M-2220: Underpayment of Massachusetts Estimated Tax by Corporations (2025)
Massachusetts · Massachusetts DOR · Used for tax years 2025
Massachusetts Form M-2220 calculates a corporation's underpayment of estimated tax for 2025 and the related underpayment penalty. It compares required installments with amounts paid or credited and calculates the penalty based on how long each underpayment remained unpaid.
Who files this form
Corporations taxed under Chapter 63 of the Massachusetts General Laws should use Form M-2220 to check whether they paid the correct amount of estimated tax on time. An underpayment may result in a penalty. Include this form with the corporation’s return.
Corporations are still liable for estimated payments if they did not file a 2024 return or if their 2024 return covered less than 12 months.
When it's due
For tax year 2025:
- Estimated tax installments: Line 6 lists the 15th day of the 3rd, 6th, 9th and 12th months of the corporation’s taxable year.
- C corporation returns: The instructions give the 15th day of the fourth month after the taxable year closes, or April 15 for calendar-year corporations.
- S corporation returns: The instructions give the 15th day of the third month after the taxable year closes.
- Calendar-year timeliness statement: The instructions state that returns and estimated payments will be treated as timely if filed and/or paid on or before April 15, 2026.
The instructions also specifically warn that the first estimated tax installment should be paid by its installment due date, not the return due date, to avoid underpayment penalties.
What you'll need
Have the following information ready to complete the form:
- The corporation’s name and Federal Identification number.
- Its 2025 tax, 2024 tax and 2024 income apportionment percentage.
- The 2025 income and non-income measures of excise and the 2025 tax rate for the line 3 calculation.
- Estimated tax payment amounts, credits and payment dates for each installment.
- Any prior-year overpayment applied to 2025 estimated tax.
If more than one payment was made for an installment, attach separate computations for each payment.
How to file
File electronically and include Form M-2220 with the corporation’s return. The form states that paper returns will not be accepted.
Electronic filing and payment are required for all business corporations and financial institutions subject to tax under Chapter 63, with no income threshold.
Enter the total penalty from line 35 on the corresponding line of the corporation’s tax return, as listed in the form’s instructions.
For electronic filing questions, call 617-887-6367 or see the Massachusetts DOR electronic filing and payment requirements.
Common mistakes
- Sending a paper return. The form warns that it is e-file only and paper returns will not be accepted.
- Waiting until the return due date to pay the first estimated installment. The instructions say to pay by the first installment due date to avoid underpayment penalties.
- Treating a prior-year overpayment credit as paid earlier than the prior-year return due date. In the printed example, a calendar-year C corporation’s 2024 overpayment applied to 2025 estimated tax is credited on April 15, 2025, about one month after the first 2025 installment was due.
- Missing the special rule for new corporations. The instructions note that new corporations in their first full taxable year with fewer than 10 employees have lower payment percentages. They should check the box on line 7 and use the applicable percentages listed in the instructions.
Questions people ask
What if the corporation did not file a 2024 return or filed one for less than 12 months?
It is still liable for estimated payments. Enter the smaller of line 2 or line 3 on line 5.
Can a large corporation use its prior-year tax to calculate estimated payments?
A corporation with $1 million or more of federal taxable income in any of its three preceding taxable years may use its prior-year tax liability only to calculate its first quarterly estimated payment. Any reduction in that first installment must be added to the second installment.
What happens if an installment is overpaid?
The overpayment may first be used to pay an existing underpayment. This reduces the period subject to penalty, not the original underpayment amount. If there is no existing underpayment, the overpayment is credited against the next installment.
What date is used to end the penalty calculation?
Line 14 uses the payment date or the 15th day of the third month after the taxable year closes, whichever is earlier.