Tungsten Corporation, a calendar year cash basis taxpayer, made estimated tax payments of $800 each quarter in 2014, for a total of $3,200. Tungsten filed its 2014 tax return in 2015 and the return showed a tax liability $4,200. At the time of filing, March 15, 2015, Tungsten paid an additional $1,000 in Federal income taxes. How does the additional payment of $1,000 impact Tungsten's E & P?

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The additional payment of $1,000 made in 2015 decreases Tungsten's E & P in 2015 because it is a cash basis taxpayer and the payment was made in 2015.

Tungsten Corporation, a Calendar Year Cash Basis Taxpayer, Made Estimated