45-006: IA 2220 Underpayment of Estimated Tax 45-006 (2024)
Iowa · Iowa DOR · Used for tax years 2024
The 2024 Iowa IA 2220 determines whether estimated tax was paid in the correct amounts by the required dates and calculates any underpayment penalty. It reports quarterly payments, underpayments, and applicable penalty exceptions. Include it with your Iowa return even if no under
Who files this form
The 2024 IA 2220 is used by:
- Corporations and financial institutions.
- S corporations that owe built-in gains/passive investment tax or make a Pass-Through Entity Tax (PTET) election.
- Partnerships that make a PTET election.
These taxpayers use the form to check whether they paid enough estimated tax on time and to calculate any underpayment penalty. Every taxpayer with more than $1,000 in tax due after credits must pay estimated tax.
Include IA 2220 with your return even if no underpayment penalty is due.
When it's due
For tax year 2024, the estimated tax installment dates are the last day of the 4th, 6th, 9th, and 12th months of your taxable year. Enter these dates on line 4 and repeat them on line 13.
The text does not give a separate filing deadline for IA 2220. It says to include the form with your Iowa return.
What you'll need
Have the following information ready:
- Your name, Federal Employer Identification Number (FEIN), and tax period.
- Your 2024 Iowa return, IA 1120, IA 1120F, IA 1120S, or IA 1065, for the tax and credit amounts used on lines 1 and 2.
- Estimated tax payment amounts and dates, plus amounts credited for each period.
- Your prior-year return if you use the prior-year tax exception, or prior-year income information if you use the prior-year income exception.
If you use the annualized income exception on line 12, include a schedule and income statements for the appropriate months in the tax period.
How to file
Include IA 2220 with your Iowa return: IA 1120, IA 1120S, IA 1120F, or IA 1065. This is required even if no underpayment penalty is due.
If you calculate a penalty on line 19, also enter it on the applicable return:
- IA 1120, line 20.
- IA 1120F, line 19.
- IA 1120S, line 49.
- IA 1065, line 40.
The supplied text does not provide a mailing address or e-file instructions.
Common mistakes
- Leaving out IA 2220 because no penalty is due. The form must still be included with your return.
- Counting tax credits twice. Do not include tax credits on line 6(a), including Composite Tax Credits or PTET Credits received from a pass-through entity. These credits are already included on line 2.
- Using Exceptions 1 or 2 for an initial-year Iowa return. Neither exception is available to initial-year filers.
- Using Exception 1 without meeting its requirements. The prior tax year must have been 12 months, and a return showing a tax liability, including zero liability, must have been filed. Additional restrictions apply to partnerships and S corporations based on their prior-year PTET election or tax status.
- Omitting annualized-income attachments. Line 12 requires a schedule, and the instructions say to enclose income statements for the appropriate months.
Questions people ask
Can I use a different penalty exception for each installment?
Yes. A different exception may apply to each underpayment. To avoid the penalty under an exception, payments must be made by the installment due date and total at least the amount required under that exception.
What if an exception avoids the penalty for all quarters?
Skip lines 1 through 8 and go directly to line 9.
Does a later estimated tax payment cover an earlier underpayment?
Only the part of the payment that exceeds the current installment amount calculated on line 5 is treated as a payment toward a previous underpayment.
When does the penalty calculation stop if I make a payment that satisfies an exception?
Once a payment covers an exception to the penalty, the underpayment is no longer outstanding. The penalty calculation stops on that payment date.
Where can I ask questions?
Call 515-281-3114 or 800-367-3388, email idr@iowa.gov, or visit revenue.iowa.gov.