41ESR: Underpayment of Estimated Tax and Instructions 2024 (2024)
Idaho · Idaho Tax Commission · Used for tax years 2024
Idaho Form 41ESR determines whether a corporation underpaid its estimated tax and calculates interest on any underpayment. It includes an annualized income installment calculation and is included with Form 41 or Form 41S.
Who files this form
Year check: The supplied form and its embedded instructions are labeled 2023, although their revision date is 10-17-2024. The guidance below follows the printed 2023 text, not a 2024 tax-year calculation.
Corporations use Form 41ESR to determine whether they underpaid estimated tax and to calculate interest on an underpayment.
The printed instructions require a corporation to make Idaho estimated tax payments if it must make federal estimated tax payments and owes Idaho income tax of $500 or more. Estimated payments are not required:
- If the corporation was not required to file an Idaho return for the previous tax year.
- On tax due on income reported for individual owners.
If the result on Part I, line 3 is less than $500, do not complete this form.
When it's due
For the 2023 tax year identified in the supplied text, estimated tax installments are due on the 15th day of the 4th, 6th, 9th, and 12th months of the tax year. The instructions say these are the same due dates required for federal estimated tax payments.
For the underpayment interest calculation, line 15 uses the payment date or the 15th day of the 4th month after the tax year ends, whichever is earlier. This is the interest calculation cutoff, not a separately stated filing deadline for Form 41ESR.
What you'll need
Have these records available for the calculation printed in the supplied form:
- Business name and Federal Employer Identification Number (EIN).
- The corporation’s 2023 and 2022 Idaho returns, including total tax, fuels tax, sales/use tax, tax from recapture of the qualified investment exemption (QIE), and the tax reimbursement incentive credit.
- Estimated tax payment amounts and dates, including any credit applied from the 2022 return to 2023 estimated tax.
- If using annualized income, Schedule A, Part II of federal Form 2220, Idaho additions and subtractions, other taxes, and tax credits for each period. Multistate corporations also need the apportionment factor.
How to file
Include Form 41ESR with Form 41 or Form 41S. The supplied text does not give a mailing address or e-file directions.
Complete Part I to determine any underpayment. If line 13 shows an underpayment, complete Part II to calculate interest. Enter the total from line 24 on Form 41, line 50, or Form 41S, line 57.
If using annualized income to determine estimated payments, use Part III to show the calculation and carry line 33 amounts to Part I, line 8.
Common mistakes
- Continuing when line 3 is below $500: The form says not to complete it in that case.
- Completing payment columns out of order: Complete lines 9 through 14 for one column before moving to the next.
- Entering too much on line 11: Do not enter more than the payment amount on line 9.
- Overlooking additional copies: You may need extra copies when multiple payments are applied to a prior period’s underpayment.
- Using every column for a short-period return: Complete only the appropriate number of columns.
Questions people ask
How much is each estimated payment under the printed instructions?
Each payment is 25% of the lesser of 100% of the corporation’s 2022 income tax or 90% of its 2023 income tax. If income is annualized, use the amounts from Part III, line 33 instead.
Can I use the annualized income method?
Yes. If estimated payments are based on annualized income for federal purposes, you may use the same method for Idaho. Use Schedule A, Part II of federal Form 2220 to calculate federal annualized income.
Which interest rates does this form use?
The instructions specify 5% for 2023 and 6% for 2024. The calculation divides the applicable days by 365 for 2023 and 366 for 2024.
What happens to an installment overpayment?
Enter the overpayment on line 14. Carry it to line 10 of the next installment column.