Harmon, Inc. was incorporated and began business on January 1, 2012. Its tax liability for 2012 was $36,000. Its tax liability for 2013 was $50,000. Which of the following is a correct statement concerning the payment of estimated taxes for 2013?

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Quizplus · Accepted Answer

The IRS requires corporations to pay estimated taxes in four equal installments on the 15th day of April, June, September, and December. To avoid penalties and interest charges, corporations must pay at least 90% of their current tax liability through estimated payments. In this case, the tax liability for 2013 was $50,000, so Harmon must pay $9,000 on each installment due date in 2013 ($36,000 total). The remaining $14,000 balance can be paid by the corporate tax filing deadline of March 15, 2014. Therefore, option B is the correct statement.