Massachusetts Financial Institution Corporate Estimated Tax Payment Instructions and Worksheet

Financial Institution Corporate Estimated Tax Payment Instructions and Worksheet
63 FI-ES instr with coupon
Form 63 FI-ES
Instructions for Financial Institution
Estimated Excise Payment Worksheet
General Information
What is the purpose of the estimated excise payment worksheet? The estimated excise payment worksheet provides a
means for paying any current excises due under Chapter 63 of the
Massachusetts General Laws.
Note: Taxpayers subject to combined filing must file Form 355U,
Excise for Taxpayers Subject to Combined Reporting.
Who must make estimated payments? All financial institutions
that reasonably estimate their excise to be in excess of $1,000 for
the taxable year are required to make estimated payments.
Note: Financial institutions must make estimated payments electronically. See Technical Information Release (TIR) 21-9. A taxable
member of a combined group must make its estimated payments
electronically. See TIR 09-18. Go to MassTaxConnect at mass.
gov/masstaxconnect for more information. All estimated payments
made by a combined filing group should be reported under the principal reporting entity’s tax account.
Are there penalties for failing to pay estimated excise? Yes.
An additional charge is imposed on the underpayment of estimated
excise for the period of that underpayment. Use Form M-2220
when filing your annual return to determine any penalty due.
When and where are estimated excise payments made? Estimated tax payments may be paid in full on or before the 15th day
of the third month of the taxable year or according to the following
installment amount schedule: on or before the 15th day of the third,
sixth, ninth and twelfth months of the taxable year.
Percent of estimated excise due
First full taxable year with
All
less than 10 employees
others
30%
40%
25%
25%
25%
25%
20%
10%
What if the financial institution's estimated excise liability
changes during the year? Even though you may not be required
to make estimated excise payments at the beginning of the taxable
year, your expected income, assets and credits may change such
that you will be required to make payments later.
Financial instititutions that first meet the requirement for paying estimated excises sometime after the first quarterly period should
make estimated payments as shown on the enclosed chart.

Massachusetts
Department of
Revenue

What if the financial institution credited its prior tax year overpayment to its current tax year excise? Financial institutions that
are C corporations are required to file their excise returns on or before the 15th day of the fourth month following the close of each
taxable year (April 15 for corporations filing on a calendar year
basis). The filing due date for financial institutions that are organized
as an S corporation is the 15th day of the third month following the
close of each taxable year. For further details and for special rules
relating to combined groups see TIR 17-5.
Payments made with a return, including extension payments, estimated excise payments and withholding, are considered to be paid
on the last day prescribed for the filing of the return and/or the payment of the excise, without regard to any extensions. See MGL ch
62C, § 79. Therefore, any overpayment from a prior year return will
be considered to be paid as of the prior year return due date. For
example, if a calendar year C corporation reported an overpayment
on its prior tax year corporation excise return and elected to apply
it as a credit to its current tax year estimated excise, the payment
will be credited as of April 15 of the current tax year, which is the
prior tax year return due date and about one month after the due
date of the first estimated excise installment payment for the current tax year. To avoid the imposition of underpayment penalties
the first estimated excise installment should be paid on or before
the first installment due date, not the return due date. No credit
may be applied to any estimated excise other than the current tax
year.

Specific Instructions
Complete the enclosed Financial Institution Corporation Estimated
Excise Worksheet. Once you have used the worksheet to determine
your estimated excise due, pay the full amount of each installment
electronically on MassTaxConnect at mass.gov/masstaxconnect or
by using third-party vendor software.
If you must amend your estimated excise or if you first meet the requirements to pay estimated excise in the 2nd, 3rd or 4th quarter
of the taxable year, use the Amended Estimated Excise Payment
Schedule.

Financial Institution Corporation Estimated Excise Worksheet
a. Total excise for prior year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . a.

$

b. Overpayment from prior year to be credited to estimated excise for current year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . b.

$

c. Estimated excise for current year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . c.

$

If you first meet the requirements for making estimated payments in the taxable
year, use the Amended Estimated Excise Payment Schedule below.

1st
installment

2nd
installment

3rd
installment

4th
installment

1. Amount of each installment. Enter 40% of item c for installment 1. For second,
third and fourth installments use 25%, 25% and 10% of item c, respectively.
Note: Taxpayers in their first full taxable year with less than 10 employees
should use 30%, 25%, 25% and 20% respectively.

$

2. Enter amount of overpayment from prior year applied to an installment, if any.

$

$

$

$

3. Amount of this excise expected to be withheld during current tax year.

$

$

$

$

4. Amount due. Subtract the total of lines 2 and 3 from line 1.

$

$

$

$

$

$

$

Amended Estimated Excise Payment Schedule
1. Enter total excise for prior year, if any . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.

$

2. Enter overpayment from prior year, if any, to be credited to estimated excise for current year. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.

$

3. Enter recomputed estimated excise for current tax year, if amending. (Enter estimated excise for prior tax year, if first meeting the
requirement for making estimated payments in the second, third or fourth quarter.). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.

$

a. If amending your estimated excise in the second, third or fourth quarter, multiply line 3 by the appropriate installment percentage
amount, then subtract previous amounts paid and overpayments applied to date, if any . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . a.

$

Enter the item a amount in the proper column of line 1 in the Estimated Excise Worksheet (above) and adjust or complete the remaining applicable items.

Current Tax Year Record of Estimated Excise Payments
Estimated
tax payment
installment
number

a.
Date

c.
Prior tax year overpayment
credit applied to
installment

b.
Amount paid

Total amount paid and
credited from Jan. 1 through
the installment date shown
(col. b + col. c)

1
2
3
4
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

If the corporation first meets the
requirement to make estimated
payments
By the last day of the 2nd month

The corporation* should pay the following
percentage by the 15th day of the:

Number of
installments
required

3rd month

6th month

9th month

12th month

4

40%

25%

25%

10%

65%

25%

10%

90%

10%

After the last day of the 2nd month and
before the first day of the 6th month

3

After the last day of the 5th month and
before the first day of the 9th month

2

After the last day of the 8th month and
before the first day of the 12th month

1

*New taxpayers in their first full taxable year with fewer than 10 employees*have lower percentages:
30–25–25–20%; 55–25–20% and 80–20%.
Payments must be made electronically on MassTaxConnect at mass.gov/masstaxconnect or by using third-party vendor software.

100%