N.Y. Tax Law § 197-B — Payments of estimated tax

§ 197-b. Payments of estimated tax. 1. (a) For taxable years beginning\non or after January first, nineteen hundred seventy-seven, every\ntaxpayer subject to tax under section one hundred eighty-four, one\nhundred eighty-six-a or one hundred eighty-six-e of this article, must\npay in each year an amount equal to (i) twenty-five percent of the tax\nimposed under each of such sections for the second preceding taxable\nyear if the second preceding year's tax exceeded one thousand dollars\nbut was equal to or less than one hundred thousand dollars, or (ii)\nforty percent of the tax imposed under any of these sections for the\nsecond preceding taxable year if the second preceding year's tax\nexceeded one hundred thousand dollars. If the second preceding year's\ntax under section one hundred eighty-four, one hundred eighty-six-a or\none hundred eighty-six-e of this article exceeded one thousand dollars\nand the taxpayer is subject to the tax surcharge imposed by section one\nhundred eighty-four-a or one hundred eighty-six-c of this article,\nrespectively, the taxpayer must also pay in each such year an amount\nequal to (i) twenty-five percent of the tax surcharge imposed under such\nsection for the second preceding taxable year if the second preceding\nyear's tax exceeded one thousand dollars but was equal to or less than\none hundred thousand dollars, or (ii) forty percent of the tax surcharge\nimposed under that section for the second preceding taxable year if the\nsecond preceding year's tax exceeded one hundred thousand dollars. The\namount or amounts must be paid with the return or report required to be\nfiled with respect to the tax or tax surcharge for the preceding taxable\nyear or with an application for extension of the time for filing the\nreturn or report, for taxable years beginning before January first, two\nthousand sixteen. The amount or amounts that must be paid with respect\nto the tax or tax surcharge for the second preceding year must be paid\non or before the fifteenth day of the third month following the close of\nthe taxable year, for taxable years beginning on or after January first,\ntwo thousand sixteen.\n (b) Notwithstanding any other provision of this article to the\ncontrary, any taxpayer required under this subdivision to pay an amount\nequal to twenty-five percent of its tax for the taxable year ending on\nDecember thirty-first, nineteen hundred seventy-six shall compute such\namount as if its tax for such taxable year were determined on the basis\nof its gross earnings, dividends paid, gross income or gross operating\nincome, as the case may be, for either the preceding twelve months\nending on such date or for the period from the date of its incorporation\nunder the laws of this state or the date it commenced carrying on or\ndoing business in New York to and including December thirty-first,\nnineteen hundred seventy-six, if such date of incorporation or\ncommencement of the carrying on or doing business was within the twelve\nmonths immediately preceding December thirty-first, nineteen hundred\nseventy-six.\n 2. The estimated tax or estimated tax surcharge for each taxable year\nwith respect to which a declaration of estimated tax or a declaration of\nestimated tax surcharge, respectively, is required to be filed under\nthis article shall be paid, in the case of a taxpayer which reports on\nthe basis of a calendar year, as follows:\n (a) If the declaration is filed on or before June fifteenth, the\nestimated tax or estimated tax surcharge shown thereon, after applying\nthereto the amount, if any, paid during the same taxable year pursuant\nto subdivision one of this section, shall be paid in three equal\ninstallments. One of such installments shall be paid at the time of the\nfiling of the declaration, one shall be paid on the following September\nfifteenth, and one on the following December fifteenth.\n (b) If the declaration is filed after June fifteenth and not after\nSeptember fifteenth of such taxable year, and is not required to be\nfiled on or before June fifteenth of such year, the estimated tax or\nestimated tax surcharge shown on such declaration, after applying\nthereto the amount, if any, paid during the same taxable year pursuant\nto subdivision one of this section, shall be paid in two equal\ninstallments. One of such installments shall be paid at the time of the\nfiling of the declaration and one shall be paid on the following\nDecember fifteenth.\n (c) If the declaration is filed after September fifteenth of such\ntaxable year, and is not required to be filed on or before September\nfifteenth of such year, the estimated tax or estimated tax surcharge\nshown on such declaration, after applying thereto the amount, if any,\npaid in respect of such year pursuant to subdivision one of this section\nshall be paid in full at the time of the filing of the declaration.\n (d) If the declaration is filed after the time prescribed therefor, or\nafter the expiration of any extension of time therefor, paragraphs (b)\nand (c) of this subdivision shall not apply and there shall be paid at\nthe time of such filing all installments of estimated tax or estimated\ntax surcharge payable at or before such time, and the remaining\ninstallments shall be paid at the times at which, and in the amounts in\nwhich, they would have been payable if the declaration had been filed\nwhen due.\n 3. If any amendment of a declaration is filed, the remaining\ninstallments, if any, shall be ratably increased or decreased (as the\ncase may be) to reflect any increase or decrease in the estimated tax or\nestimated tax surcharge by reason of such amendment, and if any\namendment is made after September fifteenth of the taxable year, any\nincrease in the estimated tax or estimated tax surcharge by reason\nthereof shall be paid at the time of making such amendment.\n 4. Any amount paid pursuant to subdivision one shall be applied as a\nfirst installment against the estimated tax or estimated tax surcharge,\nrespectively, of the taxpayer for the taxable year shown on the\ndeclaration required to be filed pursuant to section one hundred\nninety-seven-a of this chapter, or if no declaration is filed pursuant\nto such section, any such amount shall be considered a payment on\naccount of the tax or tax surcharge shown on the return or report\nrequired to be filed by the taxpayer for such taxable year.\n 5. Notwithstanding the provisions of section one thousand eighty-eight\nof this chapter or section sixteen of the state finance law, if an\namount paid pursuant to subdivision one of this section exceeds the tax\nor tax surcharge, respectively, shown on the return or report required\nto be filed by the taxpayer for the taxable year during which such\namount was paid, interest shall be allowed and paid on the amount by\nwhich the amount so paid pursuant to subdivision one exceeds such tax or\ntax surcharge, at the overpayment rate set by the commissioner of\ntaxation and finance pursuant to subdivision (e) of section one thousand\nninety-six or, if no rate is set, at the rate of six percent per annum,\nfrom the date of payment of the amount so paid pursuant to such\nsubdivision one to the fifteenth day of the third month following the\nclose of the taxable year, provided, however, that no interest shall be\nallowed or paid under this subdivision if the amount thereof is less\nthan one dollar.\n 6. As used in this section, "the second preceding year's tax" means\nthe tax imposed upon the taxpayer by section one hundred eighty-four,\none hundred eighty-six-a or one hundred eighty-six-e of this article for\nthe second preceding taxable year.\n 7. This section shall apply to a taxable period of less than twelve\nmonths in accordance with regulations of the tax commission.\n 8. The commissioner of taxation and finance may grant a reasonable\nextension of time, not to exceed six months, for the payment of any\ninstallment of estimated tax or estimated tax surcharge required\npursuant to this section, on such terms and conditions as he may\nrequire, including the furnishing of a bond or other security by the\ntaxpayer in an amount not exceeding twice the amount for which any\nextension of time for payment is granted, provided, however, that\ninterest at the underpayment rate set by the commissioner pursuant to\nsubdivision (e) of section one thousand ninety-six or, if no rate is\nset, at the rate of six percent per annum for the period of the\nextension, shall be charged and collected on the amount for which any\nextension of time for payment is granted under this subdivision.\n 9. A taxpayer may elect to pay any installment of estimated tax or\nestimated tax surcharge prior to the date prescribed in this section for\npayment thereof.\n 10. The provisions of this section shall apply to taxable periods of\ntwelve months other than a calendar year by the substitution of the\nmonths of such fiscal year for the corresponding months specified in\nsuch provisions.\n 11. Any amount paid pursuant to paragraph four of subsection (c) of\nsection six hundred fifty-eight of this chapter on behalf of a taxpayer\nsubject to tax under this article shall be applied against the estimated\ntax of the taxpayer for the taxable year shown on the declaration\nrequired to be filed pursuant to section one hundred ninety-seven-a of\nthis article, or if no declaration is filed pursuant to such section,\nany such amount shall be considered a payment on account of the tax\nshown on the report required to be filed by the taxpayer for such\ntaxable year.\n