41ES: Estimated Tax Payment/Extension of Time Payment Business Income Tax and Instructions 2024 (2024)

Who files this form

Use Form 41ES to make business estimated tax payments or an extension-of-time payment.

A corporation must make estimated payments if both apply:

• It must make estimated tax payments to the IRS.
• It expects an Idaho income tax liability of $500 or more.

Estimated payments aren’t required if the corporation wasn’t required to file an Idaho return for the previous tax year.

For S corporations, estimated payments are based on Idaho tax due on net recognized built-in gains and excess net passive income. Estimated payments aren’t required on tax due on income reported for individual shareholders.

If you need an extension to file, use Part B to determine whether a payment is required. If Part B, line 7 is $50 or less, no payment is required.

When it's due

• 2024 calendar-year estimated payments: Due April 15, June 15, September 15, and December 15. If a due date falls on a Saturday, Sunday, or legal holiday, payment is due the next regular business day.
• Fiscal-year estimated payments for the 2024 form: Due on the 15th day of the 4th, 6th, 9th, and 12th months of the tax year. The same weekend and holiday rule applies.
• Short tax years covered by the 2024 form: If the year ends before any remaining due dates, the final estimated payment is due by the 15th day of the last month of the short tax year. No estimated payment is required if the short year is less than four months or the payment requirements weren’t met before the first day of its last month.
• Extension payment for the 2024 return: The instructions say to pay online or mail the payment by April 15 to avoid a penalty. They do not print a calendar year with that date.

The filing extension is an automatic six months, with no written request required, subject to the payment requirements.

What you'll need

Have these details available to complete the worksheets and payment voucher:

• Business name, mailing address, and federal Employer Identification Number (EIN).
• Calendar tax year or fiscal-year beginning and ending dates.
• Whether your name or address changed and whether you file a combined report.
• Your 2023 return, if filed, for the prior-year tax comparison.
• Estimated 2024 Idaho taxable income, income tax credits, and any tax from recapture of business income tax credits. Part A refers to Form 44, Part II, for the recapture list.
• Estimated and tentative payments already made, plus any ABE tax paid by another entity shown on Form 41S, line 61, or Form 65, line 57.

If you use Form 41ES to pay qualified investment exemption (QIE) recapture when filing your income tax return after the due date, include a copy of Form 49ER.

How to file

1. Choose the worksheet. Use Part A for estimated tax payments or Part B for an extension payment.
2. Calculate the payment. Each estimated installment is 25% of the smaller of 100% of the corporation’s 2023 income tax or 90% of its 2024 income tax, using the worksheet’s exclusions. For an extension, Part B compares the prior-year tax with 80% of estimated 2024 tax and subtracts payments already made.
3. Pay online or by mail.

Online: Pay at tax.idaho.gov/epay. Don’t send a voucher with an online payment.

By mail: Send your check and/or money order with the voucher to:

Idaho State Tax Commission

PO Box 83784

Boise ID 83707-3784

If you received personalized Form 41EST vouchers, use the appropriate voucher for each payment period. Otherwise, use Form 41ES, available at tax.idaho.gov.

Common mistakes

• Using Form 41ES for an early ABE election payment. Use Form ABE-ES for an Affected Business Entity Election payment made before filing a return.
• Sending a voucher after paying online. The form says not to send one.
• Leaving incorrect preprinted information unchanged. Cross it out, enter the correct information, and check the mailing address change box if your mailing address changed.
• Including excluded items in estimated tax calculations. Don’t include fuels tax due, sales/use tax due, fuels tax refunds, QIE recapture tax, the tax reimbursement incentive credit, or ABE tax paid by another entity from the specified Form 41S or Form 65 lines.
• Not updating current-year estimates. If payments are based on 90% of current-year tax and your anticipated tax changes, recompute the remaining payments.
• Treating the extension as permission to leave tax unpaid. Paying less than the required amount results in a penalty. A penalty also applies if you make the required payment but don’t pay the remaining tax by the extended due date. Interest accrues on unpaid tax, including when the extension worksheet shows $50 or less due.

Questions people ask

Do I need to request an extension in writing?

No. The instructions allow an automatic six-month filing extension without a written request. To qualify, pay at least 80% of the 2024 income tax liability or 100% of the total income tax reported on the 2023 return. Use Part B to determine the payment needed.

What if I didn’t file a 2023 return?

For the extension worksheet, answer “No” on Part B, line 1, and use the amount from line 4 on line 5. For estimated payments, a corporation isn’t required to pay if it wasn’t required to file an Idaho return for the previous tax year.

What happens if I pay too much estimated tax?

You can receive a refund after filing your return or designate all or part of the excess for next year’s estimated tax on Form 41 or Form 41S. Overpayments are applied to prior-year tax debt before refunds or carryovers are allowed.

What happens if I underpay estimated tax?

Interest applies to the difference between the required installment and the amount paid, from the installment due date until the required amount is paid or the return’s due date, whichever comes first. The printed interest rates are 6% for 2024 and 6% for 2025. Use Form 41ESR when filing your return to determine underpayments and interest due.

Official sources

• https://tax.idaho.gov/wp-content/uploads/forms/EFO00026/EFO00026_08-29-2024.pdf