Iowa Administrative Code › Agency 701 - Revenue Department › Title VI - Corporation Income Tax › Chapter 505 - Estimated Tax for Corporations › Rule 701-505.3 - Special Estimate Periods

Current through Register Vol. 47, No. 3, July 24, 2024
(1)
Short taxable year.
A corporation having a taxable year of
				less than 12 months shall pay estimated tax if anticipating an Iowa tax
				liability of more than $1,000 for that short taxable year.
a. Short taxable year where a new corporation
				first commences doing business. In filing the first estimated tax payment, the
				taxpayer shall state the tax period that the estimated tax payment covers.
(1) If the tax year is three months or less,
				no estimated tax payment need be made.
(2) If the tax year is greater than three
				months but not more than four months and the estimated tax payment is required
				to be made on the last day of the fourth month, the estimated tax shall be paid
				based upon the taxable income for the first three months.
(3) If the tax year is greater than four
				months but not more than six months and the first estimated tax payment is
				required to be made on the last day of the fourth month, the estimated tax
				shall be paid in two equal installments. The first installment shall be due the
				last day of the fourth month based on the first three months' taxable income
				annualized by multiplying the taxable income by the number of months in the tax
				year and dividing by three. The second installment shall be due the last day of
				the tax year.
If the first estimated tax payment is required to be made
				  after the fourth month, the estimated tax payment shall be made on the last day
				  of the tax year and the estimated tax shall be paid in one installment based
				  upon the taxable income for the first four months if the tax year ends during
				  the fifth month, or for the first five months if the tax year ends during the
				  sixth month.
(4) If the tax
				year is greater than four months, but not more than nine months, and the first
				estimated tax payment is required to be made on the last day of the fourth
				month, the estimated tax shall be paid in three equal installments. The first
				installment shall be due the last day of the fourth month based on the first
				three months' taxable income annualized by multiplying the taxable income by
				the number of months in the tax year and dividing by three. The second
				installment shall be due the last day of the sixth month of the tax year. The
				third installment shall be due the last day of the tax year.
If the first estimated tax payment is required to be made on
				  the last day of the sixth month of the tax year, the estimated tax shall be
				  paid in two equal installments. The first installment shall be due on the last
				  day of the sixth month based upon the first five months' taxable income
				  annualized by multiplying the taxable income by the number of months in the tax
				  year and dividing by five. The second installment shall be due on the last day
				  of the tax year.
If the first estimated tax payment is required to be made
				  after the last day of the sixth month of the tax year, the estimated tax
				  payment shall be made on the last day of the tax year and the estimated tax
				  shall be paid in one installment based on the taxable income for the first
				  seven months if the tax year ends during the eighth month, or for the first
				  eight months if the tax year ends during the ninth month.
(5) If the tax year is greater than four
				months, but not more than eleven months, and the first estimated tax payment is
				required to be made on the last day of the fourth month, the estimated tax
				shall be paid in four equal installments. The first installment shall be due
				the last day of the fourth month based upon the first three months' income
				annualized by multiplying the taxable income by the number of months in the tax
				year and dividing by three. The second installment shall be due on the last day
				of the sixth month of the tax year. The third installment shall be due on the
				last day of the ninth month of the tax year. The fourth installment shall be
				due the last day of the tax year.
If the first estimated tax payment is required to be made on
				  the last day of the sixth month of the tax year, the estimated tax shall be
				  paid in three equal installments. The first installment shall be due on the
				  last day of the sixth month based upon the first five months' taxable income
				  annualized by multiplying the taxable income by the number of months in the tax
				  year and dividing by five. The second installment shall be due the last day of
				  the ninth month of the tax year. The third installment shall be due on the last
				  day of the tax year.
If the first estimated tax payment is required to be made on
				  the last day of the ninth month of the tax year, the estimated tax shall be
				  paid in two equal installments. The first installment shall be due on the last
				  day of the ninth month, based upon the first eight months' taxable income
				  annualized by multiplying the taxable income by the number of months in the tax
				  year and dividing by eight. The second installment shall be due the last day of
				  the tax year.
If the first estimated tax payment is required to be made
				  after the last day of the ninth month of the tax year, the estimated tax
				  payment shall be made on the last day of the tax year and the estimated tax
				  shall be paid in one installment based upon the taxable income for the first
				  nine months if the tax year ends during the tenth month or for the first ten
				  months if the tax year ends during the eleventh month.
(6) If during the tax year, the taxpayer
				determines that its tax year will be different than the tax year specified in
				its original payment of estimated tax, the remaining estimated tax payments, if
				any, shall be based upon the above schedule.