Corporate Estimated Tax Requirements

Corporations are required to make four quarterly estimated tax payments. For calendar year corporations, these are due on April 15, June 15, September 15, and December 15. The Act provides that 25% of any corporate estimated tax installment due in September 2003 is not due until October 1, 2003.

KPMG Observation

In addition to this change (which applies only in 2003), a similar provision enacted in 2001 defers 20% of the corporate estimated tax installment due in September 2004 until October 1, 2004.


Temporary State Fiscal Relief

The Act provides approximately $20 billion in aid to states, including:

  • $10 billion ($5 billion in fiscal years 2003 and 2004) in general appropriations for essential governmental services, to be divided among the states based on population
  • $10 billion for increased Medicaid payments, generally an additional 2.95% per state for the second half of fiscal year 2003 and first three quarters of 2004
Sunset Provision

All of the changes made by the Act cease to apply for tax years beginning in 2009. At that time, the changes sunset.

* All section references are to the Internal Revenue Code of 1986, as amended.
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