• a surtax in the amount of 10% was imposed on any corporation that has $100,000,000 or more in gross income or that files as part of a combined or unitary return;

• the maximum preference tax applied to a Connecticut combined return was increased from $250,000 to $500,000;

• Connecticut decoupled from the federal deduction allowed for domestic production activities under I.R.C. §199; and
• Connecticut decoupled from the deferral of cancellation of debt income under I.R.C. §108(i). 

These legislative changes may increase a corporation’s required annual payment [1] for the 2009 taxable year.  As a result, a corporation’s 2009 installment or installment payments due on or after October 5, 2009, may need to be adjusted to reflect the increase.

To calculate the increased installment payment or payments due on or after October 5, 2009, for the corporation’s 2009 income year, please follow these steps:

 

Step 1.	For all installments of estimated tax due on or after October 5, 2009, estimate the corporation’s required annual payment taking into account the legislative changes noted above.
Step 2.	For the next installment of estimated tax due on or after October 5, 2009, multiply the amount calculated in Step 1 by the applicable percentage of tax due. [2]
Step 3.	Subtract from the amount calculated in Step 2 all installments of 2009 estimated tax already paid.
Step 4.	The amount calculated in Step 3 is the amount of the corporation’s next installment of estimated tax.

[1] A corporation’s required annual payment is the lesser of: 90% of the tax shown on the Connecticut corporation business tax return for the current income year, or if no return is filed, 90% of the tax for the year; or 100% of the tax shown on the Connecticut corporation business tax return for the previous income year without regard to tax credits, if the previous income year was an income year of 12 months and if the corporation filed a return for the previous income year showing a liability for tax.

[2] A corporation calculating its installments under the regular installment method must pay 30% of its required annual payment in its first installment, 70% of its required annual payment by its second installment, 80% of its required annual payment by its third installment and 100% of its required annual payment by its fourth installment.