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On the prepayments line of your amended 2022 Form • An additional penalty of 20% of the total tax liability
METBIT-41, enter the net tax as reflected on the original if the failure to file is for a period of four months or
return or as previously adjusted. Do not include any penalty more.
or interest portions of payments already made. • An additional penalty of 100% of the total tax liability
of all tax years if the failure to file is for three or more
Apportionment consecutive tax years.
Gross income includes all business income including, but No late filing penalty is due if a timely extension is filed with
not limited to, gross receipts, service income, interest, the Revenue Division and a 2022 Form METBIT-41 is filed
dividends, income from contractual agreements, gross by the extended due date, or a copy of the federal extension
rents, and gains on sale of business property. Income may is included with the return and the ‘Extension Filed’ box is
be apportioned only if there is regular business income checked.
outside of Metro. Services performed outside of Metro may
be apportioned based upon the percentage of performance LATE PAYMENT PENALTY
outside the applicable jurisdiction. Sales of tangible
Your 2022 income tax must be paid by April 18, 2023, even
personal property may be apportioned only if a business
if you requested an extension to file your 2022 Form
has payroll or property outside the jurisdictions.
METBIT-41. If you do not pay your tax by the original due
date, the following penalties will apply:
Penalty Calculation
• 5% of the amount of the tax that was not paid by the
You may be subject to penalties for underpaying your original due date.
estimated tax, filing a late 2022 Form METBIT-41, and/or • An additional penalty of 20% of the unpaid tax must
paying your income tax liability after the original due date of be added if the failure to pay is for a period of four
the return. Although the Revenue Division assesses a late months or more.
penalty for both failing to file 2022 Form METBIT-41 by the • An additional penalty of 100% of the unpaid tax
due date and failing to pay the tax by the original due date liability of all tax years if the failure to pay is for three
of the return, only one of these late penalties will be applied, or more consecutive years
even if there is a failure of both requirements. In these
cases, only the late filing penalty is applied. Interest Calculation
UNDERPAYMENT PENALTY
LATE PAYMENT INTEREST
You may be subject to a penalty for underpaying your
Interest is calculated at 10% per annum (.00833 multiplied
estimated tax if, by the original due date of the return, timely
by the number of months). Calculate your interest from the
prepayments are not made which are either:
original due date to the 15th day of the month following the
• At least 90% of the total tax balance due, or date of the payment.
• 100% of the prior year’s tax liability paid by the
QUARTERLY UNDERPAYMENT INTEREST
original due date.
Quarterly underpayment interest will be due if estimated
If you did not satisfy either requirement, you will be charged
payments were required and were underpaid. Calculate
an underpayment penalty of 5% of the unpaid tax, but not
your quarterly underpayment interest at a rate of 10% per
less than $5.
annum from the due date of each quarterly estimated
LATE FILING PENALTY payment to the original due date of the tax return to which
the estimated payments apply. The amount of
If you do not file your 2022 Form METBIT-41 by the original
underpayment is determined by comparing the 90% of the
due date, file an extension with the Revenue Division by the
current total tax liability amount to quarterly estimated
original due date, or include a copy of your federal extension
payments made prior to the original due date of the tax
with your return when you file by the extended due date, the
return.
following penalties will apply:
There is no interest on underpayment of quarterly estimated
• 5% of the amount of the total tax liability if the failure
payments if:
to file is for a period less than four month.
• The total tax liability of the prior tax year was less
than $1,000;
Page 2of ,42022 METBIT-41 Instructions (Rev. 01/22/2023)
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