S Corporation Estimated Tax Instructions
Estimated payments for S corporations filing Form M8 Filing requirements
An S corporation must pay estimated tax if it has $500 or more of: • estimated S corporation taxes, minimum fee and nonresident withholding (total of lines 1, 2 and 4 of Form M8), or • any nonresident shareholder’s share of composite income tax (line 3 of Form M8). The S corporation must pay quarterly installments based on its required annual payment. If the S corporation taxes/minimum fee/nonresident withholding and composite income tax are subject to the estimated tax requirements, include all in the same quarterly payments. A corporation is not required to pay estimated taxes the first year it is subject to tax in Minnesota. Required annual payment. The required annual payment is the lesser of: • 100 percent of the current year’s tax liability, or • 100 percent of the prior year’s tax liability. The required annual payment must be paid in four equal installments unless certain exceptions apply (see the instructions for Schedule EST, Additional Charge for Underpayment of Estimated Tax). You can pay your installments electronically through e-File Minnesota or by credit card. If you’re not required to pay electronically and are paying by check, you must attach a completed Form M72 deposit form. Due dates. Quarterly installments are due by the 15th day of the third, sixth, ninth and 12th months of the tax year. Installments for a short tax year are due in equal payments on the 15th day of the third, sixth, ninth and final months of the tax year depending on the number of months in the short tax year. No installments are required for a short tax year of fewer than four months. If the due date falls on a Saturday, Sunday or legal holiday, payments are due on the next regular business day. Underpaying installments. If you underpay any installment or did not pay by the due dates, an additional charge for underpayment will be added to your tax (see Schedule EST). Minnesota tax ID number. If you don’t have a Minnesota ID number, you must first apply for one. You can apply online at www.taxes.state.mn.us or by calling 651282-5225 or 1-800-657-3605.
To pay by credit card
You can pay by credit card through Official Payments Corporation, a national creditcard payment service. You will be charged a fee by Official Payments for this service. Go to www.officialpayments.com or call 1-800-272-9829. You’ll be asked to enter your Minnesota tax ID, payment and credit card information.
To pay electronically
To pay by check
If you’re required to pay any Minnesota tax electronically, you’re required to pay all Minnesota taxes electronically—including S corporation estimated tax. Failure to pay electronically when required will result in a penalty being assessed. The penalty is 5 percent of each payment that should have been remitted electronically, but was remitted by some other means. To pay, go to www.taxes.state.mn.us and click on “Login to e-File Minnesota” from the e-Services menu. If you don’t have Internet access, you can pay by phone at 1-800-570-3329. You’ll need your Minnesota tax ID number, your password and bank routing and account numbers. If you’re using the system for the first time and you need a temporary password, call 651-282-5225 or 1-800-657-3605. Your transactions are secure and you’ll receive a confirmation number to keep with your records. To be timely, you must complete your electronic payment transaction and receive a confirmation number on or before the due date for that payment. Note: If you’re currently paying electronically using the ACH credit method, continue to call your bank as usual. If you wish to make payments using the ACH credit method, instructions are available at www.taxes.state.mn.us.
If you don’t pay your estimated tax electronically, you must mail your payment with a completed Form M72. To ensure the M72 deposit form can be read by our scanning equipment, use the form provided with your software program or download a copy from our website. Type the information while it’s on the screen and print it on your printer. Be sure to enter all the information requested. Important: We need your Minnesota tax ID number on the form to process and credit your estimated tax payments properly. Also enter your federal ID number, but not in place of your Minnesota ID number. For the tax-year ending date, enter the ending date of the tax year for which the estimated tax payments are being made. For example, if your tax year ends on December 31, 2009, enter “12/09.” Make your check payable to Minnesota Revenue and mail it with your completed Form M72 to: Minnesota Revenue, Mail Station 1275, St. Paul, MN 55145-1275.
Forms and information
Forms and information are available on our website at www.taxes.state.mn.us. If you need additional information, call 651-296-3475. TTY users, call 711 for Minnesota Relay.
Stop writing checks
Pay electronically!
It’s Secure, Easy, Convenient, Free
www.taxes.state.mn.us
Stock No. 3508872 (Rev. 10/08)