N.Y. Tax Law § 1514: Payments of estimated tax

§ 1514. Payments of estimated tax. (a) First installment of estimated

tax. (1) Except as otherwise provided in paragraph two of this

subdivision, for taxable years beginning on or after January first,

nineteen hundred seventy-six, every taxpayer subject to tax under this

article must pay in each year an amount equal to (i) twenty-five percent

of the tax imposed under this article for the second preceding taxable

year if the second preceding year's tax exceeded one thousand dollars

but was equal to or less than one hundred thousand dollars, or (ii)

forty percent of the tax imposed under this article for the second

preceding taxable year if the second preceding year's tax exceeded one

hundred thousand dollars. If the second preceding year's tax exceeded

one thousand dollars and the taxpayer is subject to the tax surcharge

imposed by section fifteen hundred five-a of this article, the taxpayer

must also pay an amount equal to (i) twenty-five percent of the tax

surcharge imposed under section fifteen hundred five-a of this article

for the second preceding taxable year if the second preceding year's tax

was equal to or less than one hundred thousand dollars, or (ii) forty

percent of the tax surcharge imposed for the second preceding taxable

year if the second preceding year's tax exceeded one hundred thousand

dollars.

(2) For taxable years beginning on or after January first, nineteen

hundred ninety-nine, every taxpayer subject to tax under paragraph one

of subdivision (b) of section fifteen hundred ten of this article shall

pay in each such year an amount equal to forty percent of the tax

imposed under such article for the second preceding taxable year, if

such second preceding year's tax exceeded one thousand dollars. If such

second preceding year's tax exceeded one thousand dollars and such

taxpayer is subject to the tax surcharge imposed by section fifteen

hundred five-a of this article, such taxpayer shall also pay an amount

equal to forty percent of the tax surcharge imposed under section

fifteen hundred five-a of this article for the second preceding taxable

year.

(3) Such amount or amounts described in paragraphs one and two of this

subdivision shall be paid with the return required to be filed with

respect to such tax or tax surcharge for the preceding taxable year or

with an application for extension of the time for filing such return,

for taxable years beginning before January first, two thousand sixteen,

and shall be paid on or before the fifteenth day of the third month of

each taxable year, for taxable years beginning on or after January

first, two thousand sixteen.

(b) Other installments. The estimated tax or estimated tax surcharge

for each taxable year with respect to which a declaration of estimated

tax or a declaration of estimated tax surcharge, respectively, is

required to be filed under this article shall be paid, in the case of a

taxpayer which reports on the basis of a calendar year, as follows:

(1) If the declaration is filed on or before June fifteenth, the

estimated tax or estimated tax surcharge shown thereon, after applying

thereto the amount, if any, paid during the same taxable year pursuant

to subdivision (a) of this section, shall be paid in three equal

installments. One of such installments shall be paid at the time of the

filing of the declaration, one shall be paid on the following September

fifteenth, and one on the following December fifteenth.

(2) If the declaration is filed after June fifteenth and not after

September fifteenth of such taxable year, and is not required to be

filed on or before June fifteenth of such year the estimated tax or

estimated tax surcharge shown on such declaration, after applying

thereto the amounts, if any, paid during the same taxable year pursuant

to subdivision (a) of this section, shall be paid in two equal

installments. One of such installments shall be paid at the time of the

filing of the declaration and one shall be paid on the following

December fifteenth.

(3) If the declaration is filed after September fifteenth of such

taxable year, and is not required to be filed on or before September

fifteenth of such year, the estimated tax or estimated tax surcharge

shown on such declaration, after applying thereto the amount, if any,

paid in respect of such year pursuant to subdivision (a) of this section

shall be paid in full at the time of the filing of the declaration.

(4) If the declaration is filed after the time prescribed therefor, or

after the expiration of any extension of time therefor, paragraphs two

and three of this subdivision shall not apply and there shall be paid at

the time of such filing all installments of estimated tax or estimated

tax surcharge payable at or before such time, and the remaining

installments shall be paid at the times at which, and in the amounts in

which, they would have been payable if the declaration had been filed

when due.

(c) Payments after amendment of declaration. If any amendment of a

declaration is filed, the remaining installments, if any, shall be

ratably increased or decreased (as the case may be) to reflect any

increase or decrease in the estimated tax or estimated tax surcharge by

reason of such amendment, and if any amendment is made after September

fifteenth of the taxable year, any increase in the estimated tax or

estimated tax surcharge by reason thereof shall be paid at the time of

making such amendment.

(d) (1) Application of first installments based on second preceding

year's tax. Any amount paid pursuant to subdivision (a) shall be applied

as a first installment against the estimated tax or estimated tax

surcharge, respectively, of the taxpayer for the taxable year shown on

the declaration required to be filed pursuant to section fifteen hundred

thirteen, or if no declaration is filed pursuant to such section, any

such amount shall be considered a payment on account of the tax or tax

surcharge shown on the return required to be filed by the taxpayer for

such taxable year.

(2) Any amount paid pursuant to paragraph four of subsection (c) of

section six hundred fifty-eight of this chapter on behalf of a taxpayer

subject to tax under this article shall be applied against the estimated

tax of the taxpayer for the taxable year shown on the declaration

required to be filed pursuant to section fifteen hundred thirteen of

this article, or if no declaration is filed pursuant to such section,

any such amount shall be considered a payment on account of the tax

shown on the return required to be filed by the taxpayer for such

taxable year.

(e) Interest on certain installments based on the second preceding

year's tax. Notwithstanding the provisions of section one thousand

eighty-eight of this chapter or section sixteen of the state finance

law, if an amount paid pursuant to subdivision (a) of this section

exceeds the tax or tax surcharge, respectively, shown on the return

required to be filed by the taxpayer for the taxable year during which

such amount was paid, interest shall be allowed and paid on the amount

by which the amount so paid pursuant to subdivision (a) exceeds such tax

or tax surcharge, at the overpayment rate set by the commissioner of

taxation and finance pursuant to subdivision (e) of section one thousand

ninety-six or, if no rate is set, at the rate of six percent per annum,

from the date of payment of the amount so paid pursuant to such

subdivision (a) to the fifteenth day of the third month following the

close of the taxable year, provided, however, that no interest shall be

allowed or paid under this subdivision if the amount thereof is less

than one dollar or if such interest becomes payable solely because of a

loss described in paragraph four of subdivision (b) of section fifteen

hundred three.

(f) The second preceding year's tax defined. As used in this section,

"the second preceding year's tax" means, for taxpayers subject to tax

under subdivision (b) of section fifteen hundred ten of this article,

the taxes imposed upon the taxpayer by sections fifteen hundred one and

fifteen hundred ten of this article from the second preceding taxable

year or as otherwise determined by subdivision (b) of section fifteen

hundred five of this article, and for taxpayers subject to tax under

section fifteen hundred two-a of this article, the tax imposed upon the

taxpayer by such section fifteen hundred two-a of this article from the

second preceding year.

(g) Fiscal year. The provisions of this section shall apply to taxable

years of twelve months other than a calendar year by the substitution of

the months of such fiscal year for the corresponding months specified in

such provisions.

(h) Application to short taxable period. This section shall apply to a

taxable period of less than twelve months in accordance with regulations

of the tax commission.

(i) Extension of time. The commissioner of taxation and finance may

grant a reasonable extension of time, not to exceed six months, for the

payment of any installment of estimated tax or estimated tax surcharge

required pursuant to this section, on such terms and conditions as he

may require, including the furnishing of a bond or other security by the

taxpayer in an amount not exceeding twice the amount for which any

extension of time for payment is granted, provided, however, that

interest at the underpayment rate set by the commissioner pursuant to

subdivision (e) of section one thousand ninety-six or, if no rate is

set, at the rate of six percent per annum for the period of the

extension, shall be charged and collected on the amount for which any

extension of time for payment is granted under this subdivision.

(j) Payment of installments in advance. A taxpayer may elect to pay

any installment of estimated tax or estimated tax surcharge prior to the

date prescribed in this section for the payment thereof.