Georgia Underpayment of Estimated Tax by Corporations

Underpayment of Estimated Tax by Corporations
TSD_Underpayment_of_Estimated_Corporations
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600 UETRev. (07/28/17)

Page 1

Underpayment of Estimated Tax
by Corporations
Georgia Department of Revenue
Taxpayer Services Division

YEAR
HOW TO FIGURE YOUR UNDERPAYMENT
(Complete Lines 1 through 5)

CORPORATION NAME

ID NUMBER

1. Tax (from Form 600, Sch 1, Line 8)

1.

2. Credits Used (from Form 600, Sch 3, Line 3)

2.

3. Balance Due (Line 1 less Line 2)

3.

4. Enter 100% of the Immediately Preceding Year ’s Tax (return must be for a 12-month period)

4.

5. Enter 70% of the Amount Shown on Line 3

5.
DUE DATE OF INSTALLMENTS (Enter dates below)

6. Divide amount on Line 4 by the number of
installments required for the year (See Instruction
B), enter the results in appropriate columns ........ 6.
7. Divide amount on Line 5 by the number of
installments required for the year (See Instruction
B), enter the results in the appropriate column.... 7.
8. Enter the lesser of Line 6 or Line 7 for each
period in the appropriate column .......................... 8.
9. Amounts paid on estimate for each period and
tax withheld ........................................................... 9.
10. Overpayment of previous installment
(See Instruction E) ................................................ 10.
11. Total of Line 9 and Line 10 ................................... 11.
12. Underpayment (Line 8 less Line 11) or
Overpayment (Line 11 less Line 8) ................. 12.
EXCEPTIONS WHICH AVOID THE PENALTY (See Instruction D)
13. Total amount paid and withheld from January 1,
through the installment date indicated ............... 13.
14. Exception 1. —Tax on annualized current year
income (See Instructions)...................................... 14.
HOW TO FIGURE THE PENALTY

(Complete Lines 15 through 19 for installments not avoided by an exception)

15. Amount of underpayment (from Line 12) ............ 15.
16. Date of payment or April 15, 20 __ whichever is
earlier (if S Corp use March 15)(See Instruction F) 16.
17. Number of days from due date of installment
to date shown on Line 16 ................................... 17.
18. Penalty (9 percent a year on amount shown on
Line 15 for the number of days shown on Line 17)............ 18.
19. Penalty (Add amounts on Line 18).............................. 19.

Not Applicable

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Page 2

Instructions for 600 UET Underpayment of
Estimated Tax by Corporations
A. Corporate taxpayers may use this form to determine whether income tax
was sufficiently paid throughout the year by withholding or by installment
payments. If sufficient tax was not paid you may owe a penalty of 9 percent a
year on the unpaid amount. This form will help you determine whether you
are subject to a penalty, or whether you are excepted from a penalty.
B. FILING AN ESTIMATE AND PAYING THE TAX, CALENDAR YEAR
TAXPAYERS – If you file a return on a calendar year basis and are required
to file Form 602ES, you are generally required to file estimated tax by April 15,
and to pay tax in four installments. (You may be required to pay in fewer
installments.) The chart below shows the due date for estimated tax, and
maximum number of installments.
Period
Requirements
First Met
Between Jan. 1 and March 31
Between Apr. 1 and May 31
Between June 1 and August 31
On or after September 1

Due Date
of
Payment
April 15
June 15
Sept. 15
Dec. 15

Maximum Number
of Installments
Required
4
3
2
1

Exception 1, Tax on Annualized Current Year’s Income: This exception applies if
your current year’s tax payments equal or exceed 70 percent of the tax on your
annualized taxable income for periods from the first of the year to the end of the
month preceding that in which an installment is due.
To annualize your taxable income, follow these four steps:
a)
Figure your taxable income from the first of your taxable year up to
and including the month prior to that in which an installment is due.
b)
Multiply the result of Step (a) by 12.
c)
Divide the result of Step (b) by the number of months in your computation period.
d)
The result is your annualized taxable income.

Example
1.
2.
3.

Taxable Income during Jan., Feb., and March .............. 8,750.00
Annualized income (8,750.00 x 12 = 105,000 / 3) ........ 35,000.00
Total Income Tax ( 6%) ..................................................
. 2,100.00

If your withheld tax and estimated tax payment for the first installment
period of the current year was at least 368.00 (70% x 25% x $2,100.00)
you do not owe a penalty for that period.

If any date shown falls on a Saturday, Sunday, or legal holiday, substitute the
next regular workday.

E. LINE 10 OVERPAYMENT- Apply as a credit against the installment the
excess of the total of the amounts on Line 9 of the previous columns over
the total of the amounts on Line 8 of the previous columns. If no excess
enter zero.

C. FISCAL YEAR TAXPAYERS - Fiscal year taxpayers should contact the
Department at (1-877-423-6711) for information on the penalty for underpayment of estimated taxes.

F.
INSTALLMENT PAYMENTS – If you made more than one payment
for an installment attach a separate computation for each payment.

D. EXCEPTION FROM THE PENALTY – You will not be liable for a penalty
if your current year tax payments (amount shown on Line 13) equals or
exceeds any amount determined for the same period under the following
exception provision. If the exception does not apply, complete Line 15 through
19 to figure your penalty. Put the amount on Line 19 on Form 600, Schedule 3,
Line 8A or Form 600S, Schedule 4, Line 8A or Form 600-T, Schedule 2, Line 7.