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:
- 90% of the tax shown on the return;
- 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
- 90% of the tax for the current year using the income apportionment percentage, if any, for the preceding taxable year.
- Massachusetts Form M-2220 - Underpayment of Estimated Tax by Corporations, or proof that the corporation qualifies under the exception.
- M.G.L. Chapter 63B, Sections 3; 4; 5
- AP 633: Guidelines for the Waiver and Abatement of Penalties