S T A T E O F N E W Y O R K
________________________________________________________________________
S. 21 A. 21
Twentieth Extraordinary Session
S E N A T E - A S S E M B L Y
December 2, 2009
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IN SENATE -- A BUDGET BILL, submitted by the Governor pursuant to arti-
cle seven of the Constitution -- read twice and ordered printed, and
when printed to be committed to the Committee on Finance
IN ASSEMBLY -- A BUDGET BILL, submitted by the Governor pursuant to
article seven of the Constitution -- read once and referred to the
Committee on Ways and Means
AN ACT authorizing the commissioner of taxation and finance to adminis-
ter an accounts receivable discount program with respect to certain
overdue tax liabilities
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. (a) Notwithstanding the provisions of any other law to the
contrary, there is hereby established an accounts receivable discount
program as described in this section, to be administered by the commis-
sioner of taxation and finance, and to be effective for the period
prescribed by such commissioner, for all eligible taxpayers as described
in this section owing any tax, fee, or surcharge imposed or formerly
imposed by, or authorized under, the tax law, and administered by the
commissioner of taxation and finance.
(b) For purposes of the accounts receivable discount program, an
eligible taxpayer is an individual, partnership, estate, trust, corpo-
ration, limited liability company, joint stock company, or any other
company, trustee, receiver, assignee, referee, society, association,
business or any other person as described in the tax law, who or which
has a tax liability with regard to one or more taxes, fees or surcharges
that meet the conditions described in this section. However, a taxpayer
who or that has been convicted of crime under the tax law or the penal
law, and who or that is subject to a court order to pay a tax liability
as a result of that conviction, is not eligible to participate in this
program.
(c) For purposes of the accounts receivable discount program, an
eligible tax liability is one that has become fixed and final, and for
which an assessment or final determination was issued on or before
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD12173-01-9
S. 21 2 A. 21
December 31, 2006. An eligible tax liability shall not include an
assessment or final determination that includes any of the following:
(1) any fraud penalty imposed under the tax law; (2) a penalty imposed
under section 11 of part N of chapter 61 of the laws of 2005; (3) a
penalty imposed under subsection (e), (g), (p), (p-1), (r), (x), (y),
(z), (aa) or (bb) of section 685 of the tax law; or (4) a penalty
imposed under subsection (f), (k), (k-1), (l), (p), (q), (r), (s) or (t)
of section 1085 of the tax law.
(d) The amount due under the accounts receivable discount program for
an eligible tax liability for which an assessment or final determination
was issued after December 31, 2003 and on or before December 31, 2006
must include the underlying tax liability and fifty percent of the
accrued interest and penalty (including the additional rate of interest
prescribed under section 1145 of the tax law, referred to in this
section as "interest penalty"). The amount due under this program for an
eligible tax liability for which an assessment or final determination
was issued on or before December 31, 2003 must include the underlying
tax liability and twenty percent of the accrued interest and penalty
(including interest penalty).
(e) The commissioner of taxation and finance shall identify the
assessments and final determinations with tax liabilities eligible for
the accounts receivable discount program described in this section,
compute the total amount of tax, interest, and penalty due under the
accounts receivable discount program on each such assessment or final
determination, and notify eligible taxpayers of the amount due under
this program for each such assessment or final determination. The
discount of a percentage of interest and penalty described in this
section will not be granted to any taxpayer for any such assessment or
final determination unless the taxpayer pays in full the amount due
under this program for that assessment or final determination on or
before the date prescribed by the commissioner.
(f) Under the accounts receivable discount program, payment will be
made by eligible taxpayers with eligible tax liabilities in the form and
manner prescribed by the commissioner of taxation and finance. Upon
payment in full by the date prescribed by the commissioner of taxation
and finance of the amount due under the accounts receivable discount
program for an eligible tax liability, the taxpayer's liability for that
assessment or final determination will be deemed to be paid in full.
Failure to pay the full amount due under this program by the date
prescribed by the commissioner of taxation and finance will disqualify
an eligible tax liability from receiving the discount of interest and
penalty described in this section.
(g) No refund will be granted or credit allowed with respect to any
penalty or interest paid prior to the time the taxpayer participates in
the accounts receivable discount program.
(h) No refund will be granted or credit allowed with respect to any
tax liability, including any applicable interest or penalty, paid under
the accounts receivable discount program.
(i) If an eligible taxpayer has entered into an installment payment
agreement that applies to an eligible tax liability, the taxpayer may
participate in the accounts receivable discount program with respect to
that liability, if the taxpayer pays the amount due under the accounts
receivable discount program in full by the date prescribed by the
commissioner of taxation and finance.
S 2. This act shall take effect immediately.