297I.40 ESTIMATED TAX.
Subdivision 1. Requirement to pay.
On or before March 15, June 15, September 15, and
December 15 of the current year, every taxpayer subject to tax under section
1 to 6
, and 12, paragraphs (a), clauses (1) to (5), (b), and (e), must pay to the commissioner an
installment equal to one-fourth of the insurer's total estimated tax for the current year.
Subd. 2. Amount of required installment.
The amount of any required installment is
one-fourth of the lesser of
(1) 80 percent of the tax imposed for the current year, or
(2) 100 percent of the tax paid for the previous year.
Subd. 3. No addition to tax where the tax is small.
No addition to tax is imposed if the
total tax for the current tax year is $500 or less.
Subd. 4. Addition to tax.
(a) In case of any underpayment of installments by an insurer,
there is added to, and collected as part of, the tax for the taxable year an amount determined at the
rate specified in section
upon the amount of underpayment.
(b) The amount of the underpayment is the excess of: (1) the amount of the installment; over
(2) the amount, if any, of the installment paid on or before the last date prescribed for payment.
(c) The period of the underpayment runs from the date the installment was required to be
paid to the earlier of:
(1) March 1 of the year following the close of the taxable year; or
(2) with respect to any portion of the underpayment, the date on which that portion is paid.
For purposes of this clause, a payment of estimated tax on any installment date is considered a
payment of any previous underpayment only to the extent the payment exceeds the amount of the
installment required to be made on that date.
Subd. 5. Definition of tax.
The term "tax" as used in this section means the tax imposed
297I.05, subdivisions 1 to 6
, and 12, paragraphs (a), clauses (1) to (5), (b), and (e),
without regard to the retaliatory provisions of section
297I.05, subdivision 11
, and the offset in
Subd. 6. Failure to pay estimated tax.
When an insurer does not make any payments, the
period of the underpayment runs from the three installment dates set forth in subdivision 1 to
whichever of the periods in subdivision 4, paragraph (c), is the earlier.
Subd. 7. March estimated payment.
A taxpayer who claims a refund of an overpayment
on an original return may elect to have all or any portion of the overpayment applied as a credit
to the March 15 estimated tax payment for the year following the year of the return. The credit
is considered applied on March 15. Notwithstanding section
, the amount credited does
not bear interest.
History: 2000 c 394 art 1 s 9; 1Sp2001 c 5 art 13 s 10-12; 2005 c 151 art 2 s 17