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2220-K

Page 3

41A720-S6 (10-09)

INSTRUCTIONS FOR FORM 2220-K

Commonwealth of Kentucky

DEPARTMENT OF REVENUE

Purpose of Form—This form is to be used by a corporation

Line 1—Enter the LLET liability in Column (a) and income

or limited liability pass-through entity required by KRS

tax liability in Column (b) and the combined tax liability

141.042 and KRS 141.044 to file a declaration of estimated

in Column (c) as follows:

tax to: (i) compute the underpayment penalty as provided

by KRS 131.180(3) and KRS 141.990; and (ii) compute

Enter on Line 1, Column (a) the 2009 LLET liability from

the interest on any late payment or underpayment

Form 720, Part I, Line 6 or from Form 720S, 725 or 765,

of an estimated tax installment as provided by KRS

Part II, Line 6; and enter on Line 1, Column (b) the 2009

131.183(2).

income tax liability from Form 720, Part III, Line 8 or from

Form 720S, Part III, Line 4. Also enter the total of Line 1,

PART I—EXCEPTION

Columns (a) and (b) on Line 1, Column (c).

KRS 141.990(3) provides that a penalty shall not apply

If the combined tax liability imposed by KRS 141.040 and

if the estimated tax payments made by a corporation

141.0401 for the prior tax year was equal to or less than

or limited liability pass-through entity are equal to the

$25,000 and the prior year’s combined tax liability is less

income tax due under KRS 141.040 for the previous taxable

than the current year’s combined tax liability, enter on

year, and the income tax due under KRS 141.040 for the

Line 1, Column (a) the 2008 LLET liability from Form 720,

previous year was equal to or less than $25,000. If the

Part I, Line 6 or from Form 720S, 725 or 765, Part II, Line

corporation or limited liability pass-through entity meets

6; and enter on Line 1, Column (b) the 2008 income tax

this exception, check the box and complete Lines 1 and 2

liability from Form 720, Part III, Line 8 or from Form 720S,

showing the prior year income tax liability and the current

Part III, Line 4. Also enter the total of Line 1, Columns (a)

year estimated tax payments.

and (b) on Line 1, Column (c).

PART II—FIGURING THE UNDERPAYMENT AND PENALTY

Line 2—Enter the $5,000 statutory exemption as follows:

KRS 141.990(3) provides that unless a corporation or

(i) If the LLET tax on Line 1, Column (a) is zero, enter $5,000

limited liability pass-through entity meets the exception in

on Line 2, Column (b); (ii) If Line 1, Column (a) is $5,000

Part I of this form, a corporation’s or limited liability pass-

or greater, enter $5,000 on Line 2, Column (a); or (iii) If

through entity’s declaration underpayment is determined

the LLET on Line 1 Column (a) is greater than zero but

by subtracting $5,000 and the estimated tax payments

less than $5,000, enter the amount from Line 1, Column

actually made from 70% of the income tax liability due

(a) on Line 2, Column (a) and the balance of the $5,000

under KRS 141.040 as computed on the tax return filed

on Line 2, Column (b).

for the tax year. If the corporation or limited liability pass-

through entity has a declaration underpayment, complete

Line 3—Enter the amount on Line 1 less the amount on

Lines 1 through 7 to compute the underpayment penalty

Line 2 for each column.

as provided by KRS 131.180(3).

Line 4—Divide Line 3, Columns (a) and (b) by the amount

PART III—LATE PAYMENT INTEREST

on Line 3, Column (c) and enter these percents (round to

nearest whole percent) in the respective columns.

KRS 141.042(1) provides that every corporation and limited

liability pass-through entity shall make a declaration

of estimated tax if the tax imposed by KRS 141.040

Line 5—Enter the installment due dates from left to right

(corporation income tax) and KRS 141.0401 (limited

in each column as follows: (i) if the tax imposed by KRS

liability entity tax) can reasonably be expected to exceed

141.040 and 141.0401 for the taxable year was reasonably

$5,000. KRS 141.042(3)(b) provides that the estimated

expected to exceed $5,000 before June 2 of the taxable

tax in excess of $5,000 shall be the estimated tax due for

calendar year, enter June 15, September 15 and December

purposes of KRS 141.042 and 141.044.

15 in Columns (a), (b) and (c); (ii) if the tax for the taxable

year was reasonably expected to exceed $5,000 after

KRS 141.042(4) provides the due date of each estimated

June 1 and before September 2 of the taxable calendar

tax payment and KRS 141.044(1) provides the amount of

year, enter September 15 and December 15 in Columns

each estimated tax payment. KRS 131.183(2) provides that

(a) and (b); and (iii) if the tax for the taxable year was

interest shall accrue at the tax interest rate as provided by

reasonably expected to exceed $5,000 after September 1

KRS 141.183(1), if a corporation or limited liability pass-

of the taxable calendar year, enter December 15 in Column

through entity fails to pay the tax due on or before the

(a). If the tax return is for a fiscal year enter the 15th day

due date prescribed. If the corporation or limited liability

of the sixth month, 15th day of the ninth month and 15th

pass-through entity underpaid an estimated tax payment

day of the 12th month. Note: If a payment date falls on a

or paid an estimated tax payment late, complete lines 1

holiday or weekend, the applicable payment date is the

through 16 to determine the interest due.

next working day.

Form 2220-K Draft - Underpayment And Late Payment Of Estimated Income Tax And Llet - 2009 Page 3

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