Senate Bill S4942

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

                                  4942

                       2011-2012 Regular Sessions

                            I N  S E N A T E

                               May 2, 2011
                               ___________

Introduced  by  Sen.  YOUNG  -- 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  establishing  a  retail
  merchants  voluntary  compliance  program  for  purposes  of sales tax
  liability

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section  1.  The  tax law is amended by adding a new section 1700-a to
read as follows:
  S 1700-A.  RETAIL MERCHANTS VOLUNTARY COMPLIANCE PROGRAM. 1.  NOTWITH-
STANDING  ANY  OTHER  PROVISION  OF  LAW TO THE CONTRARY, THERE SHALL BE
ESTABLISHED A RETAIL MERCHANTS VOLUNTARY COMPLIANCE PROGRAM TO BE ADMIN-
ISTERED BY THE COMMISSIONER, FOR ALL ELIGIBLE TAXPAYERS.
  2. FOR PURPOSES OF THIS SECTION, AN "ELIGIBLE TAXPAYER" IS AN INDIVID-
UAL, PARTNERSHIP, ESTATE, TRUST, CORPORATION, LIMITED LIABILITY COMPANY,
JOINT STOCK COMPANY, OR ANY OTHER COMPANY, TRUSTEE, RECEIVER,  ASSIGNEE,
REFEREE,  SOCIETY,  ASSOCIATION, BUSINESS OR ANY OTHER PERSON SUBJECT TO
SALES TAX IMPOSED BY OR PURSUANT TO THE AUTHORITY OF THIS CHAPTER,  THAT
IS SUBJECT TO AN ASSESSMENT FOR OUTSTANDING SALES TAX AND HAS NOT HAD AN
ASSESSMENT FOR SALES TAX WITHIN THE PREVIOUS FIVE YEARS.
  3.  UNDER  THE  RETAIL  MERCHANTS  VOLUNTARY  COMPLIANCE PROGRAM, UPON
EXECUTION OF A VOLUNTARY COMPLIANCE AGREEMENT BY THE  ELIGIBLE  TAXPAYER
AND THE COMMISSIONER, THE COMMISSIONER SHALL WAIVE ANY APPLICABLE INTER-
EST  AND  PENALTIES. IN ADDITION, NO CRIMINAL ACTION OR PROCEEDING SHALL
BE BROUGHT AGAINST AN ELIGIBLE TAXPAYER RELATING TO  THE  TAX  LIABILITY
COVERED BY THE AGREEMENT.
  4.  IF  A TAXPAYER AND ITS TAX LIABILITY ARE ELIGIBLE UNDER THE RETAIL
MERCHANTS VOLUNTARY COMPLIANCE PROGRAM, THE COMMISSIONER  IS  AUTHORIZED
TO  ENTER  INTO  A  VOLUNTARY  COMPLIANCE AGREEMENT WITH THE TAXPAYER. A
VOLUNTARY COMPLIANCE AGREEMENT SHALL BE IN A FORM TO BE  ESTABLISHED  BY

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD11112-01-1
              

S. 4942                             2

THE  COMMISSIONER AND INCLUDE SUCH TERMS AS THE COMMISSIONER MAY REASON-
ABLY REQUIRE TO REQUIRE THE ELIGIBLE TAXPAYER TO COMPLY WITH THIS  CHAP-
TER  IN  THE FUTURE INCLUDING, BUT NOT LIMITED TO THE ESTABLISHMENT OF A
SEGREGATED  BANK  ACCOUNT  FOR  SALES TAX COLLECTIONS, MORE FREQUENT TAX
DEPOSIT REQUIREMENTS OR USE OF CERTIFIED POINT  OF  SALES  SYSTEMS.  THE
ELIGIBLE TAXPAYER SHALL PAY THE TAX THAT IS THE SUBJECT OF THE VOLUNTARY
COMPLIANCE  AGREEMENT  WHEN THE AGREEMENT IS EXECUTED OR WITHIN THE TIME
STATED ON A BILL ISSUED TO THE ELIGIBLE TAXPAYER BY THE COMMISSIONER. IN
THE EVENT THE COMMISSIONER IS SATISFIED THAT THE  ELIGIBLE  TAXPAYER  IS
UNABLE  TO  MAKE  IMMEDIATE FULL PAYMENT OF THE DISCLOSED TAX LIABILITY,
THE COMMISSIONER MAY ENTER INTO AN INSTALLMENT PAYMENT PROGRAM WITH  THE
ELIGIBLE  TAXPAYER  FOR THE PAYMENT OF THE TAX DUE. THE COMMISSIONER MAY
REQUIRE A  FINANCIAL  DISCLOSURE  STATEMENT  SETTING  FORTH  INFORMATION
CONCERNING  THE  ELIGIBLE  TAXPAYER'S CURRENT ASSETS, LIABILITIES, EARN-
INGS, AND OTHER FINANCIAL INFORMATION BEFORE ENTERING INTO  AN  INSTALL-
MENT  PAYMENT  PLAN WITH THE ELIGIBLE TAXPAYER. IN ADDITION TO ANY OTHER
INFORMATION AND TERMS THAT THE COMMISSIONER DETERMINES ARE  APPROPRIATE,
THE  VOLUNTARY  COMPLIANCE AGREEMENT SHALL PROVIDE THAT, IF THE ELIGIBLE
TAXPAYER COMPLIES WITH THE TERMS OF THE COMPLIANCE AGREEMENT, THE ELIGI-
BLE TAXPAYER WILL NOT BE SUBJECT TO ANY CRIMINAL TAX PROSECUTION IN THIS
STATE FOR THE CONDUCT DISCLOSED BY THE ELIGIBLE TAXPAYER.
  5. IF THE ELIGIBLE  TAXPAYER  INTENTIONALLY  PROVIDES  FALSE  MATERIAL
INFORMATION  OR  OMITS MATERIAL INFORMATION IN HIS OR HER SUBMISSIONS TO
THE COMMISSIONER, OR ATTEMPTS TO INTENTIONALLY DEFEAT OR EVADE A TAX DUE
PURSUANT TO THE AGREEMENT EXECUTED PURSUANT TO THIS SECTION,  OR  INTEN-
TIONALLY  FAILS  TO  COMPLY  WITH THE TERMS OF THE COMPLIANCE AGREEMENT,
SUCH AGREEMENT SHALL BE DEEMED RESCINDED.
  6. UNLESS THE COMMISSIONER ON HIS OR HER OWN MOTION  REDETERMINES  THE
AMOUNT  OF  TAX  DUE,  NO REFUND SHALL BE GRANTED OR CREDIT ALLOWED WITH
RESPECT TO ANY TAXES, INCLUDING APPLICABLE  INTEREST,  PAID  UNDER  THIS
PROGRAM.
  7.  THE  COMMISSIONER  MAY  PROMULGATE  REGULATIONS,  ISSUE  FORMS AND
INSTRUCTIONS, AND TAKE ANY AND ALL OTHER ACTIONS NECESSARY TO  IMPLEMENT
THE  PROVISIONS OF THE PROGRAM ESTABLISHED PURSUANT TO THIS SECTION. THE
COMMISSIONER SHALL PUBLICIZE THE PROGRAM PROVIDED FOR IN THIS SECTION SO
AS TO MAXIMIZE PUBLIC AWARENESS OF AND PARTICIPATION IN SUCH PROGRAM.
  8. THE VOLUNTARY COMPLIANCE AGREEMENT, AND OTHER DOCUMENTS FILED BY AN
ELIGIBLE TAXPAYER PURSUANT TO THE PROGRAM ESTABLISHED  BY  THIS  SECTION
SHALL BE DEEMED TO BE REPORTS AND RETURNS:
  (A)  SUBJECT  TO  THE  SECRECY  PROVISIONS OF THIS CHAPTER IN THE SAME
MANNER AND TO THE SAME EXTENT AS IF SUCH DOCUMENTS WERE REFERRED  TO  IN
ANY OF THE SECRECY PROVISIONS OF THIS CHAPTER; AND
  (B) FOR PURPOSES OF THE CRIMINAL PROVISIONS OF ARTICLE THIRTY-SEVEN OF
THIS CHAPTER.
  S 2. This act shall take effect immediately.