Identify the prepayment penalties that may apply to corporate taxes.

Prepayment penalties primarily relate to a corporation's obligation to make estimated tax payments throughout the year. Corporations are required to make estimated tax payments if they expect to owe a certain amount of tax when they file their annual return. If these payments are not made in a timely manner or are insufficient, the corporation can incur penalties for failing to make the required estimated tax payments and also face late payment penalties on any balance due when filing the return.

The rationale for this is that the IRS expects corporations to pay their taxes on income as it is earned throughout the year rather than waiting until the return is filed. This system helps ensure a steady flow of revenue for the government and encourages compliance with tax laws. Therefore, any failure in this regard can directly result in financial penalties.

The other options pertain to different aspects of corporate compliance but do not specifically involve penalties related to prepayment requirements. For instance, failure to file an annual report is a procedural issue rather than tax-related. Exceeding acceptable tax deduction limits and incorrectly calculating corporate income tax could lead to different types of penalties or adjustments but are not specifically categorized as prepayment penalties.