Section 316-20-008 - PENALTY: UNDERPAYMENT OF ESTIMATED TAX-CORPORATIONS008.01 A penalty is due on any underpayment of estimated tax. For corporations, the amount of the underpayment for any installment date is the excess of the tax shown on the return for the taxable year or, if no return was filed, the tax for such year, divided by the number of installment dates prescribed for such year, over the amount, if any, of the installment paid on or before the last day prescribed for such payment.008.02 The term tax as used in Reg-20-008.01 of this regulation shall mean the corporation income tax imposed under the provisions of the Nebraska Revenue Act of 1967, as amended, reduced by the credits allowable under section 77-2734.03 of the Nebraska Revised Statutes (in lieu of intangible tax paid credit), Community Development Assistance Act credit, Nebraska Employment and Investment Expansion Act credit, Nebraska Employment and Investment Growth Act credit, Employment Expansion and Investment Incentive Act credit, Invest Nebraska Act credit, Beginning Farmer Tax credit, Nebraska Advantage Rural Development Act credit, Nebraska Advantage Microenterprise Tax credit, Nebraska Advantage Research and Development Act credit, and Nebraska Advantage Act credit .008.03 The penalty is imposed at the same rate specified for interest in section 45-104.02 of the Nebraska Revised Statutes upon the underpayment of any installment from the date such installment is required to be paid to the due date of the return without regard to any extensions of time, or the date such underpayment is paid, whichever is earlier. The penalty is imposed even if there was a reasonable cause for underpayment.008.04 Exceptions Exceptions. The penalty will not be imposed for any underpayment of any installments of estimated tax if, on or before the date prescribed for payment of the installment, the total amount of all payments of estimated tax made equals or exceeds the amount which would have been required to be paid on or before such date if the estimated tax were the least of the following amounts:
008.04A The tax shown on the return for the preceding taxable year, provided that the preceding taxable year was a year of 12 months and a Nebraska return showing a liability for tax was filed for such year,008.04B An amount equal to a tax determined on the basis of the tax rate for the current taxable year but otherwise on the basis of the facts and law applicable to the return for the preceding taxable year,008.04C An amount equal to 100% of a tax determined by placing on an annual basis the taxable income for the months preceding the month of an installment date, or008.04D An amount equal to 100% of the amount determined under the adjusted seasonal installment rules set forth under Internal Revenue Service Code Section 6655(e)(3).008.04E The exceptions in Reg-20-008.04A and Reg-20-008.04B are not available to those corporations deemed to be large corporations for federal estimated tax purposes other than for the first installment of its tax year. A large corporation is one which had, or its predecessor had, federal taxable income of at least one million dollars for any of the three taxable years immediately preceding the taxable year involved.008.05 If there has been an underpayment of estimated tax as of any installment date, a Corporation Underpayment of Estimated Tax, Form 2220N, must be completed and attached to the Nebraska Corporation Income Tax Return, Form 1120N, to determine the applicability of any of the exceptions described in Reg-20-008.04.316 Neb. Admin. Code, ch. 20, § 008
Sections 77-2769, 77-2769.01, 77-2788, 77-2790, and, 77-4106, R.R.S., 2003, and section 7727,188, R.S.Supp., 2005. March 7, 2006.