I'm just now having some time to look at all of the PTE state income tax rules, as NC has now passed the law allowing the PTE to pay the state tax as well.
In thinking about all of it and trying to figure things out, does anyone know how it will work? For example, let's begin with an accrual basis S Corp. Let's say they pay $15,000 in state ES in 2022 for a 12-31-22 year-end. In February 2023, when preparing the returns, the S Corp state tax liability is actually $20,000. Does the S Corp accrue the full $20,000 and is then responsible for paying the additional $5,000? Or is only $15,000 accrued and the shareholders are responsible for the remainder?
Now, assume sort of the opposite. S Corp paid $15,000 in ES, but the tax liability is only $10,000 when the tax return is prepared. How is the $5,000 overpayment handled on the books?