S T A T E O F N E W Y O R K
________________________________________________________________________
5945
2011-2012 Regular Sessions
I N A S S E M B L Y
March 3, 2011
___________
Introduced by M. of A. GUNTHER -- read once and referred to the Commit-
tee 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imposed or formerly imposed by section 182, 182-a, 182-b (as repealed by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repealed by chapter 63 of the laws of 2000), 186-b (as repealed by chap-
ter 63 of the laws of 2000), 186-e, 189 (as repealed by chapter 63 of
the laws of 2000), 189-a (as repealed by chapter 63 of the laws of 2000)
or 189-b of article 9, or article 9-A, 12-A, 13, 13-A, 16 (as repealed
by chapter 267 of the laws of 1987), 16-A (as repealed by chapter 267 of
the laws of 1987), 18-A (as repealed by chapter 389 of the laws of
1997), 21, 22, 23 (as repealed by chapter 69 of the laws of 1978), 24
(as repealed by chapter 170 of the laws of 1994), 26, 26-A (as repealed
by chapter 389 of the laws of 1997), 26-B, 28, 28-A, 31-B (as repealed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of the general city law (as repealed pursuant to chapter 5 of the laws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, 2009, 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
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
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD09826-01-1
A. 5945 2
on or before February 28, 2010. 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, 2010. 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, 2009.
(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, 2012, 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
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
A. 5945 3
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 shall not be granted to a taxpayer, where such taxpayer
received any benefit under the New York state penalty and interest
discount program.
(h) 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.
(i) 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.
(j) 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.
(k) 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.
(l) There shall be imposed a five percent penalty, which shall not be
subject to waiver or abatement, in addition to all other penalties, in
trust, or costs of collection otherwise authorized by law, upon any
state tax liabilities eligible to be satisfied during the amnesty period
that are not satisfied during such period.
(m) 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.
(n) 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
A. 5945 4
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
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.
(o) 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.
(p) 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, 2013, 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.