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Form NYC-300 - 2023 - Instructions Page 2
WHO MUST FILE PENALTY
Every C corporation subject to the New York City Business Corpo- The law imposes penalties for failure to pay or underpayment of
ration Tax (Title 11, Chapter 6, Subchapter 3-A of the Administrative estimated tax. (Refer to Section 11-676, Subdivisions 3 and 4 of
Code) must file Form NYC-300 and pay the Mandatory First In- the Administrative Code.)
stallment (“MFI”) if its tax for the second preceding year exceeded
$1,000. The MFI is equal to 25 percent of the tax for the second pre- ELECTRONIC FILING
ceding tax year for which the payment must be made. See Adminis- Note: Register for electronic filing. It is an easy, secure and
trative Code §11-658. For a group filing a combined return, this convenient way to file and pay an extension on-line. For more
form should be filed by the designated agent of the group, as defined information log on to NYC.gov/eservices
in Administrative Code §11-654.3(7).
TAX PREPARERS
WHEN TO FILE Anyone who prepares a return for a fee must sign the return as
The due date is 2-1/2 months into the current year, not the due date a paid preparer and enter his or her Social Security Number or
of the return or extension. For a calendar year taxpayer, the due PTIN. (See Finance Memorandum 00-1.) Include the com-
date is March 15th. If any of the dates fall on a Saturday, Sunday pany or corporation name and Employer Identification Num-
or legal holiday, the due date is the next business day. ber, if applicable.
COMPUTATION OF MANDATORY FIRST INSTALLMENT Preparer Authorization: If you want to allow the Department
(MFI) OF ESTIMATED TAX FOR CURRENT YEAR of Finance to discuss your return with the paid preparer who
Corporations whose tax liability for the second preceding year ex- signed it, you must check the "Yes" box in the signature area of
ceeds $1,000 are required to pay 25% of the tax liability for the the return. This authorization applies only to the individual
second preceding year as a first installment of estimated tax for whose signature appears in the "Preparer's Use Only" section of
the current year (MFI). The second preceding year’s tax means your return. It does not apply to the firm, if any, shown in that
the tax imposed on the taxpayer by section 11-653 of the Admin- section. By checking the "Yes" box, you are authorizing the
istrative Code for the second preceding calendar or fiscal year. Department of Finance to call the preparer to answer any ques-
tions that may arise during the processing of your return. Also,
EXAMPLE you are authorizing the preparer to:
Corporation A is a calendar year taxpayer. For calendar year 2021,
l
Corporation A reported $2,000 in Business Corporation Tax. Cor- give the Department any information missing from your re-
turn,
poration A must pay $500 with its Form NYC-300 for 2023.
l call the Department for information about the processing
Line 1 - Enter the total tax after credits for the second preceding of your return or the status of your refund or payment(s),
tax year. and
l respond to certain notices that you have shared with the
Line 2 - If the tax on line 1 is greater than $1,000, the MFI is com- preparer about math errors, offsets, and return preparation.
puted by multiplying the tax by 25%. The notices will not be sent to the preparer.
Note: If you do not have a second preceding tax year because a re- You are not authorizing the preparer to receive any refund check,
turn was not required to be filed, then you are not required to bind you to anything (including any additional tax liability), or oth-
make an MFI of estimated tax;do notfile this form. You erwise represent you before the Department. The authorization can-
must still make a declaration of estimated tax, and pay the re- not be revoked; however, the authorization will automatically expire
maining installments of estimated Business Corporation Tax no later than the due date (without regard to any extensions) for fil-
using Form NYC-400, Estimated Tax by Business Corpora- ing next year's return. Failure to check the box will be deemed a
tions and Subchapter S General Corporations. denial of authority.
Line 3 - Line 3 is available as an option to satisfy the payment of
MFI of estimated tax by using overpayments from prior
periods instead of remitting additional money. The
amounts used for this purpose must be overpayments
shown on prior period returns already filed. Do not use
overpayments that you anticipate computing on the tax
return you will file after you file Form NYC-300.
EXAMPLE
A calendar-year filer is filing Form NYC-300 by March 15, 2023
to make the MFI payment for 2023. The filer reasonably believes
that when filing its 2022 return due on April 15, 2023, it will have
an overpayment for 2022. When filing Form NYC-300, the tax-
payer is not allowed to include on line 3 the 2022 overpayment as
partial or full payment of the 2023 MFI requirement because the
2022 return has not yet been filed.
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