In general, S corporations are not required to pay estimated federal income taxes, but for the some states such as California, New York and New Jersey 'S' Corporation tax returns are required to pay the minimum state taxes.
These payments are usually made through estimated tax payments. Sometimes, additional tax liabilities occur for these states when revenue exceeds certain thresholds. For NJ the maximum tax is $2,000 and this liability should be paid through estimated tax payment vouchers to avoid underpayment interest and penalties.
I recommend that you perform a projection of your 2007 revenue to ascertain whether the applicable State revenue thresholds have been met and then make the necessary estimated tax payments accordingly with the help of your CPA.
Last edited by TaxGuru : 03-27-2007 at 09:49 AM.