Form Nyc-221 - Underpayment Of Estimated Unincorporated Business Tax

Form Nyc-221 - Underpayment Of Estimated Unincorporated Business Tax - 2017 Page 4

Instructions for Form NYC-221 - 2017

Page 4

LINE 30

preceding that in which an installment is due. To see

PENALTY FOR UNDERPAYMENT OF

if this exception applies, a taxpayer should figure the

ESTIMATED TAX

taxable income from the beginning of the taxable year

to the end of the month preceding that in which an in-

In columns 1 through 4 of line 30, for those install-

stallment is due and then compute the tax on that

ment payments (line 8) that equal 80% or more of

amount as though it represented the taxable income

line 3 divided by 4, multiply the penalty shown in

for 2017. (Refer to Section 11-525(d)(2).

each applicable column by 75%. Enter this result in

the applicable column on line 30. Combine these re-

Exception 5

vised amounts with the remaining amounts on line 29

for any quarter for which no amount appears on line

Additional Exception For Recurring

30 and enter the total on line 31.

Seasonal Income

This exception applies to an unincorporated business

with recurring seasonal income. Under this excep-

tion, income may be annualized by assuming that in-

come earned in the current year is earned in the same

seasonal pattern as in the 3 preceding tax years. (For

information about computing this exception, refer to

Section 11-525(d)(1)(D) of the NYC Administrative

Code. Attach your computation to the form.)

LINE 7

OVERPAYMENT OF PREVIOUS

INSTALLMENT

An overpayment on line 9 in excess of prior under-

payments is to be applied as a credit against the next

installment. A payment of estimated tax on any in-

stallment date is considered a payment of any previ-

ous underpayment only to the extent of the excess of

the payment over the amount of the installment as

computed on line 9.

PAGE 2

COMPUTATION OF PENALTY

If no exception applies, complete lines 11 through 31

to determine the amount of the penalty for each in-

stallment. If you made more than one payment for a

given installment, attach a separate computation for

each payment. The penalty is computed for the pe-

riod of underpayment, line 12, at a rate set periodi-

cally by the New York City Department of Finance.

For information regarding interest rates, call 311. If

calling from outside of the five NYC boroughs,

please call 212-NEW-YORK (212-639-9675), or

consult the Finance website at:

nyc.gov/finance

Form Nyc-221 - Underpayment Of Estimated Unincorporated Business Tax - 2017 Page 4

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