NET PROFIT ESTIMATED PAYMENT FILING INSTRUCTIONS

Every business entity, other than a sole proprietorship, subject to taxation under KRS 92.281, shall make quarterly estimated tax payments on or before the fifteenth day of the fourth, sixth, ninth and twelfth month of each taxable year if the tax liability for the taxable year exceeds five thousand dollars ($5,000).

The quarterly estimated tax payments required shall be based on the lesser of:

a) Twenty-two and one-half percent (22.5%) of the current taxable year tax liability;

b) Twenty-five percent (25%) of the preceding full year taxable year tax liability; or

c) Twenty-five percent (25%) of the average tax liability for the three (3) preceding full year taxable year’s tax liabilities if the tax liability for any of the three (3) preceding full taxable years exceeded twenty thousand dollars ($20,000).

Any business entity that fails to submit the required minimum quarterly payment by the due date for the quarterly payment shall pay an amount equal to twelve percent (12%) per annum simple interest on the amount of the quarterly payment from the earlier of:

a) The due date for the quarterly payment until the time when the aggregate quarterly payments submitted for the taxable year equal the minimum aggregate payments due: or

b) The due date of the annual return.

A fraction of month is counted as an entire month. Estimated payments are not required for any business entity’s first full or partial taxable year of doing business in Georgetown/Scott County or any first taxable year in which a business entity’s tax liability exceeds five thousand dollars ($5,000).