A seasonal business is one which earns seventy percent (70%) or more of its gross income in a period of six successive months or less. A business who is required to make payments under MCC 12.520 or PCC 7.02.520 Quarterly Estimates, and qualifies as a seasonal business may make quarterly payments timed with the season in which income is generated. To use the seasonal business quarterly payment method, the business must petition and receive approval in advance from the Revenue Division. A petition requesting use of the seasonal business quarterly payment method must be submitted to the Division no later than the due date of the 1st quarterly estimated payment required by the codes.
Example: Santa's Workshop, Inc. is a calendar year seasonal business which generates 80% of its income from September to December. A petition requesting the use of the seasonal business quarterly payment method was filed prior to April 15th, and approved by the Division. Santa's Workshop has the option to pay quarterly estimates as follows:
1. First quarter payment - $0
2. Second quarter payment - $0
3. Third quarter payment - 1/4 of estimated tax liability
4. Fourth quarter payment - Balance due (3/4) of total estimated tax liability
Amended by Director of Revenue Bureau August 10, 2009.
Amended by Director of Revenue Division October 1, 2015.