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(a) Addition to tax. [Tax Law, § 685(c)(1)-(4)]
(1) General
(i) Except as otherwise provided in section 685 of the Tax Law, in the case of any underpayment of estimated tax by an individual, there shall be imposed an addition to the tax for the taxable year.
(ii) Such addition to the tax is determined by applying to the amount of the underpayment for the period of underpayment:
(a) the applicable rate established under section 697(j) of article 22 of the Tax Law (see Part 2393 of this Title); or
(b) if no rate is set, the rate specified in section 685(c)(1) of the Tax Law.
(i) Except as otherwise provided in section 685 of the Tax Law, in the case of any underpayment of estimated tax by an individual, there shall be imposed an addition to the tax for the taxable year.
(ii) Such addition to the tax is determined by applying to the amount of the underpayment for the period of underpayment:
(a) the applicable rate established under section 697(j) of article 22 of the Tax Law (see Part 2393 of this Title); or
(b) if no rate is set, the rate specified in section 685(c)(1) of the Tax Law.
(a) the applicable rate established under section 697(j) of article 22 of the Tax Law (see Part 2393 of this Title); or
(b) if no rate is set, the rate specified in section 685(c)(1) of the Tax Law.
(2) Amount and period of underpayment.
(i) The amount of the underpayment is the excess of ( a ) the required installment (see paragraph [4] of this subdivision) over ( b ) the amount, if any, of the installment paid on or before the due date for the installment (see paragraph [3] of this subdivision).
(ii) The period of the underpayment will run from the due date of the required installment to whichever of the following dates is the earlier:
(a) the 15th day of the fourth month following the close of the taxable year; or
(b) with respect to any portion of the underpayment, the date on which such portion is paid. For purposes of this clause, a payment of estimated tax will be credited against unpaid required installments in the order in which such installments are required to be paid.
(i) The amount of the underpayment is the excess of ( a ) the required installment (see paragraph [4] of this subdivision) over ( b ) the amount, if any, of the installment paid on or before the due date for the installment (see paragraph [3] of this subdivision).
(ii) The period of the underpayment will run from the due date of the required installment to whichever of the following dates is the earlier:
(a) the 15th day of the fourth month following the close of the taxable year; or
(b) with respect to any portion of the underpayment, the date on which such portion is paid. For purposes of this clause, a payment of estimated tax will be credited against unpaid required installments in the order in which such installments are required to be paid.
(a) the 15th day of the fourth month following the close of the taxable year; or
(b) with respect to any portion of the underpayment, the date on which such portion is paid. For purposes of this clause, a payment of estimated tax will be credited against unpaid required installments in the order in which such installments are required to be paid.
(3) Number and due dates of required installments.
(i) General. For purposes of this subdivision, there will be four required installments for each taxable year. Generally, an individual must make such individual's first installment by April 15th. Such individual may either pay all of the estimated tax at that time or pay in four equal installments that are due on April 15th; June 15th; September 15th; and January 15th of the following taxable year.
(ii) In some instances, such as a change in income, deductions or exemptions, an individual may be required, in order to avoid the addition to tax referred to in this subdivision, to make such individual's first installment after April 15th. In such case, the installment due dates are as follows:
(i) General. For purposes of this subdivision, there will be four required installments for each taxable year. Generally, an individual must make such individual's first installment by April 15th. Such individual may either pay all of the estimated tax at that time or pay in four equal installments that are due on April 15th; June 15th; September 15th; and January 15th of the following taxable year.
(ii) In some instances, such as a change in income, deductions or exemptions, an individual may be required, in order to avoid the addition to tax referred to in this subdivision, to make such individual's first installment after April 15th. In such case, the installment due dates are as follows:
(4) Required installment.
(i) General. Except as provided in paragraph (5) of this subdivision, the amount of any required installment will be 25 percent of the required annual payment.
(ii) The required annual payment for purposes of subparagraph (i) of this paragraph is the lesser of:
(a) 90 percent of the tax shown on the return for the taxable year (or, if no return is filed, 90 percent of the tax for such year); or
(b) 100 percent of the tax shown on the return of the individual for the preceding taxable year (provided such individual had filed a return for such year and such year was a taxable year of 12 months).
(i) General. Except as provided in paragraph (5) of this subdivision, the amount of any required installment will be 25 percent of the required annual payment.
(ii) The required annual payment for purposes of subparagraph (i) of this paragraph is the lesser of:
(a) 90 percent of the tax shown on the return for the taxable year (or, if no return is filed, 90 percent of the tax for such year); or
(b) 100 percent of the tax shown on the return of the individual for the preceding taxable year (provided such individual had filed a return for such year and such year was a taxable year of 12 months).
(a) 90 percent of the tax shown on the return for the taxable year (or, if no return is filed, 90 percent of the tax for such year); or
(b) 100 percent of the tax shown on the return of the individual for the preceding taxable year (provided such individual had filed a return for such year and such year was a taxable year of 12 months).
(5) Lower required installment.
(i) General. In the case of any required installment, if the individual establishes that such individual's annualized income installment (see subparagraph (ii) of this paragraph) is less than the required installment determined under paragraph (4) of this subdivision (this could occur if an individual did not receive such individual's taxable income evenly throughout the year):
(a) the amount of such required installment will be the annualized income installment; and
(b) any reduction in a required installment which results from the application of this paragraph will be recaptured by increasing the amount of the next required installment determined under paragraph (4) of this subdivision, by the amount of such reduction and by increasing subsequent required installments to the extent that such reduction has not previously been recaptured under this clause.
(ii) The annualized income installment, in the case of any required installment, is the excess, if any, of:
(a) an amount equal to the applicable percentage of the tax for the taxable year computed by placing on an annualized basis the taxable income and minimum taxable income for months in the taxable year ending before the due date for the installment, over
(b) the aggregate amount of any prior required installments for the taxable year. The applicable percentage of tax, which will be computed without regard to any increase in the rates applicable to the taxable year unless such increase was enacted at least 30 days prior to the due date of the installment, will be as follows: The provisions of this subparagraph, with respect to determining an individual's annualized income installment for each installment period, can be illustrated as follows: Step 1: Annualized the taxable income and minimum taxable income for the months in the taxable year ending before the due date of the installment period and compute the tax due on this amount. Step 2: Multiply the tax computed in Step 1 by: 22½ percent if the payment due date is April 15th; 45 percent if the payment due date is June 15th; 67½ percent if the payment due date is September 15th; or 90 percent if the payment due date is January 15th of the following taxable year. Step 3: Figure the total of the required installments or annualized income installments for the preceding payment periods and subtract this amount from the amount in Step 2. Step 4: The result of Step 3 is the annualized income installment for the applicable installment period. If the annualized income installment for the installment period is less than the required installment, the individual need only pay such annualized income installment.
(i) General. In the case of any required installment, if the individual establishes that such individual's annualized income installment (see subparagraph (ii) of this paragraph) is less than the required installment determined under paragraph (4) of this subdivision (this could occur if an individual did not receive such individual's taxable income evenly throughout the year):
(a) the amount of such required installment will be the annualized income installment; and
(b) any reduction in a required installment which results from the application of this paragraph will be recaptured by increasing the amount of the next required installment determined under paragraph (4) of this subdivision, by the amount of such reduction and by increasing subsequent required installments to the extent that such reduction has not previously been recaptured under this clause.
(a) the amount of such required installment will be the annualized income installment; and
(b) any reduction in a required installment which results from the application of this paragraph will be recaptured by increasing the amount of the next required installment determined under paragraph (4) of this subdivision, by the amount of such reduction and by increasing subsequent required installments to the extent that such reduction has not previously been recaptured under this clause.
(ii) The annualized income installment, in the case of any required installment, is the excess, if any, of:
(a) an amount equal to the applicable percentage of the tax for the taxable year computed by placing on an annualized basis the taxable income and minimum taxable income for months in the taxable year ending before the due date for the installment, over
(b) the aggregate amount of any prior required installments for the taxable year. The applicable percentage of tax, which will be computed without regard to any increase in the rates applicable to the taxable year unless such increase was enacted at least 30 days prior to the due date of the installment, will be as follows: The provisions of this subparagraph, with respect to determining an individual's annualized income installment for each installment period, can be illustrated as follows: Step 1: Annualized the taxable income and minimum taxable income for the months in the taxable year ending before the due date of the installment period and compute the tax due on this amount. Step 2: Multiply the tax computed in Step 1 by: 22½ percent if the payment due date is April 15th; 45 percent if the payment due date is June 15th; 67½ percent if the payment due date is September 15th; or 90 percent if the payment due date is January 15th of the following taxable year. Step 3: Figure the total of the required installments or annualized income installments for the preceding payment periods and subtract this amount from the amount in Step 2. Step 4: The result of Step 3 is the annualized income installment for the applicable installment period. If the annualized income installment for the installment period is less than the required installment, the individual need only pay such annualized income installment.
(a) an amount equal to the applicable percentage of the tax for the taxable year computed by placing on an annualized basis the taxable income and minimum taxable income for months in the taxable year ending before the due date for the installment, over
(b) the aggregate amount of any prior required installments for the taxable year. The applicable percentage of tax, which will be computed without regard to any increase in the rates applicable to the taxable year unless such increase was enacted at least 30 days prior to the due date of the installment, will be as follows: The provisions of this subparagraph, with respect to determining an individual's annualized income installment for each installment period, can be illustrated as follows: Step 1: Annualized the taxable income and minimum taxable income for the months in the taxable year ending before the due date of the installment period and compute the tax due on this amount. Step 2: Multiply the tax computed in Step 1 by: 22½ percent if the payment due date is April 15th; 45 percent if the payment due date is June 15th; 67½ percent if the payment due date is September 15th; or 90 percent if the payment due date is January 15th of the following taxable year. Step 3: Figure the total of the required installments or annualized income installments for the preceding payment periods and subtract this amount from the amount in Step 2. Step 4: The result of Step 3 is the annualized income installment for the applicable installment period. If the annualized income installment for the installment period is less than the required installment, the individual need only pay such annualized income installment.