Minnesota Additional Charge for Underpayment of Estimated Tax

Additional Charge for Underpayment of Estimated Tax
2023 M15C, Additional Charge for Underpayment of Estimated Tax
2023	M15C,	Additional	Charge	for	Underpayment	of	Estimated	Tax

C corporations must use Schedule M15C to determine the additional charge for underpayment of estimated tax.
Name	of	Corporation/Designated	Filer	

FEIN		

Minnesota	Tax	ID

You must round amounts
to nearest whole dollar.
1 Enter your 2023 tax (see instructions) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
	 If	less	than	$500,	do	not	complete	this	form.	You	owe	no	additional	charge.
2 Enter your 2022 tax (see instructions) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 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. Large corporations, read special instructions on back and enter the amount from line 1.
1st Quarter

2nd Quarter

3rd Quarter

4 Enter the due dates (see instructions) . . . . . . . . . . . 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 result is zero or less, leave blank . . . . . . . . . . . . 10
11 Remaining underpayment from previous
period. If line 10 is zero, subtract line 8
from line 9. Otherwise, leave blank . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 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 . . . . . . . . . . . . .
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 . . . . . . . . .
14 Date underpayment is paid or the 15th day
of the third month following the tax year,
whichever is earlier . . . . . . . . . . . . . . . . . . . . . . . . .
15 Number of days from the due date on
line 4 to the date on line 14 . . . . . . . . . . . . . . . . . .

12

13

14
15

16 Additional charge
(line 15 ÷ 365 × .05 × line 12) . . . . . . . . . . . . . . . . . 16
17 TOTAL. Add amounts on line 16. Enter this amount on M4, line 14 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
Attach this schedule to your Form M4.

9995

4th Quarter

2023	Schedule	M15C	Instructions
This schedule is not required if you are filing your first Minnesota tax return.

Figuring	the	Underpayment
Line 1

Enter your 2023 tax from Form M4, line 1, less any credits reported on Form M4, lines 4 and 5

Line 2

Enter your 2022 tax from your 2022 Form M4, line 1, less any credits reported on your 2022 Form M4, lines 4 and 5.

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 percent of the amount on line 3 unless you use an alternative method (see “Alternative Methods”).
Large corporations, read the special instructions under “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 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.
If the due date falls on a weekend or legal holiday, payments electronically made or postmarked the next business day are considered timely.

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 percent.

Line 15

Use the alternative minimum tax rate of 5.8 percent.

Line 20

Enter your Minnesota annualization periods, using the following:

Continued

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2023	Schedule	M15C	Instructions	(Continued)
•
•
•
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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.

Line 21

Enter your Minnesota taxable income for the periods entered on line 20.

Line 22
If your annualization period on line 20 is:

Your annualization amount for the period 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 percent.

Line 25

Use the alternative minimum tax rate of 5.8 percent.

Line 35

Enter 25 percent (.25) of line 3 of Schedule M15C in each column. Large corporations: To determine the amounts to enter, see the
instructions below.

Line 38

Enter the required installments from line 38 on line 5 of this Schedule M15C.
Attach the federal schedule to this schedule if an alternative method is used for any installment.

Large	Corporations

A corporation is considered a large corporation if it had Minnesota taxable net income (after apportionment) of $1 million or more in any of
the three tax years immediately preceding the current year.
A unitary business is considered a large corporation if the combined Minnesota taxable net income of its members was $1 million or more in
any of the three tax years immediately preceding the current year.
A large corporation must use 100 percent of its current year’s tax liability as its required annual payment unless an alternative method is used
for any installment (see previous column). For the first quarter only, the installment may be based on a required annual payment equal to 100
percent of the prior year’s tax liability. Any resulting reduction in the installment must be added to the second-quarter installment.
The second, third and fourth installments must be based on a required annual payment equal to 100 percent of the current year’s tax liability
unless an alternative method is used for any installment (see previous page).

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