Corporate estimated tax payments.
The IRS points out this change also may affect estimates required of S corporations and exempt organizations subject to the unrelated business income tax (IRS announcement 92-5, IRB no. 1992-2). Where S corporations and exempt organizations formerly faced a 90% requirement, a 93% threshold applies for 1992. S corporations incur an estimated tax filing requirement when they are subject to the built-in gains tax, the excess passive gross receipts tax or business credit recapture.
Observation: The IRS explained that the 1991 instructions for form 1120S and form 990-T were printed before the law change and erroneously indicate a 90% rate for 1992 quarterly estimates rather than the knew 93% threshold.
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|Publication:||Journal of Accountancy|
|Article Type:||Brief Article|
|Date:||Apr 1, 1992|
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