### Question
Can you define what required annual payment means?


### Answer
**Required annual payment** is defined as the following in *26 U.S.C. § 6655*:

> the lesser of—


(i) 100 percent of the tax shown on the return for the taxable year (or, if no return is filed, 100 percent of the tax for such year), or


(ii) 100 percent of the tax shown on the return of the corporation for the preceding taxable year

#### Citation:
  - *26 U.S.C. § 6655*
  - Heading: **Subtitle F-Procedure and Administration > CHAPTER 68-ADDITIONS TO THE TAX, ADDITIONAL AMOUNTS, AND ASSESSABLE PENALTIES > Subchapter A-Additions to the Tax and Additional Amounts > PART I-GENERAL PROVISIONS**

