Estimated Tax

A corporation must make estimated payments if the expected tax due exceeds $1,000. A corporation is required to file a declaration of estimated tax and to pay in four installments the lesser of:

  1. 90% of the tax shown on the return;
  2. 100% of the tax shown on the return for the preceding taxable year, provided the corporation filed a full year return for the preceding taxable year; or
  3. 90% of the tax for the current year using the income apportionment percentage, if any, for the preceding taxable year.

Documentation to Submit with Abatement/Amended Tax Return:

  • Massachusetts Form M-2220 - Underpayment of Estimated Tax by Corporations, or proof that the corporation qualifies under the exception.

Massachusetts References: