N.Y.
Tax Law Section 174-C
Service of income execution without filing a warrant
1.
Notwithstanding any provision of law to the contrary, if any individual liable for the payment of any tax or other imposition administered by the commissioner, including any additions to tax, penalties and interest in connection therewith, fails to pay or to collect or pay over the same within twenty-one calendar days after notice and demand therefor is given to such individual (ten business days if the amount for which such notice and demand is made equals or exceeds one hundred thousand dollars), the commissioner is authorized to serve an income execution on the individual or on the person from whom the individual is receiving, or will receive, money, without filing a warrant in the office of the clerk of the appropriate county or in the department of state as provided for in this chapter. For purposes of serving an income execution pursuant to this section, the commissioner shall, in the right of the people of the state of New York, be deemed to have obtained judgment against the individual for the tax or other imposition, and the additions to tax, penalties and interest in connection thereof, and there shall be a lien on the amount of the individual’s income that may be garnished. If the commissioner chooses to serve an income execution without filing a warrant pursuant to this section, the commissioner must serve the income execution within six years after the first date a warrant could be filed pursuant to § 174-B (Limitation on the time to collect tax liabilities)section one hundred seventy-four-b of this article. When serving an income execution without the filing of a warrant, the commissioner shall follow the procedures set forth in Civil Practice Law & Rules Law § 5231 (Income execution)section five thousand two hundred thirty-one of the civil practice law and rules, with the references in such section to “sheriff” to be read as referring to the commissioner or the department. The income execution shall specify the name and address of the person from whom the taxpayer is receiving or will receive money; the amount of money, the frequency of its payment and the amount of the installments to be collected therefrom; and shall contain a notice to the taxpayer that the taxpayer shall commence payment of the installments specified in the notice within a specified period of time that is no less than twenty-one days after the notice is mailed to the taxpayer, and that, upon the taxpayer’s default, the execution will be served upon the person from whom the taxpayer is receiving or will receive money. Such income execution shall continue to be in effect until such liability is satisfied or until twenty years from the first date a warrant could be filed by the commissioner pursuant to § 174-B (Limitation on the time to collect tax liabilities)section one hundred seventy-four-b of this article, whether or not a warrant is filed for that liability.2.
The provisions of this section shall be in addition to the procedures relating to collection or administration provided with respect to any tax or other imposition administered by the commissioner. Where a provision of this section is inconsistent with any such provision with respect to such tax or other imposition, the provisions of this section will apply. Nothing in this section shall prevent the commissioner from timely filing a warrant in order to pursue any of the collection methods authorized under article fifty-two of the civil practice law and rules.3.
The commissioner shall periodically, but no less frequently than quarterly, electronically file with the department of state a list of the names of the taxpayers who have been served with income executions under the authority of this section during that period. The commissioner shall also include in this list the names of taxpayers whose income executions are cancelled or discharged during that period. The department of state shall upon receipt post such a list to their website. * NB Repealed April 1, 2025
Source:
Section 174-C — Service of income execution without filing a warrant, https://www.nysenate.gov/legislation/laws/TAX/174-C (updated Apr. 17, 2020; accessed Oct. 26, 2024).
