Massachusetts Corporate Estimated Tax Payment Vouchers

Corporate Estimated Tax Payment Vouchers
355-ES instr with coupon
Form 355-ES
Instructions for Corporation
Estimated Excise Payment Worksheet
General Information
What is the purpose of the estimated excise payment worksheet? The estimated excise payment worksheet provides a
means to calculate any current excise due under MGL ch 63.
Who must make estimated payments? All business corporations that reasonably estimate their corporation excise to be in excess of $1,000 for the taxable year are required to make estimated
payments.
Expansion of Mandatory Electronic Filing for Corporate Excise
Returns. Effective for tax periods ending on or after December 31,
2021, electronic filing and payment of tax will be required of all business corporations and financial institutions subject to tax under MGL
ch 63, with no income threshold. See TIR 21-9: Expansion of Certain Electronic Filing and Payment Requirements. Go to MassTaxConnect at www.mass.gov/masstaxconnect for more information.
Note: All estimated excise 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 taxes? Yes. An
additional charge is imposed on the underpayment of any corporate
estimated tax 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 tax payments made? Estimated
tax payments may be paid in full on or before the 15th day of the
third month of the corporation’s 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 of a corporation
All
with less than 10 employees
others
30%
40%
25%
25%
25%
25%
20%
10%
Estimated tax payments must be made electronically. See TIR 21-9:
Expansion of Certain Electronic Filing and Payment Requirements
and MassTaxConnect at www. mass. gov/masstaxconnect for more
information.
What if the corporation’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 excise payments later.
Corporations that first meet the requirement for paying estimated
excise sometime after the first quarterly period should make estimated payments as shown on the enclosed chart.

Massachusetts
Department of
Revenue

What if the corporation credited its prior tax year overpayment
to its current tax year excise? 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. The filing due date for S
corporation excise returns 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 tax, 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 current tax year.

Specific Instructions
Complete the enclosed Corporation Estimated Excise Worksheet.
Once you have used the worksheet to determine your estimated
excise due, you may pay the full amount of each installment electronically on MassTaxConnect at mass.gov/masstaxconnect or by
using third-party vendor software.
Use the Amended Estimated Excise Payment Schedule 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.

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.

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