Small business tax help website

Estimated Tax for Corporations

Corporations need to file and pay estimated tax. Estimated tax for corporations is filed using the IRS tax form 1120-W or the Estimated Tax for Corporations worksheet.

Estimated tax for corporations form

Which corporations need to file and pay estimated tax?

The requirement for a corporation to file and pay estimated tax is if the corporation is expected to owe the IRS $500 or more in taxes then the corporation must make an estimated tax payment by depositing with an authorized financial institution or a Federal Reserve Bank.

How to deposit and pay the estimated tax to the IRS?

When a corporation is estimated to owe $500 or more in taxes to the IRS, the corporation must deposit the estimated tax along with the IRS federal tax deposit coupon from the appropriate IRS tax form for estimated tax. The coupon book will have the instruction on how to deposit the estimated tax using the IRS tax coupons.

When are estimated taxes due?

The due dates for estimated tax payments are:

  • the 15th day of the 4th months of the tax year
  • the 15th day of the 6th months of the tax year
  • the 15th day of the 9th months of the tax year
  • the 15th day of the 12th months of the tax year
What is the estimated tax penalty?

A corporation will incur an IRS estimated tax penalty if it fails to pay the estimated tax in full by the due date of the estimated tax installment. The IRS will calculate the tax penalty the corporation incur at the IRS penalty interest rate which the IRS publishes quarterly in the Internal Revenue Bulletin. For more information for estimated tax filing requirements and rules for corporation, see IRS publication 542.