(1) Every
corporation subject to taxation under the provisions of this article and article 29 of
this title shall make and file estimated payments in the amounts as specified in this
section.
(2) As used in this section, unless the context otherwise requires:
(a) Return means a Colorado return required to be made or filed under
section 39-22-601 or 39-29-112.
(b) Tax or tax liability means:
(I) (A) The tax imposed under this article; minus
(B) The credits against tax provided by this article. For purposes of this
section, credits include all credits without regard to whether they are prepayment
credits or refunds of excess state revenue; and
(II) (A) The tax imposed under article 29 of this title; minus
(B) The credits against tax provided by article 29 of this title other than the
credit against tax for withholding provided pursuant to section 39-29-111. For
purposes of this section, credits include all credits without regard to whether they
are prepayment credits.
(3) (a) Except as otherwise provided in this section, in the case of any
underpayment of estimated tax by a corporation, there shall be added to the tax
under this article and article 29 of this title for the taxable year an amount
determined by applying the rate of interest established under section 39-21-110.5 to
the amount of the underpayment for the period of the underpayment.
(b) For purposes of this subsection (3), the amount of the underpayment
shall be the excess of the required installment over the amount, if any, of the
installment paid on or before the due date for the installment.
(c) The period of the underpayment shall run from the due date for the
installment to whichever of the following dates is earlier:
(I) The fifteenth day of the fourth month following the close of the taxable
year; or
(II) With respect to any portion of the underpayment, the date on which such
portion is paid.
(d) For purposes of subparagraph (II) of paragraph (c) of this subsection (3), a
payment of estimated tax shall be credited against unpaid required installments in
the order in which such installments are required to be paid.
(4) (a) Except as otherwise set forth in paragraph (b) of this subsection (4),
for purposes of this section, there shall be four required installments for each
taxable year. The due dates for such installments shall be as follows:
Installment Due date
1st April 15
2nd June 15
3rd September 15
4th December 15
(b) (I) If the due date of any installment payment required pursuant to this
section falls on a legal federal holiday, then the due date shall be delayed and due
on the adjusted federal due date.
(II) On and after July 1, 2007, for purposes of this section, there shall be
twelve installments for the tax imposed pursuant to section 39-29-105 for each
taxable year. The due date for such installments shall be the fifteenth day of each
month, and the installments shall be paid electronically. The department of revenue
shall promulgate rules in accordance with article 4 of title 24, C.R.S., governing
electronic payment.
(5) (a) For purposes of this section, the amount of the required installments
set forth in paragraph (a) of subsection (4) of this section for the tax imposed under
this article and for the tax imposed under article 29 of this title shall be twenty-five
percent of the required annual payment for each such tax.
(a.5) On and after July 1, 2007, for purposes of this section, the amount of the
required installments set forth in paragraph (b) of subsection (4) of this section for
the tax imposed pursuant to section 39-29-105 shall be one-twelfth of the required
annual payment for the tax.
(b) For purposes of paragraphs (a) and (a.5) of this subsection (5), required
annual payment means the lesser of:
(I) Seventy percent of the taxpayer's actual Colorado tax liability shown on
the return for the taxable year or, if no return is filed, seventy percent of the tax for
such year; or
(II) (A) One hundred percent of the taxpayer's actual Colorado tax liability
shown on the return of the corporation for the preceding taxable year.
(B) Sub-subparagraph (A) of this subparagraph (II) shall not apply if the
preceding taxable year was not a taxable year of twelve months or if the taxpayer
did not file a Colorado return for such preceding taxable year.
(c) (I) If the taxpayer is a large corporation as defined in section 6655 of the
internal revenue code, sub-subparagraph (A) of subparagraph (II) of paragraph (b)
of this subsection (5) shall not apply; except that the first required installment set
forth in paragraph (a) of subsection (4) of this section for any taxable year may be
based on twenty-five percent of the taxpayer's actual Colorado tax liability shown
on the return of the corporation for the preceding year and except that the first
required installment set forth in paragraph (b) of subsection (4) of this section for
any taxable year may be based on one-twelfth of the taxpayer's actual Colorado
tax liability shown on the return of the corporation for the preceding year. Any
reduction in the first installment pursuant to this subparagraph (I) shall be
recaptured by increasing the amount of the next required installment.
(II) For purposes of returns and estimated payments for the 2001 tax year,
the limitation on the use of the preceding year's tax liability pursuant to
subparagraph (I) of this paragraph (c) shall not apply.
(d) When the taxpayer has elected annualized installments or adjusted
seasonal installments for the payment of federal income tax, the amount of the
required installment pursuant to this section and the calculation of any addition to
tax shall be determined under rules promulgated by the department of revenue.
(6) (a) (I) No addition to tax shall be imposed under subsection (3) of this
section for any taxable year if the tax imposed under part 3 of this article shown on
the return for such taxable year or, if no return is filed, the tax, is less than five
thousand dollars.
(II) No addition to tax shall be imposed under subsection (3) of this section
for any taxable year if the tax imposed under article 29 of this title shown on the
return for such taxable year, or if no return is filed, the tax, reduced by the credit
allowable under section 39-29-111, is less than five thousand dollars.
(b) No addition to tax shall be imposed under subsection (3) of this section
with respect to any underpayment to the extent the executive director determines
that the underpayment was due to good cause shown by the taxpayer.
(7) (a) Except as otherwise provided in paragraph (b) of this subsection (7),
for purposes of applying this section, the amount of the credit allowed pursuant to
section 39-29-111 for the taxable year shall be deemed a payment of estimated tax
and an equal part of such amount shall be deemed paid on each due date for such
taxable year.
(b) If the taxpayer establishes the dates on which all amounts were actually
withheld, the amounts so withheld shall be deemed payments of estimated tax on
the dates on which such amounts were actually withheld.
(8) (a) In applying this section to a taxable year beginning on any date other
than January 1, the corresponding months shall be substituted for the months
specified in this section.
(b) This section shall be applied to taxable years of less than twelve months
in accordance with rules prescribed by the department of revenue.
(9) All of the provisions of this article, article 29 of this title, and article 21 of
this title relating to the powers of the executive director for the administration,
assessment, and enforcement of taxes required to be paid pursuant to said articles
shall apply to the provisions of this section.
(10) The department of revenue shall prescribe such rules as may be
necessary to carry out the provisions of this section. Such rules shall be
promulgated in accordance with article 4 of title 24, C.R.S.