N.Y. Tax Law § 213-b: Payments on account of estimated tax

§ 213-b. Payments on account of estimated tax.-- (a) First

installments for certain taxpayers.--In privilege periods of twelve

months ending at any time during the calendar year nineteen hundred

seventy and thereafter, every taxpayer subject to the tax imposed by

section two hundred nine of this article must pay with the report

required to be filed for the preceding privilege period, or with an

application for extension of the time for filing the report, for taxable

years beginning before January first, two thousand sixteen, and must pay

on or before the fifteenth day of the third month of such privilege

periods, for taxable years beginning on or after January first, two

thousand sixteen, an amount equal to (i) twenty-five percent of the

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

one thousand dollars for taxable years beginning before January first,

two thousand twenty-six, or five thousand dollars for taxable years

beginning on or after January first, two thousand twenty-six, but was

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

percent of the second preceding year's tax if the second preceding

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

preceding year's tax under section two hundred nine of this article

exceeded one thousand dollars for taxable years beginning before January

first, two thousand twenty-six, or five thousand dollars for taxable

years beginning on or after January first, two thousand twenty-six, and

the taxpayer is subject to the tax surcharge imposed by section two

hundred nine-B of this article, the taxpayer must also pay with the tax

surcharge report required to be filed for the second preceding privilege

period, or with an application for extension of the time for filing the

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

sixteen, and must pay on or before the fifteenth day of the third month

of such privilege periods, for taxable years beginning on or after

January first, two thousand sixteen, an amount equal to (i) twenty-five

percent of the tax surcharge imposed for the second preceding 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 year if the second preceding year's tax exceeded

one hundred thousand dollars. Provided, however, that every taxpayer

that is a New York S corporation must pay with the report required to be

filed for the preceding privilege period, or with an application for

extension of the time for filing the report, an amount equal to (i)

twenty-five percent of the preceding year's tax if the preceding year's

tax exceeded one thousand dollars for taxable years beginning before

January first, two thousand twenty-six, or five thousand dollars for

taxable years beginning on or after January first, two thousand

twenty-six, but was equal to or less than one hundred thousand dollars,

or (ii) forty percent of the preceding year's tax if the preceding

year's tax exceeded one hundred thousand dollars.

(b) Other installments.--In privilege periods of twelve months ending

at any time during the calendar year nineteen hundred seventy and

thereafter, the estimated tax or estimated tax surcharge, with respect

to which a declaration for such privilege period is required 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 privilege period

pursuant to subdivision (a), 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 privilege period, and is not required to be

filed on or before June fifteenth of such period, the estimated tax or

estimated tax surcharge shown on such declaration, after applying

thereto the amount, if any, paid during the same privilege period

pursuant to subdivision (a), 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

privilege period, and is not required to be filed on or before September

fifteenth of such privilege period, the estimated tax or estimated tax

surcharge shown on such declaration, after applying thereto the amount,

if any, paid in respect of such privilege period pursuant to subdivision

(a), 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 (2)

and (3) 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) Amendments 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

privilege period, any increase in the estimated tax or estimated tax

surcharge by reason thereof shall be paid at the time of making such

amendment.

(d) Application of installments based on the second preceding year's

tax.--(1) Any amount paid pursuant to subdivision (a) shall be applied

after payment as a first installment against the estimated tax or

estimated tax surcharge, respectively, of the taxpayer for the current

privilege period shown on the declaration required to be filed pursuant

to section two hundred thirteen-a of this chapter or, if no declaration

of estimated tax or a declaration of estimated tax surcharge is required

to be filed by the taxpayer pursuant to such section, any such amount

shall be considered a payment on account of the tax or tax surcharge

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

privilege period.

(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 two hundred thirteen-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 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 of section sixteen of the state finance

law, if an amount paid pursuant to subdivision (a) exceeds the tax or

tax surcharge, respectively, shown on the report required to be filed by

the taxpayer for the privilege period during which the amount was paid,

interest shall be allowed and paid on the amount by which the amount so

paid pursuant to such subdivision exceeds such tax or tax surcharge. In

the case of amounts so paid pursuant to subdivision (a), such interest

shall be allowed and paid at the overpayment rate set by the

commissioner of taxation and finance pursuant to section one thousand

ninety-six of this chapter, or if no rate is set, at the rate of six per

centum per annum from the date of payment of the amount so paid pursuant

to such subdivision to the fifteenth day of the fourth 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

carryback of a net operating loss in a subsequent privilege period.

(f) The preceding year's tax and the second preceding year's tax

defined.-- As used in this section, "the preceding year's tax" means the

tax imposed upon the taxpayer by section two hundred nine of this

article for the preceding calendar or fiscal year, or, for purposes of

computing the first installment of estimated tax when an application has

been filed for extension of the time for filing the report required to

be filed for such preceding calendar or fiscal year, the amount properly

estimated pursuant to section two hundred thirteen of this article as

the tax imposed upon the taxpayer for such calendar or fiscal year. As

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

imposed upon the taxpayer by section two hundred nine of this article

for the second preceding calendar or fiscal year.

(g) Application to short privilege period.--This section shall apply

to a privilege period of less than twelve months in accordance with

regulations of the tax commission.

(h) Fiscal year.--The provisions of this section shall apply to

privilege 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.

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

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

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 section one

thousand ninety-six of this chapter, or if no rate is set, at the rate

of six per centum 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 payment thereof.