CIT-UT: Underpayment of Estimated Tax by a Corporation (Form CIT-UT) (2024)
Montana · Montana DOR · Used for tax years 2024
Montana Form CIT-UT calculates a corporation’s underpayment of 2024 estimated tax and the interest on that underpayment. It includes a worksheet for calculating required installments using the annualized income or adjusted seasonal installment method.
Who files this form
Form CIT-UT figures a corporation’s interest for underpaying Montana estimated tax for 2024.
- If your Montana tax liability minus tax credits on line 3 is less than $5,000, stop. You do not need to complete the rest of the form and do not owe underpayment interest.
- If that amount is $5,000 or more and you did not pay enough estimated tax by an installment due date, you may owe interest. Complete Part I to check each installment, then Part II for any underpayment.
- If you owe underpayment interest, include Form CIT-UT with your Montana Corporate Income Tax Return, Form CIT.
If you do not want to calculate the interest yourself, the Department of Revenue will calculate it and send you a notice of the amount due.
When it's due
For calendar-year 2024 corporations, the estimated tax installment due dates are:
- April 15, 2024
- June 15, 2024
- September 15, 2024
- December 15, 2024
For other tax years covered by the 2024 form, installments are due on the 15th day of the fourth, sixth, ninth, and twelfth months of the tax year.
For a short tax year covered by the 2024 form, all installments must be made by the 15th day of the last month of that short tax year.
For the 2024 underpayment interest calculation, line 15 uses the payment date or the 15th day of the fifth month after the tax year closes, whichever is earlier. The text does not state a separate filing deadline for Form CIT-UT.
What you'll need
Have these forms and amounts ready:
- Your 2024 Form CIT, including tax liability on page 3, line 10, and total credits on page 4, line 13.
- Your previous year’s Form CIT, if you can use the prior-year tax liability to calculate installments.
- Estimated tax payment amounts and dates, any prior-year overpayment applied, and any mineral royalty tax or tax on pass-through entities withheld on your behalf.
- Your corporation’s name, FEIN, and tax-year beginning and ending dates.
If you use the annualized income or adjusted seasonal method, include the completed worksheet and federal Form 2220 with your Montana return and Form CIT-UT. You will need taxable income and credit amounts for the worksheet periods. The seasonal method also requires taxable income information for the three preceding tax years.
How to file
Complete Part I to determine whether any installment was underpaid. If line 13 shows an underpayment in any column, complete Part II to calculate interest.
Add the interest amounts on line 17 and enter the total on line 18 and on Form CIT, page 4, line 18. If you owe underpayment interest, include Form CIT-UT with Form CIT.
If you use the annualized income or adjusted seasonal worksheet, mark the box on line 6 and include the worksheet and federal Form 2220.
The printed mailing address is:
Montana Department of Revenue
PO Box 8021
Helena, MT 59604-8021
The supplied text does not provide e-filing instructions.
Common mistakes
- Using the prior-year amount when it is not allowed. If the previous return showed no tax liability, covered less than 12 months, or this is your initial return, base installments on 80% of current-year tax liability instead.
- Completing all columns at once. Complete lines 7 through 14 for one column before moving to the next.
- Assuming a refund or later payment erases earlier interest. Interest is calculated separately for each installment due date. You may owe it even if you later catch up or request a refund.
- Changing worksheet methods between quarters. You must use the same method of determining required installments for each quarter.
- Leaving out worksheet attachments. If you use the annualized or seasonal worksheet, mark the line 6 box and include the worksheet and federal Form 2220.
Questions people ask
How are regular required installments calculated?
Generally, use the lesser of 80% of current-year tax liability after credits or 100% of previous-year tax liability after credits, then divide that amount into four equal installments. The prior-year option is not available if that return showed no tax liability, covered less than 12 months, or this is your initial return.
Can uneven income reduce my required installments?
Yes. If you can establish that income was not earned evenly during the year, the annualized income or seasonal worksheet may lower one or more required installments and reduce or eliminate interest for those periods.
Who can use the adjusted seasonal method?
A seasonal business can use it only if its base period percentage for any six consecutive months is at least 70%. The calculation uses taxable income information from the three preceding tax years.
Where can I get help?
Call the Montana Department of Revenue at (406) 444-6900, or Montana Relay at 711 for people with hearing impairments.