Looking for a New York City Department Of Finance Forms And Templates? Download it for free!

Instructions for Form NYC-222B - 2017

Page 3

PURPOSE OF FORM

merely because its tax liability for

ported on its prior year’s return. To

Form NYC-222B will enable sub-

the preceding year was $1,000 or

qualify for this exception, the cor-

chapter S banking corporations to

less or it did not file a return for the

poration must have filed an income

determine if they paid the correct

preceding year. However, if the pre-

tax return showing a tax liability

amount of estimated tax by the

ceding year’s tax was less than

for the prior year, and that taxable

proper due date. If the minimum

$1,000, the taxpayer is not required

year consisted of 12 months.

amount was not paid timely, an un-

to make the 25% prepayment based

Exception 2 - Tax Based On

derpayment penalty may be imposed

on the preceding year’s tax at the

for the period underpaid. This form

time it files its return (or its appli-

Prior Year’s Facts and Law

helps you to determine whether or

cation for extension of time for the

Using Current Year’s Rates

not you are subject to this penalty.

filing of the return) for that year.

This exception applies if a sub-

chapter S banking corporation paid

ESTIMATED TAX

EXCEPTIONS THAT

an amount of estimated tax equal

AVOID THE UNDERPAY-

Every subchapter S banking corpo-

to a tax computed by applying the

MENT PENALTY

ration subject to the New York City

current year’s rates, to the facts

Tax on Banking Corporations must

You will not have to pay a penalty

shown on the return for, and under

pay, either with its return (Form

if you made all tax payments on

the law applicable to the prior tax-

NYC-1 or Form NYC-1A) or with

time and they equal or exceed the

able year. The term “current year’s

its Application for Automatic Ex-

amount that would have been re-

rate” is any of the four methods of

tension (Form NYC-EXT), an

quired to be paid by each install-

calculating the Banking Corpora-

amount equal to 25% of its preced-

ment date if the estimated tax were

tion Tax including the minimum

ing year’s tax if the preceding

an amount determined under any

tax.

year’s tax is more than $1,000.

of the exceptions listed below.

Exception 3 - Tax On Annual-

In addition, corporations must file

A different exception may be ap-

ized Income

a Declaration of Estimated Tax

plied to each underpayment. If no

This exception applies if a banking

(Form NYC-400B) if the estimated

exception applies, complete lines

corporation made an estimated tax

tax for the current taxable year

14 through 36 to determine the

payment of at least 90% of the

after all allowable credits can rea-

amount of the penalty.

amount it would owe if its estimated

sonably be expected to exceed

tax were a tax computed on annual-

NOTE: Large corporations (cor-

$1,000. The due date for the dec-

ized taxable income for the months

laration and the dates for paying

porations that had allocated taxable

preceding an installment date.

the installments of estimated tax

income or entire net income of $1

A subchapter S banking corpora-

depend upon when the require-

million or more in any of the three

tion may annualize its income:

ments for making a declaration are

years preceding the current year)

first met. (Refer to Form NYC-

may not use exceptions 1 or 2.

a) for the first 3 months, or for the

Such corporations may only use

400B for details.)

first 5 months if the installment

the exception for annualized in-

was required to be paid in the 6th

NOTE: If any date falls on a Sat-

come, or the exception for recur-

month;

urday, Sunday or legal holiday,

ring seasonal income (exceptions 3

substitute the next regular workday.

or 4, respectively).

b) for the first 6 months, or for the

first 8 months, if the installment

NOTE: A subchapter S banking

Exception 1 - Prior Year’s Tax

was required to be paid in the

corporation is not excused from fil-

This exception applies if a sub-

9th month; and

ing a declaration and paying esti-

chapter S banking corporation paid

c) for the first 9 months, or for the

mated taxes for the current year

estimated taxes equal to the tax re-

Form Nyc-222b - Underpayment Of Estimated Tax By Subchapter S Banking Corporations - 2017 Page 3

Related Articles

Related forms

Related Categories