-222 UNDERPAYMENT OF ESTIMATED TAX BY 2020 BUSINESS AND GENERAL CORPORATIONS ATTACH TO FORM NYC-2, NYC-2A, NYC-2S, NYC-3L, NYC-3A, NYC-4S OR NYC-4SEZ For CALENDAR YEAR 2020 or FISCAL YEAR beginning ____________________, 2020 and ending _______________________ Print or Type t Name: EMPLOYER IDENTIFICATION NUMBER *30912091* Computation of Underpayment 1. 2020 tax (from NYC-2, Sch. A, line 4; NYC-2A, Sch. A, line 6; NYC-2S, Sch. A, line 4; NYC-3L, Sch. A, line 6; NYC-4S, Sch. A, line 5; NYC-4S-EZ, Sch. A, line 3; or NYC-3A, Sch. A, line 8) .............................................................. 1. 2. Credits (from NYC-2, Schedule A, lines 5, 7, 8, 9 and 11; NYC-2A, Schedule A, lines 7, 9, 10, 11 and 13; NYC-3L, Schedule A, lines 7, 9a, 9b, 10a and 10c or NYC-3A, Schedule A, lines 9, 11a, 11b, 12a and 12c) ..................... 2. 3. Line 1 less line 2 ............................................................................................................................................................. 3. 4. 90% of line 3.................................................................................................................................................................... 4. 1 - FIRST 2 - SECOND 3 - THIRD 4 - FOURTH Enter quarterly due dates of installments : 5a. 2018 Business Corporation Tax ........................5a. 5b. 2019 General Corporation Tax...........................5b. 6a. C Corps: If line 5a is over $1,000, enter 25% of line 5a or amount from Form NYC-300, line 2, if filed for 2020...............................6a. 6b. S Corps: If line 5b is over $1,000, enter 25% of line 5b or amount from NYC-EXT, line 2, if filed for 2019. .................................6b. 7. Line 4 less line 6a or 6b ....................................7. 8. Enter amount of the installments due in Quarters 2, 3 and 4 (see inst.) ........................................8. 9. Amount paid or credited for each period ..............................................9. 10. Overpayment of previous installment (see instructions) .............................................................10. 11. Total of lines 9 and 10 .......................................................................11. 12. Quarters 2, 3 and 4 ..... line 11 less line 8 OVERPAYMENT: Quarter 1 ..................... line 11 less line 6a or 6b 12. UNDERPAYMENT: Quarter 1 ..................... line 6a or 6b less line 11 13. 13. Quarters 2, 3 and 4 ..... line 8 less line 11 COMPUTATION CONTINUES ON PAGE 2 Exceptions that Avoid the Underpayment Penalty Total cumulative amount paid or credited from the beginning of the 1 -FIRST QUARTER 2 -SECOND QUARTER 3 -THIRD QUARTER 4 -FOURTH QUARTER taxable year through the installment dates that correspond to the 15th day of the 3rd, 6th, 9th and 12th months of the taxable year ............... 50% of 2019 tax 75% of 2019 tax 100% of 2019 tax s EXCEPTION 1- Prior year's tax (2019) $ ___________________ ( see instructions)....................................................................................................................................... s EXCEPTION 2- Tax on prior year's facts and law using 2020 rates Enter 50% of tax Enter 75% of tax Enter 100% of tax ( attach computation) (see instructions)...................................................................................................... s EXCEPTION 3- Tax on annualized 2020 income Enter 45% of tax Enter 67.50% of tax Enter 90% of tax ( attach computation) (see instructions)..................................................................................................... s EXCEPTION 4- Tax on recurring seasonal 2020 income (attach computation) (see instructions)...................................................................................................... 30912091 NYC-222 2020 - Rev. 12.07.2020 |
Form NYC-222 - 2020 Page 2 COMPUTATION OF PENALTY 1 - FIRST 2 - SECOND 3 - THIRD 4 - FOURTH 14. Enter the date of payment or the 15th day of the 3rd month after the close of the taxable year, whichever is earlier..................14. 15. Number of days from due date of installment to the date shown on line 14.............................................................................15. 16. Number of days on line 15 after 3/15/2020 and before 4/1/2020 ...16. 17. Number of days on line 15 after 3/31/2020 and before 7/1/2020 ...17. 18. Number of days on line 15 after 6/30/2020 and before 10/1/2020 .18. 19. Number of days on line 15 after 9/30/2020 and before 1/1/2021 ...19. 20. Number of days on line 15 after 12/31/2020 andbefore 4/1/2021 . 20. 21. Number of days on line 15 after 3/31/2021 and before 7/1/2021 ...21. 22. Number of days on line 15 after 6/30/2021 and before 10/1/2021 .22. 23. Number of days on line 15 after 9/30/2021 and before 1/1/2022 ...23. 24. Number of days on line 15 after 12/31/2021 and before 3/15/2022 ....24. 25. Number of days on line 16 x 9% x amount on line 13 366 ...............25. 26. Number of days on line 17 x 9% x amount on line 13 366 ...............26. 27. Number of days on line 18 x 7.5% x amount on line 13 366 ...............27. 28. Number of days on line 19 x 7.5% x amount on line 13 366 ...............28. 29. Number of days on line 20 x * % x amount on line 13 365 ...............29. 30. Number of days on line 21 x * % x amount on line 13 365 ...............30. 31. Number of days on line 22 x * % x amount on line 13 365 ...............31. 32. Number of days on line 23 x * % x amount on line 13 365 ...............32. 33. Number of days on line 24 x * % x amount on line 13 365 ...............33. 34. Add lines 25 through 33 .................................................................34. 35. To complete this line, refer to the instructions for line 35 ...............35. 36. Add the amounts on line 34 (or line 35, if applicable) for quarters 1 through 4. Enter total and transfer amount to Form NYC-4SEZ, line 9c, Form NYC-4S, Schedule A, line 11c, Form NYC-3L, Schedule A, line 17c, Form NYC-3A, Sch. A, line 19c, Form NYC-2, Schedule A, line 16c, Form NYC-2A, Schedule A, line 18c or Form NYC-2S, Sch. A, line 8c. (see instructions for line 35) ..............36. *For information regarding interest rates, call 311. If calling from outside of the five NYC boroughs, please call 212-NEW-YORK (212-639-9675). *30922091* 30922091 You may also consult the Finance website at nyc.gov/finance |
Instructions for Form NYC-222 - 2020 Page 3 PURPOSE OF FORM NOTE NOTE Form NYC-222 will enable corpora- If any date falls on a Saturday, Large corporations (corporations that tions to determine if they paid the cor- Sunday or legal holiday, substitute had allocated taxable income or rect amount of estimated tax by the the next regular workday. entire net income of $1 million or proper due date. If the minimum more in any of the three years pre- amount was not paid timely, an under- NOTE ceding the current year) may not use payment penalty may be imposed for An S corporation is not excused exceptions 1 or 2. Such corporations the period underpaid. This form helps from filing a declaration and paying may only use the exception for annu- you to determine whether or not you estimated taxes for the current year alized income, or the exception for are subject to this penalty. merely because its tax liability for recurring seasonal income (excep- the preceding year was $1,000 or tions 3 or 4, respectively). ESTIMATED TAX less or it did not file a return for the Every S corporation subject to the preceding year. However, if the pre- Exception 1 New York City General Corporation ceding year’s tax was less than Prior Year’s Tax Tax must pay with its return (Form $1,000, the taxpayer was not NYC-3L, NYC-3A, Form NYC-4S required to make the 25% prepay- This exception applies if a corpora- or NYC-4S-EZ), or with its ment based on the preceding year’s tion paid estimated taxes equal to the Application for Automatic Extension tax at the time it filed its return (or tax reported on its prior year’s (Form NYC-EXT), an amount equal its application for extension of time return. To qualify for this exception, to 25% of its preceding year's tax if for the filing of the return) for that the corporation must have filed an the preceding year’s tax computed year. income tax return showing a tax lia- after all allowable credits is more bility for the prior taxable year, and than $1,000. Similarly, a C corporation must file a that taxable year consisted of 12 Declaration of Estimated Tax (Form months. Every C corporation subject to the NYC-400) if the estimated tax for Business Corporation Tax must file the current taxable year exceeds Exception 2 Form NYC-300 and pay the $1,000 even if the second preceding Tax Based On Prior Year’s Mandatory First Installment (“MFI”) year’s tax is $1,000 of less. Facts and Law Using Current if its tax for the second preceding Year’s Rates year computed after all allowable EXCEPTIONS THAT AVOID This exception applies if a corpora- credits is more than $1,000. The THE UNDERPAYMENT tion paid an amount of estimated tax MFI is equal to 25 percent of the tax PENALTY equal to a tax computed by applying for the second preceding tax year. You will not have to pay a penalty if the current year’s rates to the facts you made all tax payments on time shown on the return for, and under In addition, both S and C corpora- and they equal or exceed the amount the law applicable to, the prior tax- tions must file a Declaration of that would have been required to be able year. The term “current Estimated Tax (Form NYC-400) if paid by each installment date if the year’s rate” is any of the four the estimated tax for the current tax- estimated tax were an amount deter- methods of calculating the General able year after all allowable credits mined under any of the exceptions Corporation Tax, including the can reasonably be expected to listed below. minimum tax or any method of exceed $1,000. The due date for the calculating the Business declaration and the dates for paying A different exception may be applied Corporation Tax. the installments of estimated tax to each underpayment. If no excep- depend upon when the requirements tion applies, complete lines 14 Exception 3 for making a declaration are first through 36 to determine the amount met. (Refer to Form NYC-400 for of the penalty. Tax On Annualized Income details.) This exception applies if a corpora- |
Instructions for Form NYC-222 - 2020 Page 4 tion made an estimated tax payment AUTOMATIC EXTENSION PAGE 2 of at least 90% of the amount it FILERS COMPUTATION OF would owe if its estimated tax were a Corporations who filed an Application PENALTY tax computed on annualized taxable for Automatic Extension (Form NYC- If no exception applies, complete income for the months preceding an EXT) for the previous year or who lines 14 through 36 to determine the installment date. were required to make less than four amount of the penalty for each payments on account of estimated tax installment. If you made more than A corporation may annualize its for the current year may find that the one payment for a given installment, income: stated percentages on the Exception attach a separate computation for Worksheet on page 1 do not accurate- each payment. The penalty is com- a) for the first 3 months, or for the ly reflect the computation of the puted for the period of underpay- first 5 months if the installment exceptions. Such taxpayers should ment, line 15, at a rate set periodical- was required to be paid in the compute these exceptions on a sepa- ly by the New York City Department 6th month; rate rider and attach it to this form. of Finance. b) for the first 6 months, or for the first 8 months if the installment LINE 8 For information regarding interest was required to be paid in the AMOUNT OF rates, call 311. If calling from out- 9th month; and INSTALLMENTS DUE side of the five NYC boroughs, Divide the amount on line 7 by the please call 212-NEW-YORK (212- c) for the first 9 months, or for the number of remaining installments 639-9675), or consult the Finance first 11 months if the install- required for the year. Enter the result website at: ment was required to be paid in the appropriate columns, 2 nyc.gov/finance in the 12th month. through 4. LINE 35 To annualize, multiply taxable income for the period by 12 and LINE 9 PENALTY FOR divide the resulting amount by the C corporations should enter any UNDERPAYMENT OF number of months in the period (3, 5, amounts paid with Form NYC-300 ESTIMATED TAX 6, 8, 9 or 11 as the case may be). (Mandatory First Installment by In columns 1 through 4 of line 35, (Refer to Section 11-676.4(c). Business C Corporations). S corpo- for those installment payments (line rations enter any amount paid with 11) that equal 80% or more of line 3 Exception 4 Forms NYC-3L, NYC-3A or NYC- divided by 4, multiply the penalty EXT. shown on line 34 in each applicable Additional Exception for column by 75%. Enter this result in Recurring Seasonal Income LINE 10 the applicable column on line 35. This exception applies to a corpora- OVERPAYMENT OF Combine these revised amounts with tion with recurring seasonal income. PREVIOUS the remaining amounts on line 34 for Under this exception, income may INSTALLMENT any quarter for which no amount be annualized by assuming that An overpayment on line 12 in excess appears on line 35 and enter the total income earned in the current year is of prior underpayments is to be on line 36. earned in the same seasonal pattern applied as a credit against the next as in the 3 preceding tax years. (For installment. A payment of estimated information about computing this tax on any installment date is consid- exception, refer to Section 11- ered a payment of any previous 676.4(d) of the NYC Administrative underpayment only to the extent of Code. Attach your computation to the excess of the payment over the this form.) amount of the installment as comput- ed on line 12. |