ME enables
corporations and financial institutions to determine if
sufficient estimated tax was paid by the proper due date. If
the minimum amount was not paid timely, an underpayment
penalty is imposed for the period of underpayment. This
form helps determine whether or not you are subject to this
penalty.
ACTUAL LIABILITY FOR EACH QUARTER:
WHO MUST PAY THE UNDERPAYMENT
PENALTY: If you did not pay enough estimated tax by any
COMPUTATION OF UNDERPAYMENT PENALTY:
Taxpayers are required to make four equal installments of
estimated tax unless the actual liability can be established,
by adequate record, for each required installment payment
of estimated tax. The Annualized Income Installment
Worksheet for Underpayment of Estimated Tax is used to
determine actual liability.
If no exception applies for an installment date, complete
lines 9 through 13 to determine the amount of the penalty.
The penalty is based on the amount of the underpayment of
the required installment for the period of underpayment. It is
computed at the stated rate for each month or fraction thereof
in the period of underpayment. For calendar year 2012,
the penalty rate is .5833% per month or fraction thereof,
compounded monthly. For calendar year 2013, the penalty
rate is .5833% per month or fraction thereof, compounded
monthly. The effective penalty rate for the number of months
shown on line 10 is listed below.
due date for paying estimated tax, you may be charged a
penalty.
In general, you may owe the penalty if, for 2012 you did not
pay the lesser of 90% of your tax liability for 2012 or 100% of
the tax liability for 2011 if the 2011 return covered 12 months.
Large corporations, as defined by IRC § 6655(g)(2)(A), must
also meet the test required by 36 M.R.S.A. § 5228(5)(C).
EXCEPTIONS TO THE PENALTY: You will not have
to pay the penalty or file this form if either of the following two
situations applies:
1. Your tax liability for 2012, reduced by allowable credits,
is less than $1,000.
2. Your 2011 tax liability was less than $1,000.
The penalty may be avoided if at least 90% of the 2012 tax
was paid when due, even though you may be required to file
this form.
Fiscal year filers may not use the table below.
Number of Months
shown on line 10
1
2
3
4
5
6
7
8
9
10
11
Enter this Rate
on line 11, Column A
0.005833
0.011701
0.017602
0.023538
0.029509
0.035514
0.041555
0.047631
0.053742
0.059889
0.066071
Enter this Rate
on line 11, Column B
0.005833
0.011701
0.017602
0.023538
0.029509
0.035514
0.041555
0.047631
0.053742
Enter this Rate
on line 11, Column C
0.005833
0.011701
0.017602
0.023538
0.029509
0.035514
Enter this Rate
on line 11, Column D
0.005833
0.011701
0.017602