NY State Senate Bill 2009-S5653

Archive: Last Bill Status - In Senate Committee Investigations And Government Operations Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
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- Passed Senate
Delivered to Governor
Signed By Governor

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 06, 2010	referred to investigations and government operations
May 26, 2009	referred to investigations and government operations

co-Sponsors

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2009-S5653 (ACTIVE) - Details

See Assembly Version of this Bill:: A8766
Current Committee:: Senate Investigations And Government Operations
Law Section:: Taxation
Versions Introduced in Other Legislative Sessions:: 2011-2012: A5945, A6734
2013-2014: A3441

2009-S5653 (ACTIVE) - Summary

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

2009-S5653 (ACTIVE) - Sponsor Memo

                                 BILL NUMBER:  S5653

 TITLE OF BILL :

An act in relation to creating a tax amnesty program


 PURPOSE :

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 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.

 LEGISLATIVE HISTORY :

None.

 FISCAL IMPLICATIONS :

Bill will generate revenue for the State.

 EFFECTIVE DATE :
This act shall take effect immediately.

2009-S5653 (ACTIVE) - Bill Text download pdf

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

                                  5653

                       2009-2010 Regular Sessions

                            I N  S E N A T E

                              May 26, 2009
                               ___________

Introduced  by  Sen.  KLEIN  -- read twice and ordered printed, and when
  printed to be committed to the Committee on Investigations and Govern-
  ment Operations

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)

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

S. 5653                             2

of this section, which requires the filing of a return quarterly for the
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

S. 5653                             3

services,  the division of tax appeals or any court of this state or the
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

S. 5653                             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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Senate Bill S5653

Sponsored By

Archive: Last Bill Status - In Senate Committee Investigations And Government Operations Committee

co-Sponsors

2009-S5653 (ACTIVE) - Details

2009-S5653 (ACTIVE) - Summary

2009-S5653 (ACTIVE) - Sponsor Memo

2009-S5653 (ACTIVE) - Bill Text download pdf

Comments

Senate Bill S5653

Share this bill

Sponsored By

Jeffrey D. Klein

Archive: Last Bill Status - In Senate Committee Investigations And Government Operations Committee

co-Sponsors

Eric Adams

Ruben Diaz

Ruth Hassell-Thompson

Craig M. Johnson

2009-S5653 (ACTIVE) - Details

2009-S5653 (ACTIVE) - Summary

2009-S5653 (ACTIVE) - Sponsor Memo

2009-S5653 (ACTIVE) - Bill Text download pdf

Comments