Nebraska Corporation Underpayment of Estimated Tax

Corporation Underpayment of Estimated Tax
Form 2220N
PRINT FORM RESET FORM

Corporation Underpayment of Estimated Income Tax
  • Read the instructions on the reverse side.

FORM 2220N

2022

Check the appropriate boxes:
	

Adjusted Seasonal Installment Method

	

Annualized Income Installment Method

	

Large Corporation

	 Name on Form 1120N		

Nebraska ID Number

Part I — Calculate the Underpayment
	
	1	Nebraska tax after nonrefundable credits (line 17, Form 1120N)  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 	 1
	2	Enter the total refundable credits (total of lines 18, 21, 23, and 24, Form 1120N) .  .  .  .  .  .  .  .  .  .  .  . 	 2
	3	Nebraska tax after refundable credits (line 1 minus line 2). If the result is less than $400,
		do not complete the rest of the form. No penalty is owed. .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 	 3
	4	Enter 2021 income tax (see instructions). Caution: If the tax is zero or the tax year was for
		less than 12 months, skip this line and enter the amount from line 3 on line 5 .  .  .  .  .  .  .  .  .  . 	 4
	5	Required annual payment. Enter the lesser of line 3 or line 4  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 	 5
(B)
(A)
(C)

(D)

	6	Enter in Columns (A) through (D) the
		installment due date (the 15th day of the 4th,
		6th, 9th, and 12th months of your tax year)  .  . 	 6
	7	Enter 25% of line 5 in Columns (A) through (D)		 7
  • Complete lines 8 through 15 for one column before completing the next column.
	8	Amount paid or credited for each period  .  .  .  .  . 	 8
	9	Enter amount, if any, from line 15 of
		previous column .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 	 9
	10	 Add lines 8 and 9 .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 	 10
	11	 Add amounts on lines 13 and 14 of the
		previous column and enter result .  .  .  .  .  .  .  .  .  .  . 	 11
	12	 Line 10 minus line 11. If less than zero, enter -0		(In Column [A] only, enter amount from line 8)		 12
	13	 Remaining underpayment from previous
		period. If the amount on line 12 is zero,
		subtract line 10 from line 11 and enter the
		result; otherwise, enter -0- .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 	 13
	14	 Underpayment. If line 12 is less than or equal
		to line 7, subtract line 12 from line 7 and
		enter the result. Then go to the next
		column; otherwise, go to line 15 .  .  .  .  .  .  .  .  .  .  .  . 	 14
	15	 Overpayment. If line 7 is less than line 12,
		subtract line 7 from line 12 and enter the
		result. Then go to the next column .  .  .  .  .  .  .  .  .  . 	 15
Part II — Calculate the Penalty
	16	 Amount of underpayment (line 13 plus line 14) 	 16
	17	 Date of payment or next due date (from
		line 6), whichever is earlier .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 	 17
	18	 Number of days from due date of installment
		to date shown on line 17  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 	 18
	19	 Underpayment penalty (see instructions
		for applicable interest rates) .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 	 19
	20	 Total of amounts on line 19. Enter this amount on line 27, Form 1120N .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 	 20

Attach this form to Form 1120N.
8-238-2022

Instructions
Who Must File. A Corporation Underpayment of Estimated Income Tax, Form 2220N, must be filed by the corporate
taxpayer when line 3 is $400 or greater.
A corporate taxpayer includes all entities taxed as corporations under the Internal Revenue Code, except S corporations and
financial institutions defined in Neb. Rev. Stat. § 77-3801.
When and Where to File. This form must be attached to the Nebraska Corporation Income Tax Return, Form 1120N,
and filed with that return.

Part I — Calculate the Underpayment

Check the appropriate boxes. Check one or more boxes if the corporation uses the adjusted seasonal installment method,
the annualized income installment method, or if the corporation is a large corporation.
Line 1. Enter the Nebraska tax after nonrefundable credits amount from line 17 of the 2022 Form 1120N on line 1 of this form.
Line 4. The entry on this line allows corporations to use the income tax reported on their prior year’s return less the prior
year’s allowable credits to determine whether an underpayment exists. Enter line 18 minus lines 19, 22, and 24 from the 2021
Form 1120N. “Large corporations,” except as noted, cannot use this calculation. The prior year’s Nebraska return must cover
a period of 12 months and show an income tax liability. If this calculation does not apply, enter the line 3 amount on line 5.
Large Corporations. A “large corporation” is one which had, or its predecessor had, federal taxable income of at least
$1 million for any of the three taxable years immediately preceding the tax year involved. In applying the “$1 million test,”
taxable income is computed without regard to net operating loss and capital loss carrybacks and carryovers.
A large corporation is prohibited from using its prior year’s tax liability, except in determining the first installment of its
tax year. Any reduction in a large corporation’s first installment as a result of using the prior year’s tax must be recaptured
in the corporation’s second installment.
Large corporations compute line 7 amounts by using the same procedures that result in the comparable entry on the Federal
Form 2220.
Methods to Reduce or Avoid Penalty. A corporation may reduce or eliminate the penalty by using the annualized income
or adjusted seasonal installment method. To use one or both of these methods to compute one or more required installments,
recalculate (and attach) the Adjusted Seasonal Installment Method and Annualized Income Installment Method, Federal
Schedule A, using Nebraska income and other Nebraska amounts. Also, check the appropriate boxes at the top of this form.
Enter the corresponding amount from the recalculated Federal Schedule A in each column of line 7 on this form.
Line 6. Paper filers enter the installment due dates in a MMDDCCYY format. For example, April 15, 2022 should be entered
as 04152022.
Line 8. Enter the income tax payments made by the corporation and any credit for Nebraska income tax withheld from the
corporation as indicated below.
In Column (A), enter the total of:
	 1. 	The corporation’s 2021 income tax overpayment that was credited to its 2022 estimated income tax payments;
	 2. 	Any estimated income tax payments for the 2022 tax year that were made by the date on line 6, Column (A); and
	 3. 	Any Nebraska income tax withheld from the corporation by the date on line 6, Column (A).
In Columns (B), (C), and (D), enter the total of:
	 1. 	Any estimated income tax payments for the 2022 tax year that were made by the date on line 6 for that column and
after the date on line 6 of the preceding column; and
	 2. 	Any Nebraska income tax withheld from the corporation by the date on line 6 for that column and after the date on
line 6 of the preceding column.
Line 14. Underpayment. When an underpayment is reported on this line, complete Part II, lines 16 through 20, to determine
the penalty amount for each underpayment of an installment.
Line 15. Overpayment. Any overpayment of an installment on line 15 in excess of all prior underpayments should be
applied as a credit on line 9 against the next installment.

Part II — Calculate the Penalty

Line 17. A payment of estimated income tax is applied against underpayments of required installments in the order that
installments are required to be paid, regardless of the installment to which the payment pertains.
In determining the date of payment on line 17, use the date of the payment that was applied against the underpayment
of income tax on line 16, the due date of the next payment (line 6 of the next column), or the original due date of the
Form 1120N, whichever is earliest. Paper filers enter the payment date or next due date in a MMDDCCYY format. For
example, April 15, 2022 should be entered as 04152022.
Example. A corporation has an underpayment for the April 15 installment of $1,000. The June 15 installment requires
a payment of $2,000. On June 15, the corporation deposits $2,500 for its June 15 installment. However, $1,000 of this
payment is considered to be for the April 15 installment. The penalty for the April 15 installment is calculated on $1,000
to June 15 (61 days). The remaining amount of the June 15 payment ($1,500) must be applied to the June 15 installment.
Line 19. The penalty is calculated at three percent per year for any days in 2022 and at five percent per year for any days in
2023. Multiply line 16 by the applicable interest rate for the number of days on line 18 divided by 365.
If the corporation has made more than one payment for a required installment, make separate penalty calculations through
the date of payment and for the remaining underpayment through the date it is paid, then add the results together and enter
on line 19.