Payment of Tax and Declaration and Payment of Estimated Tax.
19 RCNY § 3-06
in effect§ 3-06 Payment of Tax and Declaration and Payment of Estimated Tax.
(a) Payment of tax.
(1) Time for payment of tax. (Administrative Code, § 11-647) The tax imposed by the banking corporation tax law is payable to the Commissioner of Finance in full at the time the return is required to be filed. The time when the payment is required to be made is determined without regard to any extension of time for filing such return.
(2) Extension of time for payment of tax. (Administrative Code, § 11-647(c)) The Commissioner of Finance may grant a reasonable extension of time for payment of the tax upon receipt of a written request from the taxpayer giving complete information as to the reasons for its inability to make payment of the tax on or before the prescribed due date. Interest must be paid on any balance due from the original due date of the return, without regard to any extension, to the date of payment.
(3) Properly estimated tax. (Administrative Code, § 11-647(b)) A taxpayer applying for an automatic six month extension for filing its tax return must pay on or before the date its return is required to be filed, without regard to any extension of time, its properly estimated tax. The estimated tax paid, or balance thereof, will be deemed properly estimated if the tax paid is either:
(i) not less than 90 percent of the tax as finally determined; or
(ii) not less than the tax shown on the taxpayer's return for the preceding taxable year, if such preceding year was a taxable year of 12 months.
(4) Cessation Tax. (Administrative Code, § 11-647(a)) Any taxpayer which ceases to be subject to the banking corporation tax must pay the tax, or balance thereof, at the time the return is required to be filed as described in 19 RCNY § 3-05(d)(3).
(b) Declaration of estimated tax.
(1) Requirement of declaration. (Administrative Code, § 11-644) Every taxpayer subject to the banking corporation tax must make a declaration of its estimated tax for the current taxable year if such estimated tax can reasonably be expected to exceed $1,000 for the taxable year. The declaration must cover a calendar year accounting period if the taxpayer files its return on the basis of a calendar year, or a full fiscal year if the taxpayer files its return on the basis of a fiscal year, unless a declaration for a short period is required by 19 RCNY § 3-06(b)(6). No declaration may be made for a period of more than 12 months. For purposes of this section a taxable year of 52-53 weeks, in accordance with the provisions of 19 RCNY § 3-02(a)(4), will be deemed a period of 12 months.
(2) Definition of estimated tax. (Administrative Code, § 11-644(b)) The term "estimated tax" means the amount which a taxpayer estimates to be the tax imposed by the banking corporation tax law for the current taxable year, less the amount which it estimates to be the sum of any credits allowable against the tax.
(3) Time for filing declaration of estimated tax. (Administrative Code, § 11-644(c) and (f)) A declaration of estimated tax must be filed when the requirements of 19 RCNY § 3-06(b)(1) are first met:
(i) on or before the first day of the sixth month of the current taxable year, then the declaration must be filed on or before the 15th day of the sixth month;
(ii) after the first day of the sixth month of the current taxable year and before the second day of the tenth month, then the declaration must be filed on or before the 15th day of the tenth month;
(iii) after the first day of the tenth month of the current taxable year, then the declaration must be filed on or before the 15th day of the first month of the succeeding taxable year.
(4) Amendments of declaration. (Administrative Code, § 11-644(d)) In making a declaration of estimated tax, the taxpayer is required to take into account the then existing facts and circumstances as well as those reasonably to be anticipated which relate to the prospective banking corporation tax. Amended or revised declarations may be made in any case in which the taxpayer finds that its estimated tax differs from the estimated tax reflected in its most recent declaration of estimated tax. However, an amended declaration may only be made on an installment date (See: 19 RCNY § 3-06(c)(4) – Other Installments of Estimated Tax) and no further amendments may be made until a succeeding installment date. The amended declaration shall be made on form NYC-400F and marked "AMENDED". No refund will be issued as a result of the filing of an amended declaration. Consideration will be given to a refund only in connection with a completed return filed by a taxpayer for the taxable year covered by its declaration or amended declaration.
(5) Return as declaration or amendment. (Administrative Code, § 11-644(e) and (f))
(i) If the taxpayer files its return for the calendar year on or before February 15 of the succeeding calendar year (or if the taxpayer is on a fiscal year basis, on or before the 15th day of the second month succeeding the taxable year) and pays therewith the balance, if any, of the full amount of the tax shown to be due on the return:
(A) such return will be considered to be its declaration if no declaration was required to be filed during the taxable year for which the tax was imposed, but a declaration was required to be filed on or before the 15th day of the first month of the succeeding taxable year pursuant to 19 RCNY § 3-06(b)(3); or
(B) such return will be considered as the amendment permitted by 19 RCNY § 3-06(b)(4) to be filed on or before the 15th day of the first month of the succeeding taxable year if the tax shown on the return is greater than the estimate shown on a declaration previously made.
Example 1: A taxpayer which reports on the basis of a calendar year first meets the requirements for making a declaration of estimated tax on October 5, 1981. The taxpayer may satisfy the requirement for making a declaration of estimated tax by preparing and filing its return for taxable year 1981 on or before February 15, 1982, and paying at the time of filing the balance, if any, of the full amount of tax shown to be payable. The return will be treated as the declaration required to be filed on or before January 15, 1982.
Example 2: The taxpayer makes and files on or before October 15, 1981 a timely declaration of estimated tax for such year and on or before February 15, 1982 files its 1981 tax return and pays the balance, if any, of the full amount of tax shown to be payable. If the taxpayer's return shows the tax to be greater than the estimated tax shown on the declaration, the return will be treated as the amended declaration permitted to be filed on or before January 15, 1982.
(ii) The filing of a declaration or amended declaration or the payment of the last installment of estimated tax on January 15, or the filing of a return by February 15 of the succeeding calendar year (or if on a fiscal year basis, on the 15th day of the first month of the succeeding taxable year or the 15th day of the second month of the succeeding fiscal year) will not relieve the taxpayer of the additional charge for underpayment of installments if it failed to pay its estimated tax due earlier in its taxable year.
(6) Short periods. (Administrative Code, § 11-644(g)) If a taxpayer is required to make a declaration of estimated tax pursuant to 19 RCNY § 3-06(b)(1) and a short taxable year is involved, a declaration for the fractional part of the year is required. No declaration is required if the short taxable year is a period of five months or less.
(7) Time for filing declaration of estimated tax for short taxable year. (Administrative Code, § 11-644(g)) In the case of a short taxable year of more than five months, the declaration of estimated tax must be filed when the requirements for filing a declaration (See: 19 RCNY § 3-06(b)(1)) are first met:
(i) on or before the first day of the sixth month of the current taxable year, then the declaration must be filed on or before the 15th day of the sixth month;
(ii) after the first day of the sixth month of the current taxable year but before the second day of the tenth month, then the declaration must be filed on or before the 15th day of the tenth month or the 15th day of the first month of the succeeding taxable year, whichever comes first;
(iii) after the first day of the tenth month of the current taxable year, the declaration must be filed on or before the 15th day of the first month of the succeeding taxable year.
(8) Extension of time for filing declaration of estimated tax. (Administrative Code, § 11-644(h)) The Commissioner of Finance may grant a reasonable extension of time, not to exceed three months, for the filing of any declaration of estimated tax upon receipt of a written request from the taxpayer giving complete information as to the reasons for its inability to file the declaration on or before the prescribed due date.
(c) Payments of estimated tax.
(1) General. The amount of estimated tax due as shown on a declaration of estimated tax may be paid in installments or, at the election of the taxpayer, may be paid in full at the time of filing the declaration. If the estimated tax is paid in installments, the first payment must accompany the declaration.
(2) Definition of preceding year's tax. (Administrative Code, § 11-645(f)) The term "preceding year's tax" as used in this subdivision (c) means the tax imposed by the banking corporation tax law for the preceding taxable year. It also means, for purposes of computing the first installment of estimated tax when an application has been filed for extension of the time for filing the return required to be filed for the preceding taxable year, the amount properly estimated (See: 19 RCNY § 3-06(a)(3) – Properly Estimated Tax) as the tax imposed upon the taxpayer for such preceding taxable year.
(3) First installment of estimated tax for certain taxpayers. (Administrative Code, § 11-645(a)) Every taxpayer subject to the tax imposed by the banking corporation tax law must pay with its return required for the preceding taxable year, or with an application for extension of the time for filing such return, an amount equal to 25 percent of the preceding year's tax, if such tax exceeded $1,000.
(4) Other installments of estimated tax. (Administrative Code, § 11-645(b) and (j))
(i) In the case of a declaration of estimated tax for a 12 month taxable year, the other dates for filing the declaration and for installment payments are as follows:
Dates for filing the declaration Dates for installment payments
(A) On or before the 15th day of the sixth month (1) The estimated tax must be paid in three equal installments (after deducting the amount, if any, paid with the return for the preceding taxable year or with the application for extension of time to file such return). One payment must be made at the time of filing the declaration, one on or before the 15th day of the tenth month and one on or before the 15th day of the first month of the succeeding taxable year.
(B) On or before the 15th day of the tenth month (2) The estimated tax must be paid in two equal installments (after deducting the amount, if any, paid with the return for the preceding taxable year or with the application for extension of time to file such return). One payment must be made at the time of filing the declaration and one on or before the 15th day of the first month of the succeeding taxable year.
(C) On or before the 15th day of the first month if the succeeding taxable year (3) The estimated tax must be paid in full at the time of filing the declaration (after deducting the amount, if any, paid with the return for the preceding taxable year or with the application for extension of time to file such return).
(ii) If a declaration is filed after the time prescribed in 19 RCNY § 3-06(b)(3), or after the expiration of any extension of time, then the provisions of Subparagraphs (A), (B) and (C) of subparagraph (i) of this paragraph do not apply, and the taxpayer must pay at the time of filing the declaration all installments of estimated tax which would have been payable at or before such time if the declaration had been filed at the time prescribed in 19 RCNY § 3-06(b)(3). The remaining installments must be paid at the time and in the amounts in which they would have been payable if the declaration had been flied at the time prescribed in 19 RCNY § 3-06(b)(3).
Example: X Corporation was required to file a declaration of estimated tax on or before June 15, 1981, but it filed its declaration for calendar year 1981 on November 18, 1981. At the time of filing its declaration, X Corporation had failed to pay two installments of its estimated tax for the taxable year 1981. Upon filing the declaration on November 18, 1981, it must pay the two installments of estimated tax which it had previously failed to pay.
(5) Amendments of declaration. (Administrative Code, § 11-645(c) and (j)) If an amendment of a declaration is filed, the remaining installments, if any, must be ratably increased or decreased to reflect any increase or decrease (as the case may be) in the estimated tax by reason of such amendment. If an amendment is made after the 15th day of the tenth month of the current taxable year, any increase in the estimated tax must be paid at the time of making such amendment.
Example: On June 15, 1981, a taxpayer files a declaration of estimated tax for $12,000 and pays the first installment of $4,000. On October 15, 1981, it files an amended declaration showing an estimated tax of $14,000. The balance of $10,000 must be paid in two remaining installments, $5,000 on October 15, 1981, and $5,000 on January 15, 1982.
(6) Application of installments based on preceding year's tax. (Administrative Code, § 11-645(d)) Any amount paid pursuant to 19 RCNY § 3-06(c)(3) must first be applied as payment of the first installment against the estimated tax for the current taxable year shown on the declaration required to be filed pursuant to 19 RCNY § 3-06(b)(1). If the amount paid pursuant to 19 RCNY § 3-06(c)(3) exceeds the declaration of estimated tax, such amount will be considered as a payment on account of the tax shown on the return required to be filed by the taxpayer for the current taxable year. If no declaration of estimated tax is required to be filed by the taxpayer pursuant to 19 RCNY § 3-06(b)(1), any amount paid pursuant to 19 RCNY § 3-06(c)(3) will be considered as a payment on account of the tax shown on the return required to be filed by the taxpayer for the current year.
Example: On March 15, 1983, a calendar year taxpayer files its tax return for the calendar year 1982 showing a tax due of $12,000 and a first installment of estimated tax for calendar year 1983 of $3,000. On June 15, 1983, the taxpayer files a declaration of estimated tax for calendar year 1983 in the amount of $18,000. After deducting the first installment of $3,000, the balance of $15,000 must be paid in three equal installments. The June 15, 1983 installment is $5,000 ($15,000/3).
(7) Interest on certain installments based on the proceeding year's tax.(Administrative Code, § 11-645(e)) If the amount paid pursuant to 19 RCNY § 3-06(c)(3) exceeds the tax shown on the return required to be filed by the taxpayer for the taxable year for which the amount was paid, interest will be allowed and paid on the amount by which the amount paid pursuant to 19 RCNY § 3-06(c)(3) exceeds the tax. Interest will be paid at the rate or rates set by the Commissioner of Finance in the Regulations of the Commissioner of Finance Relating to Interest Rates on New York City Income and Excise Taxes, or if no rate is set, at the rate of six percent per year from the date of payment of the amount to the 15th day of the third month of the succeeding taxable year. However, no interest will be allowed or paid if such interest is less than one dollar.
Example: X Corporation, a calendar year taxpayer, files its tax return for the calendar year 1981 on March 15, 1982 and shows a tax due of $4,000. The taxpayer pays $1,000, representing 25 percent of the preceding year's tax, as its first installment for the current taxable year's estimated tax. On March 15, 1983, X Corporation files its return for the calendar year 1982 and shows a tax due of $600. Interest will be paid on the difference of $400 from March 15, 1982 to March 15, 1983.
(8) Short taxable years. (Administrative Code, § 11-645(g)) In the case of a short taxable year of a taxpayer for which a declaration of estimated tax is required to be made and filed, the estimated tax should be paid in equal installments (after deducting the amount, if any, paid with the return for the preceding taxable year), one at the time of filing the declaration, one on the 15th day of the tenth month of the taxable year (unless the short taxable year closed prior to such tenth month, in which case the installment will be eliminated) and one on the 15th day of the first month of the succeeding taxable year.
Example: In the case of a short taxable year of 11 months, from January 1, 1981 to November 31, 1981, the declaration is required to be made and filed on or before June 15, 1981. The estimated tax is payable in three equal installments, one on the date of filing the declaration and one each on October 15 and December 15, 1981. If the declaration is required to be filed after June 15, 1981 but on or before October 15, 1981, the estimated tax is payable in two equal installments, one on the date of filing the declaration and one on December 15, 1981.
(9) Extension of time. (Administrative Code, § 11-645(i)) The Commissioner of Finance may grant a reasonable extension of time, not to exceed six months, for payment of any installment of estimated tax upon receipt of a written request from the taxpayer giving complete information as to the reasons for its inability to pay the installment on or before the prescribed due date. As a condition for granting an extension of time, the Commissioner of Finance may require the taxpayer to furnish a bond or other security in an amount not to exceed twice the amount of the installment. Interest must be paid from the original due date of the installment, without regard to any extension, to the date of payment.
(10) Payments of installments in advance. (Administrative Code, § 11-645(j)) At the election of the taxpayer, any installment of the estimated tax may be paid prior to the date prescribed for its payment. No interest will be allowed or paid on such prepayment.
(d) Electronic filing and payment. Pursuant to 19 RCNY § 17-03, the Commissioner may authorize the electronic filing of any request for extension and payment of any tax required to be paid by this section.
Source: City of New York, Charter, Administrative Code and Rules (American Legal Publishing XML export, codelibrary.amlegal.com)URL: https://codelibrary.amlegal.com/codes/newyorkcity/latest/NYCrules/0-0-0-35636Fetched: 10/24/2026