Maine Underpayment of Estimated Tax

Underpayment of Estimated Tax
Form 2220ME
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FORM

2220ME

2022

Underpayment of Estimated Tax
by Corporations or Financial Institutions
Enclose with your Form 1120ME or Form 1120B-ME
(See instructions on back)

For calendar year 2022, or fiscal year beginning ___________________________ , 2022 and ending _____________________________ , 20________
Name as shown on Form 1120ME or 1120B-ME

Your FEIN (do not enter / or -)

Part I - Calculating Your Underpayment
1	 2022 tax (check the applicable box below)..................................................................................................................... 1._________________________
	

c

Form 1120ME, line 6c minus lines 7c and 7d.

	

c

Form 1120B-ME, line 3f minus lines 4b and 4d.

2.	 Multiply tax on line 1 by 90%.......................................................................................................................................... 2._________________________
3.	 2021 tax (If 2021 is a short-year, enter amount from line 2)
	 (If this line or line 1 is less than $1,000, do not complete rest of form)........................................................................... 3._________________________
4.	 Enter the smaller of line 2 or line 3................................................................................................................................. 4._________________________

Payment Due Dates

	
A	B	C	D

Enter in columns A through D the installment dates that correspond to
the 15th day of the 4th, 6th, 9th and 12th months of the taxable year.
5. Enter 25% of line 4 in columns A through D, unless (a) or (b) below applies:
	 c a.	Actual Liability: Check here and the box on Form 1120ME, line 9. 	
		 Enter amount from line 17 of the annualization worksheet.
	b.
c If the corporation is a “large” corporation under IRC § 6655(g)(2)(A), 	
		 enter the required estimated tax amount by statute and check
.	
		 this box........................................................................................... 5.
6.	 a.	Estimated tax paid and carryover of prior year overpayment........... 6a.
		 (See instructions.)
	b.	Overpayment on line 8b from prior column...................................... 6b.

7. 	 Line 6a plus line 6b................................................................................ 7.

8.	 a. Underpayment (line 5 minus line 7) or............................................. 8a.

	

b. Overpayment (line 7 minus line 5)................................................... 8b.

Part II - Calculating the Penalty
9.	 Enter the due date of the return (or the date the underpayment on
	 line 8a was paid to MRS, if earlier)........................................................ 9.
10. 	Number of months or fraction thereof from the payment due date to
	 the date shown on line 9...................................................................... 10.

11. 	Enter the rate from the table included in the instructions..................... 11.
12.	Underpayment penalty. Underpayment on line 8a multiplied by the
	 rate on line 11....................................................................................... 12.
13. Total of amounts shown on line 12. Enter result here and on Form 1120ME, line 9 or Form 1120B-ME, line 5b........................... 13.
Revised: March 2023

General Instructions
Purpose of form:
Form 2220ME enables corporations and financial
institutions to determine if sufficient estimated tax was
paid by the proper due date. If the minimum amount was
not paid timely, an underpayment penalty is imposed for
the period of underpayment. This form helps determine
whether or not you are subject to this penalty.

Actual liability for each quarter:
Taxpayers are required to make four equal installments of
estimated tax unless the actual liability can be established,
by adequate record, for each required installment payment
of estimated tax. The Annualized Income Installment
Worksheet for Underpayment of Estimated Tax is used to
determine actual liability.

Who must pay the underpayment penalty:
If you did not pay enough estimated tax by any due date
for paying estimated tax, you may be charged a penalty.
In general, you may owe the penalty if, for 2022 you did
not pay the lesser of 90% of your tax liability for 2022
or 100% of the tax liability for 2021, if the 2021 return
covered 12 months. Large corporations, as defined by
IRC § 6655(g)(2)(A), must also meet the test required by
36 M.R.S. § 5228(5)(C).

Carryover of Prior Year Overpayment:
Line 6a. Enter the carryover of the 2021 overpayment in
the column that corresponds to the due date of the 2021
Form 1120ME or Form 1120B-ME, without regard to
extension, or the date the payment resulting in the 2021
overpayment was made, whichever is later.

Exceptions to the penalty:
You will not have to pay the penalty or file this form if
either of the following two situations applies:
1.	Your tax liability for 2022, reduced by allowable
credits, is less than $1,000.
2.	 Your 2021 tax liability was less than $1,000.
The penalty may be avoided if at least 90% of the 2022
tax was paid when due, even though you may be required
to file this form.

Computation of underpayment penalty:
If no exception applies for an installment date, complete
lines 9 through 13 to determine the amount of the penalty.
The penalty is based on the amount of the underpayment
of the required installment for the period of underpayment.
It is computed at the stated rate for each month or fraction
thereof in the period of underpayment. For calendar year
2022, the penalty rate is .4167% per month or fraction
thereof, compounded monthly. For calendar year 2023,
the penalty rate is .5833% per month or fraction thereof,
compounded monthly. The effective penalty rate for the
number of months shown on line 10 is listed below.

Fiscal year filers may not use the table below.
Number of months
shown on line 10

1

2

3

4

5

6

7

8

9

10

11

12

Enter this rate
on line 11,
Column A

.004167

.008351

.012552

.016771

.021008

.025262

.029534

.033824

.039854

.045920

.052021

.058158

Enter this rate
on line 11,
Column B

.004167

.008351

.012552

.016771

.021008

.025262

.031243

.037258

.043309

.049395

Enter this rate
on line 11,
Column C

.004167

.008351

.012552

.018459

.024400

.030375

.036386

Enter this rate
on line 11,
Column D

.005833

.011701

.017602

.023538