A New York S corporation or continuing §186 corporation whose tax for the preceding tax year exceeded $1,000 is required to pay a mandatory first installment (MFI) with its tax return for the previous year or with the request for an extension of time to file such return. These taxpayers do not use Form CT-300, Mandatory First Installment (MFI) of Estimated Tax for Corporations.
If a continuing §186 corporation’s preceding year’s tax exceeded $1,000 and the corporation is subject to the MTA surcharge, it is also required to pay an MFI of estimated MTA surcharge. New York S corporations are not subject to the MTA surcharge.
If your corporation reasonably expects to owe more than $1,000 in franchise tax after credits, you must file estimated tax forms (Form CT-400, Estimated Tax for Corporations) and make quarterly payments of all estimated tax due. Most corporations are mandated to e-file the estimated tax.
- Use Corporation Tax Web File to submit Form CT-400. You will need to first create an Online Services account.
- Use tax preparation approved software to submit Form CT-400.
- File paper Form CT-400.