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        ┌───────────────────────────────────────────────┐
        │  INCOME TAXES AND ESTIMATED TAX REQUIREMENTS  │
        └───────────────────────────────────────────────┘

Individual federal income tax rates for 1997 (for joint
filers) are as follows:

            Taxable Income
               Bracket                Tax Rate and Amount
           ----------------          ---------------------
           $0 to $41,200             15% of Taxable Income

           Over $41,200, up          $6,180 plus 28% of
             to $99.600               excess over $41,200

           Over $99,600              $22,532 plus 31%* of
                                      excess over $99,600

           Over $151,750             $38,698.50 plus 36%* of
                                      excess over $151,750

           Over $271,050             $81,646.50 plus 39.6%*
                                      of excess over $271,050


(* The actual marginal rate for taxpayers with Adjusted
   Gross Income over $121,200 may be higher, by another
   1%, roughly, if they have certain kinds of itemized
   deductions which are subject to a phase-out, equal to
   a 3% reduction in allowable itemized deductions for AGI
   in excess of $121,200.  In addition, joint filers with
   AGI over $181,800 will have part of their personal
   exemptions phased out, at a rate of 2% of the exemption
   amount for each $2500 of AGI, or fractional portion of
   $2500, in excess of $181,800.  This would add 1/2% to
   3/4% to the effective tax rate for each personal exemption
   claimed, depending on the tax bracket.  Thus, for a
   family of four in the 36% tax bracket, with AGI in the
   phase-out range for both itemized deductions and personal
   exemptions, the effective marginal tax rate on each
   additional dollar of income would be about 37 to 38% in
   1997.)

Each of the rate brackets noted above is indexed for
inflation in each year.  If your filing status is other than
married, filing jointly, the size of each of the above
brackets is smaller.  For example, for a single person, the
15% bracket ends at only $24,650 of income, rather than at
the $41,200 level for married filing joint, in 1997.

1997 federal income tax returns for individuals are due on
April 15, 1998, although an automatic extension of time to
file (but not an extension of time to pay the tax due) to
August 15, 1998, is available, simply by filing Form 4868
and paying the approximate tax due on April 15th.  (An
additional filing extension to October 15, 1998 may be
available, by filing Form 2688, if you have a valid reason
for the delay.)

It is also possible to file your federal income tax return
electronically and the IRS has begun experimenting with
combined federal/state filing of electronic tax returns.

Note that on April 11, 1997, the IRS announced (in IRS
News Release IR-97-23) that it will begin accepting tax
returns and payments if sent by certain designated private
delivery services.  Previously, only payments sent by U.S.
Mail were treated as being timely filed, based on the day
of mailing.  The following private delivery firms that
were approved as being the equivalent of mail delivery
were:

  . Airborne Express (Overnight Air Express Service,
    Next Afternoon Service, and 2nd Day Service);

  . DHL Worldwide Express ("Same Day" Service and DHL
    USA Overnight);

  . Federal Express (FedEx Priority Overnight, Fedex
    Standard Overnight, and FedEx 2Day); and

  . United Parcel Service (UPS Next Day Air, UPS Next Day
    Air Saver, PS 2nd Day Air, and UPS 2nd Day Air A.M.)

PAYMENTS OF ESTIMATED TAX.  For individual taxpayers, such
as self-employed persons (sole proprietors, partners in
a partnership, or members of a limited liability company),
whose tax liability is not substantially covered by
withholding from wages, it is necessary to make quarterly
payments of federal (and in most cases, state) estimated
income tax and federal self-employment tax.  The federal
tax payments must be made with Form 1040-ES by the 15th
day of April, June, September and on January 15th of the
following year.  Any remaining tax due (or refund) is
reported on Form 1040, individual income tax return, on
the following April 15th.

To avoid penalties for underpayment of estimated tax, the
amount of the quarterly payments must generally equal 90%
of the tax liability, with a "safe harbor" for most taxpayers
if they pay in an amount based on 100% of the PRIOR year's
tax liability during the current year.

NOTE: This 100% of prior year's tax "safe harbor" was not
allowed in 1993 for certain high-income taxpayers in certain
complex circumstances, which are now only of historical
interest to most of us (fortunately).

...However:  The 1993 tax act actually simplified things a
bit, thanks to some heavy lobbying by the American Institute
of CPA's.  Starting with 1994, the rules became somewhat
more straightforward for individuals:

    . If your AGI for the previous year was $150,000 or
      less, you can base your estimated tax on 100% of the
      previous year's tax liability.

    . If your AGI was over $150,000 the year before, you
      can base your 1995 or 1996 (or subsequent year)
      estimated tax on 110% of the prior year's tax, if
      that is less than 90% of the current year tax.

Unfortunately, the 1997 Taxpayer Relief Act has once again
complicated the "safe harbor" rule for high-income taxpayers.
Instead of paying in 110% of the prior year's tax, a
high-income taxpayer (AGI over $150,000 the previous year)
must pay in the following varying percentages in the coming
years:

  1998  --  100%
  1999  --  105%
  2000  --  105%
  2001  --  105%
  2002  --  112%

In 2003 and subsequent years, the percentage reverts back
to 110% once more.

SCHEDULES C AND E.  There is no separate tax return form
for sole proprietors. A sole proprietor simply includes the
income or loss from his or her business on Schedule C of
form 1040.  For returns filed in 1993 or later, some sole
proprietors may file a simplified Schedule C-EZ, which has
only about 1/3 as many lines to fill in as the regular
Schedule C.  The firms who qualify to use Schedule C-EZ
must meet 10 requirements, including the following main
ones:

  . Gross receipts of $25,000 or less;

  . Business expenses of $2,000 or less;

  . Using cash method of accounting;

  . Have only one sole proprietorship business;

  . No employees, no inventory;

  . No net business loss for the year; and

  . Not deducting home office expense.

@IF116xx]@NAME is a @ENTITY:
@IF116xx]
@IF113xx]@NAME is a @ENTITY:
@IF113xx]
Like proprietorships, partnerships and LLCs generally pay no
federal income tax either, although they file an information
return annually (Form 1065) on which the income or loss of
each partner or member is reported on a Form K-1.  Each
owner reports the income or loss items on the K-1 form on
appropriate schedules of his or her Form 1040 (mainly on
the Schedule E).

Accordingly, partnerships, LLCs, and proprietorships do not,
as entities, make federal estimated tax payments.

@CODE: AL
The maximum individual income tax rate in Alabama is 5%,
which starts at taxable income levels of $6,000 for married
persons filing jointly, or at $3,000 for other individual
taxpayers.
@CODE:OF
@CODE: AZ
Individual tax rates in Arizona have been steadily coming
down in recent years.  They were reduced after 1989 to a
maximum of 7% on income over $300,000 ($150,000 for single
or married filing separate), and were further reduced to a
maximum of 6.9% for 1994.  A further tax relief package,
enacted in early 1995, reduced the top individual tax rate
in 1995 and subsequent years to only 5.6% on income over
the above-mentioned bracket amounts.  Yet another cut, for
tax years beginning in 1997 and later, has reduced the top
rate to only 5.17%, on taxable income over $150,000 (or
over $300,000 for married persons filing jointly, or for
heads of household).
@CODE:OF
@CODE: AR
Individual tax rates in Arkansas start at 1% and rise to
a maximum of 7% on taxable income over $25,000.
@CODE:OF
@CODE: CA
          ┌───────────────────────────────────────────────┐
          │        CALIFORNIA PERSONAL INCOME TAXES       │
          └───────────────────────────────────────────────┘

California personal income tax rates begin at 1% of income
and rise to a maximum rate of 9.3% on income over $32,207
(over $64,414 for married taxpayers filing jointly, and
$43,839 for head of household) in 1996, which is the same
top rate as the flat 9.3% rate at which California taxes
the income of corporations in 1996.  (However, the tax rate
on corporations drops to 8.84% in 1997.)  The top individual
tax rate in 1995 was 11% for individuals.  In addition, the
individual alternative tax rate dropped from 8.5% in 1995
to 7% in 1996.  A November 5, 1996, ballot initiative would
have reimposed the 10% and 11% individual tax brackets on
high-income taxpayers, if approved by the voters, but it
failed to pass.

Starting with the 1996 filing season, Form 540EZ tax
returns can be filed by phone, by certain qualifying
taxpayers, who have touch-tone phones.

California's estimated income tax payment system parallels
the federal rules rather closely, with payments made on
Form 540-ES.  Beginning in 1997, California taxpayers who
pay in an amount equal to at least 100% of the former tax
year's tax liability are not subject to an estimated tax
underpayment penalty, as under federal law.  However, the
new California provision is now more favorable than the
federal law, in that certain high income taxpayers, who
must pay in 110% of the prior year tax under federal law,
are not subject to any such 110% requirement for California
estimated tax purposes.

As under federal law, partnerships doing business in the
state of California are not generally taxable entities, but
must still file an annual information return (Form 565) by
April 15th of the following year (for a calendar year
partnership).  However, a limited partnership in California
is now subject to payment of annual minimum franchise tax
($800 a year), the same as paid by corporations.

Limited liability companies (LLCs) doing business in
California are subject to the $800 minimum franchise tax,
plus an "LLC fee" of between $0 and $4500, depending on
its overall gross receipts.  LLCs must file an information
return similar to a partnership return, Form 568.  Limited
liability partnerships (LLPs), which are allowed only for
certain law and accounting firms, are subject to the minimum
franchise tax, but not the LLC fee.

@CODE:OF
@CODE: CO
Colorado taxes individual income at a flat rate of 5%,
based on federal taxable income with certain adjustments.
There is an alternative minimum tax, based on a 3.75% tax
rate, which applies if the alternative tax is higher than
the regular tax.
@CODE:OF
@CODE: CT
After many years of only taxing investment income, the
state of Connecticut finally enacted a personal income
tax, at the rate of 1.5% of taxable income in 1991, and
up to 4.5% after 1991.  A general tax credit of as much as
75% of the tax liability is allowed to those taxpayers who
have Connecticut adjusted gross income of between $12,001
and $15,000, reduced to as little as a 1% for adjusted gross
incomes of between $52,000 and $52,500, with no such credit
for incomes above $52,500 (amounts are doubled for joint
return filers).
@CODE:OF
@CODE: DE
Individual tax rates in Delaware start at 3.2% on income
over $2,000 and rise to 7.1% (6.9% beginning in 1997).
@CODE:OF
@CODE: DC
Individual tax rates in the District are fairly high, with
a top rate of 9.5% on income of only $20,000 or more.
Note that business income of a limited liability company,
a partnership, or a sole proprietorship is NOT generally
reported on the individual partner or proprietor's D.C.
income tax return, but is instead separately taxable and
reported on the D.C. Unincorporated Business Franchise Tax
Return (Form D-30).  The tax rate is 9.5%, plus a 5% surtax.
@CODE:OF
@CODE: GA
Georgia individual tax rates are fairly low, starting out
at 1% and rising to a maximum rate of 6% on income over
$10,000 (joint filers).
@CODE:OF
@CODE: HI

          ┌───────────────────────────────────────────┐
          │        HAWAII PERSONAL INCOME TAXES       │
          └───────────────────────────────────────────┘

Hawaii personal income tax rates begin at 2% of income and
rise to a maximum rate of 10%.  Since the maximum corporate
tax rate is only 6.4%, there is often a considerable tax
incentive to incorporate a Hawaii business, although the
opposite tilt in federal corporation tax rates (from the
federal Tax Reform Act of 1986 until the 1993 Clinton tax
bill) has often more than offset the state tax savings from
incorporating.  However, since 1993, the maximum federal
rate is also higher for individuals (39.6%) than it is for
corporations (35%), so that there may now be a double benefit
of doing business in corporate form in Hawaii, at least
for some taxpayers.

Beginning with the 1995 tax year, full-year Hawaii residents
(with certain limited exceptions) must file new form N-11
instead of N-12 state income tax returns.  Part-year
residents, certain individuals born before 7-1-1911, those
not filing federal returns, and certain others still file
Form N-12.  To obtain Hawaii tax forms,  call the Forms
Hotline at:  1-800-222-7572  (on  Oahu 587-7572).

Hawaii's estimated income tax payment system closely
parallels the federal rules, with individual estimated
tax declarations made on Form N-1.  Quarterly payments
are due in the same months as federal estimates, but on
the 20th day (not the 15th) of each such month.  As under
federal tax law, partnerships in Hawaii are not taxable
entities, but must still file an annual information return
(Form N-20) each year.  The income from a partnership is
reported on Schedule E of the partner's Hawaii individual
income tax return.

District tax offices are located on each of the four major
islands, at the following addresses:

 Physical Address:                Mailing Address, Phone:
----------------------            -------------------------
OAHU DISTRICT OFFICE              P.O. Box 3559
830 Punchbowl Street              Honolulu, HI 96811-3559
Honolulu, HI 96813-5045            [phone]

MAUI DISTRICT OFFICE
State Office Building             P.O. Box 913
54 High Street                    Wailuku, HI 96793-0913
Wailuku, HI 96793-2126             [phone]

HAWAII DISTRICT OFFICE
State Office Building             P.O. Box 1377
75 Aupuni Street                  Hilo, HI 96721-1377
Hilo, HI 96720-4253                [phone]

KAUAI DISTRICT OFFICE
State Office Building             P.O. Box 1688
3060 Eiwa Street                  Lihue, HI 96766-5688
Lihue, HI 96766-1310               [phone]

@CODE:OF
@CODE: ID
Individual tax rates in Idaho start at 2% and range up to a
maximum of 8.2% in the top bracket (plus a $10 excise fee
for each return filed).
@CODE:OF
@CODE: IL
Illinois taxes individual income at a rate of 3%, applied to
federal adjusted gross income with modifications.
@CODE:OF
@CODE: IN
Personal income in Indiana is taxed at a rate of only
3.4%, based on federal adjusted gross income, with certain
adjustments.
@CODE:OF
@CODE: IA
Iowa has relatively high individual tax rates, reaching a
maximum of 9.98% on taxable income in the highest bracket.
@CODE:OF
@CODE: KS
Kansas has a maximum individual tax rate 6.45% for married
persons filing joint returns.  All other individuals are
subject to a top tax rate of up to 7.75%.  This difference
in the maximum tax rate was recently challenged as being
unconstitutional discrimination against unmarried persons,
but was upheld by the Kansas Supreme Court in the Peden v.
Department of Revenue case, No. 75,205, December 20, 1996.
@CODE:OF
@CODE: KY
Individual income in Kentucky is taxed at a maximum rate
of 6%, on income of over $8,000.
@CODE:OF
@CODE: LA
Personal income tax rates in Louisiana top out at 6% on
income over $50,000 (per individual taxpayer, regardless
of filing status).
@CODE:OF
@CODE: ME
Tax rates under Maine's personal income tax law start at
2% and go up to a maximum of 8.5% (1996 rates) on income
over $16,500 for a single filer or over $33,000 for joint
return filers.

The 1997 rates and brackets will be announced late in
1997, after inflation levels for the year are determined.
@CODE:OF
@CODE: MD
Maryland taxes the income of individuals at rates of 2% to
5%.  The 5% tax bracket begins at income levels of only
$3,000, however.  (Prior to 1995, a 6% rate applied at
income levels of $150,000 for joint filers).  Many Maryland
counties, including Baltimore, also impose local income
taxes, typically at rates equal to 50% to 60% of the state
income tax.

Further tax rate cuts begin in 1998, when the 5% rate will
drop to 4.95%, followed by additional cuts of 0.05% each
year thereafter, until the rate reaches 4.75% in the year
2002.
@CODE:OF
@CODE: MA
Most kinds of income, such as earned income, are taxed at
an individual tax rate of only 5.95% in Massachusetts.
However, investment income such as interest, dividends and
net capital gains are taxed at a 12% rate.  Starting in
1996, reduced rates apply to capital gains on assets held
more than one year, depending on the number of years held,
at rates between 0% and 5%.
@CODE:OF
@CODE: MI
Michigan imposes a 4.4% income tax on the taxable income of
individual taxpayers, which is based on federal taxable
income with certain adjustments and modifications.

However, a person's business income is also subject to the
2.3% Michigan "Single Business Tax," which is somewhat
similar to an income tax, but with no deductions for wages
or salaries, and without taking into account interest income
or expense or royalty income or expense, as well as making
certain other adjustments.
@CODE:OF
@CODE: MN
Minnesota taxes individual incomes at rates of 6% to 8.5%.
There is also an alternative minimum tax, which applies to
alternative taxable income at a rate of 7%.
@CODE:OF
@CODE: MS
Mississippi taxes individuals' taxable income of over
$10,000 at a 5% rate.  Tax rates are 3% on the first $5,000
and 4% on taxable income between $5000 and $10,000.
@CODE:OF
@CODE: MO
Tax rates on individuals in Missouri start at 1.5% and rise
to 6% on income over $9,000.
@CODE:OF
@CODE: MT
Montana has the distinction of having one of the highest
individual tax rates of any state, at 11% on income over
$66,400 (in 1996).  1997 tax brackets will be announced
late in 1997, adjusted for inflation.
@CODE:OF
@CODE: NB
Individual income tax rates in Nebraska start at 2.62% and
go up to a maximum rate of 6.99% (1995-1996 tax rates).
@CODE:OF
@CODE: NJ
Personal income tax rates in New Jersey were substantially
increased, to 7% for various brackets, depending on filing
status, beginning in 1991.  However, recent rounds of tax
cut legislation reduced the top rate to 6.65% in 1994, and
to 6.58% in 1995, and 1995 legislation further reduced
the top rate to 6.37% in 1996 and subsequent years, with
significant reductions in rates also for middle income
taxpayers in the lower brackets.
@CODE:OF
@CODE: NM
New Mexico's personal income tax begins at a tax rate of
1.7% on income of $8,000 or less and tops out at a maximum
tax rate of 8.5% on taxable income in excess of $100,000
(joint filers).  Beginning in 1997, New Mexico individual
taxpayers are required to make quarterly estimated income
tax payments, on the same dates as federal estimates.
@CODE:OF
@CODE: NY
New York State individual income tax rates start at
4% in 1996, and are graduated up to a maximum rate
of 7% on income taxable in the highest income bracket
for married couples filing joint returns.

There is also a "tax table benefit recapture supplemental
tax" that takes back the benefit of lower tax brackets, on
a sliding scale, for taxpayers whose adjusted gross incomes
exceed $100,000, with full recapture occurring at levels of
$150,000 or more.

Note that taxpayers who live or work in New York City are
also subject to the New York City income tax.  The maximum
New York City income tax rate is now 3.4%, and will
decrease to 3.2% on July 1, 1999.

New York City also imposes an Unincorporated Businesses
Tax (UBT) on businesses other than corporations.  The UBE
has recently been extensively revised to make it less of a
burden on small businesses
@CODE:OF
@CODE: NC
Tax rates on individual income in North Carolina start at
6% and go up to a maximum tax bracket of 7.75%.
@CODE:OF
@CODE: SC
Tax rates on individual income in South Carolina start at
2.5% and go up to a maximum tax bracket of 7% on income
over $11,250 (1996).
@CODE:OF
@CODE: ND
North Dakota has a very high nominal tax rate of 12% on
individual income over $50,000.  However, taxpayers may
elect to instead pay a tax equal to 14% of their federal
income tax (with adjustments) for the year, by filing a
short form return.
@CODE:OF
@CODE: OH
Ohio's highest individual tax rate is reduced to 7.004% in
1996, due to the budget surplus law that requires tax rate
reductions when the state runs a large budget surplus.  This
tax rate applies only at income levels of $200,000 or more.
The top tax rate would be 7.5% otherwise.

Local income taxes are also widely in force, generally at
rates of about 2% in the major cities.
@CODE:OF
@CODE: OK
Oklahoma's personal income tax law imposes tax at a maximum
tax rate of 7% on income over $6,000, and allows taxpayers
with no deduction for federal income taxes.  For taxpayers
who elect to deduct federal income tax, different rates
apply, up to a maximum 10% bracket (in 1996).

Under July 1, 1997 legislation, payment of individual
Oklahoma estimated tax is required if the tax not covered
by wage withholding is $500 or more (formerly $100).
@CODE:OF
@CODE: OR
Oregon taxes individual income at rates ranging from 5%
to 9%.  The 9% bracket kicks in at only $10,800 of taxable
income in 1995 for joint filers and heads of households
(at $5,400 for single or married filing separate returns).
1996 brackets will be announced in late 1996.
@CODE:OF
@CODE: PA
Pennsylvania's  current regular income tax rate is 2.8%
ot taxable income.  Pennsylvania taxable income consists
of 8 categories of income, and in general bears very little
resemblance to federal taxable income.  No personal
exemptions are allowed, for example.

In addition, the cities of Philadelphia, Pittsburgh, and
Scranton all impose city income taxes on individuals'
earnings and on net profits from businesses and professions.
@CODE:OF
@CODE: RI VT
Individual taxpayers in @STATE compute their state
income tax as a percentage of their federal income tax
liability, which, at present, is computed at the rate of
@CODE:OF
@CODE: RI
27.5% of the federal tax for 1997 and declines as follows
in subsequent years:

  . 1998 - 27.0%

  . 1999 - 26.5%

  . 2000 - 26.0%

  . 2001 - 25.5%

  . 2002 and later - 25.0%
@CODE:OF
@CODE: VT
25% of the federal liability.  (A special "land gains tax"
of between 5% and 60% also applies to capital gains on land
sales or transfers, if the land was held for less than 6
years.)
@CODE:OF
@CODE: UT
Utah taxes individual taxpayers at income tax rates ranging
from 2.55% (2.3% in 1997 and after) up to 7%.
@CODE:OF
@CODE: VA
Personal income tax rates in Virginia range from 2% up to
a maximum tax bracket of 5.75%, which begins at $17,000 of
income.
@CODE:OF
@CODE: WV
West Virginia taxes individual income at rates up to 6.5%
on income of over $60,000 (over $30,000 for married filing
separate returns).
@CODE:OF
@CODE: WS
Wisconsin individual income tax rates range from a low
bracket of 4.9% to a top bracket of 6.93%.  In addition,
for business income, there is a "recycling surcharge" equal
to 0.4345% of net business income of individuals, estates,
trusts, partnerships and S corporations.  The minimum
recycling surcharge is $25 and the maximum is $9,800.  (On
farm businesses, the surcharge is $25.)  The surcharge,
which will vary in 1997 and 1998, expires for tax years
ending after April 1, 1999.
@CODE:OF
@CODE: AK FL SD NV TX WY WA TN NH
There is no individual state income tax in @STATE.

@CODE:OF
@CODE: NH
(Except on certain investment income -- interest and
dividends -- at a rate of 5%.)

However, there is also an 7% Business Profits Tax, similar
to an income tax, on all business entities, incorporated
or otherwise, with more than minimal levels of gross
income.

New legislation also has created a new "Business Enterprise
Tax" at the rate of 0.25% of the taxable "enterprise value
tax base" (which is essentially the sum of all compensation,
interest and dividends paid or accrued by a business
enterprise), effective July 1, 1993.  Annual returns are
required for every business enterprise that has gross
business receipts over $100,000 during a taxable period and
whose "enterprise value tax base" is greater than $50,000.
The new "Business Enterprise Tax" is allowed as a tax
credit, dollar-for-dollar, against the Business Profits Tax.
(However, it will still catch many small businesses and
professionals who are not subject to the Business Profits
Tax.)
@CODE:OF
@CODE: TN
(Except a 6% tax on certain investment income -- interest
and dividends from bonds and stocks.)
@CODE:OF
@CODE: WA
However, Washington imposes a Business and Occupations tax,
which varies by type of business, on most forms of business
gross income. The tax rate ranges from about 1/2 of 1% up
to 2%, generally, with a new 2.5% tax on various business
services and occupations, effective July 1, 1993.  This tax
has now been reduced to 2.0%, effective January 24, 1996.

Some activities may be subject to more than one B & O tax.  For
example, a Washington manufacturer that ships all its output
outside of the state may be exempt from the retailing B & O
tax, but will still have to pay the manufacturer's B & O tax.
However, a "multiple activities tax credit" effectively
limits the total tax to the highest of such multiple tax
rates.

The B & O tax also applies to vertically integrated firms,
so that your company may be taxed on its own internal
dealings, such as a retailer that has its own wholesaling
distribution network.

A tax credit is allowed against the B & O tax for small
firms, if their monthly tax before the credit is less than
$70.  (If less than $35 a month, the credit completely
offsets any B & O tax.)  Effective January 1, 1995, an R & D
tax credit is allowed against the B & O tax, in an amount
equal to 2.5% of Research & Development expenditures that
exceed 0.92% of the company's taxable gross receipts after
deductions.  Other credits, of up to $2,000 per new job
created in manufacturing or R&D in depressed areas, are now
available as well, for jobs created on or after January 1,
1996.
@CODE:OF

        ┌───────────────────────────────────────────────┐
        │      CORPORATE ESTIMATED TAX REQUIREMENTS     │
        └───────────────────────────────────────────────┘

A C corporation (or an S corporation, if it is subject to
tax, which it usually is not) must make quarterly payments
of estimated federal corporation income taxes on the 15th
day of the 4th, 6th, 9th, and 12th months of its taxable
year.  All such tax payments must be made as tax deposits
in a depository bank, accompanied by a Federal Tax Deposit
coupon.  Don't attempt to send such corporate tax payments
directly to the IRS, which will either return them to you,
lose them, or ignore them, any one of which results will
be most unpleasant to you, including the standard 5% penalty
that will apply if you try making a direct payment to the
IRS. (This, of course, is the infamous Catch 22 you've heard
so much about -- You can be penalized for PAYING your taxes,
as well as for not paying them....)

With certain exceptions, a corporation must generally pay
in 100% of its total tax liability for the year as estimated
tax payments in order to avoid the penalty for underpayment
of estimated tax.  Alternatively, smaller corporations may
base their current year estimated tax payments on 100% of
their PRIOR year's tax liability.

However, certain "large" corporations are not allowed to
base their current year estimated tax payments on their
prior year tax liability, except for the first quarterly
payment of the current year.

@CODE: CA
California also requires corporations to make quarterly
estimated tax payments, on the same due dates as the
federal quarterly payments, and generally following the same
rules.  However, the first California quarterly franchise
tax payment by a corporation must at least equal the minimum
franchise tax for the year, which is $800 a year.

Starting January 1, 1993, the percentage of estimated tax
that must be paid in as estimated tax payments increased
from 90% to 95% of the actual California franchise tax
liability for the year.  However, corporations other than
certain "large" corporations are still able to avoid tax
underpayment penalties if they pay in an amount equal to
at least 100% of the PRIOR year's tax liability.

"Large" corporations, for this purpose, are those that
had at least $1 million of taxable income in any of the
three preceding taxable years.

@CODE:OF
@CODE: HI
Hawaii also requires corporations to make estimated income
tax payments, with Form N-3.  However, unlike the quarterly
federal payments, Hawaii requires only 2 annual payments to
be made, on September 20 and the following January 20th for
a calendar year corporation.

@CODE:OF
@CODE: NV TX WA WY
Most states also require corporations to make payments of
estimated corporate income taxes (but there are no such
taxes in @STATE).
@CODE:OF