The Treasury and the Internal Revenue Service have issued proposed regulations for corporations on how to compute their estimated tax liabilities.
Since 1984, corporations have been generally required to remit their annual tax liability during the tax year in quarterly installments with those installments being based on a pro rata portion of the corporation's annual estimated tax liability.
However, the IRS and the Treasury have subsequently determined that those regulations do not provide adequate guidance on how a corporation must determine the amount due with each required installment. In addition the agencies said those regulations do not reflect any significant changes to the tax laws since 1984.
The proposed regulations provide extensive guidance on determining the amount due with each quarterly installment -- whether it's based on estimated annual tax liability or the corporation's annualized or adjusted seasonal taxable income. It also includes guidelines for computing estimated tax during a short taxable year.
The agencies are currently requesting comments.
Register or login for access to this item and much more
All Accounting Today content is archived after seven days.
Community members receive:
- All recent and archived articles
- Conference offers and updates
- A full menu of enewsletter options
- Web seminars, white papers, ebooks
Already have an account? Log In
Don't have an account? Register for Free Unlimited Access