Form D-2220 Underpayment of Estimated Franchise Tax by Business

100% of the tax due (Line 37) on your 2010 DC franchise tax return 90% of the tax due (Line 37) on your 2011 DC franchise tax return; D 20ES Declaration of Estimated Franchise Tax for Corporations; D 30ES Declaration of Estimated Franchise Tax for Unincorporated Franchise Tax By Businesses If you are filing the D 2220 form separately pay the amount you owe If you are filing the D 2220 with your D 20 or D 30 return include The franchise tax due for 2011 minus any estimated tax payments You had no DC franchise tax liability for the tax year 2010 and in that You may also complete this form if you believe the penalty amount assessed by OTR for underpayment of estimated franchise tax is incorrect You may use this form to calculate your penalty If you do attach it to your tax return and add any penalty and interest you calculate to the amount on Line 42 of Forms D 20 or D 30 If you do not wish to calculate the penalty and interest OTR will do it when your return is processed and will notify you of the amount due Your remaining tax due after totaling all credits and estimated tax Your total DC estimated franchise tax payments are equal to or greater (consisting of 12 months) You must have filed a 2010 DC franchise tax return to use the 100% exception 1 2 3 2011 DC franchise tax liability from Forms D 20 Line 37 or D 30 Line 37 Multiply the amount on Line 1 by 90% ( 90) 2010 DC franchise tax liability from Forms D 20 Line 37 or D 30 Line 37 $ $ $ 10 Line 8 multiplied by Line 9 11 Penalty Total of amounts from Line 10 Pay this amount (See instructions) $ 4 5 Minimum estimated tax requirement for tax year 2011 (lesser of Lines 2 and 3) Multiply the amount on Line 4 by 25% ( 25) Note: If your income was not evenly received over 4 periods see instructions on the reverse of this form on the Annualized Income method $ $ 6 Enter the amount from Line 5 or the annualized amount in each period (the 2nd period includes the 1st period amount 3rd period includes the 1st and 2nd period amounts the 4th period includes all period amounts) 7 DC estimated taxes paid each period (the 2nd period includes the 1st period amount 3rd period includes 1st and 2nd period amounts the 4th period includes all period amounts) 8 Underpayment each period (Line 6 minus Line 7) 9 Penalty Factors 0175 0265 0262 0348 A 10% penalty compounded daily is assessed if your total DC estimated franchise tax payments compared to your DC franchise tax liability do not equal at least the smaller of: A penalty will be assessed if any statement made on an estimated tax payment voucher is not true and accurate to the best of the signatory s knowledge A Your tax liability on taxable income after deducting DC applicable credits and estimated tax payments is less than $1001 or Add the amounts on Line 10 for each period This is your total underpayment of estimated franchise tax penalty and attach to the D 2030P Payment Voucher Are there any exceptions? Attach it to your return if you complete the form before filing your tax B You have made the required periodic DC estimated franchise tax payments and the total is equal to or more than 100% of last year s taxes or 90% of the current year s taxes Note: In order to use the prior year 100% exception you must have filed a DC franchise tax return last year and you must have been in business in DC for the entire year Business Name (from your D 20 or D 30 return) Businesses The law states that any business required to file and pay estimated tax that fails to pay the amount required by the due date is subject to an underpayment of estimated franchise tax penalty and interest Check here if you are using the Annualized Income method Completing this form Computation of Underpayment D 2220 page 2 D 2220 Underpayment of Estimated Daytime telephone number DC law requires any business that expects its DC franchise tax liability to exceed $1000 for the tax year to file a declaration of estimated franchise tax using the payment vouchers in: Due dates shown are for calendar year; for fiscal year use the 15th day of the 4th 6th 9th and 12th months after the end of the fiscal year 1st Period 04/15/11 Due date of Payments 2nd Period 3rd Period 06/15/11 09/15/11 4th Period 12/15/11 Enter the amount from your 2010 DC Forms D 20 or D 30 Line 37 If your 2010 return was amended or corrected be sure to show the corrected amount Enter the amount from your 2011 D 20 or D 30 (Line 37) Enter the amount of estimated franchise tax payments made in each period Include the amounts from the previous period with the 2nd 3rd and 4th periods For example if your estimated payment amount is $1 000 in each period you would enter $1 000 in the 1st period $2 000 in the 2nd period $3 000 in the 3rd period and $4 000 in the 4th period Enter the amount required from Line 5 under each of the payment columns For example if Line 5 is $2000 you would enter $2000 for the 1st period $4000 for the 2nd period $6 000 for the 3rd period and $8 000 for the 4th period Annualized income method: If your income was different for each period determine the percentage for each period (divide the period income by the full year s income) Multiply Line 4 by each period s percentage and enter the amounts earned by period on Line 6 Accumulate the periodic amounts as shown above Check the Annualized Income box Enter the lesser of the amounts on Line 2 and Line 3 If you did not file a DC franchise tax return for 2010 you may only use Line 2 This is your minimum estimated franchise tax payment for 2011 Estimated Tax Penalty Federal Employer Identification Number (FEIN) For each column subtract Line 7 from Line 6 If Line 7 exceeds Line 6 you have no penalty If there is an amount remaining this is your periodic underpayment amount For each period multiply the amount on Line 8 by the factor on Line 9 This is your penalty by period Government of the District of Columbia How do you file this form? IMPORTANT: Please read the instructions on the reverse before completing this form Instructions for Underpayment of Estimated Tax by D 20 or D 30 Filers is less than $1001; Line 1 Line 10 Line 11 Penalty Line 2 Line 3 Line 4 Line 5 Line 6 Line 7 Line 8 Underpayment each period Line 9 Penalty Factors Make the check or money order payable to the DC Treasurer Multiply the amount on Line 1 by 90% ( 90) Your estimated franchise tax payments must be equal to or greater than this amount Multiply the amount on Line 4 by 25% ( 25) This gives you an even distribution of your tax liability over the four periods of the tax year No penalty is due and this form should not be filed if: Office of Tax and Revenue payments is less than 10% of your total DC franchise tax liability (Line 42 of the D 20 and D 30) for the year penalty assessment send it to: Office of Tax and Revenue 1101 4th St SW 2nd Floor Washington DC 20024 Person to contact if there are questions Social Security Number (SSN) return If you complete the D 2220 after filing and receiving a notice of Revised 02/12 Revised 02/12 D 2220 page 1 than your 2010 DC franchise tax liability for the entire year; or the penalty and any interest on the penalty in the amount you owe and pay the total amount with the return These are the penalty factors by period When do you use this form? When is a penalty assessed for Underpayment of Estimated Franchise Tax? year you did business in DC for the entire 12 months; You are not subject to the penalty for underpayment of estimated franchise tax if: