Department of Taxation and Finance

Instructions for Form CT-5.6 Request for Three-Month Extension to File Form CT-186 (for utility corporation franchise tax return, MTA surcharge return, or both) Tax Law – Article 9, former Section 186

CT-5.6-I

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New for 2023

For a detailed list of what’s new, including a summary of tax law changes, visit our website at www.tax.ny.gov (search: 2023).

Form CT-1, Supplement to Corporation Tax Instructions 

This form is for general instructions that apply to all corporation tax forms. It includes a variety of topics about how to fill out your form (for example, entry formats and third-party designee), filing and payment information (such as when Form CT-200-V is required), collection options that we may take, tax shelter information, and your rights under the Tax Law. Form CT-1 also has our contact information if you need help, and our privacy notification.

For details, see Form CT-1 or visit our website at www.tax.ny.gov (search: CT-1). 

Note: All citations are to New York State Tax Law sections unless specifically noted otherwise. 

Requirements for a valid New York State extension

Most corporation taxpayers are required to file their extensions electronically. To learn more, see Tax documents that must be e-filed on our website.

You must file Form CT‑5.6 and pay the properly estimated franchise tax and metropolitan transportation business tax (MTA surcharge) on or before the original due date of the tax return for which you are requesting an extension, as determined on the Worksheet for lines 1 and 6 in these instructions.

The properly estimated franchise tax and MTA surcharge must either:

• equal or exceed the franchise tax and MTA surcharge shown on your tax return for the preceding tax year (if it was a 12-month tax year); or
• equal or exceed 90% of the franchise tax and MTA surcharge as finally determined for the tax year for which you are requesting this extension.

The franchise tax is the amount of tax computed after you deduct any tax credits and before you add the MTA surcharge.

The preceding tax year is the tax year immediately before the tax year for which you are requesting this extension.

You must adjust the franchise tax and MTA surcharge for the preceding tax year as necessary to correct errors in computation or in the application of tax rate or tax base.

Approval of request for a three-month extension of time to file

If you properly file form CT-5.6 and pay properly estimated tax on or before the original due date of the return, we will grant you a three-month extension of time for filing a franchise tax return or MTA surcharge return.

If you file your return by the extended due date and pay the balance of tax due with your return, we will not impose late filing or late payment penalties.

Interest applies to any tax not paid by the original due date of the return.

Who may file Form CT-5.6

Any corporation, utility, person, company, association, publicly traded partnership, or trust subject to tax under Tax Law Article 9, former section 186 may file Form CT‑5.6 to request a three‑month extension of time to file the utility corporation franchise tax return and MTA surcharge return. 

Do not use separate Forms CT-5.6 to request an extension to file both the utility corporation franchise tax return and the MTA surcharge return; instead: 

• use lines 1 through 5 on Form CT‑5.6 to compute your estimated franchise tax.
• use lines 6 through 10 on Form CT‑5.6 to compute your estimated MTA surcharge.
• Submit only one Form CT-5.6. Do not submit separate forms for each return.
• submit only one payment of the combined amount for both the franchise tax and MTA surcharge.

When to file

File Form CT‑5.6 on or before the due date of your tax return (2½ months following the end of the tax year).

If you cannot file within the three-month extended period, you may request an additional three-month extension by filing Form CT-5.1, Request for Additional Extension of Time to File.

Where to file

Mail Form CT‑5.6 to:

Private delivery services

If not using U.S. Mail, see Publication 55, Designated Private Delivery Services.

Line instructions

Line A: Make your check or money order payable in United States funds. We will accept a foreign check or foreign money order only if payable through a United States bank or if marked Payable in U.S. funds.

Lines 1 and 6: To properly estimate the franchise tax and the MTA surcharge, use Worksheet for lines 1 and 6.

Line 2: If the total tax on line 1 exceeds $1,000, you must pay a first installment of estimated tax for the next tax year. Multiply the amount on line 1 by 25% (.25).

If you are not required to pay the first installment of estimated tax for the next tax year, enter 0.

Line 7: If the total tax on line 1 exceeds $1,000, you must pay a first installment of the estimated MTA surcharge for the next tax year. Multiply the amount on line 6 by 25% (.25).

If you are not required to pay the first installment of estimated MTA surcharge for the next tax year, enter 0.

Line 14: Enter overpayments credited from prior years. You may also include from last year’s return any amount of refundable tax credits you chose to be credited as an overpayment.

Worksheet for lines 1 and 6

Complete Parts 1 and 2. However, if you were not subject to franchise tax for the preceding tax year, or if the preceding tax year was less than 12 months, skip Part 1 and complete Part 2. See Worksheet instructions. 

Enter on lines 1 and 6 either:

• the tax from the preceding tax year (lines A and B); or
• the tax from the current tax year (lines C and D).

Exception: You may use the combination of lines A and D on lines 1 and 6 when you filed a 12‑month franchise tax return for the preceding tax year but became subject to the MTA surcharge for the tax year for which this extension is requested.

Worksheet instructions for lines 1 and 6

Part 1

Line A: Enter the amount of franchise tax (after you deduct any credits and before you add the MTA surcharge) shown on the franchise tax return for the preceding tax year, if it was a tax year of 12 months.

Line B: Enter the amount of MTA surcharge shown on the MTA surcharge tax return for the preceding tax year, if it was a tax year of 12 months. Enter 0 if you are not subject to the MTA surcharge for the tax year for which this extension is requested.

Part 2 

Line C: Determine the franchise tax (after you deduct of any tax credits, and before you add of the MTA surcharge) for the tax year for which this extension is requested. Multiply the franchise tax by an amount not less than 90% and enter the result (see Requirements for a valid New York State extension).

Line D: Determine the MTA surcharge for the tax year for which this extension is requested. Multiply the MTA surcharge by an amount not less than 90% and enter the result (see Requirements for a valid New York State extension). Enter 0 if not subject to the MTA surcharge for the tax year for which this extension is requested.

See the applicable MTA surcharge return and instructions for information on the computation of the MTA surcharge. It may be necessary to complete the applicable MTA surcharge return to compute the estimated MTA surcharge for this tax year.

Signature

If an outside individual or firm prepared the document, all applicable entries in the paid preparer section must be completed, including identification numbers (see Paid preparer identification numbers in Form CT-1). Failure to sign the document will delay the processing of any refunds and may result in penalties.