Form 2220N 2012 Corporation Underpayment of Estimated Tax

(In Column [A] only enter amount from line 14) 18 1 Any estimated payment made for the 2012 tax year by the date on line 12 for that column and after the date on line 12 of the preceding column; and 1 Nebraska income tax before credits (line 13 2012 Form 1120N) (see instructions) 1 1 The corporation s 2011 overpayment that was credited to its 2012 estimated payments; 10 Enter 2011 income tax (see instructions) Caution: If the tax is zero or the tax year was for 12 Enter in Columns A through D the installment 13 Enter 25% of line 11 in Columns A through D 13 14 Amount paid or credited for each period 14 15 Enter amount if any from line 21 of 16 Add lines 14 and 15 16 17 Add amounts on lines 19 and 20 of the 18 Line 16 minus line 17 If less than zero enter 0 19 Remaining underpayment from previous 2 Any estimated payment made for the 2012 tax year by the date on line 12 Column (A); and 2 Any Nebraska income tax withheld from the corporation by the date on line 12 for that column and after the date on line 12 of the preceding column 2 Premium tax credit (line 14 Form 1120N) 2 20 Underpayment If line 18 is less than or equal 21 Overpayment If line 13 is less than line 18 22 Amount of underpayment (line 19 plus line 20) 22 23 Date of payment or next due date (from 24 Number of days from due date of installment 25 Underpayment penalty (see instructions 26 Total of amounts on line 25 Enter this amount in the space provided on Form 1120N next to line 24 Increase the amount 3 Any Nebraska income tax withheld from the corporation by the date on line 12 Column (A) 3 CDAA credit (line 15 Form 1120N) 3 4 Form 3800N nonrefundable credit (line 16 Form 1120N) 4 5 Form 3800N refundable credit (line 19 Form 1120N) 5 6 Beginning Farmer credit (line 22 Form 1120N) (see instructions) 6 7 Total credits (total of lines 2 through 6) 7 8 Subtract line 7 from line 1 If the result is less than $400 do not complete the rest of the form No penalty is owed 8 9 Enter 100% of line 8 9 and 12th months of your tax year) 12 column; otherwise go to line 21 20 Complete lines 14 through 21 for one column before completing the next column due dates (the 15th day of the 4th 6th 9th enter the result Then go to the next for applicable interest rates) 25 less than 12 months skip this line and enter the amount from line 9 on line 11 10 line 12) whichever is earlier 23 Name on Form 1120N Taxable Year Nebraska ID Number of Tax Due or decrease the amount of the Overpayment accordingly 26 period If the amount on line 18 is zero previous column 15 previous column and enter result 17 Read the instructions on the reverse side result Then go to the next column 21 result; otherwise enter 0 19 subtract line 13 from line 18 and enter the subtract line 16 from line 17 and enter the to date shown on line 23 24 to line 13 subtract line 18 from line 13 and 11 Enter the lesser of line 9 or line 10 11 8 238 2012 A large corporation is prohibited from using its prior year s tax liability except in determining the first installment of its tax year Any reduction in a large corporation s first installment as a result of using the prior year s tax must be recaptured in the corporation s second installment ATTACH THIS FORM TO FORM 1120N Corporation Underpayment of Estimated Tax Corporations are required to make estimated tax payments if they reasonably expect their Nebraska income tax to exceed their allowable credits by $400 or more The allowable credits are: the premium tax credit; the Community Development Assistance Act (CDAA) credit; the Nebraska tax incentive credits (Form 3800N credits); the Beginning Farmer credit; and the biodiesel tax credit Example: A corporation has an underpayment for the April 15 installment of $1 000 The June 15 installment requires a payment of $2 000 On June 15 the corporation deposits $2 000 for its June 15 installment However $1 000 of this payment is considered to be for the April 15 installment The penalty for the April 15 installment is calculated to June 15 (61 days) The payment to be applied to the June 15 installment will then be $1 000 FORM 2220N If the amount on line 8 is less than $400 do not complete the rest of the form No penalty is owed If the corporation has made more than one payment for a required installment make separate penalty calculations through the date of payment and for the remaining underpayment through the date it is paid then add the results together and enter on line 25 In Column (A) enter the total of: In Columns (B) (C) and (D) enter the total of: In determining the date of payment on line 23 use the date of the payment which was applied against the underpayment on line 22 the due date of the next payment (line 12 of the next column) or the 15th day of the 3rd month following the close of the taxable year whichever is earliest INSTRUCTIONS LARGE CORPORATIONS A large corporation is one which had or its predecessor had federal taxable income of at least $1 million for any of the three taxable years immediately preceding the tax year involved In applying the $1 million test taxable income is computed without regard to net operating loss and capital loss carrybacks and carryovers Large corporations compute line 13 amounts by using the same procedures that result in the comparable entry on the Federal Form 2220 LINE 1 Enter the tax amount from line 13 of the 2012 Form 1120N on line 1 of this form LINE 10 The entry on this line allows corporations to use the tax reported on their prior year s return less the prior year s allowable credits to determine whether an underpayment exists Enter line 18 minus lines 19 and 22 from 2011 Form 1120N ( Large corporations except as noted cannot use this calculation) The prior year s Nebraska return must cover a period of 12 months and show a tax liability If this calculation does not apply enter the line 9 amount on line 11 LINE 14 Enter the tax payments made by the corporation and any credit for Nebraska income tax withheld from the corporation as indicated below LINE 20 UNDERPAYMENT When an underpayment is reported on this line complete Part II lines 22 through 26 to determine the penalty amount for each underpayment of an installment LINE 21 OVERPAYMENT Any overpayment of an installment on line 21 in excess of all prior underpayments should be applied as a credit on line 15 against the next installment LINE 23 A payment of estimated tax is applied against underpayments of required installments in the order that installments are required to be paid regardless of the installment to which the payment pertains LINE 25 The penalty is calculated at five percent per year for any days in 2012 and at three percent per year for any days in 2013 Multiply line 22 by the applicable interest rate for the number of days on line 24 LINE 6 The amount entered on this line should only include the Beginning Farmer credit Any amount claimed for Nebraska income tax withheld on line 22 of Form 1120N must be included on line 14 of Form 2220N METHODS TO REDUCE OR AVOID PENALTY A corporation may reduce or eliminate the penalty by using the annualized income or adjusted seasonal installment method To use one or both of these methods to figure one or more required installments recalculate and attach the Federal Schedule A Adjusted Seasonal Installment Method and Annualized Income Installment Method using Nebraska income and other Nebraska amounts On this form enter on line 13 of each column the corresponding amount from the recalculated Federal Schedule A PART I Calculate the Underpayment PART II Calculate the Penalty WHEN AND WHERE TO FILE This form must be attached to the Nebraska Corporation Income Tax Return Form 1120N and filed with that return WHO MUST FILE Corporations required to make estimated tax payments must file Corporation Underpayment of Estimated Tax Form 2220N when any underpayment is computed on line 20 of Form 2220N