skip navigation

Search Help
Navigation Help

Topic Index
ABCDEFGHI
JKLMNOPQR
STUVWXYZ#

FAQs
Forms
Publications
Tax Topics

Comments
About Tax Map

IRS.gov Website
Publication 510
taxmap/pubs/p510-053.htm#en_us_publink1000117340

Amount of Deposits(p43)

rule
Deposits for a semimonthly period generally must be at least 95% of the net tax liability for that period unless the safe harbor rule (discussed later) applies. Generally, you do not have to make a deposit for a period in which you incurred no tax liability.
taxmap/pubs/p510-053.htm#en_us_publink1000117341

Net tax liability.(p43)

rule
Your net tax liability is your tax liability for the period minus any claims on Schedule C (Form 720) for the period. You may figure your net tax liability for a semimonthly period by dividing your net liability incurred during the calendar month by two. If you use this method, you must use it for all semimonthly periods in the calendar quarter.
EIC
Do not reduce your liability by any amounts from Form 720X.
taxmap/pubs/p510-053.htm#en_us_publink1000117343

Safe Harbor Rule(p43)

rule
The safe harbor rule applies separately to deposits under the regular method and the alternative method. Persons who filed Form 720 for the look-back quarter (the 2nd calendar quarter preceding the current quarter) are considered to meet the semimonthly deposit requirement if the deposit for each semimonthly period in the current quarter is at least 1/6 (16.67%) of the net tax liability reported for the look-back quarter.
For the semimonthly period for which the additional deposit is required, the additional deposit must be at least 11/90 (12.23%), 10/90 (11.12%) for non-EFTPS, of the net tax liability reported for the look-back quarter. Also, the total deposit for that semimonthly period must be at least 1/6 (16.67%) of the net tax liability reported for the look-back quarter.
taxmap/pubs/p510-053.htm#en_us_publink1000117344
Exceptions.(p43)
The safe harbor rule does not apply to:
taxmap/pubs/p510-053.htm#en_us_publink1000117345

Requirements to be met.(p43)

rule
For the safe harbor rule to apply, you must:
EIC
The IRS may withdraw the right to make deposits of tax using the safe harbor rule from any person not complying with these rules.
taxmap/pubs/p510-053.htm#en_us_publink1000117347

Tax rate increases.(p43)

rule
You must modify the safe harbor rule if there has been an increase in the rate of tax. You must figure your tax liability in the look-back quarter as if the increased rate had been in effect. To qualify for the safe harbor rule, your deposits cannot be less than 1/6 of the refigured tax liability.