Tax is payable in four installments. The payment amounts may be based on the current year’s tax, on the previous year’s tax, or on annualized or seasonal income. Corporations that fail to pay sufficient estimated tax are subject to a penalty equal to the interest on the underpayment for the period of the underpayment.

Corporations must use electronic funds transfer to make all federal tax deposits including installment payments of estimated tax. Generally, electronic funds transfer is made using the Electronic Federal Tax Payment System (EFTPS). However, if the corporation does not want to use EFTPS, it can arrange for its tax professional, financial institution, payroll service, or other trusted third party to make electronic deposits on its behalf. Also, it may arrange for its financial institution to initiate a same-day tax wire payment.

EFTPS is a free service provided by the Department of the Treasury. To get more information about EFTPS or to enroll in EFTPS, visit

Your estimated tax payment is due no later than DUEDATE. If you are using EFTPS, payments must be initiated by 8:00 p.m. Eastern time the day before the date the deposit is due. If you are using a third party for your electronic fund’s transfer, please check with the third party for information regarding the deadline for transmitting funds.

If you have any questions about the amount of your payment or the means of payment, including the registration process for EFTPS, please call our office. We will be happy to assist you.