WHAT IS THE PENALTY FOR UNDERPAYMENT OF THE ESTIMATED TAX?
A. Interest at the rate of 1 1/4% per month or fraction thereof will be assessed on the portion of the estimated tax not timely paid. Computation of New Additional Tax [12-219(1)(B)] A corporation, which is taxable both within and without the state, is entitled to apportion 10% of its net income to Connecticut (its entire net income). Its net income is $500,000; its officers’ salaries and other compensation are $100,000. Entire net income (net income apportioned to Connecticut) $50,000 Apportioned officers’ salaries and other compensation (10% of total officers’ salaries and other compensation) 10,000 Total $60,000 Measure of tax (50% of Total) 30,000 Tax (5% of the Measure) 1,500 The above questions were submitted at seminars conducted by the Connecticut Bar Association, Association of Certified Public Accountants and Association of Public Accountants. The answers to the questions are submitted to aid and assist the practitioner and taxpayer in understanding the provisions of the Unin
