A. The required annual payment of estimated tax shall be paid in four equal installments as follows:
1. In the case of a taxpayer on a calendar year basis, the first installment shall be paid on April 15 of the taxable year, the second and third on June 15 and September 15, respectively, of the taxable year and the fourth on January 15 of the succeeding taxable year. However, if taxpayer files return and pays tax due on or before January 31, the payment of the installment due January 15 is waived; and
2. In the application of this section to the case of a taxable year beginning on any date other than January 1, there shall be substituted, for the months specified in this section, the months which correspond thereto.
B. As used in this section, the “required annual payment” shall mean the lesser of:
1. Seventy percent (70%) of the tax shown on the return for the taxable year; or
2. One hundred percent (100%) of the tax shown on the return for the preceding taxable year of twelve (12) months.
C. For purposes of determining the amount of tax due on any of the respective dates, taxpayers may compute the tax by placing taxable income on an annualized basis as prescribed by rules promulgated by the Tax Commission, which shall be in accordance with the annualization provisions of the Internal Revenue Code. For corporate taxpayers, the annualization provisions found in Section 6655(e)(2)(c) and 6655(e)(3) of the Internal Revenue Code may not be used. The provisions allowed in this section for computing estimated taxes on an annualized basis shall only be permitted for a taxable year of twelve (12) months.
Added by Laws 1965, c. 530, § 2, emerg. eff. July 24, 1965. Renumbered from § 2338 of this title by Laws 1971, c. 137, § 32, emerg. eff. May 11, 1971. Amended by Laws 1989, c. 249, § 35, eff. Jan. 1, 1990; Laws 1997, c. 294, § 26, eff. July 1, 1997; Laws 2000, c. 314, § 22, eff. July 1, 2000.
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