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This entry was published on 2014-09-22
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SECTION 173-A
Hearing rights upon notice and demand
Tax (TAX) CHAPTER 60, ARTICLE 8
§ 173-a. Hearing rights upon notice and demand. 1. Applicability and
construction. (a) Applicability. Except as otherwise provided in this
section, this section shall apply with respect to any tax which is
administered by the commissioner and which is imposed by or authorized
to be imposed pursuant to this chapter or any other law. Unless a
different meaning is clearly required, any reference to "tax" or "taxes"
in this section shall be deemed also to refer to special assessments,
fees, interest, additions to tax, penalties or other impositions which
are administered by the commissioner.

(b) Exceptions to applicability. This section shall not apply to any
tax which is administered by the commissioner and which is imposed by or
authorized to be imposed pursuant to:

(i) Article ten of this chapter (taxable transfers - residents).

(ii) Article eleven of this chapter (tax on mortgages).

(iii) Article twelve of this chapter (tax on transfers of stock and
other corporate certificates).

(c) Construction. The provisions of this section shall supplement or
be in addition to the procedures relating to collection or
administration provided with respect to any tax covered by this section.
Where a provision of this section is inconsistent with any such
provision with respect to such tax, the provisions of this section shall
apply.

2. Corporate and personal income taxes. With respect to any tax which
incorporates or otherwise utilizes the procedures set forth in part VI
of article twenty-two or article twenty-seven of this chapter,
provisions of law which authorize the issuance of a notice and demand
for an amount without the issuance of a notice of deficiency for such
amount, including any interest, additions to tax or penalties related
thereto, in cases of mathematical or clerical errors or failure to pay
tax shown on a return, or authorize the issuance of a notice of
additional tax due, including any interest, additions to tax or
penalties related thereto, shall be construed as specifically denying
and modifying the right to a hearing with respect to any such notice and
demand or notice of additional tax due for purposes of subdivision four
of section two thousand six of this chapter. Any such notice and demand
or notice of additional tax due shall not be construed as a notice which
gives a person the right to a hearing under article forty of this
chapter.

3. Sales and compensating use and miscellaneous taxes. With respect to
any tax to which this section applies and which is not covered by
subdivision two of this section:

(a) Final determination. The amount of tax which a return or report
shows to be due, the amount of tax which a return or report would have
shown to be due but for a mathematical or clerical error (including,
with respect to a tax payable by the purchase of stamps, the amount of
stamps purchased) or the amount of penalty and any interest due for
failing to file a return or report or to pay or pay over any tax (or to
pay for any stamps purchased) to the commissioner within the time
required by or pursuant to any such tax (but not including any such
penalty or interest attributable to any amount of tax with respect to
which a notice of determination is required to be issued) shall be
deemed to be finally determined to be due not later than on the date of
the filing of such return or report (including any amended return or
report showing an increase of tax or in the case of the purchase of
stamps, such date of purchase). Such amount of tax, penalty or interest
shall be paid upon notice and demand and shall be assessed, collected
and paid in the manner provided for in each of the several taxes covered
under this subdivision and such notice and demand shall not be
considered as a notice of determination for purposes of the taxes
covered under this subdivision. If a notice of determination has been
mailed with respect to a tax covered under this subdivision, the amount
of the determination shall be deemed to be finally and irrevocably fixed
on the date specified in any such tax if no petition to the division of
tax appeals is filed, or, if a petition is filed, then upon the date
when a determination or decision rendered in the division of tax appeals
establishing the amount of the notice of determination becomes final
pursuant to article forty of this chapter.

(b) Notice and demand. (1) The commissioner shall, as soon as
practicable, give notice to each person liable for any amount of tax,
addition to tax, penalty or interest, which has been finally determined
to be due or which has been finally and irrevocably fixed, as the case
may be, but remains unpaid, stating the amount and demanding payment
thereof. Such notice shall be left at the dwelling or usual place of
business of such person or shall be sent by mail to such person's last
known address. Except where the commissioner determines that collection
would be jeopardized by delay and the applicable tax contains provisions
authorizing a jeopardy procedure, if any tax is finally determined to be
due or is finally and irrevocably fixed prior to the last date
(including any date fixed by extension) prescribed for payment of such
tax, payment of such tax shall not be demanded until after such date. If
the commissioner finds that the determination, assessment or collection
of tax, addition to tax, penalty or interest is in jeopardy and the
applicable tax contains provisions authorizing procedures regarding
early determination, the commissioner may immediately determine the
amount of such tax, addition to tax, penalty or interest (whether before
or after the due date of any return or report required to show such tax,
addition to tax, penalty or interest) and assess the same and give
notice and demand for the payment thereof.

(2) If notice and demand is made for payment of any amount under
subparagraph one of this paragraph, and if such amount is paid within
twenty-one calendar days (ten business days if the amount for which such
notice and demand is made equals or exceeds one hundred thousand
dollars) after the date of such notice and demand, interest under the
applicable tax on the amount so paid shall not be imposed for the period
after the date of such notice and demand.

(c) Hearing rights upon notice and demand. Provisions of law which
authorize the issuance of a notice and demand for an amount without the
issuance of a notice of determination for such amount, including any
interest or penalties related thereto, shall be construed as
specifically denying and modifying the right to a hearing with respect
to any such notice and demand for purposes of subdivision four of
section two thousand six of this chapter in cases of mathematical or
clerical errors or failure to pay the tax due shown on the return or for
any stamps purchased, and any interest or penalties related thereto. Any
such notice and demand shall not be construed as a notice which gives a
person the right to a hearing under article forty of this chapter.