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(a) Permanent books of account or records. (Administrative Code § 11-518(a)). Every taxpayer shall keep such permanent books of account or records, including inventories, as are sufficient to establish the amount of gross income, deductions, credits and other matters required to be shown by such taxpayer in any return of such tax or information. The Commissioner of Finance is authorized to prescribe the contents and form of returns and statements and may require the inclusion of a return, document, or statement of any information he deems necessary for the proper enforcement of Chapter 5 of Title 11 of the Administrative Code.
(b) Form of records. No particular form is required for keeping the records, but such systems of accounting shall be used as will enable the Commissioner of Finance to ascertain whether liability for tax is incurred and, if so, the correctness of the amounts required to be reported in any tax return.
(c) Requiring returns, statements, or the keeping of records. The Com missioner of Finance may require any person to make such returns, render such statements, furnish such copies of Federal income tax returns and of Federal audit determinations, or keep such specific records as the Commissioner of Finance may deem necessary to verify whether or not such person is complying or has complied with Chapter 5 of Title 11 of the Administrative Code.
(d) Copies of returns, schedules and statements. Every person who is required by these regulations or by instructions applicable to any form prescribed thereunder to keep a copy of any return, schedule, statement or other document, shall keep such copy as a part of his records.
(e) Place for keeping records. The books and records required by these regulations shall be kept at locations accessible to the representatives of the Commissioner of Finance, and shall be made available for inspection by such representatives.
(f) Retention of records. The books and records required to be kept by these regulations shall be retained so long as the contents thereof may become material in the administration of Chapter 5 of Title 11 of the Administrative Code.
(g) Notice of qualification as receiver, etc. (Administrative Code § 11-518(b)). Every receiver, trustee in bankruptcy, assignee for benefit of creditors, or other like fiduciary of a taxpayer subject to the tax imposed by Chapter 5 of Title 11 of the Administrative Code, required under the Internal Revenue Code and its applicable regulations to give notice of his qualification to act in such capacity must, within the same required period, give like written notice to the Commissioner of Finance (see: Internal Revenue Code § 6036, and subsection (a) of § 3-01.6036-1 of the Internal Revenue Code Regulations).
(a) Report of change in Federal or New York State taxable income. (Administrative Code § 11-519)
If the amount of the taxpayer's Federal or New York State taxable income reported on the Federal or New York State income tax return is changed or corrected by the United States Internal Revenue Service or the New York State Department of Taxation and Finance or other competent authority, or changed as a result of a renegotiation of a contract or subcontract with the United States or the State of New York, or if the taxpayer, pursuant to subsection (d) of § 6213 of the Internal Revenue Code, executes a notice of waiver of the restrictions on assessment and collection provided in subsection (a) of said section of the Internal Revenue Code, or if a taxpayer, pursuant to subdivision (f) of § 681 of the New York Tax Law, executes a notice of waiver of the restrictions provided in subdivision (c) of said section of the New York Tax Law, and such change, correction or waiver pertains to the unincorporated business gross income or unincorporated business deductions of the taxpayer, a report of such change, correction or waiver, and the changes or correction in his Federal or New York State taxable income on which it is based, must be filed within ninety days after the final determination of such change, correction, or renegotiation, or such execution of such notice of waiver. The taxpayer shall concede the accuracy of such determination or state wherein it is erroneous. Any taxpayer filing an amended Federal or New York State income tax return shall also file within ninety days thereafter an amended return under these regulations for New York City unincorporated business tax purposes.
(b) Report of change of New York State sales and compensating use tax. (Administrative Code § 11-519.1)
Where the State Tax Commission changes or corrects a taxpayer's sales and compensating use tax liability with respect to the purchase or use of items for which a sales or compensating use tax credit against the tax imposed by Chapter 5 of Title 11 of the Administrative Code was claimed (see: 19 RCNY § 28-03(c)(3)), the taxpayer shall report such change or correction to the Commissioner of Finance within ninety days of the final determination of such change or correction, and shall concede the accuracy of such determination or state wherein it is erroneous. Any taxpayer filing an amended return or report relating to the purchase or use of such items shall also file within ninety days thereafter a copy of such amended return or report with the Commissioner of Finance.
(c) Form of report of change in Federal or New York State taxable income or New York State sales and compensating use tax liability. The report referred to in 19 RCNY § 28-20(a) shall be made on Form NYC-115. The report referred to in 19 RCNY § 28-20(b) shall be made on Form NYC-116. It must be accompanied by a copy of the final Federal or New York State determination or renegotiation agreement as well as any other pertinent data in all cases in which a refund based on such final determination or renegotiation agreement is claimed. Where additional tax is due, the taxpayer may, in lieu of a copy of the final determination or renegotiation agreement, give full details of the changes in taxable income on Form NYC-115 or the changes in sales and compensating use tax liability on Form NYC-116. The report on Form NYC-115 or Form NYC-116 shall be accompanied by full payment of any tax shown to be due thereon and shall be forwarded separately from, and not as part of, any other report or return. The report must be made by the taxpayer regardless of whether he believes any modification of his tax liability is required.
(d) Federal or New York State changes not binding. The Commissioner of Finance is not required to accept as correct any change in taxable income or sales and compensating use tax liability as hereinabove set forth, but may conduct an independent audit or investigation in regard thereto.
(e) Final determination. A final determination for purposes of this section includes but is not limited to the following instances:
(1) A closing agreement made under § 7121 of the Internal Revenue Code of 1954, or with the New York State Tax Commission, finally and irrevocably adjusting and settling a taxpayer's liability.
(2) An allowance by the Commissioner of Internal Revenue or the New York State Tax Commission of a refund of any part of the tax shown on the taxpayer's return or of any deficiency thereafter assessed, whether such refund is made on the Commissioner's or State Tax Commission's own motion or pursuant to a judgment of a court.
(3) The 90-day deficiency notice pursuant to § 6212 of the Internal Revenue Code of 1954 or § 681 of the Tax Law of the State of New York, or the 90-day Notice of Determination pursuant to § 1138 of the Tax Law of New York, unless a timely petition to redetermine the deficiency is filed in the Tax Court of the United States or with the New York State Division of Tax Appeals, in which event the judgment of the court of last resort affirming the deficiency, or the redetermination of the deficiency pursuant to a judgment of the court of last resort, is the final determination.
(4) The assessment of a deficiency pursuant to a waiver filed under § 6213 of the Internal Revenue Code of 1954 or § 681 of the Tax Law of the State of New York, where no 90-day deficiency notice is issued.
(5) The filing of a signed consent irrevocably and finally fixing sales and use tax liability under § 1138 of the Tax Law of the State of New York.
(f) Recomputation of tax. (Administrative Code § 11-523(c)(3) and (9) and § 11-527(c) and (k)). If the report of a change in Federal or New York State taxable income or New York State sales and compensating use tax liability or an amended New York City return conforming to an amended Federal or New York State return is filed after expiration of the period otherwise prescribed for assessment or refund, the amount of any assessment, credit or refund shall not exceed the increase or reduction in tax attributable to such Federal or New York State change or to the items amended on the taxpayer's amended Federal or New York State return.
(a) Interest on underpayments. (Administrative Code § 11-524).
(1) If any amount of tax is not paid on or before the last date prescribed for payment (without regard to any extension of time granted for payment), interest on such amount at the rate prescribed by the law and the regulations of the Commissioner of Finance shall be paid for the period from such last date to the date of payment. No interest shall be paid if the amount thereof is less than one dollar.
(2) Exception as to estimated tax. This subdivision (a) shall not apply to any failure to pay estimated tax under § 11-512 of the Administrative Code.
(3) Exception for mathematical error. No interest shall be imposed on any underpayment of tax due solely to mathematical error if the taxpayer files a return within the time prescribed in 19 RCNY § 28-18 (including any extension of time) and pays the amount of underpayment within three months after the due date of such return, as it may be extended.
(4) Suspension of interest on deficiencies. If a waiver of restrictions on assessment of a deficiency has been filed by the taxpayer, and if notice and demand by the Commissioner of Finance for payment of such deficiency is not made within 30 days after the filing of such waiver, interest shall not be imposed on such deficiency for the period beginning immediately after such 30th day and ending with the date of notice and demand.
(5) Tax reduced by carryback. If the amount of tax for any taxable year is reduced by reason of a carryback of a net operating loss, such reduction in tax shall not affect the computation of interest under this subdivision (a) for the period ending with the filing date for the taxable year in which the net operating loss arises, determined without regard to extensions of time to file.
Example: Partnership ABC has an unincorporated business tax deficiency of $1,000 for its taxable year ended December 31, 1983, due April 15, 1984. It sustains a loss for the year ended December 31, 1984, which when carried back to tax year 1983 reduces the deficiency for that year to $600. Interest accrues at the statutory rate (compounded) on $1,000 to April 15, 1985 (the filing date for the year of loss) and then on $600 to the date of payment.
(6) Interest on penalties or additions to tax. Interest shall be imposed under paragraph (1) of this subdivision (a) in respect to any assessable penalty or addition to tax only if such assessable penalty or addition to tax is not paid within ten days from the date of the notice and demand therefor under subdivision (b) of § 11-532 of the Administrative Code, and in such case interest shall be imposed only for the period from the date of the notice and demand to the date of payment.
(7) Payment prior to notice of deficiency. If, prior to the mailing to the taxpayer of a notice of deficiency under subdivision (b) of § 11-521 of the Administrative Code, the Commissioner of Finance mails to the taxpayer a notice of proposed increase of tax and within 30 days after the date of the notice of proposed increase the taxpayer pays all amounts shown on the notice to be due to the Commissioner of Finance, no interest under this subdivision (a) on the amount so paid shall be imposed for the period after the date of such notice of proposed increase.
(8) Payment within ninety days after notice of deficiency. If a notice of deficiency under § 11-521 of the Administrative Code is mailed to the taxpayer, and the total amount specified in such notice is paid on or before the 90th day after the date of mailing, interest under this subdivision (a) shall not be imposed for the period after the date of the notice.
(9) Payment within ten days after notice and demand. If notice and demand is made for payment of any amount under subdivision (b) of § 11-532 of the Administrative Code, and if such amount is paid within ten days after the date of such notice and demand, interest paid under this subdivision (a) on the amount so paid shall not be imposed for the period after the date of such notice and demand.
(10) Interest on erroneous refund. Any portion of tax or other amount which has been erroneously refunded, and which is recoverable by the Commissioner of Finance, shall bear interest at the rate set by the Commissioner of Finance from the date of the payment of the refund, but only if it appears that any part of the refund was induced by fraud or a misrepresentation of a material fact.
(11) Satisfaction by credits. If any portion of a tax is satisfied by credit of an overpayment, no interest shall be imposed under this subdivision (a) on the portion of the tax so satisfied for any period during which, if the credit had not been made, interest would have been allowable with respect to such overpayment.
(b) Additions to tax and civil penalties. (Administrative Code § 11-525).
(1) Failure to file return.
(i) In case of failure to file a return on or before the prescribed date (determined with regard to any extension of time for filing), unless it is shown that such failure is due to reasonable cause (see: paragraph (5) of this subdivision (b)) and not due to willful neglect, there is to be added to the amount required to be shown as tax on such return five percent of the amount of such tax for each month or fraction thereof during which such failure continues, not exceeding 25 percent in the aggregate.
(ii) With respect to returns required to be filed on or after July 16, 1985, in the case of a failure to file a tax return within 60 days of the date prescribed for filing of such return (determined with regard to any extension of time for filing), unless it is shown that such failure is due to reasonable cause and not due to willful neglect, the addition to tax under subparagraph (i) of this paragraph shall not be less than the lesser of one hundred dollars ($100) or one hundred percent (100%) of the amount required to be shown as tax on such return.
(iii) For purposes of subparagraphs (i) and (ii) of this paragraph, the amount of tax required to be shown on the return shall be reduced by the amount of any part of the tax which is paid on or before the date prescribed for payment of the tax and by the amount of any credit against the tax which may be claimed on the return.
(2) Failure to pay tax shown on return. In case of failure to pay the amount shown as tax on a return to be filed on or before the prescribed date (determined with regard to any extension of time for payment), unless it is shown that such failure is due to reasonable cause (see: paragraph (5) of this subdivision (b)) and not due to willful neglect, there shall be added to the amount shown as tax on such return one-half of one percent of the amount of such tax for each month or fraction thereof during which such failure continues, not exceeding 25 percent in the aggregate. For the purpose of computing the addition for any month the amount of tax shown on the return shall be reduced by the amount of any part of the tax which is paid on or before the beginning of such month and by the amount of any credit against the tax which may be claimed on the return. If the amount of tax required to be shown on a return is less than the amount shown as tax on such return, this paragraph shall be applied by substituting such lower amount.
(3) Failure to pay tax required to be shown on return. In case of failure to pay any amount in respect of any tax required to be shown on a return required to be filed, which is not so shown within ten days of the date of notice and demand, unless it is shown that such failure is due to reasonable cause (see paragraph (5) of this subdivision (b)) and not due to willful neglect, there shall be added to the amount of tax stated in such notice and demand one-half of one percent of such tax for each month or fraction thereof during which such failure continues, not exceeding 25 percent in the aggregate. For the purpose of computing the addition for any month, the amount of tax stated in the notice and demand shall be reduced by the amount of any part of the tax which is paid before the beginning of such month.
(4) Limitations on additions.
(i) With respect to any return the amount of the addition to tax is limited to the following:
(A) At no time will the addition for one month be more than five percent.
(B) If paragraphs (1) and (2) of this subdivision (b) are both applicable, the addition under paragraph (1) is reduced by the addition under paragraph (2). Thus, the addition to tax will be four and one-half percent under paragraph (1) and one-half of one percent under paragraph (2) for each month up to and including the first five months. After the first five months, the addition of one-half per month pursuant to paragraph (2) will apply for the next 45 months for a maximum aggregate of 47 1/2 percent addition to tax. However, in any case described in subparagraph (1)(ii) of this subdivision (b) (relating to returns filed after 60 days of the due date) the amount of the addition to tax under such paragraph (1) shall not be reduced below the amount provided in such paragraph (i.e. the lesser of $100 or 100% of the tax due).
(C) If paragraphs (1) and (3) of this subdivision (b) are both applicable, the maximum amount of the addition to tax may not exceed 25 percent in the aggregate. The maximum amount of the addition to tax pursuant to paragraph (3) of this subdivision (b) shall be reduced by the amount of the addition to tax pursuant to paragraph (1) of this subdivision (b) (determined without regard to subparagraph (1)(i) of this subdivision (b)) which is attributable to the tax for which the notice and demand is made and which is not paid within ten days of such notice and demand.
(ii) The provisions of this paragraph (4) may be illustrated by the following examples:
Example 1:
(i) Assume the taxpayer filed his tax return for the year January 1, 1983 to December 31, 1983 (due April 15, 1984) on July 30, 1984, and the failure to file on or before the prescribed date is not due to reasonable cause. The tax shown on the return is $800 and a deficiency of $200 is subsequently assessed, making the tax required to be shown on the return, $1,000. The amount shown due on the return of $800 is paid on August 26, 1984. The failure to pay on or before the prescribed date is not due to reasonable cause. There will be imposed, in addition to interest, an additional amount under paragraph (2) of $20.00, which is 2.5 percent (2% for the 4 months from April 16 through August 15, and 0.5% for the fractional part of the month from August 16 through August 26) of the amount shown due on the return of $800. There will also be imposed an additional amount under paragraph (1) of $184, determined as follows:
20 percent (5% per month for the 3 months from April 16 through July 15 and 5% for the fractional part of the month from July 16 through July 30) of the amount due of $1,000 required to be shown on the return | $200 |
Reduced by the amount of the addition imposed under paragraph (2) for those months | $16 |
Addition to tax under paragraph (1) | $184 |
(ii) A notice and demand for the $200 deficiency is issued on September 8, 1984, but the taxpayer does not pay the deficiency until August 23, 1985. In addition to interest there will be imposed an additional amount under paragraph (3) of $10, determined as follows:
Addition computed without regard to limitation: 6 percent (5 1/2% for the 11 months from September 19, 1984, through August 18, 1985, and 0.5% for the fractional part of the month from August 19 through August 23) of the amount stated in the notice and demand ($200) | $12 |
Limitation on addition: 25 percent of the amount stated in the notice and demand ($200) | $50 |
Reduced by the part of the addition under paragraph (1) for failure to file attributable to the $200 deficiency (20% of $200) | $40 |
Maximum amount of the addition under paragraph (3) | $10 |
Example 2: A taxpayer files his tax return for the year January 1, 1983 to December 31, 1983 on December 2, 1984, and such delinquency is not due to reasonable cause. The balance due, as shown on the return, of $500 is paid when the return is filed on December 2, 1984. In addition to interest and the addition for failure to pay under paragraph (2) of $20 (8 months at 0.5% per month, 4%), there will also be imposed an additional amount under paragraph (1) of $112.50, determined as follows:
Penalty at 5% for maximum of 5 months, 25% of $500 | $125.00 |
Less reduction for the amount of the addition under paragraph (2): Amount imposed under paragraph (2) for failure to pay for the months in which there is also an addition for failure to file – 2 1/2 percent for the 5 months April 16 through September 15 of the net amount due ($500) | $12.50 |
Addition to tax under paragraph (1) | $112.50 |
(5) Reasonable cause as used in paragraphs (1), (2) and (3) of this subdivision (b) must be affirmatively shown in a written statement. The taxpayer's previous compliance record may be taken into account. Grounds for reasonable cause, where clearly established, may include the following:
(i) death or serious illness of the taxpayer, or his unavoidable absence from his usual place of business;
(ii) destruction of the taxpayer's place of business or business records by fire or other casualty;
(iii) inability to obtain and assemble essential information required for the preparation of a complete return despite reasonable efforts;
(iv) any other cause for delinquency which appears to a person of ordinary prudence and intelligence as a reasonable cause for delay in filing a return and which clearly indicates an absence of gross negligence or willful intent to disobey the taxing statutes. Past performance should be taken into account. Ignorance of the law, however, will not be considered reasonable cause.
(6) Underpayment due to negligence.
(i) If any part of an underpayment is due to negligence or intentional disregard of the law, or rules or regulations thereunder (but without intent to defraud), there shall be added to the tax a penalty in an amount equal to five percent of the underpayment.
(ii) With respect to taxes required to be paid on or after July 16, 1985, there shall be added to the tax (in addition to the amount determined under subparagraph (6)(i) of this subdivision) an amount equal to 50 percent of the interest payable under 19 RCNY § 28-21(a) with respect to the portion of the underpayment prescribed in such paragraph (6)(i) which is attributable to the negligence or intentional disregard referred to in such subparagraph (6)(i) for the period beginning on the last date prescribed by law for payment of such underpayment (determined without regard to any extension) and ending on the date of the assessment of the tax (or, if earlier, the date of the payment of the tax).
(iii) If any payment is shown on a return made by a payor with respect to dividends, patronage dividends and interest under subsection (a) of § 6042, subsection (a) of § 6044 or subsection (a) of § 6049 of the Internal Revenue Code, respectively, and the payee fails to include any portion of such payment in unincorporated business gross income, as that term is defined in 19 RCNY § 28-05, any portion of a deficiency attributable to such failure shall be treated, for purposes of this paragraph (6), as due to negligence in the absence of clear and convincing evidence to the contrary. If any addition to tax is imposed under this paragraph (6) by reason of the preceding sentence, the amount of the addition to tax imposed by paragraph (6)(i) of this subdivision (b) shall be five percent of the portion of the deficiency which is attributable to the failure described in the preceding sentence.
(7) Underpayment due to fraud.
(i) If any part of an underpayment is due to fraud, there shall be added to the tax a penalty in an amount equal to 50 percent of the underpayment.
(ii) With respect to taxes required to be paid on or after July 16, 1985, there shall be added to the tax (in addition to the penalty determined under paragraph (7)(i) of this subdivision) an amount equal to 50 percent of the interest payable under 19 RCNY § 28-21(a) with respect to the portion of the underpayment described in such paragraph (7)(i) which is attributable to fraud, for the period beginning on the last day prescribed by law for payment of such underpayment (determined with out regard to any extension) and ending on the date of the assessment of the tax (or, if earlier, the date of the payment of the tax).
(iii) The penalty under this paragraph (paragraph (7)) shall be in lieu of the maximum 25 percent penalty due to willful neglect for failure to file a return due to willful neglect, five percent penalty due to negligence and the additional one-half of one percent per month penalty pursuant to paragraphs (2) and (3) of this subdivision (b).
(8) Any person who fails to pay tax, or to make, render, sign or certify any return, or declaration of estimated tax, or to supply any information within the required time, with fraudulent intent, shall be liable for a penalty of not more than $1,000, in addition to any other amounts required under the law to be imposed, assessed and collected by the Commissioner of Finance. The Commissioner of Finance has the power, in his discretion, to waive, reduce or compromise any penalty under this paragraph (8).
(9) Substantial understatement of liability. If there is a substantial understatement of tax for any taxable year, there shall be added to the tax an amount equal to ten percent of the amount of any underpayment attributable to such understatement. For purposes of this paragraph (9), there is a substantial understatement of tax for any taxable year if the amount of the understatement for the taxable year exceeds the greater of ten percent of the tax required to be shown on the return for the taxable year, or $5,000. For purposes of the preceding sentence, the term "under statement" means the excess of the amount of the tax required to be shown on the return for the taxable year, over the amount of the tax imposed which is shown on the return, reduced by any rebate (within the meaning of § 11-521(g) of the Administrative Code). The amount of such understatement [under the preceding sentence] shall be reduced by that portion of the understatement which is attributable to the tax treatment of any item by the taxpayer if there is or was substantial authority for such treatment, or any item with respect to which the relevant facts affecting the item's tax treatment are adequately disclosed in the return or in a statement attached to the return. The Commissioner of Finance may waive all or any part of the addition to tax provided by this paragraph (9) on a showing by the taxpayer that there was reasonable cause for the understatement (or part thereof) and that the taxpayer acted in good faith.
(10) Aiding or assisting in the giving of fraudulent returns, reports, statements or other documents. (i) Any person who, with the intent that tax be evaded, shall, for a fee or other compensation or as an incident to the performance of other services for which such person receives compensation, aid or assist in, or procure, counsel, or advise the preparation or presentation under, or in connection with any matter arising under the law of any return, report, declaration, statement or other document which is fraudulent or false as to any material matter, or supply any false or fraudulent information, whether or not such falsity or fraud is with the knowledge or consent of the person authorized or required to present such return, report, declaration, statement or other document shall pay a penalty not exceeding ten thousand dollars.
(ii) For purposes of paragraph (10)(i) of this subdivision, the term "procures" includes ordering (or otherwise causing) a subordinate to do an act, and knowing of, and not attempting to prevent, participation by a subordinate in an act. The term "subordinate" means any other person (whether or not a member, employee, or agent of the taxpayer involved) over whose activities the person has direction, supervision, or control.
(iii) For purposes of paragraph (10)(i) of this subdivision, a person furnishing typing, reproducing, or other mechanical assistance with respect to a document shall not be treated as having aided or assisted in the preparation of such document by reason of such assistance.
(iv) The penalty imposed by this paragraph (10) shall be in addition to any other penalty provided by law.
(c) Failure to file declaration or underpayment of estimated tax. (Administrative Code § 11-525(c)). If any taxpayer fails to file a declaration of estimated tax or 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 law and the regulations of the Commissioner of Finance upon the amount of the underpayment for the period of the underpayment but not beyond the 15th day of the fourth month following the close of the taxable year. The amount of the 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 90 percent of the tax shown on the return for the taxable year (or if no return was filed, 90 percent 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. In any case in which there would be no underpayment if this paragraph were applied by substituting "80 percent" for "90 percent" where it appears in the second preceding sentence, the addition to tax under this subdivision shall be equal to 75 percent of the amount otherwise determined under this section.
(d) Exception to addition for underpayment of estimated tax. (Administrative Code § 11-525(d)).
(1) The addition to tax under 19 RCNY § 28-21(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 follow ing is the lesser:
(i) 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 the least:
(A) The tax shown on the return of the taxpayer for the preceding taxable year, if a return showing a liability for tax was filed by the taxpayer for the preceding taxable year and such preceding year was a taxable year of 12 months, or
(B) An amount equal to the tax computed, at the rates applicable to 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 90 percent of the tax for the taxable year computed by placing on an annualized basis the unincorporated business 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 (i), the unincorporated business taxable income shall be placed on an annualized basis by: (a) multiplying by 12 (or, in the case of a taxable year of less than 12 months, the number of months in the taxable year) the unincorporated business taxable income for the months in the taxable year ending before the month in which the installment is required to be paid, and (b) dividing the resulting amount by the number of months in the taxable year ending before the month in which such installment date falls, or
(D) (a) If the base period percentage for any six consecutive months of the taxable year equals or exceeds 70 percent, an amount equal to 90 percent of the tax determined in the following manner:
(1) take the unincorporated business taxable income for all months during the taxable year preceding the filing month.
(2) divide such amount by the base period percentage for all months during the taxable year preceding the filing month,
(3) determine the tax on the amounts determined under subparagraph (i)(D)(a)(2), and
(4) multiply the tax determined under subparagraph (i)(D)(a)(3) by the base period percentage for the filing month and all months during the taxable year preceding the filing month.
(b) For purposes of subparagraph (i)(D)(a)
(1) the base period percentage for any period of months shall be the average percent which the unincorporated business taxable income for the corresponding months in each of the three preceding years bears to the unincorporated business taxable income for the three preceding taxable years.
(2) the term "filing month" means the month in which the installment is require to be paid; or
(ii) An amount equal to 90 percent of the tax computed, at the rates applicable to the taxable year, on the basis of the actual unincorporated business taxable income for the months in the taxable year ending before the month in which the installment is required to be paid.
(2) (i) Except as provided in paragraph (1)(ii) hereof, subparagraphs (i)(A) and (i)(B) of paragraph (1) of this subdivision (d) shall not apply in the case of any taxpayer which had unincorporated business taxable income, or the portion thereof allocated within the City, of $1 million or more for any taxable year during the three taxable years immediately preceding the taxable year involved.
(ii) For taxable years beginning in 1983, the amount treated as the estimated tax under subparagraphs (i)(A) and (i)(B) of paragraph (1) of this subdivision (d) shall in no event be less than 75 percent of the tax shown on the return for the taxable year beginning in 1983 or, if no return was filed, 75 percent of the tax for such year.
(e) Criminal penalties. (Administrative Code, Chapter 40 of Title 11).
(1) Failure to file a return or report; supply information; or supplying false information. (Administrative Code § 11-4002). Any person who, with intent to evade any tax imposed or any requirement of law or any lawful requirement of the Commissioner of Finance, shall fail to make, render, sign, certify or file any return or report, or to supply any information within the time required by or under the provisions of the law, or who, with like intent, shall supply any false or fraudulent information, shall be guilty of a misdemeanor.
(2) False returns or reports. (Administrative Code § 11-4004).
(i) Any person who, with intent to evade any tax imposed by or any requirement of law, or any lawful requirement of the Commissioner of Finance, shall make, render, sign, certify or file any false or fraudulent return or report, declaration or statement shall be guilty of a misdemeanor.
(ii) Any person who, with intent to evade any tax imposed, files a false or fraudulent return or report and, with such intent, substantially understates on such return or report his tax liability shall be guilty of a class E felony.
(iii) For purposes of subparagraph (ii) of this paragraph (2) the term "substantially understates" refers to the excess amount of the tax required to be shown on the return or report for the taxable year or other applicable taxable period over the amount of the tax imposed which is shown on the return or report, provided that the excess is more than $1,500, and provided that the taxpayer, acting without reasonable ground for belief that his conduct is lawful, intended to evade at least said amount of such excess.
(3) Aiding or assisting in the giving of fraudulent returns, reports, statements or other documents. (Administrative Code § 11-4005).
(i) Any person who, with the intent that any tax imposed, or any lawful requirement of the Commissioner of Finance be evaded, shall, for a fee or other compensation or as an incident to the performance of other services for which such person receives compensation, aid or assist in, or procure, counsel, or advise the preparation or presentation under, or in connection with any matter arising under the law of any return, report, declaration, statement or other document which is fraudulent or false as to any material matter, or supply any false or fraudulent information, whether or not such falsity or fraud is with the knowledge or consent of the person authorized or required to present such return, report, declaration, statement or other document shall be guilty of a misdemeanor.
(ii) Any person who, with the intent that any tax imposed be evaded, shall, for a fee or other compensation or as an incident to the performance of other services for which such person receives compensation, aid or assist in, or procure, counsel, or advise the preparation of any return or report, which is filed, and which is fraudulent or false as to any material matter, whether or not such falsity or fraud is with the knowledge or consent of the person authorized or required to present such return, and thereby causes, by means of a common scheme or plan, an under statement of tax liability of one or more persons of more than $1,500 in the aggregate, shall be guilty of a class E felony. The term "under statement" shall mean the excess of the amount of the tax required to be shown on the return or report over the amount of the tax imposed which is shown on the return or report.
(4) Failure to pay tax. (Administrative Code § 11-4006). Any person, who, with intent to evade any tax imposed or any requirement of law or any lawful requirement of the Commissioner of Finance, shall fail to pay the tax, shall be guilty of a misdemeanor.
(5) Failure to obey subpoena; false testimony. (Administrative Code § 11-4007).
(i) Any person who, being duly subpoenaed in connection with a matter arising under the law, to attend as a witness or to produce books, accounts, records, memoranda, documents or other papers,
(A) fails or refuses to attend without lawful excuse,
(B) refuses to be sworn,
(C) refuses to answer any material and proper question, or
(D) refuses, after reasonable notice, to produce books, papers and documents in his possession or under his control which constitute material and proper evidence shall be guilty of a misdemeanor.
(ii) Any person who shall testify falsely in any material matter pending before the Commissioner of Finance shall be guilty of and punishable for perjury.
(f) Commissioners Certificate. (Administrative Code § 11-531(d)). The certificate of the Commissioner of Finance to the effect that a tax has not been paid, that a return or declaration of estimated tax has not been filed, or that information has not been supplied, as required by or under the provisions of Chapter 5 of Title 11 of the Administrative Code, shall be prima facie evidence that such tax has not been paid, that such return or declaration has not been filed, or that such information has not been supplied.