N.Y. Tax Law § 197-b: Payments of estimated tax

§ 197-b. Payments of estimated tax. 1. (a) For taxable years beginning

on or after January first, nineteen hundred seventy-seven, every

taxpayer subject to tax under section one hundred eighty-four, one

hundred eighty-six-a or one hundred eighty-six-e of this article, must

pay in each year an amount equal to (i) twenty-five percent of the tax

imposed under each of such sections 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 any of these sections 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 under section one hundred eighty-four, one hundred eighty-six-a or

one hundred eighty-six-e of this article exceeded one thousand dollars

and the taxpayer is subject to the tax surcharge imposed by section one

hundred eighty-four-a or one hundred eighty-six-c of this article,

respectively, the taxpayer must also pay in each such year an amount

equal to (i) twenty-five percent of the tax surcharge imposed under such

section 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 surcharge

imposed under that section for the second preceding taxable year if the

second preceding year's tax exceeded one hundred thousand dollars. The

amount or amounts must be paid with the return or report required to be

filed with respect to the tax or tax surcharge for the preceding taxable

year or with an application for extension of the time for filing the

return or report, for taxable years beginning before January first, two

thousand sixteen. The amount or amounts that must be paid with respect

to the tax or tax surcharge for the second preceding year must be paid

on or before the fifteenth day of the third month following the close of

the taxable year, for taxable years beginning on or after January first,

two thousand sixteen.

(b) Notwithstanding any other provision of this article to the

contrary, any taxpayer required under this subdivision to pay an amount

equal to twenty-five percent of its tax for the taxable year ending on

December thirty-first, nineteen hundred seventy-six shall compute such

amount as if its tax for such taxable year were determined on the basis

of its gross earnings, dividends paid, gross income or gross operating

income, as the case may be, for either the preceding twelve months

ending on such date or for the period from the date of its incorporation

under the laws of this state or the date it commenced carrying on or

doing business in New York to and including December thirty-first,

nineteen hundred seventy-six, if such date of incorporation or

commencement of the carrying on or doing business was within the twelve

months immediately preceding December thirty-first, nineteen hundred

seventy-six.

2. 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:

(a) 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 one 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.

(b) 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 amount, if any, paid during the same taxable year pursuant

to subdivision one 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.

(c) 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 one of this section

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

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

after the expiration of any extension of time therefor, paragraphs (b)

and (c) 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.

3. 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.

4. Any amount paid pursuant to subdivision one 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 one hundred

ninety-seven-a of this chapter, 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 or report

required to be filed by the taxpayer for such taxable year.

5. 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 one of this section exceeds the tax

or tax surcharge, respectively, shown on the return or report 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 one 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 one 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.

6. As used in this section, "the second preceding year's tax" means

the tax imposed upon the taxpayer by section one hundred eighty-four,

one hundred eighty-six-a or one hundred eighty-six-e of this article for

the second preceding taxable year.

7. This section shall apply to a taxable period of less than twelve

months in accordance with regulations of the tax commission.

8. 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.

9. A taxpayer may elect to pay any installment of estimated tax or

estimated tax surcharge prior to the date prescribed in this section for

payment thereof.

10. The provisions of this section shall apply to taxable periods 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.

11. 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 one hundred ninety-seven-a 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 report required to be filed by the taxpayer for such

taxable year.