Instructions for Form 6220 Alaska 

 Underpayment of Estimated Tax by Corporations

Purpose of the Form                                                        considered the original return if the amended return is filed by the 
                                                                           filing due date (including extension) of the original return.
A corporation uses Form 6220 to report the use of the annualized 
income installment method or the adjusted seasonal installment             Specific Instructions
method of calculating any estimated tax penalty.
                                                                           Attach Form 6220 to the income tax return (Form 6000, 6100, 
Due Date Alert                                                             or 6150) if the annualized income installment method or adjusted 
                                                                           seasonal installment method is used.
Because of recent federal law changes, the payment due date for 
Alaska corporate income tax has also changed, in most cases.               Line 1: Enter on line 1 the net income tax from Form 6000, 6100, 
This will impact the calculation of the underpayment of estimated          or 6150, Schedule A, line 9 less refundable credits on Schedule A, 
tax.  See Specific Instructions for line 11 below.                         line 11 and line 12. Do not enter an amount less than zero.

Who Must File                                                              Line 3: Subtract line 2d from line 1. If the result is less than $500,
                                                                           do not complete the rest of this form.
A corporation is required to complete and attach Form 6220 to 
its return, only if the corporation pays its estimated tax based           Line 4b: Compute your previous year’s tax in the same way that 
on the annualized income installment method or the adjusted                the amount on line 3 of this form was determined, using the taxes 
seasonal installment method. If neither  of  these  methods apply,         and credits from your previous year’s tax return. If you did not file 
a corporation is not required to use the form, because the DOR             an Alaska return showing a tax liability for the previous tax year, or 
will calculate the amount of any penalty and notify the corporation        if that tax year was for less than 12 months, do not complete this 
of any amount due.                                                         line. Instead, enter the amount from line 4a on line 4c.

Who Must Pay the Underpayment Penalty                                      Line 4c: Enter the lesser of line 4a or line 4b.

If the corporation did not pay sufficient estimated tax by any due         Line 5:  Enter in columns A through D the installment due dates
date for paying estimated tax, it may be charged a penalty. This           (the 15th day of the 4th, 6th, 9th and 12th months of the tax year).
is true even if the corporation is due a refund when its return is 
filed. The penalty is computed separately for each installment due         Line 6: Annualized income installment method or adjusted 
date. Therefore, the corporation may owe a penalty for an earlier          seasonal installment method: If the corporation’s income varied 
installment due date, even if it paid enough tax later to make up          during the year because, for example, it operated its business 
the underpayment.                                                          on a seasonal basis, it may be able to lower the amount of 
                                                                           one  or  more  required  installments  by  using  the  annualized 
Generally, a corporation is subject to the penalty if its tax liability,   income installment method or the adjusted seasonal installment 
net of all credits, is $500 or more and it did not pay on time the         method. The annualized income installment or adjusted seasonal 
lesser of: 100% of its tax liability for this tax year, or 100% of its tax installment may be less than the required installment under the 
liability for the previous tax year, if a return was filed showing a tax   regular method for one or more due dates, thereby reducing or 
liability, and it covered a full 12 months. (A “large corporation” may     eliminating the penalty for those due dates.
base only its first required installment on 100% of the prior year’s 
tax liability.) A corporation may be able to reduce or eliminate the       To use one or both of these methods to compute one or more 
penalty by using the annualized income or adjusted seasonal                required installments, use the worksheet for federal Form 2220, 
installment method.                                                        using Alaska figures, rates, and computations. Taxpayers must 
                                                                           calculate a cumulative quarterly Alaska apportionment factor for 
Check the applicable box, if the corporation uses the annualized           each required installment payment. The taxpayer calculates the 
income installment method or the adjusted seasonal installment             estimated Alaska taxable income by multiplying the cumulative 
method, or if the corporation is a “large corporation.” A “large           quarterly consolidated taxable income by the cumulative quarterly 
corporation”   is  a  corporation  (or its predecessor)  that reported     Alaska apportionment factor. If you use the worksheet for any 
$1 million or more of Alaska taxable income for any of the three           payment date, you must use it for all payment due dates.  Do not 
tax years immediately preceding the tax year involved. For this            enter an amount less than zero in each column.
purpose, taxable income does not include a net operating loss or 
capital loss carryback. Members of a controlled group, as defined          If you are not using the annualized income installment method or 
in IRS Section 1563, must divide the $1 million among themselves           adjusted seasonal installment method, and are completing Form 
in accordance with IRC Section 1561.                                       6220 to estimate the penalty for underpayment of estimated tax, 
                                                                           then follow the instructions below to compute the amount to enter 
Amended Returns                                                            on line 6, and complete the Penalty Worksheet below.

A penalty for underpayment of estimated tax is based on the                If the corporation is not a Large Corporation, enter 25% of line 4c 
tax liability of the original return. The amendment of the return          in columns A through D.
does not change the penalty. However, an amended return is 
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Large  Corporation:  A  Large  Corporation  may  not  base  its          Payment due dates (months after the end of the tax year) are as 
estimated tax payments on the previous year’s tax, except for the        follows:
first quarter. Any reduction in that first installment must be added 
to the second installment, so that the total of columns A–D is equal     •  C Corporations, generally:  
to line 4a, as follows:                                                          o  15th of the fourth month

If line 4b is less than line 4a, in column A enter 25% of line 4b. In         C Corporations, fiscal year ending June 30, 2018:  
                                                                         •
column B, determine the amount to enter by:                                      o  September 15, 2018
(i)     subtracting line 4b from line 4a,
(ii)    adding the result to the amount on line 4a, and                  •    S Corporations (all tax year-ends): 
(iii)   multiplying the total by 25%                                             o  15th of the third month

In columns C and D, enter 25% of line 4a.                                •    Exempt Organizations (all tax year-ends):  
                                                                                 o  15th day of the fifth month
Penalty Worksheet and Instructions
                                                                         •    Cooperatives (all tax year-ends):  
Use the worksheet below to estimate the penalty for underpayment                 o  15th day of the ninth month 
of estimated tax payments. Use additional worksheets to account 
for payments if more than four estimated payments were made for          A payment of estimated tax is applied against underpayment of 
the tax year.                                                            required installments in the order in which such installments are 
                                                                         required to be paid, regardless to which installment the payment 
Do not attach the Penalty Worksheet to the tax return. Keep the          pertains. If the corporation has made more than one payment for 
Penalty Worksheet with your other tax records.                           a required installment, compute the penalty separately for each 
                                                                         payment.
Line 1: Enter in column A through D the installment due dates 
from Form 6220 line 5.                                                   Line 12: Enter the number of days from the due date of the 
                                                                         installment on line 1 to the date shown on line 11.
Line 2: Enter in columns A through D the requirement installment 
from Form 6220, line 6                                                   Line 13: Enter the amount that is equal to the number of days on 
                                                                         line 12 divided by the number of days in the tax year times the 
Line 3: In column A, enter the estimated tax payments deposited          applicable rate times the amount on line 9. The applicable rate is 
by the 15th day of the 4th month of your tax year; in column B,          the Alaska interest rate in effect. For interest rates, refer to DOR’s 
enter payments made after the 15th day of the 4th month through          website at www.tax.alaska.gov.  
the 15th day of the 6th month of your tax year; in column C, enter 
payments made after the 15th day of the 6th month through the            Line 14: Add amounts on line 13 columns A–D. Enter on line 14 
15th day of the 9th month of your tax year; and in column D, enter       and on Schedule A, line 14 of Form 6000, 6100, or 6150.
payments made after the 15th day of the 9th month through the 
15th day of the 12th month of your tax year. For column A only, 
enter the amount from line 3 on line 7.
Generally, a prior year’s overpayment will be applied against the 
earliest installment, unless the taxpayer instructs the Department 
otherwise.

Line 7: Subtract line 6 from line 5. If less than zero, enter zero (for 
column A only, enter the amount from line 3)

Line 8:  If the amount on line 7 is zero, subtract line 5 from line 6
and enter the result on line 8. Otherwise, enter zero.

Line 9: If line 7 is less than or equal to line 2, subtract line 7 from 
line 2, enter the result, compute the penalty on line 13, and then go 
to line 4 of the next column. Otherwise, go to line 10.

Line 10: If line 2 is less than line 7, subtract line 2 from line 7 and
enter the result on line 10. Then go to line 4 of the next column.

Line 11:   Enter the date of payment or the final tax payment due 
date (see below) after the close of the tax year, whichever is earlier.  

The final payment due date depends on whether the taxpayer is 
a C Corporation, an S Corporation, or a special entity such as an 
Exempt Organization or Cooperative.  There are also special rules 
for tax years that end in June.

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    Penalty Worksheet                                             A             B C D
1.  Installment due dates from Form 6220, line 5
2. Requirement installment from Form 6220, line 6
3.  Amount paid or credited for each period
    Complete lines 4 through 10 for one column before completing the next column
4. Enter the amount, if any, from line 10 of the previous column
5.  Add lines 3–4
6. Add amounts on lines 8–9 of the preceeding column
7. Subtract line 6 from line 5 (see instructions)
8. Remaining underpayment from previous period
9.  Underpayment (see instructions)
10. Overpayment (see instructions)
11. Enter the date of payment (see instructions)
    Number of days from the due date of the installment on line 1 
12.
    to the date shown on line 11
13. Penalty for each period
14. Total penalty for underpayment of estimated tax

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