Estimated Tax > Businesses

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Frequently Asked Tax Questions

Estimated Tax - Businesses

Is an S corporation required to pay quarterly estimated tax?
How do partnerships file and pay quarterly estimated tax payments?

Rev. date: 12/21/2012

Estimated Tax

S Corporation Income

U.S. Income Tax Return for an S Corporation

Sometimes an S corporation must make estimated tax payments.

An S corporation must make installment payments of estimated tax if the total of the following taxes is $500 or more:

The tax on built-in gains,
The excess net passive-income tax, and
The investment-credit recapture tax.

Additional Information

Publication 542, Corporations, see topic Filing and Paying Income Taxes Instructions for Form 1120S (PDF), U.S. Income Tax Return for an S Corporation, see topic Estimated Tax Payments

Rev. date: 12/21/2012

Electronic Federal Tax Payment System

Estimated Tax

Partnership Withholding Tax Payment Voucher (Section 1446)

Partnerships and Partners

Publication 541

U.S. Return of Income for Electing Large Partnerships

Partnerships file Form 1065 (PDF), U.S. Return of Partnership Income, to report income and expenses.
A partnership does not pay tax on its income but “passes through” any profits or losses to its partners. Generally, the partnership is required to prepare and give partners a Schedule K-1 (Form 1065) (PDF), Partner’s Share of Income, Deductions, Credits, etc.
The partners report the information from the K-1 on their own returns and pay any taxes due, including estimated taxes.

How To Pay Estimated Tax

Because partners are not employees of the partnership, no withholding is taken out of their distributions to pay the income and self-employment taxes on their Forms 1040 (PDF). The partners may need to pay estimated tax payments using Form 1040-ES (PDF).

There are five ways to pay estimated tax:

Credit an overpayment on your 2011 return to your 2012 estimated tax.
Send in your payment (check or money order) with a payment voucher from Form 1040-ES.
Pay electronically using the Electronic Federal Tax Payment System (EFTPS)
Pay by electronic funds withdrawal (EFW) if you are filing Form 1040 electronically.
Pay by credit or debit card using a pay-by-phone system or the Internet.

Additional Information

Publication 505, Tax Withholding and Estimated Tax Instructions for Form 1065 (PDF), U.S. Return of Partnership Income

Previous Page | Table of Contents | Top of Page | Next Page Right Arrow

Frequently Asked Tax Questions

Estimated Tax - Businesses

Is an S corporation required to pay quarterly estimated tax?

How do partnerships file and pay quarterly estimated tax payments?