Final answer:
Corporations typically make quarterly tax payments based on their estimated taxable income for the quarter, contributing to corporate income taxes collected by the government on a company's net profits.
Step-by-step explanation:
Most corporations make quarterly tax payments based on estimated taxable income for the quarter. This approach entails making tax payments that are calculated on an estimate of the company’s income for a particular quarter. It is a part of the corporate income taxes that companies are responsible for paying. Corporate income taxes are a significant source of federal tax revenue, though, over the decades, corporate income tax receipts have declined as a share of GDP. The money collected from corporate taxes is used for various federal government operations, and while companies pay taxes on their net profits, these taxes are calculated based on estimated earnings to manage payments throughout the fiscal year.