Maryland Underpayment of Estimated Income Tax by Corporation

Underpayment of Estimated Income Tax by Corporation
Tax Year 2023 Form 500UP Underpayment of Estimated Income Tax by Corporations and Pass-Through Entities
MARYLAND
FORM

500UP

2023

UNDERPAYMENT OF
ESTIMATED INCOME
TAX BY CORPORATIONS
AND PASS-THROUGH
ENTITIES
ATTACH TO FORMS 500, 510 OR 511.

OR FISCAL YEAR BEGINNING	

2023, ENDING	

Federal Employer Identification Number (9 digits)

Name as shown on Forms 500, 510 or 511

Check here if electing to remit tax on all members' shares of income.
IMPORTANT: REVIEW THE INSTRUCTIONS BEFORE COMPLETING THIS FORM.
EXCEPTIONS WHICH AVOID INTEREST AND PENALTY
NO INTEREST OR PENALTY IS DUE AND THIS FORM SHOULD NOT BE FILED IF:
A. The tax developed for the current tax year is $1,000 or less; or,
B. Four payments of not less than 25% of the required estimated tax were filed on or before the 15th day of the 4th, 6th, 9th
and 12th months of the tax year and total either (1) 90% of the tax developed for the current tax year or (2) 110% of the
tax that was developed for the prior tax year; or,
C. If the entity has a short tax period of less than 4 months.
CALCULATION OF INTEREST AND PENALTY
1.

2.
	3a.	
	3b.	
4.

Tax for current tax year (line 14 of Form 500 or line 15 of Form 510 or line 12 of Form 511)
less any Business Tax Credits or Heritage Structure Rehabilitation Tax Credits (or credit for
tax paid on behalf of nonresident/resident entities by a pass-through entity). . . . . . . . . . . .
1.
Enter 90% of the amount on line 1. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2.
Tax for prior tax year (line 14 of prior year Form 500, or line 15 of Form 510), or line 12
of Form 511 less any Business Tax Credits or Heritage Structure Rehabilitation Tax Credits.. 3a.
Multiply line 3a by 110%. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3b.
Estimated tax required (Enter lesser of line 2 or line 3b. If first-time filer, enter line 2.) . . . .
4.

.00
.00
.00
.00
.00

DUE DATES OF INSTALLMENT PERIODS
15th day
4th month

15th day
6th month

15th day
9th month

15th day
12th month

1st Period

2nd Period

3rd Period

4th Period

5.

Installment periods

6.

Estimated payments required per installment
period (See instructions.). . . . . . . . . . . . . . . . .

.00

.00

.00

.00

7.

Estimated tax paid per installment period on or
before the due date indicated and prior year's
overpayment applied to estimated tax . . . . . . .

.00

.00

.00

.00

8.

Underpayment per installment period
(Subtract line 7 from line 6.) . . . . . . . . . . . . . .

.00

.00

.00

.00

9.

Interest factors (See instructions.). . . . . . . . . .

	10.

Interest per installment period
(Multiply line 8 by factors on line 9.). . . . . . . . .

11.
12.
13.

Total interest (Add all amounts on line 10.) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  11.
Penalty (See instructions.). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  12.
Total interest and penalty (Add lines 11 and 12.) Also enter this amount on line 18 of
Form 500 or line 18 of Form 510 or line 16 of Form 511.. . . . . . . . . . . . . . . . . . . . . . . . .  13.

COM/RAD-005

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MARYLAND
FORM

500UP

UNDERPAYMENT OF ESTIMATED
INCOME TAX BY CORPORATIONS
AND PASS-THROUGH ENTITIES
INSTRUCTIONS

GENERAL INSTRUCTIONS
Purpose of Form   Form 500UP is used by a corporation or a
pass-through entity to calculate the amount of interest and
penalty for failure to pay the required amount of estimated
income tax when due.
NOTE:	 F o r m 5 0 0 U P i s n o t r e q u i r e d . T h e R e v e n u e
Administration Division will calculate the interest and
penalty and notify the entity of any balance due.
General Requirements   Every corporation or pass-through
entity that reasonably expects its Maryland taxable income to
develop a tax in excess of $1,000 for the tax year or period
must make estimated income tax payments. The total estimated
tax payments for the year must be at least 90% of the tax
developed for the current tax year or 110% of the tax that
was developed for the prior tax year. At least 25% of the total
estimated tax must be remitted by each of the four installment
due dates. Corporations may not use the annualization
method.
In the case of a short tax period, the total estimated tax
required is the same as for a regular tax year: 90% of the tax
developed for the current (short) tax year or 110% of the tax
that was developed for the prior tax year. The minimum
estimated tax payment for each of the installment due dates
is the total estimated tax required divided by the number of
installment due dates occurring during the short tax year.
However, if the entity has a short tax period of less than 4
months, it does not have to pay estimated tax nor file Form
500UP.
Maryland law provides for the accrual of interest and imposition
of penalty for failure to pay the required amount of estimated
tax when due.
When and Where to File   File Form 500UP by the original
or extended due date for filing the Form 500 – Corporation
Income Tax Return or Form 510 – Pass - Through Entity
Income Tax Return or Form 511 - Pass - Through Entity
Election Income Tax Return. If used, Form 500UP must be
attached to Form 500 or Form 510 or Form 511 and filed with
the Comptroller of Maryland, Revenue Administration Division,
110 Carroll Street, Annapolis, Maryland 21411-0001.
SPECIFIC INSTRUCTIONS
Name and Other Information   Type or print the name as
shown on Form 500, Form 510, or Form 511 in the designated
area. Enter the Federal Employer Identification Number (FEIN).
If a FEIN has not been secured, enter “APPLIED FOR” followed
by the date of application. If a FEIN has not been applied for,
do so immediately.
Tax Year or Period   Enter the beginning and ending dates in
the space provided at the top of Form 500UP. The form used
for filing must reflect the preprinted tax year in which the
corporation’s tax year begins.
Calculation of Interest and Penalty   Enter the amounts as
required for lines 1 through 13.
Instructions for Line 6:   The first period extends from the
beginning of the entity’s fiscal year to the last day of the third
month. The second period extends from the beginning of the
fiscal year to the last day of the sixth month. The third period
extends from the beginning of the fiscal year to the last day
of the ninth month. The fourth period extends from the
beginning of the fiscal year to the last day of the twelfth
month. Therefore, enter 1/4 of the estimated tax required on
line 4 in the first column of line 6, 1/2 in the second column,
3/4 in the third column and an amount equal to line 4 in the
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2023

fourth column. For Pass-Through Entities (PTE), see specific
instructions.
Instructions for Line 7: Enter all payments made by the
due date of the fourth quarterly estimated tax payment in the
appropriate column according to the instructions for line 6.
That is, all payments made by the 15th day of the fourth
month of the entity’s fiscal year should be entered in the first
column. All payments made by the 15th day of the sixth
month (including those shown in the first column) should be
entered in the second column. All payments made by the 15th
day of the ninth month should be entered in the third column
and all payments made by the fourth quarter due date should
be entered in the fourth column.
Instructions for Line 9: The interest factors for calendar
year are as follow: For corporations, 1st period - .0150; 2nd
period - .0225; 3rd period - .0225; and 4th period - .0331.
For S corporations, 1st period – .0150; 2nd period – .0227;
3rd period – .0224; and 4th period – .0330. For partnerships
or limited liability companies, 1st period – .0150; 2nd period
– .0227; 3rd period – .0305; and 4th period – .0249.
The factors represent the interest rate for the portion of the
year between the due date of each quarter and the due date
of the next quarter. Interest is computed at a rate of 0.7500%
per month for due dates prior to January 1, 2024. Interest is
computed at a rate of 0.8339% per month after December 31,
2023. For more information, visit marylandtaxes.gov.
If your estimated tax payment was not timely, but was paid
earlier than the due date of the next quarter, adjust the factor
as follows for calendar year filers:
1st Period - For payments due by April 15, 2023 that were
not paid by July 15, 2023 but paid earlier than June 15, 2023,
count the number of months from the due date of April 15,
2023 that the payment was late. Treat a partial month as one
month. Divide that number by twelve and multiply it by the
9.0% annual rate. Apply this adjusted factor to the underpaid
amount on line 8.
2nd Period - For payments due by June 15, 2023 that were
not paid by July 15, 2023 but paid earlier than September 15,
2023, count the number of months from the due date of June
15, 2023 that the payment was late. Treat a partial month as
one month. Divide that number by twelve and multiply it by
the 9.0% annual rate. Apply this adjusted factor to the
underpaid amount on line 8.
3rd Period - Corporations and S Corporations - For payments
due by September 15, 2024 that were not paid by September
15, 2024 but paid earlier than December 15, 2024, count the
number of months from the due date of September 15, 2024
that the payment was late. Treat a partial month as one
month. Divide that number by twelve and multiply it by the
9.0% annual rate. Apply this adjusted factor to the underpaid
amount on line 8.
Other PTEs - For payments due by September 15, 2024 that
were not paid by September 15, 2024 but paid earlier than
December 15, 2024, count the number of months from the
due date of September 15, 2024 that the payment was late.
Treat a partial month as one month. Divide that number by
twelve and multiply it by the 9.0% annual rate. Apply this
adjusted factor to the underpaid amount on line 8. For
payments made on or later than December 15, 2024, apply
the interest factor of .0305 to the underpaid amount on line
8.
4th Period -Corporations - For payments due by December
15, 2024 that were not paid by December 15, 2024 but paid
earlier than April 15, 2025, determine when

MARYLAND
FORM

500UP

UNDERPAYMENT OF ESTIMATED
INCOME TAX BY CORPORATIONS
AND PASS-THROUGH ENTITIES
INSTRUCTIONS

the payment was made and apply the appropriate factor below
to the underpaid amount on line 8.
1) For payments made after December 15, 2023 but before
January 15, 2024, apply the adjusted factor of .0081 to
the underpaid amount on line 8.
2) For payments made after January 15, 2024 but before
February 15, 2024, apply the adjusted factor of .0164 to
the underpaid amount on line 8.
3) For payments made after February 15, 2024 but before
March 15, 2024, apply the adjusted factor of .0247 to the
underpaid amount on line 8.
4) For payments made after March 15, 2024 but before April
15, 2024, apply the interest factor of .0331 to the
underpaid amount on line 8.
4th Period - S-Corporations - For payments due by December
15, 2023 that were not paid by December 15, 2023 but paid
earlier than April 15, 2024, determine when the payment was
made and apply the appropriate factor below to the underpaid
amount on line 8.
1) For payments made after December 15, 2023 but before
January 15, 2024, apply the adjusted factor of .0081 to
the underpaid amount on line 8.
2) For payments made after January 15, 2024 but before
February 15, 2024, apply the adjusted factor of .0165 to
the underpaid amount on line 8.
3) For payments made after February 15, 2024 but before
March 15, 2024, apply the adjusted factor of .0245 to the
underpaid amount on line 8.
4) For payments made after March 15, 2024 but before April
15, 2024, apply the interest factor of .0331 to the
underpaid amount on line 8.
Other PTEs - For payments due by January 15, 2024 that were
not paid by January 15, 2024 but paid earlier than April 15,
2024, count the number of months from the due date of
January 15, 2024 that the payment was late. Treat a partial
month as one month. Divide that number by twelve and
multiply it by the 10.0075% annual rate. Apply this adjusted
factor to the underpaid amount on line 8.
Instructions for Line 12: Penalty for underpayment of
estimated tax is due for any quarter where timely payments
are less than 50% of one-quarter of the annual estimated tax
required (line 4). Calculate the penalty by adding the
underpayments in all applicable quarters (do not use cumulative
amounts from line 8) and multiplying the total by 10%. Enter
the result on line 12.
Pass-Through Entities The due dates of estimated payments
and annual returns for S corporations are the same as the due
dates for corporations. For other PTEs, the due date, for the
fourth quarterly payment is the 15th day of the month
following the close of the tax year (January 15 for calendar
year filers). This difference will cause variations in the interest
factors.
Partnerships and limited liability companies electing to annualize
must allocate to each period (and enter on line 6) a payment
amount based on the income received between the dates for
each installment period. If the interest calculated on line 11 is
zero because the income was not received evenly throughout
the year, enter code number “301” on one of the lines marked
“code number” on the front of Form 510 or Form 511, and
attach this form to the return.

COM/RAD-005

2023