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Unformatted text preview: th the second year estimated taxes are computed by reference to the corporation's original March 12 tax return, which shows a $20,000 liability. The issue here is that because Wicker did not file the amended tax return until April 20 a month after the due date for the return with no extension requested Wicker is relying on Sec. 6655(d)(1) to avoid additions to tax for April 20 th . Whicker must make estimated tax payments based on the tax liability shown on the original return filed on March 12, or an amended return filed by the due date for the original return which should also include the extensions. Therefore, Wicker must base its estimated tax payments for April 20 th on the $20,000 tax liability reported on the original March 12 return if its going to use the prior year exception. Wicker could also rely on having paid 100% of the current tax year liability of April 20 th ....
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- Spring '08
- Revenue, Payment, Credit card, Taxation in the United States