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SECTION 1096
General powers of tax commission
Tax (TAX) CHAPTER 60, ARTICLE 27
§ 1096. General powers of tax commission.---(a) General.---The tax
commission shall administer and enforce the tax imposed by article nine,
nine-a, nine-b and nine-c, and it is authorized to make such rules and
regulations, and to require such facts and information to be reported,
as it may deem necessary to enforce the provisions of such articles and
of this article.

(b) Examination of books and witnesses.---(1) The tax commission for
the purpose of ascertaining the correctness of any return, or for the
purpose of making an estimate of tax liability of any corporation, shall
have power to examine or to cause to have examined, by any agent or
representative designated by it for that purpose, any books, papers,
records or memoranda bearing upon the matters required to be included in
the return, and may require the attendance of the corporation rendering
the return through any officer or employee of such corporation, or the
attendance of any other person having knowledge in the premises, and may
take testimony and require proof material for its information, with
power to administer oaths to such person or persons.

(2) The commissioner may take any action under paragraph one of this
subdivision to inquire into the commission of an offense connected with
the administration or enforcement of this article or article nine,
nine-A, thirteen, thirteen-A or thirty-three of this chapter, provided,
however, that notwithstanding the provisions of section one hundred
seventy-four of this chapter no such action shall be taken when a
referral by the department or the commissioner to the attorney general,
a district attorney or any other prosecutorial agency is in effect.
Provided, however, the commissioner shall have power, during the period
when such referral is in effect, to examine or to cause to have
examined, by any agent or representative designated by it for that
purpose, any books, papers, records or memoranda bearing upon the
matters required to be included in the return, where such books, papers,
records or memoranda are in its possession, or where such books, papers,
records or memoranda are in the possession of the attorney general,
district attorney or other prosecutorial agency to which such referral
is made.

(c) Abatement authority.---The tax commission, of its own motion, may
abate any small unpaid balance of an assessment of tax, or any liability
in respect thereof, if the tax commission determines under uniform rules
prescribed by it that the administration and collection costs involved
would not warrant collection of the amount due. It may also abate, of
its own motion, the unpaid portion of the assessment of any tax or any
liability in respect thereof, which is excessive in amount, or is
assessed after the expiration of the period of limitation properly
applicable thereto, or is erroneously or illegally assessed. No claim
for abatement under this subsection shall be filed by a taxpayer.

(d) Special refund authority.---Where no questions of fact or law are
involved and it appears from the records of the tax commission that any
moneys have been erroneously or illegally collected from any taxpayer or
other person, or paid by such taxpayer or other person under a mistake
of facts, pursuant to the provisions of this article or of article nine,
nine-a, nine-b or nine-c, the tax commission at any time, without regard
to any period of limitations, shall have the power, upon making a record
of its reasons therefor in writing, to cause such moneys so paid and
being erroneously and illegally held to be refunded and to issue
therefor its certificate to the comptroller.

(e) (1) Authority to set interest rates.---The commissioner shall set
the overpayment and underpayment rates of interest to be paid pursuant
to sections two hundred thirteen, two hundred thirteen-b, two hundred
fifty-eight, two hundred sixty-three, two hundred ninety-four, one
thousand eighty-four, one thousand eighty-five and one thousand
eighty-eight of this chapter, but if no such rate or rates of interest
are set, such overpayment rate shall be deemed to be set at six percent
per annum and such underpayment rate shall be deemed to be set at seven
and one-half percent per annum. Such overpayment and underpayment rates
shall be the rates prescribed in paragraph two of this subsection, but
the underpayment rate shall not be less than seven and one-half percent
per annum. Any such rates set by the commissioner shall apply to taxes,
or any portion thereof, which remain or become due or overpaid on or
after the date on which such rates become effective and shall apply only
with respect to interest computed or computable for periods or portions
of periods occurring in the period during which such rates are in
effect.

(2) General rule. (A) Overpayment rate. The overpayment rate set under
this subsection shall be the sum of (i) the federal short-term rate as
provided under paragraph three of this subsection, plus (ii) two
percentage points.

(B) Underpayment rate. The underpayment rate set under this subsection
shall be the sum of (i) the federal short-term rate as provided under
paragraph three of this subsection, plus (ii) seven percentage points.

(3) Federal short-term rate. For purposes of this subsection:

(A) The federal short-term rate for any month shall be the federal
short-term rate determined by the United States secretary of the
treasury during such month in accordance with subsection (d) of section
twelve hundred seventy-four of the internal revenue code for use in
connection with section six thousand six hundred twenty-one of the
internal revenue code. Any such rate shall be rounded to the nearest
full percent (or, if a multiple of one-half of one percent, such rate
shall be increased to the next highest full percent).

(B) Period during which rate applies.

(i) In general. Except as provided in clause (ii) of this
subparagraph, the federal short-term rate for the first month in each
calendar quarter shall apply during the first calendar quarter beginning
after such month.

(ii) Special rule for the month of September, nineteen hundred
eighty-nine. The federal short-term rate for the month of April,
nineteen hundred eighty-nine shall apply with respect to setting the
overpayment and underpayment rates for the month of September, nineteen
hundred eighty-nine.

(4) In computing the amount of any interest required to be paid under
this article by the commissioner of taxation and finance or by the
taxpayer, or any other amount determined by reference to such amount of
interest, such interest and such amount shall be compounded daily. The
preceding sentence shall not apply for purposes of computing the amount
of any addition to tax for failure to pay estimated tax under subsection
(c) of section one thousand eighty-five of this article.

(5) Publication of interest rates. The commissioner of taxation and
finance shall cause to be published in the section for miscellaneous
notices in the state register, and give other appropriate general notice
of, the interest rates to be set under this subsection no later than
twenty days preceding the first day of the calendar quarter during which
such interest rates apply. The setting and publication of such interest
rates shall not be included within paragraph (a) of subdivision two of
section one hundred two of the state administrative procedure act
relating to the definition of a rule.

(6) Cross-reference. For provisions relating to the power of the
commissioner of taxation and finance to abate small amounts of interest,
see subsection (c) of this section.