Montana Underpayment of Estimated Tax (formerly CLT-4-UT)

Underpayment of Estimated Tax (formerly CLT-4-UT)
CIT-UT
CLEAR FORM

Underpayment of 2022 Estimated Tax
By Corporation
For calendar year 2022 or tax year beginning 	

M M / D D / 2 0 2 2

and ending

Form CIT-UT
V1 6/2021
M M /D D / YYYY

Corporation Name_______________________________________________________ FEIN	

-

Part I. Figuring Your Underpayment (See instructions)
1. Enter your Montana tax liability from Form CIT, page 3, line 10........................................................... 1.
2. Enter your total credits from Form CIT, page 4, line 13........................................................................ 2.
Subtract line 2 from line 1. If the result is less than $5,000, you do not need to complete the rest of
3.
this form because you do not owe the interest. Otherwise, go to line 4............................................... 3.
4. a.	Multiply line 3 by 80% and enter the result...........................................................4a.
b.	Enter 100% of the Montana tax liability shown on your previous year’s CIT.........4b.
c.	 Enter the lesser of line 4a or 4b......................................................................................................4c.
Column A
Column B
Column C
5. Enter in columns A through D the quarterly installment
due dates (the 15th day of the fourth, sixth, ninth, and
twelfth months of your tax year)................................5.
6. Multiply the amount in 4c by 25% and enter this
amount in each column of line 6 unless you use the
annualized income installment method and/or the
adjusted seasonal installment method. If so, complete
the worksheet in the instructions and enter the
amount from line 41 of the worksheet in each column
of line 6. Also, include a copy of the worksheet with
this form and mark this box q. These are your
required installments..............................................6.
Complete lines 7 through 14 for one column before completing the next column. (See instructions)
7. Enter the amount paid or credited for each period....7.
8. Enter the amount, if any, from line 14 of the previous column............8.
9. Add lines 7 and 8; enter the result.............................9.
10. Add the amounts on lines 12 and 13 of the previous column and
enter the result.................................................................................10.
11. Subtract line 10 from line 9 and enter the result. If
less than zero, enter “0” (zero)................................ 11.
12. If the amount on line 11 is zero, subtract line 9 from line 10 and enter
the result. Otherwise, enter “0” (zero)..............................................12.
13. If line 11 is less than or equal to line 6, subtract line 11
from line 6 and enter the result. Then go to line 7 of the
next column. Otherwise, go to line 14.
This is your underpayment..................................13.
14. If line 6 is less than line 11, subtract line 6 from line 11
and enter the result. Then go to line 7 of the next column.
This is your overpayment........................................14.
Part II. Figuring Your Underpayment Interest
15. Enter the date of payment or the 15th day of
the fifth month after the close of the tax year,
whichever is earlier................................................15.
16. Enter the number of days from the installment due
date on line 5 to the date shown on line 15.............16.
17. Multiply line 13 by line 16, then multiply by the current
interest rate and divide by 365. (See instructions).........17.
18. Add all amounts on line 17, columns A through D. Enter the result here and on Form CIT, page 4, line 18.
This is your total underpayment interest....................................................................................... 18.

Column D

Annualized Income and Adjusted Seasonal Installment Method Worksheet (15-31-510, MCA)
Please include a completed copy of federal Form 2220.
Column A
Column B
Column C
Column D
Part I. Calculate Annualized Income Installments
Period
(See instructions)
First 3 months First 3 months First 6 months First 9 months
1. Enter your taxable income for each period................1.
2. Annualization amounts..............................................2.
4
4
2
1.33333
3. Multiply line 1 by line 2 and enter the result..............3.
Period
First 3 months First 5 months First 8 months First 11 months
4. Enter your taxable income for each period................4.
5. Annualization amounts..............................................5.
4
2.4
1.5
1.09091
6. Multiply line 4 by line 5 and enter the result..............6.
7. In columns A through D enter one of the following
three options (see instructions): (1) the amounts
in each column on line 3; (2) the amounts in each
column on line 6; (3) the lesser of the amounts in
each column, line 3 or 6. This is your annualized
taxable income..........................................................7.
8. Multiply line 7 in each column by your current tax rate
and enter the result. .................................................8.
9. For each period, enter the amount of any tax credits
being claimed on Form CIT, page 4, line 13..............9.
10. Subtract line 9 from line 8. If less than zero, enter 0.
Otherwise, enter the result......................................10.
11. Applicable percentage............................................. 11.
20%
40%
60%
80%
12. Multiply line 10 by line 11 and enter the result.........12.
Complete lines 36 through 41 for one column before completing lines 13 and 14 of the next column.
13. For each column enter the combined amounts of all previous
columns on line 41 (i.e., add columns A and B from line 41 and
enter result in column C on this line)................................................13.
14. Subtract line 13 from line 12. If less than zero,
enter 0. Otherwise, enter the result.
If you are using the seasonal method, go to line 15;
otherwise, go to line 36............................................14.
Part II. Calculate Adjusted Seasonal Installments. You can only use this method if the base period percentage for
any six consecutive months of your tax year is at least 70%. See instructions for more information.
Period
First 3 months First 5 months First 8 months First 11 months
15. Enter your taxable income for the following periods:
a.	 Third preceding taxable year...........................15a.
b.	 Second preceding taxable year.......................15b.
c.	 First preceding taxable year............................ 15c.
16. Enter your taxable income for each period for your
current taxable year. ...............................................16.
Period
First 4 months First 6 months First 9 months Entire year
17. Enter your taxable income for the following periods:
a.	 Third preceding taxable year...........................17a.
b.	 Second preceding taxable year.......................17b.
c.	 First preceding taxable year............................ 17c.
18. Divide the amount in each column on line 15a
by the amount in column D on line 17a and
enter the Result.....................................................18.
19. Divide the amount in each column on line 15b
by the amount in column D on line 17b and
enter the Result.....................................................19.

Annualized Income and Adjusted Seasonal Installment Method Worksheet (continued)
Column A

Column B
Column C
Period
First 4 months First 6 months First 9 months

Column D

Entire year
20. Divide the amount in each column on line 15c
by the amount in column D on line 17c and
enter the result.......................................................20.
21. Add lines 18 through 20 and enter the result..........21.
22. Divide line 21 by 3 and enter the result...................22.
23. Divide line 16 by line 22 and enter the result..........23.
24. Multiply line 23 by your tax rate...............................24.
25. Divide the amount on line 17a by the amount in
column D on line 17a and enter the result...............25.
26. Divide the amount on line 17b by the amount in
column D on line 17b and enter the result...............26.
27. Divide the amount on line 17c by the amount in
column D on line 17c and enter the result...............27.
28. Add lines 25 through 27 and enter the result..........28.
29. Divide line 28 by 3 and enter the result.
This is your base period percentage for months
through and including your filing month............29.
100%
30. In each column multiply the amount on line 24 by
the amount on line 29..............................................30.
31. For each period, enter the amount of any tax credits
being claimed on Form CIT, page 4, line 13............31.
32. Total tax after credits. Subtract line 31 from line 30 and
enter the result. If less than zero, enter “0” (zero).......32.
33. Multiply line 32 by 80% and enter the result............33.
Complete lines 36 through 41 for one column before completing lines 34 and 35 of the next column.
34. Add together all previous columns of line 41 and enter the result.
(For example, add the amounts in columns A and B on line 41, and
enter the result in column C.) ..........................................................34.
35. Subtract line 34 from line 33. If less than zero, enter
“0” (zero)..................................................................35.
Part III. Computation of Required Installments
1st installment 2nd installment 3rd installment 4th installment
36. If you completed only one of the above parts, enter
the amounts from line 14 or line 35. If you completed
both parts, enter the lesser of the amounts in each
column from line 14 or line 35.................................36.
37. Divide line 4c, Form CIT-UT, by four and enter the
result in each column..............................................37.
38. Enter the amount from line 40 in the preceding column
of this worksheet..............................................................................38.
39. Add lines 37 and 38; enter the result.......................39.
40. If line 39 is more than line 36, subtract line 36 from
line 39. Cannot be less than zero............................40.
41. Enter the lesser of line 36 or line 39 here and
on Form CIT-UT, page 1, line 6. These are your
calculated installments.........................................41.

Our mailing address: Montana Department of Revenue, PO Box 8021, Helena, MT 59604-8021

Form CIT-UT Instructions
Who has to pay underpayment interest?
You are only subject to the underpayment interest if your tax
liability is $5,000 or more during the current year. You should
have paid the lesser of these amounts:
1.	80% of your tax liability for the current year, or
2.	100% of your tax liability for the previous year.
However, if the previous year’s return did not show a tax
liability, if that return did not cover a full 12 months, or if you
are filing your initial return this year, your installments must
be based upon 80% of your tax liability for the current year.
If you did not pay enough estimated tax by any installment
due date, you may owe underpayment interest for that
estimate period. The interest is calculated separately for
each installment due date, even if you are requesting a
refund on your Montana tax return. Therefore, you may owe
underpayment interest for an earlier installment due date, even
if you paid enough tax later to make up the underpayment.
If you do not want to calculate the underpayment
interest, we will calculate it and send you a notice of the
underpayment interest due.

How do I use Form CIT-UT?
Complete Part I of this form to determine if you have an
underpayment for any of the four installment due dates. If you
have an underpayment on line 13 in columns A, B, C, or D, go
to Part II to calculate your underpayment interest. If you have
to pay underpayment interest, include Form CIT-UT with your
Montana Corporate Income Tax Return (Form CIT).

Part I: Calculating Your Underpayment
Line 1–Enter the tax from line 10 of your Form CIT.
Line 2–Enter the tax credits from line 13 of your Form CIT.
Line 3Subtract line 2 from line 1. If the result is less than
$5,000, stop here. You do not need to complete this form.
If the result is $5,000 or greater, enter the result here.
Line 4a–Multiply line 3 by 80%. Enter the result on this line.
Line 4b–From your previous year’s Form CIT, subtract the tax
credits you reported on line 13 from your Montana tax liability
on line 10 (line 10 minus line 13). Enter the result on this line.
However, if your previous year’s return covered a period of less
than 12 months, it did not show a tax liability, or if you are filing
your initial return this year, do not use this line. Instead, enter
the amount from line 4a on line 4c and then go to line 5.
Line 4c–Enter the lesser of line 4a or 4b.
Line 5–Enter the quarterly installment due dates in columns
A through D. The installment due dates are the 15th day
of the 4th, 6th, 9th, and 12th months of your tax year. For
example, if your tax year ends on December 31, your
installment due dates are April 15, June 15, September 15,
and December 15 of your tax year.
Short Period Returns: If you are filing a short period return,
payments of estimated tax are to be made at the times and
in the amounts required for regular tax years, except all
installments must be made by the 15th day of the last month
of the short taxable year.

Line 6–Multiply the amount on line 4c by 25% (0.25) and
enter this amount in each column, A through D. This is the
amount of each of your quarterly estimated installments.
•	 If you use the annualized income installment method
and/or the adjusted seasonal installment method,
mark the box on this line, complete the worksheet on
pages 2 and 3 of these instructions to determine the
amounts of your installments and enter the amounts from
line 41 of the worksheet on line 6 of this form.
•	 If your income varied during the year because, for
example, your business was operated on a seasonal
basis, you may want to use the annualized income
installment method and/or seasonal installment method.
Using these methods may reduce the amount of your
required installments. See the instructions on this page
for more information about this calculation.
Complete lines 7 through 14 in each column before
completing the next column.
Line 7–Enter the amount of estimated tax payments made
on or before the due date on line 5 for this particular column,
and after the due date on line 5 for the previous column.
For example, a calendar year corporation will enter on line 7,
column B, the amount of estimated tax payments made
between April 15 and June 15.
If you have an overpayment from the previous year, you
should apply the installment to column A. If you have mineral
royalty tax (line 12d of the CIT) and/or tax on pass-through
entities (line 12e of the CIT) withheld on your behalf, divide
the total of these amounts by four and apply the result to
each quarterly installment.
Line 13–If line 13 shows an underpayment in any column,
please complete Part II to calculate the underpayment
interest that you owe for this tax year.

Part II: Figuring Your Underpayment Interest
Line 15–Enter the date of the estimated payment that covers
the installment in each column. A payment of estimated tax
is applied against underpayment of required installments in
the order that those installments are required to be paid. For
example, after the first installment due date (April 15), there is an
underpayment of $1,000 and the second installment requires a
payment of $2,000. A payment of $2,000 is made on June 10,
with $1,000 of this payment being applied to the underpayment
of the first installment. The interest on the first installment will be
calculated from April 15 through June 10 (56 days). The second
installment will now be underpaid by $1,000.
Line 16–Calculate the number of days that the underpayment
is late. This is the number of days from the installment due
date until the payment for the installment is paid.
Line 17–Calculate the amount of underpayment interest for
each period. The interest rate on the underpayment is 12%
for all dates before July 1, 2019. From July 1, 2019, through
December 31, 2019, the interest rate is 8.25%. From
January 1, 2020, through December 31, 2020, the interest
rate is 8%. For January 1, 2021, forward, the interest rate
is 6.25%. Multiply the underpayment on line 13 by the
number of days late on line 16. Then multiply this result by
applicable interest rate and divide by 365.

Line 18–Calculate your total underpayment interest. Add
all amounts on line 17, columns A through D, and enter the
result here.

Instructions for Annualized/Seasonal Worksheet
If you can establish that you did not earn income evenly
throughout the year, you can use this worksheet to determine
your quarterly installments of estimated tax. Use the worksheet
to calculate each of your estimated payments under the
annualized and/or seasonal methods. Calculating your
installments using the annualized or seasonal method may
lower the amount of one or more required installments. If so,
your underpayment interest could be reduced or eliminated
for one or more installment periods. Please note you must use
the same method of determining your required installments
for each quarter. If you use the worksheets to determine
your estimated installments include the federal Form 2220,
Underpayment of Estimated Tax by Corporation, to your
Montana return along with Form CIT-UT and this worksheet.
●	 If you are using only the annualized income installment
method, complete Parts I and III of the worksheet.
●	 If you are using only the adjusted seasonal installment
method, complete Parts II and III of the worksheet.
●	 If you are using both the annualized income and
adjusted seasonal methods, complete the entire
worksheet. To arrive at the amount of each required
installment, select the smallest of the annualized
income installment, adjusted seasonal installment
(if applicable), or regular installment.

Part I: Calculate Annualized Income Installments
The annualized income installment method for calculating
estimated tax payments may benefit you if your income was not
received evenly throughout the year. For example, a company
may liquidate a large portion of its inventory during the last
quarter of the year, making the earlier installments smaller than
they would have been if the regular method was used.
Line 1–Enter the amount of Montana taxable income
from line 7 of Form CIT in each column based on the
amount earned for each period that is indicated above
line 1 for each column.
Line 4–Enter the amount of Montana taxable income from
line 7 of Form CIT in each column based on the amount earned
for each period that is indicated above line 4 for each column.
Line 7–You have three annualization period options to use
to calculate your installment amounts on this line:
1.	Use the amounts on line 3 in all columns
2.	Use the amounts on line 6 in all columns
3.	Use the lesser of the amounts on line 3 or line 6 for
each column
Line 8–Multiply the amounts on line 7 in each column by the
tax rate used to calculate your Montana income tax return.
The tax rate in Montana is 6.75% unless you are filing under
the water’s edge method, in which case the tax rate is 7%.
Line 9–Enter the tax credits from line 13 on your Montana
tax return here. Enter the amount in each column that you
are entitled to use because of events that occurred during
the months shown in the column headings. For example, if

you used the amount from line 3 on line 7, you will base your
credit allocation on the periods listed above line 1 to allocate
the credit. If you used the amount from line 6 on line 7, you
would use the periods listed above line 4 to allocate the credit.
Complete lines 36 through 41 for one column before
completing lines 13 and 14 of the next column.
Line 13–Add the amounts from line 41 in all previous columns
and enter the result here. For example, for Column D, you add
together the amounts from line 41 in columns A through C and
enter the result on line 13, Column D.

Part II: Calculate Adjusted Seasonal Installments
The adjusted seasonal installment method for calculating
estimated tax payments can be used if your business is
seasonal. For example, a ski shop that receives most of its
income each year during the winter months might benefit
from using this method. In order to use this method, your
base percentage for any six consecutive months has to be
at least 70%.
To calculate the base period percentage, you need to
compare your taxable income for six-month corresponding
periods for the last three taxable years, to the total taxable
income for the last three taxable years. This comparison is
done on lines 15 through 30.
Lines 15 through 30–Prepare the calculations as directed
on each line.
Line 22–This is your base period percentage for the months
before your filing month.
Line 31–Enter the tax credits from line 13 on your Montana
tax return here. Enter the amount in each column that you
are entitled to use because of events that occurred during
the months shown in the column headings.
Complete lines 36 through 41 for one column before
completing lines 34 and 35 of the next column.
Line 34–Add the amounts from line 41 in all previous columns
and enter the result here. For example, for Column D, you add
together the amounts from line 41 in columns A through C and
enter the result on line 34, Column D.

Part III: Computation of Required Installments
Line 36–If you only completed Part I, enter the amounts
from each column on line 14 of the worksheet in each
column here. If you only completed Part II, enter the
amounts from each column on line 35 in each column here.
If you completed both Parts I and II, enter the lesser of the
amounts in each column on line 14 or 35.
Line 41–In each column enter the lesser of the same column
on line 36 or line 39. These are your calculated installments
of estimated tax based on the annualized income and/or
seasonal methods. Enter on line 6 of the Form CIT-UT the
amount from each column A through D of line 41.
Questions? Call us at (406) 444-6900, or Montana Relay
at 711 for the hearing impaired.