Estimated Tax for Corporations Instructions
tax.iowa.gov
45-010a (08/21/20)
Who must file and pay
Every corporation with $1,000 or more in tax due
after credits
must file and pay estimated tax.
Failure to make estimated payments may result in
penalty for underpayment of estimated tax. See IA
2220.
Installments must be made electronically
when
total corporate tax liability for the tax year prior to
the
tax year just completed exceeds $80,000.
Payment options include Modernized e-File
(MeF), ePay
(direct debit), ACH Credit, or
payment by check. Visit the Department’s
website
(tax.iowa.gov)
for ePayment information.
Note
– This form is only for corporations.
Financial institutions subject to the franchise
tax should use IA 1120F ES.
Payments of estimated tax
Dates for paying estimated tax in equal
installments are:
•
The last day of the fourth month of the
calendar or fiscal
year.
•
The last day of the sixth month of the
calendar or fiscal
year.
•
The last day of the ninth month of the
calendar or fiscal
year.
•
The last day of the 12th month of the calendar
or fiscal
year.
Overpayment credit for Iowa corporation
income tax return
If you had an overpayment on your prior-period
income tax
return and elected to apply it as a
credit to your estimated
income tax for the
current period, the amount will be
automatically
posted from your prior-period Iowa income tax
return to your estimated tax account. Note: If
you elect to
have your overpayment refunded,
the refund will be
processed automatically; it is
not
necessary to file a claim for
refund.
Use the Estimated Tax Payment Schedule
to record and apply your credit
If the credit equals or exceeds the estimated tax
liability for
the first installment, the balance of the
estimated tax can be
paid in full or in equal
installments beginning with installment two. Do
not send installment forms if your current-period
estimate is paid in full, either by overpayment
from your
prior-period income tax return or by
estimated payments
already submitted.
How to complete worksheet and installments
1. Fill out the worksheet on the second page of
these instructions. If the tax after credits on
line 21 is less than $1,000, you do not have
to file and pay estimated tax.
2. Enter the amount from line 24 into column B
of the Estimated Tax Payment Schedule.
Enter any applicable overpayment in column
C. Subtract column C from the amount in
column B and enter the difference in column
D. Also enter the amount from column D on
the “Payment Amount” line on the IA 1120ES.
3. Enter the corporation’s name, address, and
taxpayer identification number in the space
provided on the IA 1120ES.
4. Detach the installment.
5. For each remaining installment, complete
steps 2-4.
Mail to:
Iowa Department of Revenue
PO Box 10466
Des Moines Iowa 50306-0466
Make checks payable to “Iowa Department of
Revenue”.
How to amend your estimated tax
You may find after having filed and paid one or
more
installments that your estimated Iowa
income tax has
substantially changed. If this
happens:
1.
Re-compute the estimated tax payments
remaining in your tax year.
2.
Update the Estimated Tax Payment Schedule
for the quarters remaining.
3.
Follow steps 3-5 from above using the revised
figures for the remaining quarters.
