1999 Tax Law Changes - Estimated Tax Payments

XV. ESTIMATED TAX PAYMENTS

G.S. 105-163.40 - New Threshold for Corporations: The catchline to this section was amended and a new subsection (d) was added. The amendment to the catchline added the words "form of payment" at the end. New subsection (d) adds an additional threshold for determining when a corporation must pay its estimated corporate income tax installments by electronic funds transfer. This subsection requires a corporation to make its estimated payments of State income tax by electronic funds transfer if it is required to make its estimated payments of federal income tax by electronic funds transfer. Under the regulations adopted under the Internal Revenue Code, a corporation is required to make its estimated payments of federal income tax by electronic funds transfer if its aggregate liability for employment and other depository taxes exceeds $200,000 in a calendar year.
Thus, with the addition of this threshold, there are two tests for determining whether a corporation is required to make estimated payments of its State corporate income tax by electronic funds transfer. A corporation that meets the $240,000 a year test in G.S. 105-241(b) must pay by this method. A corporation that makes its federal estimated payments by electronic funds transfer must also pay by this method. No corporation, however, is required to make estimated payments of State income tax unless its expected liability exceeds the $500 threshold set in G.S. 105-163.40(a).
(Effective for taxable years beginning on or after January 1, 2000; SB 251, s. 7, S.L. 99-389.)