Neb. Admin. Code § 316-20-002 — Payment of Estimated Tax: Corporations and Certain Businesses; Overpayment of Estimated Tax

002.01 Every corporation or business which is taxed as a corporation under the Internal Revenue Code shall make payments of Nebraska corporation estimated income tax if the Nebraska tax liability for the taxable year can reasonably be expected to be $400 or more after deducting the total estimated allowable credits, which include the in lieu of intangible tax paid credit, the Community Development Assistance Act credit, the Nebraska Employment and Investment Expansion Act credit, the Nebraska Employment and Investment Growth Act credit, the Employment Expansion and Investment Incentive Act credit, the Invest Nebraska Act credit. the Beginning Farmer Tax credit, the Nebraska Advantage Rural Development Act credit, the Nebraska Advantage Microenterprise Tax credit, the Nebraska Advantage Research and Development Act credit, and the Nebraska Advantage Act credit. 002.02 If a unitary group is filing a combined return using the combined income approach, the group shall make its payment of Nebraska corporation estimated income tax on such basis. A statement should be attached to the Form 1120N-ES, setting forth the name, address and Nebraska identification number for each of the group members. 002.03 A corporation may, after the close of the taxable year and on or before the fifteenth day of the third month thereafter and before the day on which it files a return for such taxable year, file an application for an adjustment of an overpayment by it of estimated income tax for such taxable year. An application under this section shall not constitute a claim for credit or refund. The application shall be made by filing Form 4466N. 002.04 The Nebraska Department of Revenue will make a limited examination of the application to discover omissions and errors within forty-five days from the date on which an application for adjustment is filed. The Department of Revenue will determine the amount of the adjustment upon the basis of the application and the examination and may disallow, without further action, any application which it finds to contain material omissions or errors which it deems cannot be corrected within such forty-five days. The decision made by the Department of Revenue will be final and not subject to further review. 002.04A Upon approving the application, the Department of Revenue, within the forty-five day period, may credit the amount of the adjustment against any existing tax liability on the part of the corporation and will refund the remainder to the corporation. No application will be allowed unless the amount of the adjustment equals or exceeds (a) ten percent of the amount estimated by the corporation on its application as its income tax liability for the taxable year and (b) five hundred dollars. 002.05 Any adjustment shall be treated as a reduction in the estimated income tax paid, computed on the day the credit is allowed or the refund is paid. Any credit or refund of an adjustment shall be treated as if not made when determining whether there has been any underpayment of estimated income tax under Reg-20-008 and if there is an underpayment, the period during which the underpayment existed. 002.06 Income tax liability shall mean the excess of the income tax imposed under the Nebraska Revenue Act, as amended, reduced by the credits against the tax provided by state law. The amount of an adjustment authorized under this regulation shall be equal to the excess of the estimated income tax paid by the corporation during the taxable year reduced by the amount which, at the time of filing the application, the corporation estimates as its income tax liability for the taxable year. 002.07 If members of a unitary group paid their estimated income tax on a consolidated basis, the common parent corporation must file the Form 4466N. If members of the group paid estimated income tax separately, each member who claims an overpayment must file Form 4466N separately. 002.08 If any adjustment made by the Nebraska Department of Revenue is later found to be excessive, interest at the statutory rate will be due on the amount of the excessive adjustment, calculated from the date the adjustment was made until the original due date of the corporation's return. 002.09 The excessive amount is the lesser of: 002.09A The amount of the adjustment, or 002.09B The excess of the corporation's income tax liability as shown on its return over the estimated tax paid less the adjustment allowed. (Sections 77-2769, 77-2769.01, 77-27,188, and 77-4106, R.R.S., 2003, and section 77-2734.03, R.S.Supp.,2005. March 7, 2006.)