New York State Announcement on June 15th Estimated Income Tax PaymentsAnchin AlertJune 12, 2020
On the evening of June 11th, New York State came out with announcement N-20-8 which states that it will be treating the estimated payments made by individuals, corporations or fiduciaries on June 15th as the first quarterly installment previously due on April 15th, and the payment on July 15th as the second installment previously due on June 15th. New York State had not given any indication prior to this time that they were going to take this position.
This announcement certainly throws into doubt the strategy of paying your first two quarters of estimated payments with an extension payment on July 15th in order to avoid underpayment penalties. At risk is one month of interest charges. At a rate of 7.5%, on an annualized basis this turns out to be slightly over $600 per $100,000 of tax due. Individuals should consider the timing of their payments based in part on the limited time New York State has provided.
If you have any questions on this, please reach out to your Anchin Relationship Partner.