S T A T E   O F   N E W   Y O R K
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                                  6429

                       2011-2012 Regular Sessions

                          I N  A S S E M B L Y

                             March 16, 2011
                               ___________

Introduced by M. of A. KAVANAGH -- read once and referred to the Commit-
  tee on Ways and Means

AN ACT to amend the tax law, in relation to enacting the "taxpayer advo-
  cate act"

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. Short title.  This act shall be known and may be  cited  as
the "taxpayer advocate act".
  S  2.  The  tax law is amended by adding a new section 3013 to read as
follows:
  S 3013. OFFICE OF TAXPAYER ADVOCATE. (A) THERE SHALL BE ESTABLISHED IN
THE DEPARTMENT AN OFFICE TO BE KNOWN AS  THE  "OFFICE  OF  THE  TAXPAYER
ADVOCATE".  SUCH  OFFICE SHALL BE UNDER THE SUPERVISION AND DIRECTION OF
AN OFFICIAL KNOWN AS THE  "TAXPAYER  ADVOCATE".  THE  TAXPAYER  ADVOCATE
SHALL BE APPOINTED BY THE GOVERNOR BY AND WITH THE ADVICE AND CONSENT OF
THE  SENATE.  THE TAXPAYER ADVOCATE SHALL REPORT DIRECTLY TO THE COMMIS-
SIONER.  THE TAXPAYER ADVOCATE SHALL DEVOTE HIS OR HER  ENTIRE  TIME  TO
THE DUTIES OF SUCH OFFICE.
  (B)  NO PERSON SHALL BE APPOINTED AS A TAXPAYER ADVOCATE UNLESS AT THE
TIME OF SUCH PERSON'S APPOINTMENT SUCH PERSON IS A RESIDENT OF THE STATE
AND IS KNOWLEDGEABLE ON THE SUBJECT  OF  TAXATION  AND  IS  SKILLFUL  IN
MATTERS  PERTAINING  THERETO. ONCE APPOINTED AND CONFIRMED, THE TAXPAYER
ADVOCATE SHALL CONTINUE IN OFFICE UNTIL SUCH PERSON'S TERM  EXPIRES  AND
UNTIL  SUCH PERSON'S SUCCESSOR HAS BEEN APPOINTED AND HAS QUALIFIED. THE
TERM OF OFFICE SHALL BE FOUR YEARS.
  (C) ANY TAXPAYER ADVOCATE MAY BE REMOVED BY  THE  GOVERNOR  FOR  CAUSE
AFTER  AN  OPPORTUNITY  TO  BE  HEARD.  A STATEMENT OF THE CAUSE OF SUCH
PERSON'S REMOVAL SHALL BE FILED BY THE GOVERNOR IN  THE  OFFICE  OF  THE
SECRETARY OF STATE.
  (D)  IN  THE  EVENT  OF  A  VACANCY  CAUSED BY THE DEATH, RESIGNATION,
REMOVAL OR DISABILITY OF THE TAXPAYER ADVOCATE,  THE  VACANCY  SHALL  BE

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD07038-01-1
              

A. 6429                             2

FILLED  BY THE GOVERNOR BY AND WITH THE ADVICE AND CONSENT OF THE SENATE
FOR THE UNEXPIRED TERM.
  (E) (1) THE OFFICE OF TAXPAYER ADVOCATE SHALL HAVE THE FOLLOWING FUNC-
TIONS, POWERS AND DUTIES:
  (I) TO ASSIST TAXPAYERS IN RESOLVING PROBLEMS WITH THE DEPARTMENT;
  (II)  TO  IDENTIFY  AREAS IN WHICH TAXPAYERS HAVE PROBLEMS IN DEALINGS
WITH THE DEPARTMENT;
  (III) TO PROPOSE SOLUTIONS, INCLUDING ADMINISTRATIVE CHANGES TO  PRAC-
TICES AND PROCEDURES OF THE DEPARTMENT;
  (IV)  TO RECOMMEND LEGISLATIVE ACTION AS MAY BE APPROPRIATE TO RESOLVE
PROBLEMS ENCOUNTERED BY TAXPAYERS;
  (V) TO PRESERVE AND PROMOTE THE RIGHTS OF THE TAXPAYER;
  (VI) TO PROMOTE OPEN AND DIRECT COMMUNICATIONS; AND
  (VII) TO APPOINT SUCH OFFICERS AND EMPLOYEES AS IT MAY REQUIRE FOR THE
PERFORMANCE OF ITS DUTIES.
  (2) THE TAXPAYER ADVOCATE SHALL PREPARE AN ANNUAL  REPORT  AS  TO  THE
ACTIVITIES  OF  THE TAXPAYER ADVOCATE. SUCH REPORT SHALL BE SUBMITTED TO
THE GOVERNOR, THE TEMPORARY PRESIDENT OF THE SENATE, THE SPEAKER OF  THE
ASSEMBLY  AND  THE  COMMISSIONER  NO  LATER THAN THE THIRTY-FIRST DAY OF
DECEMBER COMMENCING IN THE YEAR TWO THOUSAND TWELVE AND EVERY YEAR THER-
EAFTER. ANY SUCH REPORT SHALL CONTAIN FULL AND SUBSTANTIVE ANALYSIS,  IN
ADDITION TO STATISTICAL INFORMATION, AND SHALL:
  (I)  IDENTIFY  THE  INITIATIVES  THE  TAXPAYER  ADVOCATE  HAS TAKEN ON
IMPROVING TAXPAYER SERVICES AND THE DEPARTMENT'S RESPONSIVENESS;
  (II) CONTAIN A SUMMARY OF AT LEAST FIFTEEN OF THE MOST  SERIOUS  PROB-
LEMS  ENCOUNTERED BY TAXPAYERS, INCLUDING A DESCRIPTION OF THE NATURE OF
SUCH PROBLEMS;
  (III) CONTAIN AN INVENTORY OF THE ITEMS DESCRIBED IN SUBPARAGRAPHS (I)
AND (II) OF THIS PARAGRAPH FOR WHICH  ACTION  HAS  BEEN  TAKEN  AND  THE
RESULT  OF  SUCH  ACTION;  AN  INVENTORY  FOR WHICH ACTION REMAINS TO BE
COMPLETED; AND AN INVENTORY FOR WHICH NO ACTION HAS BEEN TAKEN  AND  THE
REASONS FOR THE INACTION;
  (IV)  CONTAIN  RECOMMENDATIONS FOR SUCH ADMINISTRATIVE AND LEGISLATIVE
ACTION AS MAY BE APPROPRIATE TO RESOLVE PROBLEMS ENCOUNTERED BY  TAXPAY-
ERS; AND
  (V)  INCLUDE  SUCH OTHER INFORMATION AS THE TAXPAYER ADVOCATE MAY DEEM
ADVISABLE.
  S 3. Subdivisions 1, 3 and 4 of section 170 of the tax  law,  subdivi-
sions 1 and 3 as amended by chapter 282 of the laws of 1986 and subdivi-
sion  4  as  amended  by chapter 283 of the laws of 1986, are amended to
read as follows:
  1. The existing department of taxation and  finance  and  its  present
functions  are  continued.  The  head  of the department of taxation and
finance shall be the commissioner of taxation and finance who shall have
sole charge of the administration of such department except with  regard
to  the administration of the division of tax appeals which shall be the
sole charge of the tax appeals tribunal authorized by article  forty  of
this  chapter  AND THE OFFICE OF TAXPAYER ADVOCATE AUTHORIZED BY SECTION
THREE THOUSAND THIRTEEN OF THIS CHAPTER.  The commissioner [of  taxation
and  finance]  shall be appointed by the governor by and with the advice
and consent of the senate and shall  hold  office  as  commissioner  [of
taxation  and finance] until the end of the term of the governor by whom
he was appointed and until his successor  has  been  appointed  and  has
qualified.
  3. The commissioner [of taxation and finance] may establish such addi-
tional  divisions  and  bureaus as he may deem necessary. He may appoint

A. 6429                             3

the heads of such divisions and bureaus and fix their duties and he  may
consolidate, alter or abolish any divisions or bureaus, except that such
commissioner  shall  have  no such authority or power with regard to the
division of tax appeals AND THE OFFICE OF TAXPAYER ADVOCATE.
  4.  The  commissioner [of taxation and finance] may appoint and remove
such officers, assistants and other employees as he may  deem  necessary
for the exercise of the powers and duties of the department, all of whom
shall  be  in  the classified civil service unless otherwise provided by
law; and he may prescribe their duties, and fix their compensation with-
in the amounts appropriated therefor. The commissioner [of taxation  and
finance]  may  transfer  officers  or  employees from their positions to
other positions in the department, or abolish or consolidate such  posi-
tions.  He  shall  have  all  powers  necessary  to  perform  the duties
conferred upon him regarding the state  lottery  authorized  by  article
thirty-four  of this chapter. However, the commissioner [of taxation and
finance] shall have no power to appoint or remove any personnel  of  the
division  of tax appeals OR OF THE OFFICE OF TAXPAYER ADVOCATE nor shall
such commissioner have any power or authority with regard to the  opera-
tion  and  administration of such division OR OFFICE including any power
or authority over such division's OR OFFICE'S budget.  The  commissioner
shall furnish to the director of the division of the budget the itemized
estimates  of the financial needs of the division of tax appeals AND THE
OFFICE OF TAXPAYER ADVOCATE prepared by the tax appeals tribunal AND THE
OFFICE OF TAXPAYER ADVOCATE. Such itemized estimates may not be  revised
or altered in any manner by the commissioner.
  S 4. This act shall take effect immediately.