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Apportionment An additional penalty of 100% of the total tax liability
of all tax years if the failure to file is for three or more
Gross income includes all business income including, but consecutive tax years.
not limited to, gross receipts, service income, interest,
No late filing penalty is due if a timely extension is filed with
dividends, income from contractual agreements, gross
the Revenue Division and a 2022 Form METBIT-65 is filed
rents, and gains on sale of business property. Income may
by the extended due date, or a copy of the federal extension
be apportioned only if there is regular business income
is included with the return and the ‘Extension Filed’ box is
outside of Metro. Services performed outside of Metro may
checked.
be apportioned based upon the percentage of performance
outside the applicable jurisdiction. Sales of tangible
LATE PAYMENT PENALTY
personal property may be apportioned only if a business
has payroll or property outside the jurisdictions. Your 2022 income tax must be paid by April 18, 2023, even
if you requested an extension to file your 2022 Form
Penalty Calculation METBIT-65. If you do not pay your tax by the original due
date, the following late payment penalties will apply:
You may be subject to penalties for underpaying your
estimated tax, filing a late 2022 Form METBIT-65, and/or • 5% of the amount of the tax that was not paid by the
paying your income tax liability after the original due date of original due date.
the return. • An additional penalty of 20% of the unpaid tax must
be added if the failure to pay is for a period of four
Although the Revenue Division assesses a late penalty for
months or more.
both failing to file 2022 Form METBIT-65 by the due date
• An additional penalty of 100% of the unpaid tax
and failing to pay the tax by the original due date of the
liability of all tax years if the failure to pay is for three
return, only one of these late penalties will be applied, even
or more consecutive years
if there is a failure of both requirements. In these cases, only
the late filing penalty is applied.
Interest Calculation
UNDERPAYMENT PENALTY
You may be subject to a penalty for underpaying your LATE PAYMENT INTEREST
estimated tax if, by the original due date of the return, timely Interest is calculated at 10% per annum (.00833 multiplied
prepayments are not made which are either: by the number of months). Calculate your interest from the
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
original due date. QUARTERLY UNDERPAYMENT INTEREST
If you did not satisfy either requirement, you will be charged Quarterly underpayment interest will be due if estimated
an underpayment penalty of 5% of the unpaid tax, but not payments were required and were underpaid. Calculate
less than $5. your quarterly underpayment interest at a rate of 10% per
annum from the due date of each quarterly estimated
LATE FILING PENALTY payment to the original due date of the tax return to which
If you do not file your 2022 Form METBIT-65 by the original the estimated payments apply.
due date, file an extension with the Revenue Division by the
The amount of underpayment is determined by comparing
original due date, or include a copy of your federal extension
the 90% of the current total tax liability amount to quarterly
with your return when you file by the extended due date, the
estimated payments made prior to the original due date of
following penalties will apply:
the tax return.
• 5% of the amount of the total tax liability if the failure There is no interest on underpayment of quarterly estimated
to file is for a period less than four months.
payments if:
• An additional penalty of 20% of the total tax liability
if the failure to file is for a period of four months or • The total tax liability of the prior tax year was less
more. than $1,000;
Page 2of ,42022 METBIT-65 Instructions (Rev. 01/22/2023)
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