§ 3-06 Payment of Tax and Declaration and Payment of Estimated Tax.
RCNY § 3-06
(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.
(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.
(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.
