CIT-120U: Worksheet/Underpayment of Estimated Tax (2024)
West Virginia · WV Tax Division · Used for tax years 2024
Form CIT-120U is a worksheet used to determine whether a penalty is due for underpaying estimated West Virginia Corporation Net Income Tax. It calculates required installments, underpayments and penalties, and includes an annualized income installment worksheet for income that va
Who files this form
Corporations use CIT-120U to determine whether they owe a penalty for underpaying estimated West Virginia Corporation Net Income Tax. All filers must complete Part I.
A corporation must file an estimated tax declaration and make payments on Form WV/CIT-120ES if its West Virginia taxable income can reasonably be expected to exceed $10,000, which the text identifies as a tax liability after credits of more than $650.
A corporation that did not pay enough estimated tax by the installment due dates may owe an underpayment penalty.
When it's due
For tax year 2024, the worksheet gives these timing rules:
- Estimated tax installments are due on the 15th day of the 4th, 6th, 9th, and 12th months of the corporation’s taxable year.
- The corporation’s annual return is due on the 15th day of the 4th month following the close of the taxable year.
- For an exempt organization with unrelated business taxable income, the annual return is due on the 15th day of the 5th month following the close of the taxable year.
For the penalty calculation on line 31, use the installment payment date or the original, unextended annual return due date, whichever is earlier.
What you'll need
Have these forms and details available to complete the worksheet:
- Corporation name and FEIN.
- Current Form CIT-120, line 9, showing Corporation Net Income Tax after credits.
- The prior-year return’s income tax after credits, if a return was filed.
- Estimated tax payment amounts and payment dates.
- If using the annualized method, West Virginia taxable income for the periods listed in Part II and credits from CIT-120TC, line 16. Multistate taxpayers use apportioned figures for Part II, lines 1 and 4.
If more than one payment was made for a required installment, attach a separate computation for each payment.
Common mistakes
- Assuming a later payment removes an earlier penalty. The penalty is figured separately for each installment due date, even if later payments make up the shortage.
- Assigning payments only to the installment you intended to pay. Payments are applied to underpaid installments in the order they were due.
- Completing the worksheet across rows when it says to work by column. Complete one column at a time for Part II, lines 14–20, and Part III, lines 24–30.
- Forgetting to transfer the penalty. Enter the total from line 42 on CIT-120, page 2, line 10.
Questions people ask
Can uneven income during the year reduce the required installments?
Yes. The annualized installment worksheet may lower or eliminate one or more required installments if taxable income varied during the year. To use this method to figure the penalty, complete Parts I through IV.
What if the corporation did not file a prior-year return?
Leave Part I, line 3, blank. If line 3 is blank, enter the amount from line 2 on line 4.
When can I stop without calculating a penalty?
If estimated payments on Part III, line 23, are at least the required installments on line 22 in every column, the worksheet says to stop. You are not subject to the penalty.
Where can I get the applicable interest rate?
Contact the West Virginia Tax Division, Taxpayer Services Division, at 1-800-982-8297. Administrative Notices adjusting interest rates may also be found at tax.wv.gov.