N.Y. Comp. Codes R. & Regs. tit. 20 § 185.4

Current through Register Vol. 46, No. 45, November 2, 2024

Section 185.4 - Exceptions to addition to tax for failure to pay estimated tax

Tax Law, § 685(d)

(a)Where tax is small amount.

[Tax Law, § 685(d)(1)] No addition to tax will be imposed under section 685 (c) of the Tax Law (see section 185.3 of this Part) for any taxable year, if the tax (as defined in subdivision (b) of section 185.3 of this Part) shown on the return for such taxable year (or, if no return is filed, the tax), reduced by the credit allowable under section 673 of the Tax Law (see Part 173 of this Title), is less than $100.

(b)Where no tax liability for preceding taxable year.

[Tax Law, § 685(d)(2)] No addition to tax will be imposed under section 685 (c) of the Tax Law (see section 185.3 of this Part) for any taxable year if:

(1) the preceding taxable year was a taxable year of 12 months;

(2) the individual did not have any liability for tax (as defined in subdivision (b) of section 185.3 of this Part) for the preceding taxable year; and

(3) throughout the preceding taxable year, the individual was a resident of this State or a nonresident or part-year resident who had New York source income.

(c)Installment due on or after individual's death.

[Tax Law, § 685(d)(3)] No addition to tax will be imposed under section 685 (c) of the Tax Law (see section 185.3 of this Part) with respect to any installment due on or after the individual's death.

(d)Waiver in certain cases.

[Tax Law, § 685(d)(4)]

(1) General.

No addition to tax will be imposed under section 685 (c) of the Tax Law (see section 185.3 of this Part), with respect to any underpayment, to the extent the Department of Taxation and Finance determines that by reason of casualty, disaster, or other unusual circumstances, the imposition of such addition to tax would be against equity and good conscience.

(2) Newly retired or disabled individuals. No addition to tax will be imposed under section 685 (c) of the Tax Law (see section 185.3 of this Part), with respect to any underpayment, if the Department of Taxation and Finance determines that in the taxable year for which estimated payments were required to be made, in order to avoid the addition to tax referred to in section 185.3 of this Part, or in the taxable year preceding such taxable year:

(i) the taxpayer retired after having attained age 62 or became disabled; and

(ii) such underpayment was due to reasonable cause and not to willful neglect.

(e)Cross-references.

For application with respect to taxes administered by the Department of Taxation and Finance, see section 185.3 of this Part.

N.Y. Comp. Codes R. & Regs. Tit. 20 § 185.4