Terms Used In Florida Regulations 12C-1.034

  • Amendment: A proposal to alter the text of a pending bill or other measure by striking out some of it, by inserting new language, or both. Before an amendment becomes part of the measure, thelegislature must agree to it.
  • Answer: The formal written statement by a defendant responding to a civil complaint and setting forth the grounds for defense.
  • Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
  • Fiscal year: The fiscal year is the accounting period for the government. For the federal government, this begins on October 1 and ends on September 30. The fiscal year is designated by the calendar year in which it ends; for example, fiscal year 2006 begins on October 1, 2005 and ends on September 30, 2006.
  • Liabilities: The aggregate of all debts and other legal obligations of a particular person or legal entity.
  • Partnership: A voluntary contract between two or more persons to pool some or all of their assets into a business, with the agreement that there will be a proportional sharing of profits and losses.
    (1) Definition.
    (a) Florida Statutes § 220.24(1), defines “estimated tax” as the amount which the taxpayer estimates to be the Florida corporate income/franchise tax due for the taxable year.
    (b) “Estimated tax,” for the purposes of this rule, is the estimate of net corporate income/franchise tax due after credits.
    (c) Estimated tax payments are prepayments of tax and are not tax paid, since Florida Statutes § 220.34(1), provides that amounts paid as estimated tax are deemed assessed on the taxpayer’s original due date for filing the corporate income/franchise tax return.
    (2)(a) Except for taxpayers with a June 30 taxable year end, a declaration of estimated tax must be filed before the first day of the sixth month of the taxable year, if the taxpayer can reasonably expect before the first day of the fourth month to owe more than $2,500 in tax for the taxable year.
    (b) Taxpayers with a June 30 taxable year end must file a declaration of estimated tax before the first day of the fifth month of the taxable year, if the taxpayer can reasonably expect before the first day of the fourth month to owe more than $2,500 in tax for the taxable year.
    (c) Installment due dates that fall on a Saturday, Sunday, or legal holiday extend to the next business day, with the exception of installments due on the last day of June, which must be paid on or before the last Friday of June.
    (d) For a list of deadlines for initiating electronic payments on time, visit www.floridarevenue.com/forms, select the e-Services section, and then select the current year Florida e-Services Calendar of Due Dates (Form DR-659).
    (3) Reasonably Expect.
    (a)1. The phrase “reasonably expect” implies a forecast of tax owed. The estimated tax is based upon the amount of Florida net income which the taxpayer can reasonably expect to receive or accrue, based on the facts and circumstances existing at the time prescribed for filing the declaration, as well as those reasonably anticipated for the taxable year.
    2. The phrase “reasonably expect” does not imply that a taxpayer can wait until more than $2,500 of tax is actually due on income already earned.
    3. A business is required to make a declaration of estimated tax by the date specified in subsection (2), even though income may not actually be earned until later in the taxable year. For example, a seasonal business that can reasonably expect before the first day of the fourth month to owe more than $2,500.00 for the taxable year will be required to make a declaration of estimated tax before the first day of the sixth month of the taxable year (before the first day of the fifth month of the taxable year for a taxpayer with a June 30 taxable year end). Therefore, a Christmas shop with a taxable year ending January 31, 2018, will be expected to make a declaration before July 1, 2017 (the first day of the sixth month following the end of the taxable year) if the corporation reasonably expects to owe more than $2,500.00 in tax for the tax year. It does not matter whether the corporation is making sales by that date or not.
    (b) In determining whether a corporation that existed for a full 12 months during the prior year can reasonably expect to owe more than $2,500.00 in tax, the Department will consider the taxpayer’s past payment history and circumstances.
    (c) If the tax due for the corporation’s prior taxable year exceeded $2,500.00, there is a presumption that the taxpayer can reasonably expect to owe more than $2,500 in the current taxable year.
    (d) In considering a factual determination of a specific taxpayer, the Department will consider the following factors:
    1. General economic conditions;
    2. Economic conditions of a specific industry;
    3. Cause and timing of taxable income.
    (e) There is no first year exception from filing the declaration by the date specified in subsection (2), and making payments of estimated tax in accordance with the time limitations set by Florida Statutes § 220.33(1)
    (4) The Department of Revenue combines the declaration of estimated tax and the payment of the first installment into the Declaration/Installment of Florida Estimated Income/Franchise Tax (Form F-1120ES, incorporated by reference in rule 12C-1.051, F.A.C.).
    (5)(a) When the due date of the declaration of estimated tax is before the first day of the sixth month (before the first day of the fifth month for taxpayers with a June 30 taxable year end), there must be four equal installments.
    (b) Estimated tax payments are then due before the first day of the sixth month (before the first day of the fifth month for taxpayers with a June 30 taxable year end), before the first day of the seventh month, before the first day of the tenth month, and before the first day of the next taxable year. For calendar year taxpayers, estimated tax payments are due May 31, June 30, September 30, and December 31.
    (6) There are no provisions for annualization. Florida Statutes § 220.33, requires equal installments based on the due date of the declaration.
    (7) Amended declarations. A declaration of estimated tax is based upon a reasonable projection of tax liability. A declaration must be adjusted when the taxpayer determines that circumstances have developed that materially change the amount of estimated tax reported in the declaration. The remaining estimated tax payments must be increased or decreased to reflect the adjusted projected income.
    (8) Overpayments of Estimated Tax.
    (a)1. A taxpayer must make an irrevocable election on its annual Florida corporate income/franchise tax return to designate an overpayment as an estimated tax payment for the subsequent taxable year or an amount to be refunded.
    2. The decision to apply an overpayment to the subsequent year’s estimated tax payments may not be changed to request a refund.
    3.a. If a taxpayer files an amended return for a tax year that reports an overpayment of tax, the taxpayer may elect to use the overpayment as a credit against estimated tax for a subsequent taxable year or may request a refund of the overpayment. The overpayment of tax may not be credited against estimated tax payments for a closed taxable year.
    b. Example: A calendar year taxpayer in 2018 amends the 2015 Florida corporate income/franchise tax return pursuant to a federal adjustment that impacted Florida taxable income. The result of the amendment is that the taxpayer has overpaid the tax due for 2015. The overpayment may be refunded or credited to the 2018 estimated tax payments. The overpayment may not be credited to estimated tax payments for the 2016 or 2017 taxable year.
    (b) In the case of an overpayment for a taxable year for which a Florida corporate income/franchise tax return has been filed, the properly executed return constitutes a claim for refund or credit.
    (c)1. If a taxpayer requests that an overpayment be applied to estimated tax for the succeeding tax year, the application will be to the first estimated tax payment of the next tax year, even if the return is filed after the due date for the first payment.
    2. Example: A calendar year taxpayer requested an extension of the filing date for the 2016 Florida corporate income/franchise tax return from May 1, 2017, until November 1, 2017. The first payment of estimated tax for the succeeding tax year is due May 31, 2017. The 2016 return is filed on September 29, 2017. If the taxpayer requested that the overpayment of estimated tax be applied to the next tax year, the overpayment is applied effective May 31, 2017.
    (d) The Department will not pay interest on an overpayment that a taxpayer has elected to apply as an estimated payment to a subsequent taxable year.
    (e) There are no provisions within the Florida Statutes for a “quick refund” if the estimated tax is overpaid. A taxpayer may not claim a refund of estimated tax paid until the Florida corporate income/franchise tax return is filed for that tax year.
    (9) Underpayment of estimated tax.
    (a) Definition. The amount of the underpayment for any installment date is the excess of:
    1. The amount of the installment which would be required to be paid if the estimated tax were equal to 90 percent of the tax shown on the return for the taxable year or, if no return was filed, 90 percent of the tax for such year, over
    2. The amount, if any, of the installment paid on or before the last day prescribed for payment.
    (b)1. No penalty or interest will be imposed for any underpayment of any installment of estimated tax if, on or before the date prescribed for payment of the installment, the total amount of all payments of estimated tax made equals or exceeds the amount which would have been required to be paid on or before such date if the estimated tax were the lesser of the following amounts:
    a. An amount equal to a tax computed at the rates applicable to the taxable year but otherwise on the basis of the facts shown on the return for the preceding taxable year and the law applicable to the preceding year, provided that the preceding taxable year was a year of 12 months and a return was filed for such year; or,
    b. An amount equal to 90 percent of the tax finally due for the taxable year.
    c.(I) A contribution to an eligible nonprofit scholarship-funding organization (SFO) for a corporate income tax credit pursuant to Florida Statutes § 220.1875, reduces the amount required to meet the prior year exception referenced in sub-subparagraph a. For taxable years beginning before January 1, 2018, the specific prior year exception amount reduced by a contribution to an SFO is determined by the date of contribution on the certificate of contribution issued by the SFO. For taxable years beginning on or after January 1, 2018, a taxpayer may, after earning a tax credit under Florida Statutes § 220.1875, reduce any estimated payment in that taxable year by the amount of the credit. Cross reference: rule chapter 12-29, F.A.C.
    (II) Example: A calendar year taxpayer remitted four estimated payments of $16,000 each on May 31, 2017; June 30, 2017; September 30, 2017; and December 31, 2017. The taxpayer also made a $15,000 contribution to an SFO and was issued a certificate of contribution on June 20, 2017, which generated a tax credit for the taxpayer. For the prior tax year ending December 31, 2016, corporate income tax of $80,000 was due. Taxpayer’s prior year exception computation is as follows:

Due dates of installments
(1st)
5/31/2017
(2nd)
6/30/2017
(3rd)
9/30/2017
(4th)
12/31/2017
Current year: Total cumulative amount paid (or credited) from the beginning of the taxable year through the installment date indicated
16,000.00
32,000.00
48,000.00
64,000.00
(a) Prior year exception: Tax on prior year’s income using current year’s rates
25% of tax
20,000.00
50% of tax
40,000.00
75% of tax
60,000.00
100% of tax
80,000.00
(b) Cumulative donations made to SFOs from the beginning of the taxable year through the installment date indicated. Certificate of contribution must be issued on or before installment due date.
0.00
0.00
15,000.00
15,000.00
(c) The prior year exception adjusted for the credit for contributions to SFOs per Section 1002.395(5)(g), F.S., equals (a) less (b)
20,000.00
40,000.00
45,000.00
65,000.00
Installment meets prior year exception? To answer Yes, Current year must equal or exceed Prior year (c).
No
No
Yes
No
Taxpayer has met the prior year exception for the third installment through a combination of estimated payments and SFO credit so that estimated tax penalty and interest will not apply for the third installment.
    (III) Example: A calendar year taxpayer remitted four estimated payments of $10,000 each on May 31, 2017; June 30, 2017; September 30, 2017; and December 31, 2017. The taxpayer also made four $10,000 contributions to an SFO and was issued certificates of contribution on May 31, 2017; June 30, 2017; September 30, 2017; and December 31, 2017. For the prior tax year ending December 31, 2016, corporate income tax of $80,000 was due. Taxpayer’s prior year exception computation is as follows:
Due dates of installments
(1st)
5/31/2017
(2nd)
6/30/2017
(3rd)
9/30/2017
(4th)
12/31/2017
Current year: Total cumulative amount paid (or credited) from the beginning of the taxable year through the installment date indicated
10,000.00
20,000.00
30,000.00
40,000.00
(a) Prior year exception: Tax on prior year’s income using current year’s rates
25% of tax
20,000.00
50% of tax
40,000.00
75% of tax
60,000.00
100% of tax
80,000.00
(b) Cumulative donations made to SFOs from the beginning of the taxable year through the installment date indicated. Certificate of contribution must be issued on or before installment due date.
10,000.00
20,000.00
30,000.00
40,000.00
(c) The prior year exception adjusted for the credit for contributions to SFOs per Section 1002.395(5)(g), F.S., equals (a) less (b)
10,000.00
20,000.00
30,000.00
40,000.00
Installment meets prior year exception? To answer Yes, Current year must equal or exceed Prior year (c).
Yes
Yes
Yes
Yes
Taxpayer has met the prior year exception for all four installments through a combination of estimated payments and SFO credit so that estimated tax penalty and interest will not apply to any of the four installments.
    (IV) Example: A calendar year taxpayer remitted four estimated payments of $18,000 each on May 31, 2018; June 29, 2018; October 1, 2018; and December 31, 2018. The taxpayer also made a $17,000 contribution to an SFO and was issued a certificate of contribution on June 20, 2018, which generated a tax credit for the taxpayer. For the prior tax year ending December 31, 2017, corporate income tax of $90,000 was due. Taxpayer’s prior year exception computation is as follows:

Due dates of installments
(1st)
5/31/2018
(2nd)
6/29/2018
(3rd)
10/1/2018
(4th)
12/31/2018
Current year: Total cumulative amount paid (or credited) from the beginning of the taxable year through the installment date indicated
18,000.00
36,000.00
54,000.00
72,000.00
(a) Prior year exception: Tax on prior year’s income using current year’s rates
25% of tax
22,500.00
50% of tax
45,000.00
75% of tax
67,500.00
100% of tax
90,000.00
(b) Cumulative donations timely made to SFOs for the taxable year. Certificate of contribution must be issued for the taxable year.
17,000.00
17,000.00
17,000.00
17,000.00
(c) The prior year exception adjusted for the credit for contributions to SFOs per Section 1002.395(5)(g), F.S., equals (a) less (b)
5,500.00
28,000.00
50,500.00
73,000.00
Installment meets prior year exception? To answer Yes, Current year must equal or exceed Prior year (c).
Yes
Yes
Yes
No
Taxpayer has met the prior year exception for the first three installments through a combination of estimated payments and SFO credit so that estimated tax penalty and interest will not apply for the first, second, or third installment.
    2.a. A taxpayer may not use the prior year exception if the previous tax year was for a short tax year (not a full 12 months), except where the short periods are due to a change in accounting period.
    b.(I) The taxpayer may not use a total of the tax liability for 2 or more short periods to qualify for a prior year exception, except where the short periods are due to a change in accounting period. The prior year exception is denied even where there is continuity of business. If a short period return is required for federal and Florida purposes, the taxpayer is denied the use of the prior year exception for the subsequent tax year.
    (II) Example: Corporation C was part of affiliated group ABC, which filed a federal consolidated income tax return for the 2016 and 2017 tax years. For Florida corporate income/franchise tax purposes, Corporation C has always filed a separate return. On June 1, 2017, the stock of Corporation C was bought by Corporation X. Corporation C has two taxable years for 2017 for federal income tax purposes, and, therefore, for Florida corporate income/franchise tax purposes even though it has always filed a separate Florida corporate income/franchise tax return. For the first taxable year within 2017 (January 1 through May 31, 2017), Corporation C may base estimated tax payments on a prior year exception (January 1, 2016, through December 31, 2016). Corporation C may not use the prior year exception for the second taxable year within 2017 (June 1, 2017, through December 31, 2017). Furthermore, Corporation C cannot use a prior year exception for the 2018 tax year.
    3. See subsection (12) of this rule concerning special rules for estimated tax payments required in short years.
    (c) Whether a taxpayer has met the requirements to not be penalized for underpayment of estimated tax is evaluated for each installment; there are no provisions for annualization.
    (d)1. The term “tax” means the tax imposed by chapter 220, F.S., minus amounts properly credited against such tax for the taxable year. Payments of estimated tax and payments of tentative tax are not “amounts properly credited.”
    2. For taxpayers subject to tax under chapter 220, part II, F.S., “tax” means the tax imposed by Florida Statutes § 220.11, minus the allowable credits in the order specified in Florida Statutes § 220.02(8) For banks and savings associations subject to the franchise tax under chapter 220, part VII, F.S., “tax” means the tax imposed by Florida Statutes § 220.63, minus the allowable credits in the order specified in Florida Statutes § 220.02(8)
    3. The computations under paragraphs (a) and (b) of this subsection are based on the return as filed, except where the amount finally determined to be due is less than the amount shown on the return. If no return was filed, the computation is based on the appropriate tax liability and credit allowable under chapter 220, F.S.
    4. Example: Taxpayer A, who is subject to tax under part II of chapter 220, F.S., filed Form F-1120. The return shows “Total Income/Franchise Tax Due” of $5,000, “Estimated Tax Payments” of $500, and a “Total amount due or overpayment” of $4,500. For the purposes of paragraphs (a) and (b) of this subsection, the “tax” shown on the return or finally due for such year is the “Total Income/Franchise Tax Due” on the return or $5,000. The estimated tax payments are not amounts properly credited against “tax” for this purpose.
    (e) No estimated tax penalty is due when the taxpayer filed a return for the preceding year showing a tax liability in an amount of $2,500 or less.
    (f) If a corporation merges with another corporation, the “prior year exception” is based on the prior year’s return of the surviving corporation.
    (g) Period of underpayment.
    1. For taxpayers with a June 30 taxable year end, the computation of interest and penalty for underpayment of any installment of estimated tax begins on the day following the date such installment is required to be paid and ends on the first day of the fourth month following the close of the taxable year, or the date such underpayment is paid, whichever is earlier. For all other taxpayers, the computation of interest and penalty for underpayment of any installment of estimated tax ends on the first day of the fifth month following the close of the taxable year, or the date such underpayment is paid, whichever is earlier.
    2.a. For purposes of determining the period of the underpayment, the date prescribed for the payment of any installment shall be determined without regard to any extensions of time. A payment of estimated tax on any installment date, to the extent that it exceeds the amount of the installment determined under subparagraph (b)1. of this subsection for such date, shall be considered a payment of the previous underpayment, if any. If no previous underpayment exists, this amount will be applied as a payment toward the next installment.
    b.(I) If a payment is made between installment dates, it will be applied to the earliest installment due, to the extent of any deficiency in payments. However, penalty and interest will apply from the original due date of the installment until the date paid.
    (II) Example: A calendar year taxpayer made payments on May 31, July 25, September 30, and December 31. The July 25 payment was due June 30. Therefore, interest and penalty will apply for the period July 1 through July 25.
    (III) The prior year exception to penalty only applies to requirements for timely made payments. If payments are not timely, the estimated penalty will be calculated based on the minimum installment due for 90 percent of the tax.
    (h) A corporation will not be disqualified from using the prior year exception merely because it did not meet the exception for a prior installment period. Each installment will be evaluated to determine whether the installment is underpaid per Section 220.34(2)(b), F.S., and whether the corporation is excepted from penalty under the provisions of the prior year exception.
    (i) The taxpayer is liable for interest at the rate determined under Florida Statutes § 220.807, upon the amount of any underpayment of estimated tax. The taxpayer is also liable, per section 220.34(2)(a), F.S., for penalty at the rate of 12 percent per annum upon the amount of any underpayment of estimated tax.
    (10) Controlled/Affiliated groups. Consolidated return not filed in prior year.
    (a) The manner in which the members of a controlled group of corporations (as defined in s. 1563, I.R.C.), allocate the exemption allowed under Florida Statutes § 220.14, among members for purposes of filing the annual Florida corporate income/franchise tax return is binding upon all the members with respect to the estimated tax, including whether a declaration is required and the computation of penalties and interest on underpayments.
    (b)1. If an affiliated group is not required to file a consolidated declaration of estimated tax for a taxable year because the parent corporation has not elected to file a Florida consolidated tax return pursuant to Florida Statutes § 220.131, then each member shall be treated as a separate taxpayer for purposes of sections 220.24 and 220.33, F.S. That is, each member of the affiliated group will be required to file separate declarations of estimated tax and make separate payments of estimated tax.
    2. If the members of a group are treated as separate taxpayers for the taxable year under subparagraph (b)1., then each member is entitled to a separate $2,500 estimated tax threshold for purposes of determining requirements for making a declaration of estimated tax under Florida Statutes § 220.24(1), for such year.
    (c)1. If an affiliated group files a Florida consolidated tax return for the taxable year, the amounts of any estimated tax payments made by the individual group members for such year prior to the filing of the consolidated return are credited against the tax liability of the group.
    2. The amount of the installment required to be paid is equal to 90 percent of the tax shown on the return for the taxable year (see section 220.34(2)(b)1., F.S.). The “tax shown on the return” is the tax shown on the Florida consolidated tax return.
    3. The exception provided by section 220.34(2)(d)1., F.S., will not apply in the year an affiliated group first files a Florida consolidated tax return.
    (11) Affiliated group. Consolidated tax return filed in prior year.
    (a)1. General Rule. After an affiliated group files a Florida consolidated tax return, it must file its declaration of estimated tax on a consolidated basis for each subsequent taxable year until such time as the affiliated group is granted permission to file separate Florida tax returns under Florida Statutes § 220.131 Until such time, the group is treated as a single taxpayer for purposes of making a declaration of estimated tax and making payments of estimated tax.
    2. If an affiliated group files a Florida consolidated tax return for the taxable year, it is limited to a single $2,500 estimated tax threshold for purposes of determining requirements for filing a declaration of estimated tax. For purposes of determining an amount equal to the tax computed at the rates applicable to the taxable year, but otherwise on the basis of the facts shown on the return for, and the law applicable to the preceding taxable year (see section 220.34(2)(d)1., F.S.), the “facts shown on the return” are the facts shown on the Florida consolidated tax return for the preceding year.
    (b)1. If, after filing Florida consolidated tax returns, the affiliated group is granted permission to file separate Florida tax returns under Florida Statutes § 220.131, the amount of any estimated tax payments made with respect to a consolidated declaration of estimated tax for such year will be credited against the separate tax liabilities of the members in the manner designated on a statement from the common parent. This statement must be attached to the Florida corporate income/franchise tax returns of each member of the affiliated group, setting forth the name, address, and federal employee identification number of each member, and the amount of estimated tax payment that will be allocated to each member.
    2. Each member of the group is entitled to a separate $2,500 estimated tax threshold for purposes of determining requirements for making a declaration of estimated tax under Florida Statutes § 220.24(1), for such year. For purposes of section 220.34(2)(b)2., F.S., the “amount, if any, of the installment paid” by any member is an amount apportioned to such member in any manner designated by the common parent. The exception provided by section 220.34(2)(d)1., F.S., will not apply to an affiliated group filing separate Florida tax returns in a year immediately following a year in which a Florida consolidated tax return was filed.
    (12) Short taxable years.
    (a) A separate declaration is required if the taxpayer is required to file an income tax return for a period of less than 12 months. However, no declaration will be required if the short taxable year is:
    1. A period of less than 4 months, or
    2. A period of 4 or more months but less than 12 months and the requirements of Florida Statutes § 220.24, are not met before the first day of the last month in the short taxable year.
    (b)1. In the case of a corporation that is required to file a declaration of estimated tax for a short taxable year, the corporation must file the declaration of estimated tax and make payments of estimated tax in accordance with the time periods prescribed in subsections (5) and (6) of this rule.
    2. However, the declaration must be filed before the first day of the next taxable year if the taxpayer can reasonably expect to owe more than $2,500 in estimated tax before the first day of such last month and the date specified in subsections (5) and (6) as applicable is not within the short taxable year.
    3. Any estimated tax payable in installments which is not paid before the first day of the next taxable year, whether or not the date otherwise specified in Florida Statutes § 220.33, for payment has arrived, must be paid on the first day of the first month succeeding the last month of the short taxable year.
    (c) The application of the provisions of paragraphs (a) and (b), is illustrated by the following examples:
    1. Example (1): A taxpayer filing on a calendar year basis that changes to a fiscal year beginning September 1, 2017, will have a short taxable year beginning January 1, 2017, and ending August 31, 2017. If the corporation can reasonably expect to owe more than $2,500 in estimated tax before April 1, 2017, the first day of the fourth month of the taxable year, the declaration of estimated tax must be filed before June 1, 2017 (the first day of the sixth month).
    2. Example (2): If, in the first example, the taxpayer could not reasonably expect to owe more than $2,500 in estimated tax until July 1, 2017, then the requirements of Florida Statutes § 220.24, were met before the first day of the last month of the short taxable year, and a declaration of estimated tax is required to be filed before September 1, 2017, for the short taxable year. However, if the taxpayer does not reasonably expect to owe more than $2,500 in tax until August 1, 2017, then the requirements of Florida Statutes § 220.24, were not met before the first day of the last month of the short taxable year, and no declaration of estimated tax is required to be filed for the short taxable year.
    3. Example (3): The taxable year for a corporation that has elected to be a calendar year taxpayer began June 1, 2017. The taxable year is, therefore, June 1, 2017, through December 31, 2017. The taxpayer can reasonably expect by August 31, 2017 (before the first day of the fourth month of the taxable year), to owe $10,000 in tax. The declaration of estimated tax must be filed before November 1 (the first day of the sixth month of the taxable year). Payments of estimated tax would be due October 31, November 30, and December 31. The taxpayer must pay at least 90 percent of the tax finally determined to be due. The tax finally determined to be due was $10,000; therefore, the taxpayer must pay at least $9,000 in estimated tax to avoid being underpaid. The provisions of Florida Statutes § 220.33, provide for four equal installments if the declaration is required to be filed before the first day of the sixth month of the taxable year. The taxpayer will not be underpaid if the payments due October 31 and November 30 are each at least $3,000 (one-third of $9,000). The payment made on December 31 must be the remaining balance of $3,000.
    (d)1. In cases where the short taxable year results from a change of annual accounting period, for the purpose of determining whether the anticipated income for a short taxable year will result in an estimated tax liability requiring the filing of a declaration, the estimated tax liability is computed in part by subtracting a prorated exemption from the anticipated income. The prorated exemption is computed by multiplying the exemption allowed under Florida Statutes § 220.14, by a fraction, the numerator of which is the number of days in the short taxable year, and the denominator of which is 365.
    2. For example, a taxpayer that changes from a calendar year basis to a fiscal year basis beginning October 1, 2017, will have a short taxable year beginning January 1, 2017, and ending September 30, 2017. If on or before August 31, 2017, the taxpayer anticipates that it will have income of $87,750 for the 9-month taxable year, the estimated tax is computed as follows:
Anticipated income for 9 months
$87,750.00
Less prorated exemption ($50,000 x 273/365)
– 37,397.00
Florida net income
$50,353.00
Estimated tax for 9-month period

($50,353 x 5.5 percent)
$2,769.42
Since the tax liability on the annual income is in excess of $2,500, a declaration is required to be filed, reporting an estimated tax of $2,769.42 for the 9-month taxable period. This paragraph does not apply in any case where the short taxable year does not result from a change in the taxpayer’s annual accounting period.
    (e) If the taxable year for which an underpayment of estimated tax exists is a short taxable year due to a change in annual accounting periods, in determining the tax based on the current year rates but otherwise on the basis of the facts shown on the return for the preceding taxable year and the law applicable to the preceding year for purposes of section 220.34(2)(d)1., F.S., the tax will be reduced by multiplying it by the number of months in the short taxable year and dividing the resulting amount by 12. The application of the exception provided in section 220.34(2)(d)2., F.S., shall be determined as if the estimated tax were 90 percent of the tax finally due for the short taxable year.
    (f) Where a declaration of estimated tax has been filed for a short taxable year, an amended declaration may be filed during any interval between installment dates. The amended declaration may not be filed until after the installment date on or before which the original declaration is filed. For purposes of this paragraph, the term “installment date” includes the last day of the taxable year if such last day does not fall on a prescribed installment date.
    (13) Miscellaneous provisions.
    (a) There are no special estimated tax requirements for large corporations.
    (b) A taxpayer may use the prior year exception, even if the corporation had a net operating loss the prior year, only when the prior year was a full 12-month tax year.
    (c) When an “S” Corporation changes its status to a “C” Corporation, the corporation must make estimated tax payments in the year it converts when its tax liability can be expected to exceed $2,500. An “S” Corporation that becomes a “C” Corporation cannot use a prior year exception. The corporation cannot use the tax paid to Florida as an “S” Corporation to relieve it from filing estimated tax payments. However, a corporation that has converted from “S” to “C” status will be allowed to base estimates on the prior year’s income and the tax computed on such income as if it were a “C” Corporation in the prior year.
    (d) Partnerships that convert from partnership status to corporation status may not use a prior year exception based on the prior year’s income and the tax computed on such income as if it were a “C” Corporation in the prior year.
Rulemaking Authority 213.06(1), 220.24, 220.34(2)(f), 220.34(3), 220.51, 1002.395(13) FS. Law Implemented 213.21, 220.131, 220.24, 220.241, 220.33, 220.34, 1002.395 FS. History—New 10-20-72, Amended 10-20-73, 7-27-80, 12-18-83, Formerly 12C-1.34, Amended 12-21-88, 4-8-92, 5-17-94, 3-18-96, 3-13-00, 9-28-04, 7-28-15, 1-10-17, 1-17-18, 1-8-19.