Part 1: Generally you are subject to an estimated tax
penalty if your current year estimated tax payments are not
paid in a timely manner. The estimated tax penalty will not
be assessed if the Colorado tax liability is less than $5,000.
Part 2: The required annual amount to be paid is the lesser of:
1. 70% of actual net Colorado tax liability, or
2. 100% of preceding year's Colorado tax liability only
• The preceding year was 12-month tax year, and
• The corporation led a Colorado return, and
• The corporation is not dened under section 6655 of the
federal IRS code as a large corporation.*
*Large corporations can base their rst quarter estimated
tax payment on 25% of the previous year's tax liability.
However, future payments must be based on the actual
tax liability for the current tax year and any underpayment
occurring in the rst quarter as a result of this estimation
must be paid with the second quarterly payment.
Part 3: Compute the penalty on lines 10 through 22 of
DR 0205. Complete each column before going to the
next column. The dates to be entered on line 10 are the
15th day of the fourth, sixth, ninth and twelfth month of
the taxable year. Large corporations must complete line
11 based on the computations from line 9 or, if calculating
estimated payments using the annualized installment
method, line 29.
Corporations ling for a short tax year must adjust lines 9,
10 and 11 accordingly. For more information about ling
for short tax years, see the Corporate Income Tax Guide,
available at Tax.Colorado.gov.
Part 4: Taxpayers who do not receive income evenly
during the year may elect to use the annualized income
installment method to compute their estimated tax payments
if they elected annualized installments or adjusted seasonal
installments for the payment of their federal income tax.
Complete the annualized installment method schedule to
compute the amounts to enter on line 11.
This form should be included with your completed DR 0112 form.
Visit Tax.Colorado.gov for additional information regarding the estimated tax penalty.
Tax Year Ending Computation of Penalty Due Based on
Underpayment of Colorado Corporate Estimated Tax
DR 0205 (11/05/20)
COLORADO DEPARTMENT OF REVENUE