Instructions for IRS Form 1120-w - Estimated Tax for Corporations 2018

October 1, 2018 "Instructions For Irs Form 1120-w - Estimated Tax For Corporations" contain the updated filing procedures for the IRS-issued Form 1120-w. Download your copy of the instructions by clicking the link below.

IRS Form 1120-w is a tax form issued by the United States Internal Revenue Service.


Department of the Treasury
Internal Revenue Service
Instructions for
Form 1120-W
Section references are to the Internal Revenue Code unless
and to figure the amount of the penalty. See Form 2220 and the
otherwise noted.
instructions for Form 2220.
Overpayment of Estimated Tax
Future Developments
A corporation that has overpaid its estimated tax may apply for a
quick refund if the overpayment is at least 10% of its expected
For the latest information about developments affecting Form
income tax liability and at least $500. To apply, file Form 4466,
1120-W and its instructions, such as legislation enacted after
Corporation Application for Quick Refund of Overpayment of
they were published, go to
Estimated Tax, after the end of the tax year and before the
corporation files its income tax return. See the instructions for
What’s New
Form 4466.
Methods of Tax Payment
Corporate tax rates. For tax years beginning after December
31, 2017, the graduated corporate tax structure is no longer
Some corporations (described below) are required to
applicable. Corporations, including qualified personal service
electronically deposit all depository taxes, including estimated
corporations and members of a controlled group, are taxed at a
tax payments.
flat rate of 21% of taxable income. See the instructions for lines 1
Electronic Deposit Requirement
and 2, later.
Alternative minimum tax (AMT). The AMT does not apply for
Corporations must use electronic funds transfer to make all
tax years beginning after December 31, 2017.
federal tax deposits (such as deposits of employment, excise,
and corporate income tax). This includes installment payments
Base erosion minimum tax. For tax years beginning after
of estimated tax. Generally, electronic funds transfer is made
December 31, 2017, the base erosion minimum tax is included
using the Electronic Federal Tax Payment System (EFTPS).
in figuring estimated tax payments. An applicable corporation
However, if the corporation does not want to use EFTPS, it can
will be subject to the tax in an amount equal to 5% of the
arrange for its tax professional, financial institution, payroll
modified taxable income of the corporation for the tax year, over
service, or other trusted third party to make electronic deposits
an amount equal to the regular tax liability of the corporation for
on its behalf. Also, it may arrange for its financial institution to
the tax year, reduced by certain credits. See the instructions for
initiate a same-day tax wire payment (discussed below) on its
line 5.
behalf. EFTPS is a free service provided by the Department of
General Instructions
the Treasury. Services provided by a tax professional, financial
institution, payroll service, or other third party may have a fee.
Who Must Make Estimated Tax
To get more information about EFTPS or to enroll in EFTPS,
Depositing on time. For deposits made by EFTPS to be on
Corporations generally must make estimated tax payments if
time, the corporation must submit the deposit by 8 p.m. Eastern
they expect their estimated tax (income tax less credits) to be
time the day before the date the deposit is due. If the corporation
$500 or more.
uses a third party to make deposits on its behalf, they may have
S corporations must make estimated tax payments for certain
different cutoff times.
taxes. S corporations should see the Instructions for Form
Same-day wire payment option. If the corporation fails to
1120S, U.S. Income Tax Return for an S Corporation, to figure
submit a deposit transaction on EFTPS by 8 p.m. Eastern time
their estimated tax payments.
the day before the date a deposit is due, it can still make the
Tax-exempt corporations, tax-exempt trusts, and domestic
deposit on time by using the Federal Tax Collection Service
private foundations must make estimated tax payments for
(FTCS). Before using the same-day wire payment option, the
certain taxes. These entities should see the instructions for their
corporation will need to make arrangements with its financial
tax return to figure the amount of their estimated tax payments.
institution ahead of time. Please check with the financial
When To Make Estimated Tax
institution regarding availability, deadlines, and costs. To learn
more about the information the corporation will need to provide
its financial institution to make a same-day wire payment, visit
The installments generally are due by the 15th day of the 4th,
6th, 9th, and 12th months of the tax year. If any due date falls on
Foreign corporations. If a foreign corporation maintains an
a Saturday, Sunday, or legal holiday, the installment is due on
office or place of business in the United States, it must use
the next regular business day.
electronic funds transfer (as discussed above) to make
Underpayment of Estimated Tax
installment payments of estimated tax.
If the foreign corporation does not maintain an office or place
A corporation that does not make estimated tax payments when
of business in the United States, it may pay the estimated tax by
due may be subject to an underpayment penalty for the period of
EFTPS if it has a U.S. bank account. The foreign corporation
underpayment. Use Form 2220, Underpayment of Estimated
may also arrange for its financial institution to submit a same-day
Tax by Corporations, to see if the corporation owes a penalty
Apr 13, 2018
Cat. No. 52102x

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