The Business Tax Reform Act made changes to the estimated payments Corporation Business Taxpayers are required to make.
For privilege periods beginning on or after January 1, 2003 each taxpayer with gross receipts of $50,000,000 or more for the prior period is required to make its estimated tax as follows:
- Twenty five percent on or before the 15th day of the fourth month of the period.
- Fifty percent on or before the 15th day of the sixth month of the period; and
- The balance on or before the 15th day of the twelfth month of its current period.
Calendar year taxpayers, with gross receipts in 2002 of $50,000,000 or more, are required to make a payment equal to 50% of its estimated 2003 tax by June 15, 2003. A payment would not be due in September.
Taxpayers with gross receipts of less than $50,000,000 are still required to make the four customary payments of 25% in the fourth, sixth, ninth and twelfth months.
Also please be aware that only for taxable years beginning in 2002, the fourth quarter payment is required to be a 25% payment of the actual liability due for that period regardless for any prior payments, overpayments or credits and independent of any installment exceptions such as annualization or meeting prior year tax liabilities. Also taxpayers whose taxable period began on July 1, 2002 are reminded to make an estimated payment equal to 25% of their actual liability for the year ending June 30, 2003 by June 15, 2003.