Form 2220-K - Underpayment And Late Payment Of Estimated Income Tax And Llet

2220-K

Page 3

41A720-S6 (10-13)

INSTRUCTIONS FOR FORM 2220-K

Commonwealth of Kentucky

DEPARTMENT OF REVENUE

Purpose of Form—This form is used by a corporation

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

or limited liability pass-through entity required by KRS

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

141.042 and KRS 141.044 to file a declaration of estimated

each estimated tax payment. KRS 141.985 provides that

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

interest shall accrue at the tax interest rate as provided

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

by KRS 131.010(6) if a corporation or limited liability pass-

the interest on any late payment or underpayment of an

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

estimated tax installment as provided by KRS 141.985.

due date prescribed. If the corporation or limited liability

pass-through entity underpaid an estimated tax payment

or paid an estimated tax payment late, complete lines 1

PART I—EXCEPTION

through 16 to determine the interest due.

KRS 141.990(3) provides that a corporation or limited

liability pass-through entity required by KRS 141.042 to

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

file a declaration of estimated tax and required to pay the

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

declaration of estimated tax by the installment method

Column (c) as follows:

prescribed by KRS 141.044(1) shall not be subject to the

penalty as provided in KRS 131.180 if the estimated tax

Enter on Line 1, Column (a) the 2013 LLET liability from

payments made under KRS 141.044(1) are equal to the

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

combined tax liability due under KRS 141.040 and KRS

Part II, Line 6; and enter on Line 1, Column (b) the 2013

141.0401 for the previous taxable year, and the combined

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

tax liability due under KRS 141.040 and KRS 141.0401

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

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

for the previous taxable year was equal to or less than

$25,000. If the corporation or limited liability pass-through

If the combined tax liability imposed by KRS 141.040 and

entity meets this exception, check the box and complete

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

Lines 1 and 2 showing the combined tax liability for the

previous taxable year and the estimated tax payments for

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

the current taxable year.

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

Line 1, Column (a) the 2012 LLET liability from Form 720,

PART II—FIGURING THE UNDERPAYMENT AND

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

PENALTY

6; and enter on Line 1, Column (b) the 2012 income tax

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

KRS 141.990(3) provides that unless a corporation or

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

limited liability pass-through entity meets the exception

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

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

through entity required by KRS 141.042 to file a declaration

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

of estimated tax and required to pay the declaration of

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

estimated tax by the installment method prescribed by

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

KRS 141.044(1) shall be subject to a penalty as provided

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

in KRS 131.180 if the corporation or limited liability

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

pass-through entity has a declaration underpayment.

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

Declaration underpayment is determined by subtracting

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

$5,000 and the declaration payments actually made from

on Line 2, Column (b).

70% of the combined tax liability due under KRS 141.040

and KRS 141.0401 as computed by the taxpayer on the

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

tax return filed for the taxable year. If the corporation

Line 2 for each column.

or limited liability pass-through entity has a declaration

underpayment, complete Lines 1 through 11.

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

on Line 3, Column (c) and enter these percentages

PART III—LATE PAYMENT INTEREST

(rounded 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

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

of estimated tax if the tax imposed by KRS 141.040

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

(corporation income tax) and KRS 141.0401 (limited

141.040 and 141.0401 for the taxable year was reasonably

liability entity tax) can reasonably be expected to exceed

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

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

calendar year, enter June 15, September 15 and December

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

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

purposes of KRS 141.042 and 141.044.

year was reasonably expected to exceed $5,000 after

Form 2220-K - Underpayment And Late Payment Of Estimated Income Tax And Llet - 2013 Page 3

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