1. 222
UNDERPAYMENT OF ESTIMATED TAX
NYC 2008
BY CORPORATIONS
NEW YORK CITY DEPARTMENT OF FINANCE
TM
Finance
ATTACH TO YOUR TAX RETURN
For CALENDAR YEAR 2008 or FISCAL YEAR beginning _______________, 2008 and ending _________________
Print or Type M
Name: EMPLOYER IDENTIFICATION NUMBER
Computation of Underpayment
2008 tax (from 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.
1.
Sales tax addback (from NYC-3L, Schedule A, line 12 or NYC-3A, Schedule A, line 14) .............................................2.
2.
Total of lines 1 and 2 ......................................................................................................................................................3.
3.
Credits (from NYC-3L, Schedule A, lines 7, 8a, 8b, 9a and 9b or NYC-3A, Schedule A, lines 9, 10a, 10b, 11a and 11b) ...4.
4.
Line 3 less line 4 .............................................................................................................................................................5.
5.
90% of line 5....................................................................................................................................................................6.
6.
1- 2- 3- 4-
FIRST SECOND THIRD FOURTH
Enter quarterly due dates of installments ¡
2007 Tax ...........................................................7.
7.
Enter 25% of line 7 if over $1000 or, if Form NYC-6 was filed
8.
for 2007, enter amount paid on Form NYC-6, line 4 ...........................8.
Line 6 less line 8 ..............................................9.
9.
Enter amount of the installments due in Quarters 2, 3 and 4 (see inst.) ......................................10.
10.
Amount paid or credited for each period ...........................................11.
11.
Overpayment of previous installment (see instructions) .............................................................12.
12.
Total of lines 11 and 12 .....................................................................13.
13.
Quarter 1-line 13 less line 8
14. 14.
OVERPAYMENT
Quarters 2, 3 and 4-line 13 less line 10
Quarter 1-line 8 less line 13
15. 15.
UNDERPAYMENT
Quarters 2, 3 and 4-line 10 less line 13
¡ 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
75% of 2007 tax
50% of 2007 tax 100% of 2007 tax
$
1- Prior year's tax (2007)
EXCEPTION
L
( see instructions)
2- Tax on prior year's facts and law using 2008 rates
EXCEPTION
L Enter 100% of tax
Enter 50% of tax Enter 75% of tax
( attach computation) (see instructions)
3- Tax on annualized 2008 income
EXCEPTION
L Enter 90% of tax
Enter 45% of tax Enter 67.50% of tax
( attach computation) (see instructions)
4- Tax on recurring seasonal 2008 income
EXCEPTION
L
(attach computation) (see instructions)
NYC-222 2008

2. Form NYC-222 - 2008 Page 2
Computation of Penalty 1- 2- 3- 4-
FIRST SECOND THIRD FOURTH
Enter the date of payment or the 15th day of the 3rd month
16.
after the close of the taxable year, whichever is earlier ..................16.
Number of days from due date of installment to the date
17.
shown on line 16 .............................................................................17.
Number of days on line 17 after 3/15/2008 and before 4/1/2008 ...18.
18.
Number of days on line 17 after 3/31/2008 and before 7/1/2008 ...19.
19.
Number of days on line 17 after 6/30/2008 and before 10/1/2008 .20.
20.
Number of days on line 17 after 9/30/2008 and before 1/1/2009 ...21.
21.
Number of days on line 17 after 12/31/2008 and before 4/1/2009 .22.
22.
Number of days on line 17 after 3/31/2009 and before 7/1/2009 ...23.
23.
Number of days on line 17 after 6/30/2009 and before 10/1/2009 .24.
24.
Number of days on line 17 after 9/30/2009 and before 1/1/2010 ...25.
25.
Number of days on line 17 after 12/31/2009 and before 3/15/2010 ....26.
26.
Number of days on line 18 x 9% x amount on line 15
27.
366 ...............27.
Number of days on line 19 x 8% x amount on line 15
28.
366 ...............28.
Number of days on line 20 x 7 % x amount on line 15
29.
366 ...............29.
Number of days on line 21 x * % x amount on line 15
30.
366 ...............30.
Number of days on line 22 x * % x amount on line 15
31.
365 ...............31.
Number of days on line 23 x * % x amount on line 15
32.
365 ...............32.
Number of days on line 24 x * % x amount on line 15
33.
365 ...............33.
Number of days on line 25 x * % x amount on line 15
34.
365 ...............34.
Number of days on line 26 x * % x amount on line 15
35.
365 ...............35.
Add lines 27 through 35 .................................................................36.
36.
To complete this line, refer to the instructions for line 37 ...............37.
37.
Add the amounts on line 36 (or line 37, if applicable) for quarters 1 through 4. Enter total and transfer amount to Form NYC-4S,
38.
Schedule A, line 11c or Form NYC-3L, Schedule A, line 17c or Form NYC-3A, sch. A, line 19c.(see instructions for line 37) ...........38.
*For the applicable rate of interest after 12-31-08, call: 212-504-4036
or consult the Department of Finance website at nyc.gov/finance

3. Instructions for Form NYC-222 - 2008 Page 3
PURPOSE OF FORM Exception 1
ed taxes for the current year merely
Form NYC-222 will enable corpora- because its tax liability for the pre- Prior Yearʼs Tax
tions to determine if they paid the ceding year was $1,000 or less or it This exception applies if a corpora-
correct amount of estimated tax by did not file a return for the preceding tion paid estimated taxes equal to the
the proper due date. If the minimum year. However, if the preceding tax reported on its prior year ’s
amount was not paid timely, an year’s tax was less than $1,000, the return. To qualify for this exception,
underpayment penalty may be taxpayer was not required to make the corporation must have filed an
imposed for the period underpaid. the 25% prepayment based on the income tax return showing a tax lia-
This form helps you to determine preceding year’s tax at the time it bility for the prior taxable year, and
whether or not you are subject to this filed its return (or its application for that taxable year consisted of 12
extension of time for the filing of the
penalty. months.
return) for that year.
ESTIMATED TAX Exception 2
EXCEPTIONS THAT AVOID
Every corporation subject to the New Tax Based On Prior Yearʼs
THE UNDERPAYMENT
York City General Corporation Tax Facts and Law Using Current
PENALTY
must pay with its return (Form NYC- Yearʼs Rates
3L, NYC-3A or Form NYC-4S or A corporation does not have to pay a This exception applies if a corpora-
NYC-4S-EZ), or with its Application penalty if the total amount of all pay- tion paid an amount of estimated tax
for Automatic Extension (Form NYC- ments made on or before each install- equal to a tax computed by applying
EXT or for years before 2008, Form ment date equals or exceeds the the current year’s rates to the facts
NYC-6), an amount equal to 25% of amount that would have been shown on the return for, and under
its preceding year's tax if the preced- required to be paid by that installment the law applicable to, the prior tax-
ing year ’s tax computed after all date if the estimated tax were an able year. The term “current year’s
allowable credits is more than $1,000. amount determined under any of the rate” is any of the four methods of
four exceptions listed below. (Refer calculating the General
In addition, corporations must file a to Section 11-676 of the NYC Corporation Tax, including the
Declaration of Estimated Tax (Form Administrative Code.) minimum tax.
NYC-400) if the estimated tax for the
current taxable year after all allowable A different exception may be applied
credits can reasonably be expected to to each underpayment. If no excep- Exception 3
exceed $1,000. The due date for the tion applies, complete lines 16
Tax On Annualized Income
declaration and the dates for paying the through 38 to determine the amount
This exception applies if a corpora-
installments of estimated tax depend of the penalty.
tion made an estimated tax payment
upon when the requirements for mak-
of at least 90% of the amount it
ing a declaration are first met. (Refer
NOTE would owe if its estimated tax were a
to Form NYC-400 for details.)
Large corporations (corporations that tax computed on annualized taxable
had allocated taxable income or entire income for the months preceding an
NOTE net income of $1 million or more in installment date.
any of the three years preceding the
If any date falls on a Saturday,
A corporation may annualize its
current year) may not use exceptions
Sunday or legal holiday, substitute
income:
1 or 2. Such corporations may only
the next regular workday.
a) for the first 3 months, or for the
use the exception for annualized
first 5 months if the installment
income, or the exception for recurring
NOTE was required to be paid in the
seasonal income (exceptions 3 or 4,
A corporation is not excused from fil- 6th month;
respectively).
ing a declaration and paying estimat- b) for the first 6 months, or for the

4. Instructions for Form NYC-222 - 2008 Page 4
LINE 10 LINE 37
first 8 months if the installment
AMOUNT OF PENALTY FOR
was required to be paid in the
INSTALLMENTS DUE UNDERPAYMENT OF
9th month; and
ESTIMATED TAX
Divide the amount on line 9 by the
c) for the first 9 months, or for the
number of remaining installments In columns 1 through 4 of line 37, for
first 11 months if the install-
required for the year. Enter the result in those installment payments (line 13)
ment was required to be paid in
that equal 80% or more of line 5
the appropriate columns, 2 through 4.
the 12th month.
divided by 4, multiply the penalty
shown on line 36 in each applicable
To annualize, multiply taxable
LINE 12
income for the period by 12 and column by 75%. Enter this result in
divide the resulting amount by the OVERPAYMENT OF the applicable column on line 37.
number of months in the period (3, 5, PREVIOUS INSTALLMENT Combine these revised amounts with
6, 8, 9 or 11 as the case may be). An overpayment on line 14 in excess the remaining amounts on line 36 for
(Refer to Section 11-676.4(c). of prior underpayments is to be any quarter for which no amount
applied as a credit against the next appears on line 37 and enter the total
installment. A payment of estimated on line 38.
Exception 4
tax on any installment date is consid-
Additional Exception for
ered a payment of any previous
Recurring Seasonal Income
underpayment only to the extent of
This exception applies to a corpora-
the excess of the payment over the
tion with recurring seasonal income.
amount of the installment as comput-
Under this exception, income may be
ed on line 14.
annualized by assuming that income
earned in the current year is earned in
the same seasonal pattern as in the 3
PAGE 2
preceding tax years. (For informa-
COMPUTATION OF
tion about computing this exception,
PENALTY
refer to Section 11-676.4(d) of the
If no exception applies, complete
NYC Administrative Code. Attach
lines 16 through 38 to determine the
your computation to this form.)
amount of the penalty for each
installment. If you made more than
one payment for a given installment,
AUTOMATIC EXTENSION
attach a separate computation for
FILERS
each payment. The penalty is com-
Corporations who filed an
puted for the period of underpayment,
Application for Automatic Extension
line 17, at a rate set periodically by
(Form NYC-6 or for 2008 and after,
the New York City Department of
NYC-EXT) for the previous year or
Finance.
who were required to make less than
four payments on account of estimat-
For information as to the applicable
ed tax for the current year may find
rate after December 31, 2008, or any
that the stated percentages on the
other rate of interest, call Customer
Exception Worksheet on page 1 do
Assistance at 212-504-4036
not accurately reflect the computation
of the exceptions. Such taxpayers or consult the Department of Finance
should compute these exceptions on a website at:
separate rider and attach it to this nyc.gov/finance
form.