NY State Assembly Bill 2009-A8766

Archive: Last Bill Status - In Assembly Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
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Delivered to Governor
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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 06, 2010	referred to ways and means
Jun 05, 2009	referred to ways and means

2009-A8766 (ACTIVE) - Details

See Senate Version of this Bill:: S5653
Current Committee:: Assembly Ways And Means
Law Section:: Taxation
Versions Introduced in Other Legislative Sessions:: 2011-2012: A5945, A6734
2013-2014: A3441

2009-A8766 (ACTIVE) - Summary

Authorizes the department of taxation and finance to implement a tax amnesty program.

2009-A8766 (ACTIVE) - Sponsor Memo

                                BILL NUMBER:A8766

TITLE OF BILL:  An act in relation to creating a tax amnesty program

PURPOSE  OR GENERAL IDEA OF BILL: Authorizes the Department of Tax and
Finance to implement a tax amnesty program to more  quickly  bring  in
delinquent taxes and provide needed revenues for the state.

SUMMARY  OF SPECIFIC PROVISIONS:  Section 1(a) establishes the amnesty
program and specifies types of taxes or surcharges that  are  eligible
for forgiveness under the amnesty program.

Section 1(b) establishes that the amnesty program is applicable to tax
liabilities  for  taxable  periods  ending  or  transactions  or  uses
occurring on or before December  31,  2007,  except  for  those  taxes
identified  in  section  1(a) that require the filing of a return on a
quarterly basis, for which eligibility  for  amnesty  extends  through
February 2008.

Section 1(c) identifies the types of taxpayers eligible for amnesty.

Section  1(d)  enables  the  Commissioner of Taxation and Finance (the
commissioner) to waive penalties and interest on penalties  for  taxes
paid under the amnesty program.

Section  1(e) limits participation in the amnesty program to those who

have not participated in previous amnesties established in chapter 170
of the laws of 1994 or chapter 309 of the laws of 1996.

Section  1(f)  excludes  participation  in  the  amnesty  program   by
taxpayers  party  to  a  criminal  investigation  or criminal or civil
litigation by an agency of the state or have been convicted of a crime
relating to a tax that is eligible for forgiveness under  the  amnesty
program.

Section  1(g)  authorizes  the  commissioner to prescribe the specific
amnesty tax return forms to be used and to compel the submission by an
applicant of any additional information the commissioner may  require.
Further  provides  that  amnesty  under the program shall be denied or
rescinded if the applicant files a false or fraudulent tax  return  or
report,  or  attempts in any manner to defeat or evade a tax under the
amnesty program.

Section 1(h) restricts the amnesty to unpaid penalties and interest on
penalties on delinquent taxes. Section 1(i) bars  refunds  or  credits
under the amnesty unless through a motion by the commissioner.

Section  1(j) requires the taxpayer to make final payments on existing
installment plans for which the amnesty applies  by  the  end  of  the
amnesty  period  or  by  a  date  prescribed  on  a bill issued by the
commissioner.

Section 1(k)  requires  the  commissioner  to  advertise  the  amnesty
program and take other necessary measures to implement the program

Section  1(l)  excludes  large  companies from the amnesty program and
particular penalties in the tax law


Section 1(m) establishes that tax  amnesty  return  forms  be  treated
similarly  to  other  tax  reports  and  returns for privacy and legal
purposes

Section  1(n)  repeals  section 266 of chapter 309 of the laws of 1996
relating to augmentation of penalties, except in circumstances where a
penalty has already been augmented pursuant to such section

Section 2 requires the commissioner to issue monthly reports of  gross
revenues collected under the tax amnesty program.

Section  3  requires the commissioner to issue a report to legislative
leaders and  the  Division  of  Budget  on  the  tax  amnesty  program
detailing  number  of  cases  for which penalties and interest penalty
waivers were made, gross revenues collected, amount of money spent  on
marketing,  the  opportunity cost of the program, among other elements
of the program.

JUSTIFICATION:  During these difficult fiscal times, it  is  important
that  there  is shared sacrifice on the part of all New Yorkers. While
the vast majority of New Yorkers pay their taxes,  the  Department  of
Taxation  and  Finance  reports  that 439,279 taxpayers owe a combined
$2.5 billion in outstanding and collectible  tax  liabilities  (as  of
April  30,  2009).  It  is  only  fair  that  all  efforts are made by
delinquent taxpayers to pay  these  taxes,  and  all  efforts  by  the
Department  of  Taxation  and  Finance  are  made to collect them. The
collection of delinquent taxes will help  to  alleviate  state  budget
shortfalls, fund important programs, or pay for property tax relief to
New York residents.

Historically,  states have conducted tax amnesties when they needed to
generate revenue, usually during economic downturns. In 2002, a  total
of 13 amnesties took place nationwide (still the record for one year),
with  2003 a close second at 10. Since the first amnesty took place in
Arizona in 1982, amnesties  have  become  more  commonplace,  with  41
offered  since  2000. In New York State, the first general tax amnesty
program was offered  in  1985-86.  Since  that  time,  six  additional
amnesty  related  programs  have  been  offered: a targeted amnesty in
1994, a second general tax amnesty in 1996-97,  a  third  general  tax
amnesty  in  2002-03,  a  tax  shelter voluntary compliance initiative
(VCI) in 2005-06, a re-opening of the 2005-06 VCI for a  brief  period
of  time  in  2008-09,  and  the  creation  of  a  permanent voluntary
disclosure program in the 2008-09 budget.

Tax amnesty programs have been successful in other  states,  including
Indiana and Oklahoma, where collections by the Asset Performance Group
(a division of Sallie Mae) has exceeded public goals. For example, The
Indiana  Department  of  Revenue  sought  to  recover  $65  million in
delinquent taxes in 2005. During an eight  week  voluntary  compliance
period  (September-November,  2005),  APG  successfully  returned $255
million to Indiana taxpayers.

Similar success in New York State could generate much-needed  revenues
to alleviate the fiscal crisis.

PRIOR LEGISLATIVE HISTORY: New bill


FISCAL IMPLICATIONS: Bill will generate revenue for the state

EFFECTIVE DATE: This act shall take effect immediately.

2009-A8766 (ACTIVE) - Bill Text download pdf

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

                                  8766

                       2009-2010 Regular Sessions

                          I N  A S S E M B L Y

                              June 5, 2009
                               ___________

Introduced by M. of A. COLTON -- read once and referred to the Committee
  on Ways and Means

AN ACT in relation to creating a tax amnesty program

  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 amnesty program as described
herein, to be administered by the commissioner of taxation and  finance,
to  be  effective for the period as prescribed by such commissioner, for
all eligible taxpayers as described herein, owing any tax  or  surcharge
imposed or formerly imposed by section 182, 182-a, 182-b (as repealed by
chapter  400  of  the  laws  of  1983),  183, 183-a, 184, 184-a, 186 (as
repealed by chapter 63 of the laws of 2000), 186-b (as repealed by chap-
ter 63 of the laws of 2000), 186-e, 189 (as repealed by  chapter  63  of
the laws of 2000), 189-a (as repealed by chapter 63 of the laws of 2000)
or  189-b  of article 9, or article 9-A, 12-A, 13, 13-A, 16 (as repealed
by chapter 267 of the laws of 1987), 16-A (as repealed by chapter 267 of
the laws of 1987), 18-A (as repealed by  chapter  389  of  the  laws  of
1997),  21,  22,  23 (as repealed by chapter 69 of the laws of 1978), 24
(as repealed by chapter 170 of the laws of 1994), 26, 26-A (as  repealed
by  chapter  389 of the laws of 1997), 26-B, 28, 28-A, 31-B (as repealed
by chapter 309 of the laws of 1996) or 33-A of the tax law,  or  author-
ized by article 12-A, 29, 30, 30-A or 30-B of the tax law or article 2-E
of  the  general city law (as repealed pursuant to chapter 5 of the laws
of 1999) and administered by such commissioner.
  (b) Such amnesty program shall apply to tax liabilities for the  taxes
set  forth  in  subdivision (a) of this section ("designated taxes") for
taxable periods ending or transactions or uses occurring  on  or  before
December  31,  2007, except that with respect to tax liabilities arising
under any section or article of the tax law set forth in subdivision (a)
of this section, which requires the filing of a return quarterly for the

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD11925-01-9

A. 8766                             2

quarterly periods ending on the last day of February,  May,  August  and
November  of  each  year,  such  amnesty program shall apply to such tax
liabilities for taxable periods ending or transactions or uses occurring
on or before February 28, 2008. Furthermore, with respect to tax liabil-
ities arising under any article of the tax law, set forth in subdivision
(a)  of  this section, which provides for the filing of an annual return
on the last day of February each year, such amnesty program shall  apply
to  such tax liabilities for transactions or uses occurring on or before
February 28, 2008. Provided further, such amnesty  program  shall  apply
with  respect to tax liabilities arising under article 26 of the tax law
to estates of decedents dying on or before February 1, 2007.
  (c) For purposes of the amnesty program established under this act, 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 of the  designated  taxes
for the period of time described in subdivision (b) of this section.
  (d)  The  amnesty  program established herein shall provide, that upon
application, including applicable returns, which application and returns
shall be in such form and submitted in such manner as prescribed by  the
commissioner  of taxation and finance, by an eligible taxpayer, and upon
payment in such form and in such manner as prescribed  by  such  commis-
sioner, which payment shall either accompany such application or be made
within  the  time  stated  on a bill issued by such commissioner to such
taxpayer, of the amount of a tax liability under  one  or  more  of  the
designated  taxes  with respect to which amnesty is sought, plus related
interest,  such  commissioner  shall  waive  any  applicable   penalties
(including the additional rate of interest prescribed under section 1145
of  the  tax  law,  referred  to herein as "interest penalty") and shall
reduce by two percent the applicable rate of  interest  associated  with
such  liability,  for the following: (i) for failure to pay any such tax
liability; (ii) for failure to file a return or report with  respect  to
any  such tax liability; and (iii) for failure to pay estimated tax with
respect to tax imposed under article 22 of the tax law, a designated tax
imposed under article 9 of the tax law, a tax imposed under article  9-A
of the tax law or a tax imposed pursuant to the authority of article 30,
30-A  or  30-B  of the tax law or former article 2-E of the general city
law. In  addition,  no  civil,  administrative  or  criminal  action  or
proceeding  shall  be brought against such an eligible taxpayer relating
to the tax liability covered by such waiver. Failure  to  pay  all  such
taxes, plus related interest by the later of March 15, 2010, or the date
prescribed therefor on a bill issued by such commissioner, shall invali-
date  any  amnesty  granted  pursuant to the amnesty program established
under this act.
  (e) Amnesty shall not be granted to a taxpayer,  where  such  taxpayer
received  any benefit under the amnesty program established either under
chapter 170 of the laws of 1994 or chapter 309 of the laws of 1996, with
regard to the tax with respect to which such benefit was received  under
any such prior amnesty program.
  (f)  Amnesty  shall not be granted to a taxpayer who is a party to any
criminal investigation being conducted by an agency of the state or  any
political subdivision thereof, is a party to any administrative proceed-
ing  or civil or criminal litigation which is pending on the date of the
taxpayer's application in  the  bureau  of  conciliation  and  mediation
services,  the division of tax appeals or any court of this state or the

A. 8766                             3

United States, relating to any action or failure to  act  which  is  the
basis  for  the  penalty  or  interest  with respect to which amnesty is
sought. Amnesty shall also not be granted to any taxpayer who  has  been
convicted  of a crime relating to a tax that is the basis of the penalty
or interest with respect to which amnesty is sought for  any  period  or
assessment  for  that  tax.  An administrative proceeding or civil liti-
gation shall be deemed not to be pending on the date of the  application
if  the  taxpayer  withdraws from such proceeding or litigation prior to
the granting of amnesty.
  (g) Amnesty tax return forms shall be in a form, contain such informa-
tion and be submitted as prescribed by the commissioner of taxation  and
finance and shall provide for specifications by the applicant of the tax
liability  with  respect to which amnesty is sought.  The applicant must
also provide such additional information as is required by such  commis-
sioner.    Amnesty shall be granted only with respect to the tax liabil-
ities specified by the taxpayer on such  forms.  Any  return  or  report
filed under the amnesty program established herein is subject to verifi-
cation  and  assessment as provided by statute. If the applicant files a
false or fraudulent tax return or report, or attempts in any  manner  to
defeat or evade a tax under the amnesty program, amnesty shall be denied
or rescinded.
  (h)  No  refund shall be granted or credit allowed with respect to any
penalty or interest paid prior to the  time  the  taxpayer  applies  for
amnesty pursuant to subdivision (d) of this section.
  (i)  Unless the commissioner of taxation and finance on his or her own
motion redetermines the amount of tax due, including  applicable  inter-
est,  no  refund  shall be granted or credit allowed with respect to any
taxes, including applicable interest, paid under this program.
  (j) With respect to any existing installment payment agreement  of  an
eligible  taxpayer, where such agreement applies to a tax liability with
respect to which amnesty is sought by such taxpayer, notwithstanding any
terms of such agreement to the contrary, such taxpayer, as  a  condition
of  receiving  amnesty, must pay any such liability in full by the later
of the last day of the prescribed amnesty period, or the date prescribed
therefor on a bill issued by the commissioner of taxation and finance.
  (k) The commissioner of taxation  and  finance  may  promulgate  regu-
lations, issue forms and instructions and take any and all other actions
necessary to implement the provisions of the amnesty program established
under  this  act.  Such commissioner shall publicize the amnesty program
provided for herein so as to maximize public awareness  of  and  partic-
ipation in such program.
  (l) For purposes of this section the term "taxpayer" shall include any
person  subject  to any tax set forth in subdivision (a) of this section
or any person required to collect any such  tax.  With  respect  to  any
designated  tax imposed under article 9 of the tax law, and with respect
to any tax imposed under article 9-A, 13-A, 22 or 28 of the tax  law  or
former  article 16-A, 18-A or 23 of the tax law or authorized by article
29, 30, 30-A or 30-B of the tax law or former article 2-E of the general
city law, the amnesty program provided for herein shall not apply  to  a
taxpayer  which  has  more than five hundred employees or whose combined
filing group has more than five hundred employees in the  United  States
on the date of the taxpayer's application.  The term "penalty" shall not
include  the  penalty imposed under subsection (g) of section 685 of the
tax law, the penalty imposed under subdivision 2 of section 289-b of the
tax law and the penalty imposed under subdivision (a) of section 315  of

A. 8766                             4

the  tax law by reason of its incorporation by reference of such penalty
imposed under subdivision 2 of section 289-b of the tax law.
  (m)  For  purposes  of  this section, the amnesty tax return forms and
other documents filed by  taxpayers  pursuant  to  the  amnesty  program
established  pursuant  to  this  act  shall  be deemed to be reports and
returns: (i) subject to the secrecy provisions in the same manner and to
the same extent as if such  reports  or  returns  were  referred  to  in
subsection  (e) of section 697 of the tax law, and (ii)  for purposes of
the criminal provisions of article 37 of the tax law.
  (n) Section 266 of chapter 309 of the laws of 1996  providing  for  an
augmentation in the amount of penalty due is repealed and shall no long-
er  apply,  except  in  the  circumstances  in  which a penalty has been
augmented pursuant to such section 266 as of the effective date of  this
act.
  S  2.  For purposes of accounting for the moneys and revenues received
under the amnesty program established pursuant to this act, the  commis-
sioner  of taxation and finance shall report the gross revenue collected
under each tax pursuant to the tax amnesty program. Such report shall be
on a monthly basis, commencing the first month after the amnesty program
is established and ending with the last month ending  immediately  prior
to  the issuance of the final report required pursuant to this act. Such
reports shall include information concerning the gross revenue collected
under each tax.
  S 3. On or before February 28, 2011, the commissioner of taxation  and
finance  shall  submit a report to the chairman of the assembly ways and
means committee, the ranking minority member of the  assembly  ways  and
means committee, the chairman of the senate finance committee, the rank-
ing  minority member of the senate finance committee and the director of
the division of the budget regarding  the  amnesty  program  established
pursuant to this act. The report shall contain the following information
as  of  the  report  cutoff date: (i) the number of cases by tax area in
which requests for penalty and interest penalty waivers were made;  (ii)
the number of cases by tax area in which requests for penalty and inter-
est  penalty waivers were approved; (iii) the amount of tax and interest
due in all approved and unapproved cases by tax area and the  amount  of
penalty  for unapproved cases by tax area, but not including interest on
penalty; (iv) the amount of penalty and interest penalty waived  in  all
approved  cases  by  tax area but not including interest on penalty; (v)
the gross revenue collected under each tax and the year or other  appli-
cable  period  for  or during which the liability was incurred; (vi) the
amount of money spent on advertising, notification, and outreach  activ-
ities,  by  each  activity, and a description of the form and content of
such activities, by each activity; (vii) the amount paid by the  depart-
ment  of  taxation  and finance for services and expenses related to the
establishment of the amnesty program; (viii) an estimate of  the  amount
of  revenue foregone as a result of diverting staff of the department of
taxation and finance from regular work responsibilities to work  on  the
amnesty  program;  (ix)  an  estimate  of the amount of revenue received
during the period of the amnesty program provided for herein which would
have otherwise been received during another period; and (x) an  estimate
of the net revenue generated from the amnesty program.
  S 4. This act shall take effect immediately.

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Assembly Bill A8766

Sponsored By

Archive: Last Bill Status - In Assembly Committee

2009-A8766 (ACTIVE) - Details

2009-A8766 (ACTIVE) - Summary

2009-A8766 (ACTIVE) - Sponsor Memo

2009-A8766 (ACTIVE) - Bill Text download pdf

Comments

Assembly Bill A8766

Share this bill

Sponsored By

COLTON

Archive: Last Bill Status - In Assembly Committee

2009-A8766 (ACTIVE) - Details

2009-A8766 (ACTIVE) - Summary

2009-A8766 (ACTIVE) - Sponsor Memo

2009-A8766 (ACTIVE) - Bill Text download pdf

Comments