Sec. 22-3.6. Application of installments based on preceding year's tax

Tax Law, § 1461(d)

Any amount paid pursuant to section 22-3.3 of this Subpart must first be applied as payment of the first installment against the estimated tax for the current taxable year shown on the declaration required to be filed pursuant to section 22-2.1 of this Part. If the amount paid pursuant to section 22-3.3 of this Subpart exceeds the declaration of estimated tax, such amount will be considered as a payment on account of the tax shown on the return required to be filed by the taxpayer for the current taxable year. If no declaration of estimated tax is required to be filed by the taxpayer pursuant to section 22-2.1 of this Part, any amount paid pursuant to section 22-3.3 of this Subpart will be considered as a payment on account of the tax shown on the return required to be filed by the taxpayer for the current year.

Example:

On March 15, 1983, a calendar year taxpayer files its tax return for the calendar year 1982 showing a tax due of $12,000 and a first installment of estimated tax for calendar year 1983 of $3,000. On June 15, 1983, the taxpayer files a declaration of estimated tax for calendar year 1983 in the amount of $18,000. After deducting the first installment of $3,000 the balance of $15,000 must be paid in three equal installments. The June 15, 1983 installment is $5,000 ($15,000 ÷ 3).