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

                                  6734

                       2011-2012 Regular Sessions

                          I N  A S S E M B L Y

                             March 28, 2011
                               ___________

Introduced  by  M.  of  A.  COLTON,  P. RIVERA,  CLARK, GALEF, ROBINSON,
  ABINANTI, GIBSON, LATIMER, THIELE, SCHIMEL, MAISEL,  BARRON,  GUNTHER,
  SCARBOROUGH  --  Multi-Sponsored by -- M. of A. TOWNS -- 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imposed or formerly imposed by section 182, 182-a, 182-b (as repealed by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repealed by chapter 63 of the laws of 2000), 186-b (as repealed by chap-
ter  63  of  the laws of 2000), 186-e, 189 (as repealed by chapter 63 of
the laws of 2000), 189-a (as repealed by chapter 63 of the laws of 2000)
or 189-b of article 9, or article 9-A, 12-A, 13, 13-A, 16  (as  repealed
by chapter 267 of the laws of 1987), 16-A (as repealed by chapter 267 of
the  laws  of  1987),  18-A  (as  repealed by chapter 389 of the laws of
1997), 21, 22, 23 (as repealed by chapter 69 of the laws  of  1978),  24
(as  repealed by chapter 170 of the laws of 1994), 26, 26-A (as repealed
by chapter 389 of the laws of 1997), 26-B, 28, 28-A, 31-B  (as  repealed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of the general city law (as repealed pursuant to chapter 5 of  the  laws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, 2009, except that with respect to tax  liabilities  arising

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD09826-03-1
              

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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
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, chapter 309 of the laws of 1996 or
chapter 501 of the laws of 2009, 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

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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
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) 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.   Provided, however, where
such taxpayer: (i) was ineligible to receive such a waiver due to  pend-
ing  civil litigation as described in subdivision (f) of this section or
(ii) prior to the expiration of the amnesty  period  prescribed  by  the
commissioner  of  taxation  and  finance, a taxpayer who entered into an
installment payment agreement with  respect  to  such  penalty  and  the
underlying tax liability, and does not apply for amnesty with respect to
the  tax  liability to which such agreement applies, such taxpayer shall
not be subject to such augmentation of penalty.
  (l) 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.

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  (m) 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
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.
  (n)  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.
  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

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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.