Form K-220 - Kansas Underpayment Of Estimated Corporate Tax

INSTRUCTIONS FOR SCHEDULE K-220

If any due date falls on a Saturday, Sunday, or legal holiday, substitute the next regular work day.

WHO MAY USE THIS SCHEDULE

b) for the first 3 months or for the first 5 months, if the

installment was required to be paid in the 6th month;

Schedule K-220 will help a corporation determine if it paid

c) for the first 6 months or for the first 8 months if the

the correct amount of estimated tax by the correct due date.

installment was required to be paid in the 9th month;

If the minimum amount was not paid on time, an

and

underpayment penalty will be imposed for the period of

d) for the first 9 months or for the first 11 months if the

underpayment. This schedule helps determine whether the

installment was required to be paid in the 12th month.

corporation is subject to the penalty.

Every corporation is required to pay estimated tax for the

PART II – FIGURING THE PENALTY

taxable year if its Kansas tax liability can reasonably be

expected to exceed $500. A corporation is not required to

LINE 8: Enter on line 8 the amount of underpayment of

file a declaration in its first year of existence in Kansas.

tax, which is the lesser of one of the following computations:

– Any estimated tax, payable in

HORT

AXABLE

EARS

• Line 6 less line 5; or

installments, which is not paid before the 15th day of the last

• Line 7 less line 5

month of a short taxable year shall be paid on the 15th day

LINE 9: Enter the due date of each estimate payment

of the last month of the short taxable year.

installment (15th day of the 4th, 6th, 9th and 12th months of

the tax year).

COMPLETING THIS SCHEDULE

Penalty for lines 10 and 11 is computed to 12/31/11 at 5% and from

Enter your name and your EIN (Employer Identification

1/1/12 at 5%. Therefore, the number of days needs to be captured on

Number) in the space provided at the top of this schedule.

lines 10 and 11 for applicable penalty rate.

LINES 1 through 3: Complete these lines based on

LINE 10: Enter in the first column the number of days from

information from your return for this tax year and from the prior

the first installment due date to the next installment due

tax year’s return.

date and enter the same for the remaining installment due

dates. Do not compute the number of days for this line past

PART I – EXCEPTIONS TO THE PENALTY

12/31/11. Days past that date are to be entered on line 11.

You will NOT be subject to a penalty if your 2011 tax

EXAMPLE: For the fiscal year ending 6/30/12 the installment

payments (line 5, columns 1 through 4) equal or exceed the

due dates are 10/15/11, 12/15/11, 3/15/12 and 6/15/12;

amounts for one of the exceptions (lines 6 or 7, columns 1

therefore, the taxpayer will enter on line 10 the following

through 4) for the same payment period.

number of days: Column 1 - 10/15/11 to 12/15/11 equals 61

LINE 4: Enter the due date of each estimate payment

days. Column 2 - 12/15/11 to 12/31/11 equals 16 days.

installment (15th day of the 4th, 6th, 9th and 12th months for

Columns 3 and 4 of this line will not be completed since the

the tax year).

number of days has been computed to 12/31/11. The

computation for this fiscal year will continue on line 11.

LINE 5: Enter the cumulative amount of timely paid

estimated tax payment made in each quarter.

LINE 11: Enter the number of days from 1/1/12 to the due

date of the next installment (if one exists). From the last

EXAMPLE: For a calendar year, column 3 will be the total of

installment date enter the number of days to the date paid or

your timely paid estimated payments made from January 1

the due date of the return, whichever is earlier. The following

through September 15, 2011.

example continues the computation example from line 10.

LINE 6: Exception 1. This exception applies if the amount

EXAMPLE: Column 1 is blank since there are no days prior

on line 5 of a column equals or exceeds the amount on line

to 1/1/11 on this line. Column 2 - 1/1/12 to 3/15/12 equals 74

6 for the same column. Enter the amount from line 2 or line

days. (Note: The 16 days previously entered on line 10 plus

3, whichever is less, times the percentages shown in each

the 74 days equals the total number of days from 12/15/11 to

column of the schedule.

3/15/12.) Column 3 - 3/15/12 to 6/15/12 equals 92 days.

LINE 7: Exception 2. This exception applies if the amount

Column 4 - is to be computed from 6/15/12 to the date the tax

on line 5 of a column equals or exceeds the amount on line

was paid or 10/15/12, the due date of the return, whichever

is earlier.

7 for the same column, if applicable. A corporation may

annualize its income if the corporation made an estimated

LINES 12 and 13: Penalty is computed at 5%.

tax payment of at least 90% of the amount it would owe if its

LINE 14: For each column, add lines 12 and 13 and enter

estimated tax were a tax computed on annualized taxable

the result on line 14.

income for the months preceding an installment date. The

computation is as follows:

LINE 15: Add the amounts on line 14 and enter on line

a) for the first 3 months, if the installment was required

37, Form K-120. If you are annualizing to meet an exception

to be paid in the 4th month;

(line 7, K-220) check the box beside line 37, Form K-120.

Form K-220 - Kansas Underpayment Of Estimated Corporate Tax - 2011 Page 2

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