| Date of Action |
Assembly Actions -
Lowercase Senate Actions - UPPERCASE |
|---|---|
| Mar 01, 2010 |
referred to investigations and government operations |
Senate Bill S6951
2009-2010 Legislative Session
Sponsored By
(R, IP) Senate District
Archive: Last Bill Status - In Senate Committee Investigations And Government Operations Committee
Actions
2009-S6951 (ACTIVE) - Details
- Current Committee:
- Senate Investigations And Government Operations
- Law Section:
- Tax Law
- Laws Affected:
- Amd ยง1133, Tax L
2009-S6951 (ACTIVE) - Sponsor Memo
BILL NUMBER: S6951
TITLE OF BILL :
An act to amend the tax law, in relation to the failure of a
responsible person to collect and pay over withholding tax
PURPOSE OF BILL :
To eliminate a disparity in the collection of trust fund taxes for
which there is no known policy or legislative basis.
SUMMARY OF PROVISIONS :
Amends Section 1133 of the tax law to add a new subdivision (f).
JUSTIFICATION :
As currently written, Section 1131(1) appears on its face to impose
absolute liability for unpaid sales taxes on all members of an LLC and
on all limited partners of a limited partnership, without regard to
whether the member or limited partner had an active role or
significant involvement in the financial affairs or management of the
business.
This amendment to the NYS Tax Law, section 1133, liability for the
tax, will now allow the responsible person concept to be applied
uniformly to the determination of who is responsible for unpaid trust
fund taxes owed by a business, without regard to the type of tax
2009-S6951 (ACTIVE) - Bill Text download pdf
S T A T E O F N E W Y O R K
________________________________________________________________________
6951
I N S E N A T E
March 1, 2010
___________
Introduced by Sen. ALESI -- read twice and ordered printed, and when
printed to be committed to the Committee on Investigations and Govern-
ment Operations
AN ACT to amend the tax law, in relation to the failure of a responsible
person to collect and pay over withholding tax
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Section 1133 of the tax law is amended by adding a new
subdivision (f) to read as follows:
(F) ANY PERSON REQUIRED TO COLLECT, TRUTHFULLY ACCOUNT FOR, AND PAY
OVER THE TAX IMPOSED BY THIS ARTICLE WHO WILLFULLY FAILS TO COLLECT SUCH
TAX OR TRUTHFULLY ACCOUNT FOR AND PAY OVER SUCH TAX OR WILLFULLY
ATTEMPTS IN ANY MANNER TO EVADE OR DEFEAT THE TAX OR THE PAYMENT THERE-
OF, SHALL, IN ADDITION TO OTHER PENALTIES PROVIDED BY LAW, BE LIABLE TO
A PENALTY EQUAL TO THE SUM OF (I) THE TOTAL AMOUNT OF THE TAX EVADED, OR
NOT COLLECTED, OR NOT ACCOUNTED FOR AND PAID OVER, AND (II) THE INTEREST
THAT HAS ACCRUED ON THE TOTAL AMOUNT OF TAX EVADED ON THE DATE THIS
PENALTY IS FIRST IMPOSED UNTIL THIS PENALTY IS PAID WITH INTEREST THERE-
ON. NO ADDITION TO TAX WHICH MAY BE ADDED WHEN THERE IS A DEFICIENCY DUE
TO NEGLIGENCE OR FRAUD SHALL BE IMPOSED FOR ANY OFFENSE TO WHICH THIS
SUBDIVISION APPLIES. THE TAX COMMISSION SHALL HAVE THE POWER, IN ITS
DISCRETION, TO WAIVE, REDUCE OR COMPROMISE ANY PENALTY UNDER THIS SUBDI-
VISION.
S 2. This act shall take effect immediately.
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD16196-01-0
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