S T A T E O F N E W Y O R K
2013-2014 Regular Sessions
I N S E N A T E
January 9, 2013
Introduced by Sens. MONTGOMERY, SQUADRON -- read twice and ordered
printed, and when printed to be committed to the Committee on Investi-
gations and Government Operations
AN ACT to amend the tax law, in relation to requiring employers to
provide notice of potential eligibility for federal and New York state
earned income tax credits
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Paragraph 6 of subsection (d) of section 606 of the tax
law, as amended by section 3 of part V of chapter 60 of the laws of
2004, is amended to read as follows:
(6) Notification. (I) The commissioner shall periodically, but not
less than every three years, make efforts to alert taxpayers that may be
currently eligible to receive the credit provided under this subsection,
and the credit provided under any local law enacted pursuant to
subsection (f) of section thirteen hundred ten of this chapter, as to
their potential eligibility. In making the determination of whether a
taxpayer may be eligible for such credit, the commissioner shall use
such data as may be appropriate and available, including, but not limit-
ed to, data available from the United States Department of Treasury,
Internal Revenue Service and New York state income tax returns for
preceding tax years.
(II) EXCEPT AS SET FORTH IN CLAUSE (D) OF THIS SUBPARAGRAPH, EMPLOYERS
WITH PERSONS IN THEIR EMPLOY IN NEW YORK STATE FOR WHOM THEY MUST
PROVIDE AN ANNUAL WAGE SUMMARY SHALL EACH YEAR FURNISH TO EACH SUCH
PERSON A NOTICE THAT HE OR SHE MAY BE ELIGIBLE FOR A STATE EARNED INCOME
TAX CREDIT PURSUANT TO THIS SUBSECTION AND A FEDERAL EARNED INCOME TAX
CREDIT PURSUANT TO SECTION THIRTY-TWO OF THE INTERNAL REVENUE CODE. FOR
PURPOSES OF THIS SUBPARAGRAPH, EMPLOYER SHALL HAVE THE SAME MEANING AS
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
S. 1375 2
SET FORTH IN SUBSECTION (A) OF SECTION THREE THOUSAND THREE HUNDRED SIX
OF THE INTERNAL REVENUE CODE.
(A) CONTENTS OF NOTICE. THE NEW YORK STATE DEPARTMENT OF TAXATION AND
FINANCE SHALL PROMULGATE GUIDANCE AS NECESSARY SPECIFYING THE MINIMUM
REQUIREMENTS OF SUCH NOTICE, WHICH WILL INCLUDE, BUT NOT BE LIMITED TO,
INFORMATION AS TO THE AVAILABILITY OF AND POTENTIAL ELIGIBILITY FOR THE
FEDERAL EARNED INCOME TAX CREDIT AND THE NEW YORK STATE EARNED INCOME
TAX CREDIT. SUCH NOTICE SHALL REFER PERSONS TO BOTH THE INTERNAL REVENUE
SERVICE AND THE NEW YORK STATE DEPARTMENT OF TAXATION AND FINANCE BY
TELEPHONE AND THROUGH THEIR WEBSITES FOR INFORMATION REGARDING ANNUAL
ELIGIBILITY THRESHOLDS BY HOUSEHOLD TYPE, FILING REQUIREMENTS, AND HOW
TO OBTAIN NECESSARY FORMS AND INSTRUCTIONS.
(B) TIMING OF NOTICE. THE EMPLOYER SHALL PROVIDE THE NOTICE REQUIRED
BY THIS SUBPARAGRAPH WITHIN ONE WEEK BEFORE OR AFTER, OR AT THE SAME
TIME, THE EMPLOYER PROVIDES THE ANNUAL WAGE SUMMARY, INCLUDING BUT NOT
LIMITED TO, A FORM W-2 OR A FORM 1099. THE NOTICE SHALL BE PROVIDED
EITHER SEPARATELY OR AS PART OF THE ANNUAL WAGE SUMMARY.
(C) MANNER OF PROVIDING NOTICE. THE EMPLOYER SHALL PROVIDE THE NOTICE
REQUIRED BY THIS SUBPARAGRAPH TO EACH PERSON BY HAND DELIVERY, OR ELEC-
TRONIC MAIL, OR BY MAIL TO THE LAST KNOWN ADDRESS.
(D) EMPLOYER'S OPTION. AT THE EMPLOYER'S OPTION, THE EMPLOYER MAY
CHOOSE TO PROVIDE THE NOTICE REQUIRED PURSUANT TO THIS SUBPARAGRAPH ONLY
TO THOSE EMPLOYEES WHOSE GROSS ANNUAL INCOMES DO NOT EQUAL OR EXCEED
SIXTY THOUSAND DOLLARS OR THE MAXIMUM INCOME AT WHICH AN EMPLOYEE MAY BE
ELIGIBLE FOR THE EARNED INCOME TAX CREDIT, WHICHEVER IS HIGHER.
S 2. This act shall take effect January 1, 2015.