Reg. § 1.6016-1 Declarations of estimated income tax by corporations.
(a) Requirement For taxable years ending on or after December 31, 1955, a declaration of estimated tax shall be made by every corporation (including unincorporated business enterprises electing to be taxed as domestic corporations under section ), which is subject to taxation under section or , or subchapter L, chapter 1 of the Code (relating to insurance companies), if its income tax under such sections or such subchapter L for the taxable year can reasonably be expected to exceed the sum of $100,000 plus the amount of any estimated credits allowable under section (relating to tax withheld at source on nonresident aliens and foreign corporations and on tax-free covenant bonds), section (relating to taxes of foreign countries and possessions of the United States), and section (relating to investment in certain depreciable property).
(b) Definition of estimated tax The term “estimated tax”, in the case of a corporation, means the excess of the amount which such corporation estimates as its income tax liability for the taxable year under section or , or subchapter L, chapter 1 of the Code, over the sum of $100,000 and any estimated credits under sections , , and . However, for the rule with respect to the limitation upon the $100,000 exemption for members of certain electing affiliated groups, see section and the regulations thereunder.
(c) Examples The application of this section may be illustrated by the following examples:
Example 1. M, a corporation subject to tax under section , reasonably anticipates that it will have taxable income of $224,000 for the calendar year 1964. The normal tax and surtax result in an expected liability of $105,000. M determines that it will not have any allowable credits under sections , , and for 1964. Since M's expected tax ($105,000) exceeds the exemption ($100,000), a declaration of estimated tax is required to be filed, reporting an estimated tax of $5,000 ($105,000−$100,000) for the calendar year 1964.
Example 2. Under the facts stated in example (1), except that M estimates it will have an allowable foreign tax credit under section in the amount of $4,000 and an allowable investment credit under section in the amount of $3,000, no declaration is required, since M's expected tax ($105,000) does not exceed the $100,000 plus the allowable credits totaling $7,000.
[T.D. 6768, 29 FR 14921, Nov. 4, 1964]