[(iii)] (C) Except for any liability described in subparagraph (A) attributable to the omission of an item of New York adjusted gross income, this paragraph shall apply

(i) if the spouse's New York adjusted gross income for the most recent taxable year ending before the date the deficiency notice is mailed is twenty thousand dollars or less, only if such liability is greater than ten percent of such adjusted gross income, and

(ii) if the spouse's New York adjusted gross income for such year is more than twenty thousand dollars, only if such liability is greater than twenty-five percent of such adjusted gross income.

For purposes of this subparagraph, if the spouse is married to another spouse at the close of such year, the spouse's New York adjusted gross income shall include the New York adjusted gross income of the new spouse, whether or not they file a joint return.

(D) If a joint return has been made pursuant to subparagraph (A) of paragraph [(2) (A)] two or [(3)] paragraph three of this subsection for a taxable year and only one spouse is liable for past-due support or an amount of a default in repayment of a guaranteed student or state university loan of which the tax commission has been notified pursuant to section one hundred seventy-one-c, section one hundred seventy-one-d or section one hundred seventy-one-e, as the case may be, then an overpayment and interest thereon shall be credited against such past-due support or such amount of a default in repayment of a guaranteed student or state university loan, unless the spouse not liable for such past-due support or such amount of a default in repayment of a guaranteed student or state university loan demands, on a declaration made in accordance with regulations or instructions prescribed by the tax commission, that the portion of the overpayment and interest attributable to such spouse not be credited against the past-due support or amount of a default in repayment of a guaranteed student or state university loan owed by the other spouse. Upon such demand the tax commission shall determine the amount of the overpayment attributable to each spouse in accordance with regulations prescri ribed by the tax commission and credit only that portion of the overpayment and interest thereon attributable to the spouse liable for past-due support or amount of a default in repayment of a guaranteed student or state university loan against such past-due support or such amount of a default in repayment of a guaranteed student or state university loan.

§ 114. Section six hundred fifty-two of such law, as added by chapter five hundred sixty-three of the laws of nineteen hundred sixty, is amended to read as follows:

§ 652. Time and place for filing returns and paying tax. A person required to make and file a return under this article shall, without assessment, notice or demand, pay any tax due thereon to the tax commission on or before the date fixed for filing such return (determined without regard to any extension of time for filing the return). The tax commission shall prescribe by regulation the place for filing any return, [declaration,] statement, or other document required pursuant to this article and for payment of any tax.

§ 115. Subsections (a) and (c) of section six hundred fifty-three of such law, as added by chapter five hundred sixty-three of the laws of nineteen hundred sixty, are amended to read as follows:

(a) General. Any return, [declaration,] statement or other document required to be made pursuant to this article shall be signed in accordance with regulations or instructions prescribed by the tax commission. The fact that an individual's name is signed to a return, [declaration,] statement, or other document, shall be prima facie evidence for all purposes that the return, [declaration,] statement or other document was actually signed by him.

(c) Certifications. The making or filing of any return, [declaration,] statement or other document or copy thereof required to be made or filed pursuant to this article, including a copy of a federal return, shall constitute a certification by the person making or filing such return, [declaration,] statement or other document or copy thereof that the statements contained therein are true and that any copy filed is a true copy.

116. Sections six hundred fifty-five and six hundred fifty-six of such law are repealed.

EXPLANATION-Matter in italics is new; matter in brackets [ ] is old law

§ 117. Subsection (a) of section six hundred fifty-seven of such law, as amended by chapter six hundred seventy-five of the laws of nineteen hundred seventy-seven, is amended to read as follows:

(a) General. The tax commission may grant a reasonable extension of time for payment of tax or estimated tax (or any installment); or for filing any return, [declaration, ] statement, or other document required pursuant to this article, on such terms and conditions as it may require. Except for a taxpayer who is outside the United States or who intends to claim nonresident status pursuant to subparagraphs (i), (ii) and (iii) of paragraph one of subsection (a) of section_six hundred five, no such extension for filing any return, [declaration,] statement or other document, shall exceed six months.

§ 118. Subsection (c) of section six hundred eighty-two of such law, as added by chapter one thousand eleven of the laws of nineteen hundred sixty-two, is amended to read as follows:

(c) Estimated income tax. -No unpaid amount of estimated tax [under section six hundred fifty-six] shall be assessed.

§ 119. Subsection (b) of section six hundred eighty-four of such law, as added by chapter one thousand eleven of the laws of nineteen hundred sixty-two is amended to read as follows:

(b) Exception as to estimated tax. -This section shall not apply to any failure to pay estimated tax [under section six hundred fifty-six].

§ 120. Subsections (c), (d) and (i) of section six hundred eighty-five of such law; subsection (c) as amended by chapter two hundred eightyfive of the laws of nineteen hundred eighty-four; subsection (d) as amended by chapter five hundred ninety-seven of the laws of nineteen hundred seventy-one, the last unnumbered paragraph having been repealed by chapter one of the laws of nineteen hundred seventy-two; and subsection (1) as added by chapter one thousand eleven of the laws of nineteen hundred sixty-two, are amended to read as follows:

(c) Failure by individual to pay estimated income tax. -(1) [If any taxpayer fails to pay all or any part of an installment of estimated tax, he shall be deemed to have made an underpayment of estimated tax. There shall be added to the tax for the taxable year an amount at the rate set by the tax commission pursuant to section six hundred ninetyseven, or if no rate is set, at the rate of six per cent per annum upon the amount of the underpayment for the period of the underpayment but not beyond the fifteenth day of the fourth month following the close of the taxable year. The amount of underpayment shall be the excess of the amount of the installment which would be required to be paid if the estimated tax were equal to eighty per cent of the tax (two-thirds of the tax for farmers and fishermen referred to in subsection (e) of section six hundred fifty-five) shown on the return for the taxable year (or if no return was filed, of the tax for such year) over the amount, if any, of the installment paid on or before the last day prescribed for such payment. No underpayment shall be deemed to exist with respect to a declaration or installment otherwise due on or after the taxpayer's death. (2) No addition to tax shall be imposed under paragraph one hereof for any taxable year if

(A) The taxpayer did not have any liability for tax under this article for the preceding taxable year,

(B) The preceding taxable year was a taxable year of twelve months, and

(C) Throughout the preceding taxable year the taxpayer was a resident of this state or a nonresident who had New York adjusted gross income] Addition to the tax.-Except as otherwise provided in this subsection (d), in the case of any underpayment of estimated tax by an individual, there shall be added to the tax under this article for the taxable year an amount determined by applying the applicable annual rate established under section six hundred ninety-seven, or if no rate is set, at the rate of six percent per annum, to the amount of the underpayment for the period of the underpayment. Such period shall run from the due date for the required installment to the earlier of the fifteenth day of the fourth month following the close of the taxable year or, with respect to any portion of the underpayment, the date on which such portion is paid. For purposes of determining such date, a payment of estimated tax shall be credited against unpaid required installments in the order in which such installments are required to be paid. There shall be four required installments for each taxable year, due on April fifteenth, June fifteenth and September fifteenth of such taxable year and on January fifteenth of the following taxable year.

(2) Amount of underpayment.-For purposes of paragraph one, the amount of the underpayment shall be the excess of the required installment over the amount, if any, of the installment paid on or before the due date for the installment.

(3) Required installment.-Except as provided in paragraph four, the amount of any required installment shall be twenty-five percent of the required annual payment. The required annual payment is the lesser of eighty percent of the tax shown on the return for the taxable year (or, if no return is filed, eighty percent of the tax for such year), or one hundred percent of the tax shown on the return of the individual for the preceding taxable year, provided the individual filed a return for such year and such year was a taxable year of twelve months.

(4) Annualized income installment.-(A) In general.-In the case of any required installment, if the individual establishes that the annualized income installment determined under subparagraph (B) of this paragraph is less than the amount determined under paragraph three, the annualized income installment shall be the required installment. Any reduction in a required installment resulting from the application of this subparagraph shall be recaptured by increasing the amount of the next required installment determined under paragraph three by the amount of such reduction, and by increasing successive required installments as necessary to effect full recapture.

(B) Determination of annualized income installment.-In the case of any required installment, the annualized income installment is the excess, if any, of 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 the aggregate amount of any prior required installments for the taxable year. The applicable percentage of the tax shall be twenty percent in the case of the first installment, forty percent in the case of the second installment, sixty percent in the case of the third installment and eighty percent in the case of the fourth installment, and shall be computed without regard to any increase in the rates applicable to the taxable year unless such increase was enacted at least thirty days prior to the due date of the installment.

(5) Definitions and special rules.-(A) Definition of the term tax and application of credits against tax. -For purposes of this subsection and subsection (d), the term "tax" means the tax imposed under this article minus the credits against tax allowed under this article, other than the credit under section six hundred seventy-three, relating to tax withheld on wages. The credit allowed under section six hundred seventy-three for the taxable year shall be deemed a payment of estimated tax, and an equal part of such amount shall be deemed paid on each installment due date for such taxable year, unless the taxpayer establishes the dates on which all amounts were actually withheld, in which case the amounts SO withheld shall be deemed payments of estimated tax on the dates on which such amounts were actually withheld.

(B) Special rule where return filed on or before January thirtyfirst.-If, on or before January thirty-first of the following taxable year, the taxpayer files a return for the taxable year and pays in full the amount computed on the return as payable, then no addition to tax shall be imposed under paragraph one with respect to any underpayment of the fourth required installment for the taxable year.

(C) Special rules for farmers and fishermen. -For purposes of this subsection, if an individual is a farmer or fisherman for any taxable year there shall be only one required installment for the taxable year, due on January fifteenth of the following taxable year in an amount equal to the required annual payment determined under paragraph three by substituting sixty-six and two-thirds percent for eighty percent. Subparagraph (B) of this paragraph shall be applied by substituting March first for January thirty-first and by treating the required installment under this subparagraph as the fourth required installment. An individual is a farmer or fisherman for any taxable year if the individual's New York adjusted gross income from farming or fishing (including oyster farming) for the taxable year is at least two-thirds of the total New York adjusted gross income from all sources for the taxable year or if such individual's New York adjusted gross income from farming or fishing (including oyster farming) shown on the return of the individual for the EXPLANATION-Matter in italics is new; matter in brackets [ ] is old law

preceding taxable year is at least two-thirds of the total New York justed gross income from all sources shown on such return.

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(D) Fiscal years.-In applying this subsection to a taxable year beginning on any date other than January first, there shall be substituted, for the months specified in this subsection, the months which correspond thereto.

(E) Short taxable year.-This subsection shall be applied to taxable years of less than twelve months in accordance with regulations prescribed by the tax commission.

(F) Joint estimated tax of husband and wife.-A husband and wife may make the required annual payment determined under paragraph three as if they were one taxpayer, in which case the liability under paragraph one with respect to the estimated tax shall be joint and several. No such joint payment may be made if husband and wife are separated under a decree of divorce or separate maintenance, or if they have different taxable years. If a joint payment is made but husband and wife elect to determine their taxes under this article separately, the estimated tax for such year may be treated as the estimated tax of either husband or wife, or may be divided between them, as they may elect.

(d) [Exception] Exceptions to addition to tax for [underpayment of] failure to pay estimated income tax. -[The addition to tax under subsection (c) with respect to any underpayment of any installment shall not be imposed if the total amount of all payments of estimated tax made on or before the last date prescribed for the payment of such installment equals or exceeds whichever of the following is the lesser

(1) The amount which would have been required to be paid on or before such date if the estimated tax were whichever of the following is is the least

(B) An

(A) The tax shown on the return of the individual for the preceding taxable year, if a return showing a liability for tax was filed by the individual for the preceding taxable year and such preceding year was a taxable year of twelve months, or amount equal to the tax computed, at the rates applicable to the taxable year, on the basis of the taxpayer's status with respect to personal exemptions for the taxable year, but otherwise on the basis of the facts shown on his return for, and the law applicable to, the preceding taxable year, or

(C) An amount equal to eighty per cent of the tax for the taxable year (two-thirds of the tax for farmers and fishermen referred to in subsection (e) of section six hundred fifty-five) computed by placing on an annualized basis the taxable income for the months in the taxable year ending before the month in which the installment is required to be paid. For purposes of this subparagraph, the taxable income shall be placed on an annualized basis by

(i) multiplying by twelve (or, in the case of a taxable year of less than twelve months, the number of months in the taxable year) the taxable income (computed without deduction for personal exemptions) for the months in the taxable year ending before the month in which the installment is required to be paid,

(ii) díviding the resulting amount by the number of months in the taxable year ending before the month in which such installment date falls, and

(iii) deducting from such amount the deductions for personal exemptions allowable for the taxable year (such personal exemptions being determined as of the last date prescribed for payment of the installment); or

(2) An amount equal to ninety per cent of the tax computed, at the rates applicable to the taxable year, on the basis of the actual taxable income for the months in the taxable year ending before the month in which the installment is required to be paid.

For the purposes of this subsection the amounts specified in subparagraphs (B) and (C) of paragraph (1) and in paragraph (2) shall be computed without regard to any increase in the rates applicable to the taxable year unless such increase was enacted at least thirty days prior to the time a declaration or amended declaration of estimated tax is required to be filed for such taxable year]

(1) Where tax is small amount.-No addition to tax shall be imposed under subsection (c) for any taxable year if the tax shown on the return for such taxable year (or, if no return is filed, the tax), reduced by the credit allowable under section six hundred seventy-three, is less

than one hundred dollars.

(2) Where no tax liability for preceding taxable year.-No addition to tax shall be imposed under subsection (c) for any taxable year if the preceding taxable year was a taxable year of twelve months, the individual did not have any liability for tax under this article for the preceding taxable year and throughout the preceding taxable year the individual was a resident of this state or a nonresident who had New York adjusted gross income.

(3) Installment due on or after individual's death.-No addition to tax shall be imposed under subsection (c) with respect to any installment due on or after the individual's death.

the

(4) Waiver in certain cases.-(A) In general.-No addition to tax shall be imposed under subsection (c) with respect to any underpayment to extent the tax commission 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.

(B) Newly retired or disabled individuals.-No addition to tax shall be imposed under subsection (c) with respect to any underpayment if the tax commission determines that in the taxable year for which estimated payments were required to be made or in the taxable year preceding such taxable year the taxpayer retired after having attained age sixty-two or became disabled, and that such underpayment was due to reasonable cause and not to willful neglect.

(i) Additional penalty. -Any person who with fraudulent intent shall fail to pay, or to deduct or withhold and pay, any tax,

or to make, render, sign or certify any return [or declaration of estimated tax], or to supply any information within the time required by or under this article, shall be liable to penalty of not more than one thousand dollars, in addition to any other amounts required under this article, to be imposed, assessed and collected by the tax commission. The tax commission shall have the power, in its discretion, to waive, reduce or compromise any penalty under this subsection.

an

121. Subsection (e) of section six hundred eighty-six of such law, as added by chapter one thousand eleven of the laws of nineteen hundred sixty-two and relettered by chapter one thousand fourteen of the laws of nineteen hundred sixty-eight, is amended to read as follows:

(e) Credits against estimated tax. -The tax commission may prescribe regulations providing for the crediting against the estimated income tax for any taxable year of the amount determined to be an overpayment of the income tax for a preceding taxable year. If any overpayment of income tax is so claimed as a credit against estimated tax for the succeeding taxable year, such amount shall be considered as a payment of the income tax for the succeeding taxable year [(whether or not claimed as a credit in the declaration of estimated tax for such succeeding taxable year)], and no claim for credit or refund of such overpayment shall be allowed for the taxable year for which the overpayment arises.

§ 122. Subsection (a) of section six hundred ninety-one of such law, as amended by chapter one hundred fifty-seven of the laws of nineteen hundred seventy-one, is amended to read as follows:

be

(a) Timely mailing. -If any return, [declaration of estimated tax,] claim, statement, notice, petition, or other document required to filed, or any payment required to be made, within a prescribed period or on or before a prescribed date under authority of any provision of this article is, after such period or such date, delivered by United States mail to the tax commission, bureau, office, officer or person with which or with whom such document is required to be filed, or to which or to whom such payment is required to be made, the date of the United States postmark stamped on the envelope shall be deemed to be the date of delivery. This subsection shall apply only if the postmark date falls within the prescribed period or on or before the prescribed date for the filing of such document, or for making the payment, including any extension granted for such filing or payment, and only if such document or payment was deposited in the mail, postage prepaid, properly addressed to the tax commission, bureau, office, officer or person with which or with whom the document is required to be filed or to which or to whom such payment is required to be made. If any document or payment is sent by United States registered mail, such registration shall be prima facie evidence that such document or payment was delivered to the tax commission, bureau, office, officer or person to which or to whom addressed. To the extent that the tax commission shall prescribe by regulation, EXPLANATION-Matter in italics is new; matter in brackets [] is old law