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This entry was published on 2014-09-22
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SECTION 1700
Voluntary disclosure and compliance program
Tax (TAX) CHAPTER 60, ARTICLE 36
§ 1700. Voluntary disclosure and compliance program. 1.
Notwithstanding the provisions of any other law to the contrary, there
is hereby established a voluntary disclosure and compliance program, as
described in this section, to be administered by the commissioner, for
all eligible taxpayers as described in this section, owing any tax
imposed or previously imposed under this chapter or administered by the
commissioner.

2. For purposes of the voluntary disclosure and compliance program
established under this section, an eligible taxpayer is an individual,
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 a
tax imposed by or pursuant to the authority of this chapter or any other
law imposing administrative tax responsibilities on the commissioner and
who meets the following criteria: (1) the taxpayer is not currently
under audit by the department; (2) the taxpayer is one who is
voluntarily disclosing a New York tax liability that the department has
not determined, calculated, researched or identified at the time of the
disclosure; (3) the taxpayer is not currently a party to any criminal
investigation being conducted by an agency of the state or any political
subdivision thereof; and (4) the taxpayer is not seeking to disclose
participation in a tax avoidance transaction that is a federal or New
York state reportable or listed transaction.

3. Under the voluntary disclosure and compliance program, upon
execution of a voluntary disclosure and compliance agreement by the
eligible taxpayer and the commissioner, the commissioner shall waive any
applicable penalties (including the additional rate of interest
prescribed under section eleven hundred forty-five of this chapter) for
the following: (1) failure to pay any such tax liability; (2) failure to
file a return or report with respect to any such tax liability; and (3)
failure to pay estimated tax. In addition, no criminal action or
proceeding shall be brought against an eligible taxpayer relating to the
tax liability covered by the agreement. This agreement shall not
preclude the auditing of the returns filed to determine if those returns
were completed in accordance with existing law and regulation.
Intentional failure to pay all the taxes, plus related interest,
pursuant to the voluntary disclosure and compliance agreement entered
into between the taxpayer and the commissioner, shall invalidate any
waiver of penalty, invalidate the forbearance of any administrative or
criminal action or proceeding.

4. To participate in the voluntary disclosure and compliance program,
an eligible taxpayer must apply by submitting a disclosure statement in
the form and manner prescribed by the commissioner. The disclosure
statement shall contain all the information the commissioner reasonably
deems necessary to effectively administer the program. As long as all
the requirements of the voluntary disclosure and compliance program are
met, no application shall be denied solely because the taxpayer has
admitted that the delinquency was the result of willful or fraudulent
conduct. Except in instances where the taxpayer has failed to comply
with the terms of a voluntary disclosure and compliance agreement, the
commissioner shall not use the taxpayer's disclosure as evidence in any
proceeding brought against the taxpayer or reveal the contents of the
disclosure to any law enforcement or other agency. However, the
disclosure of any returns or reports filed under this program with the
secretary of the treasury of the United States, his or her delegates, or
the proper tax officer of any state or city is permitted as otherwise
provided for in this chapter.

5. (a) If the taxpayer and the tax liability are eligible under the
voluntary disclosure and compliance program, the commissioner is
authorized to enter into a voluntary disclosure and compliance agreement
with the taxpayer. A voluntary disclosure and compliance agreement will
be in a form to be established by the commissioner and include such
terms as the commissioner may reasonably require to satisfy the
taxpayer's disclosed tax obligations and enable and require the taxpayer
to comply with the tax law in the future. The taxpayer must pay the tax
and the related interest that are the subject of the voluntary
disclosure and compliance agreement when the agreement is executed or
within the time stated on a bill issued to the taxpayer by the
commissioner. In the event the commissioner is satisfied that the
taxpayer cannot make immediate full payment of the disclosed tax
liability, the commissioner may enter into an installment payment
program with the taxpayer for the payment of the tax and interest due.
The commissioner may require a financial disclosure statement setting
forth information concerning the taxpayer's current assets, liabilities,
earnings, and other financial information before entering into an
installment payment plan with the taxpayer. In addition to any other
information and terms that the commissioner determines are appropriate,
the voluntary disclosure and compliance agreement shall provide that, if
the taxpayer complies with the terms of the compliance agreement, the
taxpayer will not be subject to any criminal tax prosecution in New York
state for the conduct disclosed by the taxpayer.

(b) If the 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 under this article, or intentionally
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, including applicable interest, 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 under 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. For purposes of this section, the term "taxpayer" includes any
person required to collect any of the taxes specified in subdivision one
of this section.

9. The voluntary disclosure and compliance application, the disclosure
statement, the voluntary disclosure and compliance agreement, and other
documents filed by an eligible taxpayer pursuant to the program
established by this section are 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.