43-582. Payment of estimated tax by corporations; penalty; forms

A. A corporation that is subject to the tax imposed by this title shall pay estimated tax during the corporation's taxable year if the corporation's tax liability under this title for the taxable year is at least one thousand dollars. The tax liability under this title is the excess of the tax imposed by section 43-1111 over any tax credits allowed by this title.

B. Except as otherwise provided in this section, the amount of the required annual payment is the lesser of:

1. Ninety per cent of the tax shown on the return for the taxable year or, if no return is filed, ninety per cent of the tax for that year.

2. One hundred per cent of the tax shown on the corporation's return for the preceding taxable year, except that this paragraph does not apply if:

(a) The preceding taxable year was not a taxable year of twelve months.

(b) The corporation did not file a return for the preceding taxable year showing a liability for tax.

C. The required annual payment under subsection B of this section for a large corporation is the amount prescribed by subsection B, paragraph 1 of this section except for purposes of determining the amount of the first required installment for the taxable year. Any reduction in the first installment by reason of this subsection shall be recaptured by increasing the amount of the next required installment determined under subsection B, paragraph 1 of this section by the amount of the reduction. For the purposes of this subsection, " large corporation" means a corporation or unitary group of corporations if the corporation, or a predecessor corporation, had federal taxable income of one million dollars or more for any of the immediately preceding three taxable years, excluding any federal net operating loss or capital loss carrybacks or carryovers.

D. The required annual payment for an S corporation, as defined in section 1361 of the internal revenue code, is the lesser of:

1. The amount determined under subsection B, paragraph 1 of this section.

2. The sum of:

(a) The amount determined under subsection B, paragraph 1 of this section for the portion of the tax liability under this title that is attributable to built in gains income or certain capital gains income.

(b) One hundred per cent of the tax liability under this title that is attributable to excess passive income on the return of the S corporation for the preceding taxable year.

E. For the purposes of subsection D of this section:

1. The requirement that the S corporation's return for the previous taxable year show a liability for tax related to excess passive income does not apply.

2. Subsection D, paragraph 2 of this section does not apply if the preceding taxable year had fewer than twelve months.

F. Four installments of payments of estimated tax are required each taxable year. The due dates for the installments are the due dates prescribed by section 6655 of the internal revenue code. Unless otherwise prescribed by this section, the amount of each installment payment is twenty-five per cent of the required annual payment, but a lower required installment payment, as established and in the manner prescribed by section 6655 of the internal revenue code, applies if the lower installment is less than twenty-five per cent of the required annual payment. If a taxable year begins on a date other than January 1, the installment payments are due during months of that fiscal year that correspond to the prescribed months of a calendar year.

G. If a taxpayer fails to pay the full amount of estimated tax, or any required installment, under this section, the taxpayer is subject to a penalty, as prescribed by section 42-1125, subsection Q. For the purposes of this subsection:

1. The amount of underpayment is the excess of the required installment payment over the amount, if any, of the installment paid on or before the due date for the payment.

2. A payment of estimated tax shall be credited against unpaid required installment payments in the order in which the installments are required to be paid.

H. The department shall:

1. Apply this section to taxable years of less than twelve months according to the treasury regulations for section 6655 of the internal revenue code.

2. Adopt rules that are necessary to administer and enforce this section.

3. Make available suitable forms and instructions to taxpayers that make estimated tax payments pursuant to this section.