S-Corps and Estimated Taxes

Owners of S-Corps often ask us if they have to pay quarterly estimated taxes.

According to the IRS, the answer is almost always no. There are rare circumstances, however, when S-Corps do have to pay.

Here's how the IRS describes that rare scenario:

An S Corporation must make installment payments of estimated tax if the total of the following taxes is $500 or more:

The tax on built-in gains
The excess net passive income tax
and The investment recapture tax.