500UP: Underpayment of Estimated Income Tax by Corporations and Pass-Through Entities (2024)
Maryland · Comptroller of Maryland · Used for tax years 2024
Maryland Form 500UP calculates interest and penalties for corporations and pass-through entities that did not pay the required estimated income tax when due. It shows required installments, payments, underpayments, and total interest and penalties, and is attached to Form 500, 51
Who files this form
Form 500UP helps corporations and pass-through entities calculate interest and penalties for not paying enough estimated Maryland income tax on time.
Filing Form 500UP is optional. The Revenue Administration Division can calculate the interest and penalty and notify the entity of any balance due.
Corporations and pass-through entities that reasonably expect their Maryland taxable income to produce tax of more than $1,000 must make estimated payments.
The form says no interest or penalty is due and Form 500UP should not be filed if any of these exceptions applies:
- Current-year tax is $1,000 or less.
- Four timely payments, each at least 25% of the required estimated tax, total at least 90% of current-year tax or 110% of prior-year tax.
- The entity has a short tax period of less than four months.
When it's due
For tax year 2024, file Form 500UP, if used, by the original or extended filing deadline for Form 500, 510, or 511.
Estimated-payment deadlines for calendar-year 2024:
- First payment: April 15, 2024.
- Second payment: June 15, 2024.
- Third payment: September 15, 2024.
- Fourth payment for corporations and S corporations: December 15, 2024.
- Fourth payment for other pass-through entities: January 15, 2025.
For fiscal tax years beginning in 2024, the form lists the 15th day of the fourth, sixth, ninth, and twelfth months. For pass-through entities other than S corporations, the fourth payment is due on the 15th day of the month following the close of the tax year.
What you'll need
Have these forms and details available to complete Form 500UP:
- Your current-year Form 500, 510, or 511, including the entity name and tax amount.
- Your federal employer identification number (FEIN). If you have applied but have not received it, enter “APPLIED FOR” and the application date.
- Your tax period’s beginning and ending dates.
- Your prior-year Form 500, 510, or 511, if applicable, for the prior-year tax calculation.
- Amounts of applicable business tax credits, Heritage Structure Rehabilitation Tax Credits, and credits for tax paid on the entity’s behalf by a pass-through entity.
- Estimated-payment amounts and payment dates, plus any prior-year overpayment applied to estimated tax.
Partnerships and limited liability companies choosing to annualize also need income amounts for each installment period.
How to file
- Review the instructions before completing the form.
- Enter the entity’s name as shown on Form 500, 510, or 511, its FEIN, and its tax period.
- Complete lines 1 through 13 to calculate interest and penalty.
- Transfer the total from line 13 to line 18 of Form 500, line 19 of Form 510, or line 16 of Form 511.
- Attach Form 500UP to the applicable return.
The printed filing address is:
Comptroller of Maryland
Revenue Administration Division
110 Carroll Street
Annapolis, Maryland 21411-0001
Common mistakes
- Skipping the instructions. The form specifically says to review them before completing Form 500UP.
- Using the wrong year’s form. The preprinted year must match the year in which the corporation’s tax year begins.
- Using annualization for a corporation. The instructions say corporations may not use this method.
- Using cumulative line 8 amounts to calculate the penalty. The line 12 instructions specifically say not to use those cumulative amounts.
- Filing Form 500UP without the return. If used, it must be attached to Form 500, 510, or 511.
Questions people ask
Do I have to calculate the interest and penalty myself?
No. Form 500UP is not required. The Revenue Administration Division will calculate the interest and penalty and notify the entity of any balance due.
What estimated-tax amount does a first-time filer use?
A first-time filer enters line 2 on line 4. Line 2 is 90% of the current-year tax amount calculated on line 1.
What if the entity has a short tax year?
For a short tax period of less than four months, the entity does not have to pay estimated tax or file Form 500UP. For other short periods, the minimum payment at each installment deadline is the total required estimated tax divided by the number of installment deadlines in that short tax year.
When does an underpayment penalty apply?
A penalty applies for any quarter when timely payments are less than 50% of one-quarter of the annual estimated tax required on line 4. Add the underpayments for the applicable quarters, without using cumulative line 8 amounts, and multiply the total by 10%.