Minnesota Additional Charge for Underpayment of Estimated Tax

Additional Charge for Underpayment of Estimated Tax
2023 M15NP, Additional Charge for Underpayment of Estimated Tax
*236651*

2023 M15NP, Additional Charge for Underpayment of Estimated Tax

For tax-exempt organizations, cooperatives, homeowners associations and political organizations with unrelated
business income.
Complete this schedule if your total tax is more than $500 or you did not pay the correct amount of estimated tax by the due dates.
Name of Organization

FEIN

Minnesota Tax ID

Check installment method used on this schedule (must check one box):
Standard Installment Method

Adjusted Seasonal Installment Method

Annualized Income Installment Method
You must round amounts
to nearest whole dollar.

1 Enter your 2023 total tax liability (from 2023 Form M4NP, line 15 minus line 18) . . . . . . . . . . . . . . . . . . . . . . . . . . 1
If $500 or less, do not complete this form. You owe no additional charge.
2 Enter your 2022 regular tax (from 2022 Form M4NP, line 15 minus line 18) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
3 Required annual payment. Enter the amount from line 1 or line 2, whichever is less . . . . . . . . . . . . . . . . . . . . . . 3
Exceptions: If you did not file a 2022 return or filed a return for less than a full 12-month period in
the preceding tax year, or you did not have a 2022 tax liability, you must enter the amount from line 1.
1st Quarter

2nd Quarter

3rd Quarter

4 Enter the due dates . . . . . . . . . . . . . . . . . . . . . . . . . . 4
5 Required installments (see instructions) . . . . . . . . . 5
6 Amount paid each period (see instructions) . . . . . . 6
Complete lines 7–13 for one column before
completing the next column. For the first column
only, enter the amount from line 6 on line 10.
7 Enter the amount from line 13 of the previous column . . . . . . . . . . . . . . 7
8 Add lines 6 and 7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
9 Add lines 11 and 12 of the previous column . . . . . . . . . . . . . . . . . . . . . . . 9
10 Subtract line 9 from line 8.
If less than zero, enter zero . . . . . . . . . . . . . . . . . . 10
11 Remaining underpayment from previous
period. If line 10 is zero, subtract line 8
from line 9. Otherwise, enter zero . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
12 UNDERPAYMENT. If line 10 is less than or
equal to line 5, subtract line 10 from line 5,
enter the result and go to line 6 of the next
column. Otherwise, go to line 13 . . . . . . . . . . . . . . 12
13 OVERPAYMENT. If line 5 is less than line 10,
subtract line 5 from line 10 and enter the
result. Go to line 6 of the next column . . . . . . . . . 13
14 Date underpayment is paid or regular due
date of 2023 return, whichever is earlier . . . . . . . . 14
15 Number of days from the due date on
line 4 to the date on line 14 . . . . . . . . . . . . . . . . . . 15
16 Additional charge
(line 15 ÷ 365 × .08 × line 12) . . . . . . . . . . . . . . . . . 16
17 TOTAL. Add amounts on line 16. Enter this amount on Form M4NP, line 26 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
Attach this schedule to Form M4NP.

9995

4th Quarter

2023 Schedule M15NP Instructions
Installment Methods

Generally, you would choose the standard installment method unless your income varied during the year. If your income varied, see
Alternative Methods on this page.
Check the appropriate box to indicate the installment method being used.

Required Annual Payment
Line 3

Enter the amount from line 1 or line 2, whichever is less, unless one of the following exceptions apply:
Exceptions: You must enter the amount from line 1 on line 3, if any of the following exceptions apply:
• You did not file a 2022 return
• You filed a return for less than a full 12-month period in the preceding tax year
• You did not have a 2022 tax liability
[Minnesota Statute, Chapter 289A.26, subdivision 7(2)].

Figuring the Underpayment
Line 4

The due dates of the installments are the 15th day of the third, sixth, ninth and 12th months of the taxable year.
If you have a short taxable year, the installments are due on the 15th day of the third, sixth, ninth and final months. No installment is required
for a short taxable year of fewer than four months.

Line 5

Each required installment is 25% of the amount on line 3 unless you use an alternative method (see Alternative Methods).
To determine the amount of each required installment for a short taxable year, divide the amount on line 3 by the number of installments due.

Line 6

In the first column, enter payments made by the 15th day of the third month of the tax year. Include any overpayment from your 2022 return
that was credited to your 2023 estimated tax account. For each of the other columns, enter payments made after the previous column’s due
date and by that column’s due date shown on line 4.

Computing the Additional Charge
Lines 14 through 17

Payments of estimated tax are applied against any underpayments of required installments in the order that the installments were due.
For example, if your first-quarter installment is underpaid by $100 and you deposit $200 for your second-quarter installment, $100 of your
second-quarter payment is applied to the first quarter. The additional charge for the first quarter is computed from the first-quarter due date to
the date the second-quarter payment is made.
Also, the second-quarter installment will then be underpaid by $100 (assuming that the second-quarter’s required installment is $200) until
sufficient payments are received to eliminate the underpayment.
If more than one payment has been made for a required installment, attach a separate computation for each payment.

Alternative Methods

If your income varied during the year, there are two alternative methods of determining the required installment:
• Adjusted Seasonal Installment Method
• Annualized Income Installment Method
To use one or both of these methods to figure one or more required installments, complete Schedule A of federal Form 2220 and make the
following adjustments for Minnesota tax purposes.
Lines 1a, 1b, 1c and 2. Column (a) of these lines should include income for the first two months of each tax year.
Lines 3a, 3b and 3c. Column (a) of these lines should include income for the first three months of each tax year.
Line 10. Use the tax rate of 9.8%.
Line 20. Enter your Minnesota annualization periods, using the following:
•
•
•
•

In Column (a), enter 2.
In Column (b), enter either 2 or 5.
In Column (c), enter either 6 or 8.
In Column (d), enter either 9 or 11.

Continued

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2023 Schedule M15NP Instructions (Continued)
Line 21. Enter your Minnesota taxable income for the periods entered on line 20.
your annualization amount for the period is:
Line 22: If your annualization period on line 20 is:
2 ......................................................... 6
5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.4
6 ......................................................... 2
8 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.5
9 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.33333
11 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.09091
Line 24. Use the tax rate of 9.8%.
Line 35. Enter 25% (0.25) of line 3 of Schedule M15NP in each column.
Line 38. Enter the required installments from line 38 on line 5 of Schedule M15NP.
Attach the federal schedule to this schedule if an alternative method is used for any installment.

Questions?

Website: www.revenue.state.mn.us
Email:

[email protected]

Phone:

651-297-5199 weekdays 8 a.m. to 4:30 p.m.

This information is available in alternate formats.

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