Tax Rates and Payments

• Estimated Tax
  
  
• Documentation to Submit with Abatement/Amended Tax Return
• Massachusetts References
  

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:

• M.G.L. Chapter 63B, Sections 3; 4; 5
• AP 633: Guidelines for the Waiver and Abatement of Penalties