UNDERPAYMENT OF ESTIMATED 
                                                                                                                                                                                                              2022
                                            -221               UNINCORPORATED BUSINESS TAX
                                                               ATTACH TO YOUR TAX RETURN

                                                 For CALENDAR YEAR 2022 or FISCAL YEAR beginning ___________________, 2022  and ending _________________________
                         Print or Type t   
                          Name
                                                                                                                                                                                       PARTNERSHIPS, ESTATES AND TRUSTS ONLY 
                                                                                                                                   SOCIAL SECURITY NUMBER                              ENTER EMPLOYER IDENTIFICATION NUMBER  
                                                                                                                                                                       OR

             *60512291*

 Computation of Underpayment
 
1.  2022 tax (from NYC-202 or NYC-202EIN, Schedule A, line 19; NYC-204, Schedule A, line 21; or NYC-202S, 
    Schedule A, line 8) .........................................................................................................................................................  1.
2.  Credits (from NYC-202 or NYC-202EIN, Schedule A, lines 20a, 20b, 20c and 20e or NYC-204, Schedule A,  
    lines 22a,22b, 22c and 22e)...........................................................................................................................................  2.
3.  Line 1 less line 2  ...........................................................................................................................................................  3.
4.  90% of line 3  ................................................................................................................................................................. 4.

                                                                                                                          1 -  FIRST              2 - SECOND           3 -             THIRD              4 - FOURTH 
      Enter quarterly due dates of installments             ’

5.  Divide amount of line 4 by the number of installments required 
    for the year.  Enter the result in the appropriate columns...................  5.
6.  Amount paid or credited for each period ............................................ 6. 
7.  Overpayment of previous installment (see instructions)..................... 7.                                             
8.  Total of lines 6 and 7 .......................................................................... 8. 
9.  Overpayment (line 8 less line 5)......................................................... 9. 
10. Underpayment (line 5 less line 8) ..................................................... 10.

                                                                                                                                                  ’  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 4th, 6th and 9th months of the taxable year and the 15th day 
of the first month of the succeeding taxable year.......................................... 
                                                                                                                               25% of 2021 tax        50% of 2021 tax                  75% of 2021 tax        100%  of 2021 tax
s   EXCEPTION 1-  Prior year's tax (2021)      $                                                       
    (see instructions) ...................................................................................................
 
                                                                                                                               Enter 25% of tax       Enter 50% of tax                 Enter 75% of tax       Enter 100% of tax
s   EXCEPTION 2 -Tax on prior year's facts and law using 2022 rates  
    (attach computation) (see instructions)........................................................... 
                                                                                                                              Enter 22.50% of tax     Enter 45% of tax                 Enter 67.50% of tax
s   EXCEPTION 3 - Tax on annualized 2022 income 
    (attach computation) (see instructions)................................................................... 
                                                                                                                               Enter 90% of tax       Enter 90% of tax                 Enter 90% of tax
s   EXCEPTION 4 - Tax on 2022 income over short periods  
    (attach computation) (see instructions)................................................................... 
s   EXCEPTION 5 - Tax on recurring seasonal 2022 income 
    (attach computation) (see instructions) ...................................................................

 60512291                                                                                                                                                                                                     NYC-221  - 2022

 Form NYC-221 - 2022                                                                                                                                                                                     Page 2

    COMPUT A TION OF PENAL TY                                                                         1 - FIRST               2 - SECOND 3 -       THIRD                                             4 - FOURTH 

11. Enter the date of payment or the 15th day of the 4th month 
    after the close of the taxable year, whichever is earlier ..................11.  
12. Number of days from due date of installment to the date  
    shown on line 11 .............................................................................12. 

13. Number of days on line 12 after 4/15/2022 and before 7/1/2022 ...13. 

14. Number of days on line 12 after 6/30/2022 and before 10/1/2022 .14. 

15. Number of days on line 12 after 9/30/2022 and before 1/1/2023 ...15.  

16. Number of days on line 12 after 12/31/2022 and before 4/1/2023 .16.   

17. Number of days on line 12 after 3/31/2023 andbefore 7/1/2023 ...17.  

18. Number of days on line 12 after 6/30/2023 and before 10/1/2023 .18. 

19. Number of days on line 12 after 9/30/2023 and before 1/1/2024 ...19. 

20. Number of days on line 12 after 12/31/2023 and before 3/15/2024 ....20. 

21. Number of days on line 13 x 8% x amount on line 10  
                           365                           ...............21. 
22. Number of days on line 14 x 9% x amount on line 10  
                           365                           ...............22. 
23. Number of days on line 15 x 10% x amount on line 10  
                           365                           ...............23. 
24. Number of days on line 16 x *% x amount on line 10  
                           365                           ...............24. 
25. Number of days on line 17 x *% x amount on line 10  
                           365                           ...............25. 
26. Number of days on line 18 x *% x amount on line 10  
                           365                           ...............26. 
27. Number of days on line 19 x *% x amount on line 10  
                           365                           ...............27. 
28. Number of days on line 20 x *% x amount on line 10  
                           366                           ...............28. 

29. Add lines 21 through 28 .................................................................29. 
 
30. To complete this line, refer to the instructions for line 30................30.

31. Add the amounts on line 29 (or line 30, if applicable) for quarters 1 through 4. Enter total and transfer amount to Form NYC-202 or 
    NYC-202EIN, Schedule A, line 25c or Form NYC-204, Schedule A, line(see27c                          instructions for line 30)................................................................. 31.

                                                                                                                        *For information regarding interest rates, call 311.  
                                                                                                                    If calling from outside of the five NYC boroughs, 
                                                                                                                        please call 212-NEW-YORK   (212-639-9675).  
    *60522291*                                           60522291                                         You may also consult the Department of Finance website at nyc.gov/finance

Instructions for Form NYC-221 - 2022                                                                   Page 3

PURPOSE OF FORM                                             Exception 1 
Form NYC-221 will enable taxpayers subject to the           Prior Year’s Tax 
Unincorporated Business Tax to determine if they paid       This exception applies if a taxpayer paid estimated 
the correct amount of estimated tax by the proper due       taxes equal to the tax reported on its prior year’s re-
date.  If the minimum amount was not paid timely, an        turn. To qualify for this exception, the taxpayer must 
underpayment penalty may be imposed for the period          have filed an income tax return showing a tax liabil-
underpaid.  This form helps you to determine whether        ity for the prior taxable year, and that taxable year 
or not you are subject to this penalty.                     consisted of 12 months. 
                                                             
ESTIMATED TAX                                               Exception 2 
Every taxpayer subject to the Unincorporated Business       Tax Based On Prior Year’s  Facts and Law 
Tax must file a Declaration of Estimated Tax (Form          Using Current Year’s Rates  
NYC-5UB for partnerships and Form NYC-5UBTI for             This exception applies if a taxpayer paid an amount 
all other taxpayers) if its estimated tax can reasonably be of estimated tax computed by applying the current 
expected to exceed $3,400.  The due date for the decla-     year’s rates to facts shown on the return for, and 
ration and the dates for paying the installments of esti-   under the law applicable to, the prior taxable year. 
mated tax depend upon when the requirements for              
making a declaration are first met. (Refer to Form NYC-     Exception 3 
5UB or Form NYC-5UBTI for details.)                         Tax On Annualized Income 
                                                            This exception applies if a taxpayer made an esti-
 
                                                            mated tax payment of at least 90% of the amount it 
NOTE 
                                                            would owe if its estimated tax were a tax computed 
If any date falls on a Saturday, Sunday or legal holi-
                                                            on annualized taxable income for the months preced-
day, substitute the next regular workday. 
                                                            ing an installment date. 
                                                             
EXCEPTIONS THAT AVOID THE                                   A taxpayer may annualize its income: 
UNDERPAYMENT PENALTY                                          
You will not have to pay a penalty if you made all tax      a)    for the first 3 months if the installment was re-
payments on time and they equal or exceed the                     quired to be paid in the 4th month; 
                                                             
amount that would have been required to be paid by 
                                                            b)    for the first 5 months if the installment was re-
each installment date if the estimated tax were an 
                                                                  quired to be paid in the 6th month; and 
amount determined under any of the exceptions listed         
below.                                                      c)    for the first 8 months if the installment was re-
                                                                  quired to be paid in the 9th month.  
A different exception may be applied to each under-          
payment.  If no exception applies, complete lines 11        To annualize, multiply taxable income for the period 
through 31 to determine the amount of the penalty.          by 12 and divide the resulting amount by the number 
                                                            of months in the period (3, 5, or 8, as the case may 
NOTE                                                        be).  (Refer to Section 11-525(d)(1)(C)). 
Large unincorporated businesses (those which had un-         
incorporated business taxable income allocated to the       Exception 4 
City of $1 million or more in any of the three years im-    Tax on 2022 Income Over Periods of less 
mediately preceding the current year) may not use ex-       than 12 Months 
ceptions 1 or 2.  Such unincorporated businesses may        This exception applies if a taxpayer's estimated tax 
only use exceptions 3, 4 and 5.                             payments equal or exceed 90% of the tax on its tax-
                                                            able income for the periods starting from the begin-

Instructions for Form NYC-221 - 2022                                                      Page 4

ning of the taxable year to the end of the month pre-   LINE 30  
ceding that in which an installment is due. To see if   PENALTY FOR UNDERPAYMENT OF 
this exception applies, a taxpayer should figure the    ESTIMATED TAX 
taxable income from the beginning of the taxable year   In columns 1 through 4 of line 30, for those install-
to the end of the month preceding that in which an in-  ment payments (line 8) that equal 80% or more of 
stallment is due and then compute the tax on that       line 3 divided by 4, multiply the penalty shown in 
amount as though it represented the taxable income      each applicable column by 75%.  Enter this result in 
for 2022.  (Refer to Section 11-525(d)(2).              the applicable column on line 30.  Combine these re-
                                                        vised amounts with the remaining amounts on line 29 
Exception 5                                             for any quarter for which no amount appears on line 
Additional Exception For Recurring                      30 and enter the total on line 31.
Seasonal Income 
This exception applies to an unincorporated business 
with recurring seasonal income. Under this excep-
tion, income may be annualized by assuming that in-
come earned in the current year is earned in the same 
seasonal pattern as in the 3 preceding tax years. (For 
information about computing this exception, refer to 
Section 11-525(d)(1)(D) of the NYC  Administrative 
Code. Attach your computation to the form.) 
 
LINE 7  
OVERPAYMENT OF PREVIOUS 
INSTALLMENT 
An overpayment on line 9 in excess of prior under-
payments is to be applied as a credit against the next 
installment.  A payment of estimated tax on any in-
stallment date is considered a payment of any previ-
ous underpayment only to the extent of the excess of 
the payment over the amount of the installment as 
computed on line 9. 
 
PAGE 2 
COMPUTATION OF PENALTY 
If no exception applies, complete lines 11 through 31 
to determine the amount of the penalty for each in-
stallment.  If you made more than one payment for a 
given installment, attach a separate computation for 
each payment.  The penalty is computed for the pe-
riod of underpayment, line 12, at a rate set periodi-
cally by the New York City Department of Finance. 
For information regarding interest rates, call 311.  If 
calling from outside of the five NYC boroughs, 
please call 212-NEW-YORK (212-639-9675), or 
consult the Finance website at: 
 
            nyc.gov/finance