N.Y.
Tax Law Section 697
General powers of tax commission
(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 taxable income of any person, 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 person rendering the return or any officer or employee of such person, 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 tax commission 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, provided, however, that notwithstanding the provisions of § 174 (Oaths, acknowledgments, subpoenas and commissions to take testimony)section one hundred seventy-four of this chapter no such action shall be taken when a referral by the department or the tax commission to the attorney general, a district attorney or any other prosecutorial agency is in effect. Provided, however, the tax commission 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 income 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, 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)
Secrecy requirement and penalties for violation.--(1) Except in accordance with proper judicial order or as otherwise provided by law, it shall be unlawful for the commissioner, any officer or employee of the department, any person engaged or retained by such department on an independent contract basis, any depositary to which any return may be delivered as provided in subsection (h) or (i) of this section, any officer or employee of such depositary, or any person who, pursuant to this section, is permitted to inspect any report or return or to whom a copy, an abstract or a portion of any report or return is furnished, or to whom any information contained in any report or return is furnished, to divulge or make known in any manner the amount of income or any particulars set forth or disclosed in any report or return required under this article, under section one hundred seventy-one-a or section one hundred seventy-one-h of this chapter, or under this article and article eighteen of the labor law.(2)
The officers charged with the custody of such reports and returns shall not be required to produce any of them or evidence of anything contained in them in any action or proceeding in any court, except on behalf of the commissioner in an action or proceeding under the provisions of this chapter or in any other action or proceeding involving the collection of a tax due under this chapter to which the state or the commissioner is a party or a claimant, or on behalf of any party to any action or proceeding under the provisions of this article, or under the provisions of this article and article eighteen of the labor law, when the reports, returns or facts shown thereby are directly involved in such action or proceeding, in any of which events the court may require the production of, and may admit in evidence, so much of said reports, returns or of the facts shown thereby, as are pertinent to the action or proceeding and no more. The commissioner may, nevertheless, publish a copy or a summary of any decision rendered after the hearing required under § 689 (Petition to tax commission)section six hundred eighty-nine of this article.(3)
Nothing herein shall be construed to prohibit the department, its officers or employees from furnishing information to the office of temporary and disability assistance relating to the payment of the credit for certain household and dependent care services necessary for gainful employment under subsection (c) of § 606 (Credits against tax)section six hundred six of this article and the earned income credit under subsection (d) of § 606 (Credits against tax)section six hundred six of this article and the enhanced earned income credit under subsection (d-1) of § 606 (Credits against tax)section six hundred six of this article, or pursuant to a local law enacted by a city having a population of one million or more pursuant to subsection (f) of § 1310 (Credits against tax)section thirteen hundred ten of this chapter, only to the extent necessary to calculate qualified state expenditures under paragraph seven of subdivision (a) of section four hundred nine of the federal social security act or to document the proper expenditure of federal temporary assistance for needy families funds under section four hundred three of such act. The office of temporary and disability assistance may redisclose such information to the United States department of health and human services only to the extent necessary to calculate such qualified state expenditures or to document the proper expenditure of such federal temporary assistance for needy families funds. Nothing herein shall be construed to prohibit the delivery by the commissioner to a commissioner of jurors, appointed pursuant to Judiciary Law § 504 (Appointment and removal of commissioner of jurors)section five hundred four of the judiciary law, or, in counties within cities having a population of one million or more, to the county clerk of such county, or to the clerk of the court or jury administrator of a United States district court appointed pursuant to title twenty-eight of the United States Code, section 1836(b)(2), of a mailing list of individuals to whom income tax forms are mailed by the commissioner for the sole purpose of compiling a list of prospective jurors as provided in article sixteen of the judiciary law or title twenty-eight of the United States Code. Provided, however, such delivery shall only be made pursuant to an order of the chief administrator of the courts, appointed pursuant to Judiciary Law § 210 (Administrative officers of the unified court system)section two hundred ten of the judiciary law or an order of a chief judge of any United States district court in New York State. No such order may be issued unless such chief administrator or chief judge of such United States district court is satisfied that such mailing list is needed to compile a proper list of prospective jurors for the county or such United States district court for which such order is sought and that, in view of the responsibilities imposed by the various laws of the state on the department, it is reasonable to require the commissioner to furnish such list. Such order shall provide that such list shall be used for the sole purpose of compiling a list of prospective jurors and that such commissioner of jurors, or such county clerk, or clerk of the court or jury administrator of such United States district court shall take all necessary steps to insure that the list is kept confidential and that there is no unauthorized use or disclosure of such list. Furthermore, nothing herein shall be construed to prohibit the delivery to a taxpayer or his or her duly authorized representative of a certified copy of any return or report filed in connection with his or her tax or to prohibit the publication of statistics so classified as to prevent the identification of particular reports or returns and the items thereof, or the inspection by the attorney general or other legal representatives of the state of the report or return of any taxpayer or of any employer filed under § 171-H (State directory of new hires)section one hundred seventy-one-h of this chapter, where such taxpayer or employer shall bring action to set aside or review the tax based thereon, or against whom an action or proceeding under this chapter or under this chapter and article eighteen of the labor law has been recommended by the commissioner, the commissioner of labor with respect to unemployment insurance matters, or the attorney general or has been instituted, or the inspection of the reports or returns required under this article by the comptroller or duly designated officer or employee of the state department of audit and control, for purposes of the audit of a refund of any tax paid by a taxpayer under this article, or the furnishing to the state department of labor of unemployment insurance information obtained or derived from quarterly combined withholding, wage reporting and unemployment insurance returns required to be filed by employers pursuant to paragraph four of subsection (a) of § 674 (Employer’s return and payment of withheld taxes)section six hundred seventy-four of this article, for purposes of administration of such department’s unemployment insurance program, employment services program, federal and state employment and training programs, employment statistics and labor market information programs, worker protection programs, federal programs for which the department has administrative responsibility or for other purposes deemed appropriate by the commissioner of labor consistent with the provisions of the labor law, and redisclosure of such information in accordance with the provisions of sections five hundred thirty-six and five hundred thirty-seven of the labor law or any other applicable law, or the furnishing to the state office of temporary and disability assistance of information obtained or derived from New York state personal income tax returns as described in paragraph (b) of subdivision two of § 171-G (Provision of income information)section one hundred seventy-one-g of this chapter for the purpose of reviewing support orders enforced pursuant to title six-A of article three of the social services law to aid in the determination of whether such orders should be adjusted, or the furnishing of information obtained from the reports required to be submitted by employers regarding newly hired or re-hired employees pursuant to § 171-H (State directory of new hires)section one hundred seventy-one-h of this chapter to the state office of temporary and disability assistance, the state department of health, the state department of labor and the workers’ compensation board for purposes of administration of the child support enforcement program, verification of individuals’ eligibility for one or more of the programs specified in subsection (b) of section eleven hundred thirty-seven of the federal social security act and for other public assistance programs authorized by state law, and administration of the state’s employment security and workers’ compensation programs, and to the national directory of new hires established pursuant to section four hundred fifty-three-A of the federal social security act for the purposes specified in such section, or the furnishing to the state office of temporary and disability assistance of the amount of an overpayment of income tax and interest thereon certified to the comptroller to be credited against past-due support pursuant to § 171-C (Certain overpayments credited against past-due support)section one hundred seventy-one-c of this chapter and of the name and social security number of the taxpayer who made such overpayment, or the disclosing to the commissioner of finance of the city of New York, pursuant to § 171-L (Certain overpayments credited against outstanding tax debt owed to the city of New York)section one hundred seventy-one-l of this chapter, of the amount of an overpayment and interest thereon certified to the comptroller to be credited against a city of New York tax warrant judgment debt and of the name and social security number of the taxpayer who made such overpayment, or the furnishing to the New York state higher education services corporation of the amount of an overpayment of income tax and interest thereon certified to the comptroller to be credited against the amount of a default in repayment of any education loan debt, including judgments, owed to the federal or New York state government that is being collected by the New York state higher education services corporation, and of the name and social security number of the taxpayer who made such overpayment, or the furnishing to the state department of health of the information required by paragraph (f) of subdivision two and subdivision two-a of Public Health Law § 2511 (Child health insurance plan 1)section two thousand five hundred eleven of the public health law and by subdivision eight of Social Services Law § 366-A (Applications for assistance)section three hundred sixty-six-a of the social services law, or the furnishing to the state university of New York or the city university of New York respectively or the attorney general on behalf of such state or city university the amount of an overpayment of income tax and interest thereon certified to the comptroller to be credited against the amount of a default in repayment of a state university loan pursuant to § 171-E (Certain overpayments credited against national defense/national direct, health professions or nursing student loans)section one hundred seventy-one-e of this chapter and of the name and social security number of the taxpayer who made such overpayment, or the disclosing to a state agency, pursuant to § 171-F (Certain overpayments credited against outstanding debts owed to a state agency)section one hundred seventy-one-f of this chapter, of the amount of an overpayment and interest thereon certified to the comptroller to be credited against a past-due legally enforceable debt owed to such agency and of the name and social security number of the taxpayer who made such overpayment, or the furnishing of employee and employer information obtained through the wage reporting system, pursuant to § 171-A (Deposit and disposition of revenue)section one hundred seventy-one-a of this chapter, as added by chapter five hundred forty-five of the laws of nineteen hundred seventy-eight, to the state office of temporary and disability assistance, the department of health or to the state office of the medicaid inspector general for the purpose of verifying eligibility for and entitlement to amounts of benefits under the social services law or similar law of another jurisdiction, locating absent parents or other persons legally responsible for the support of applicants for or recipients of public assistance and care under the social services law and persons legally responsible for the support of a recipient of services under Social Services Law § 111-G (Availability of paternity and support services)section one hundred eleven-g of the social services law and, in appropriate cases, establishing support obligations pursuant to the social services law and the family court act or similar provision of law of another jurisdiction for the purpose of evaluating the effect on earnings of participation in employment, training or other programs designed to promote self-sufficiency authorized pursuant to the social services law by current recipients of public assistance and care and by former applicants and recipients of public assistance and care, (except that with regard to former recipients, information which relates to a particular former recipient shall be provided with client identifying data deleted), to the state office of temporary and disability assistance for the purpose of determining the eligibility of any child in the custody, care and custody or custody and guardianship of a local social services district or of the office of children and family services for federal payments for foster care and adoption assistance pursuant to the provisions of title IV-E of the federal social security act by providing information with respect to the parents, the stepparents, the child and the siblings of the child who were living in the same household as such child during the month that the court proceedings leading to the child’s removal from the household were initiated, or the written instrument transferring care and custody of the child pursuant to the provisions of section three hundred fifty-eight-a or three hundred eighty-four-a of the social services law was signed, provided however that the office of temporary and disability assistance shall only use the information obtained pursuant to this subdivision for the purpose of determining the eligibility of such child for federal payments for foster care and adoption assistance pursuant to the provisions of title IV-E of the federal social security act, and to the state department of labor, or other individuals designated by the commissioner of labor, for the purpose of the administration of such department’s unemployment insurance program, employment services program, federal and state employment and training programs, employment statistics and labor market information programs, worker protection programs, federal programs for which the department has administrative responsibility or for other purposes deemed appropriate by the commissioner of labor consistent with the provisions of the labor law, and redisclosure of such information in accordance with the provisions of sections five hundred thirty-six and five hundred thirty-seven of the labor law, or the furnishing of information, which is obtained from the wage reporting system operated pursuant to § 171-A (Deposit and disposition of revenue)section one hundred seventy-one-a of this chapter, as added by chapter five hundred forty-five of the laws of nineteen hundred seventy-eight, to the state office of temporary and disability assistance so that it may furnish such information to public agencies of other jurisdictions with which the state office of temporary and disability assistance has an agreement pursuant to paragraph (h) or (i) of subdivision three of Social Services Law § 20 (Powers and duties of the department)section twenty of the social services law, and to the state office of temporary and disability assistance for the purpose of fulfilling obligations and responsibilities otherwise incumbent upon the state department of labor, under section one hundred twenty-four of the federal family support act of nineteen hundred eighty-eight, by giving the federal parent locator service, maintained by the federal department of health and human services, prompt access to such information as required by such act, or to the state department of health to verify eligibility under the child health insurance plan pursuant to subdivisions two and two-a of Public Health Law § 2511 (Child health insurance plan 1)section two thousand five hundred eleven of the public health law, to verify eligibility under the medical assistance and family health plus programs pursuant to subdivision eight of Social Services Law § 366-A (Applications for assistance)section three hundred sixty-six-a of the social services law, and to verify eligibility for the program for elderly pharmaceutical insurance coverage under title three of article two of the elder law, or to the office of vocational and educational services for individuals with disabilities of the education department, the commission for the blind and any other state vocational rehabilitation agency, for purposes of obtaining reimbursement from the federal social security administration for expenditures made by such office, commission or agency on behalf of disabled individuals who have achieved economic self-sufficiency or to the higher education services corporation for the purpose of assisting the corporation in default prevention and default collection of education loan debt, including judgments, owed to the federal or New York state government; provided, however, that such information shall be limited to the names, social security numbers, home and/or business addresses, and employer names of defaulted or delinquent student loan borrowers, or to the office of the state comptroller for purposes of verifying the income of a retired member of a retirement system or pension plan administered by the state or any of its political subdivisions who returns to public employment. Provided, however, that with respect to employee information the office of temporary and disability assistance shall only be furnished with the names, social security account numbers and gross wages of those employees who are (A) applicants for or recipients of benefits under the social services law, or similar provision of law of another jurisdiction (pursuant to an agreement under subdivision three of Social Services Law § 20 (Powers and duties of the department)section twenty of the social services law) or, (B) absent parents or other persons legally responsible for the support of applicants for or recipients of public assistance and care under the social services law or similar provision of law of another jurisdiction (pursuant to an agreement under subdivision three of Social Services Law § 20 (Powers and duties of the department)section twenty of the social services law), or (C) persons legally responsible for the support of a recipient of services under Social Services Law § 111-G (Availability of paternity and support services)section one hundred eleven-g of the social services law or similar provision of law of another jurisdiction (pursuant to an agreement under subdivision three of Social Services Law § 20 (Powers and duties of the department)section twenty of the social services law), or (D) employees about whom wage reporting system information is being furnished to public agencies of other jurisdictions, with which the state office of temporary and disability assistance has an agreement pursuant to paragraph (h) or (i) of subdivision three of Social Services Law § 20 (Powers and duties of the department)section twenty of the social services law, or (E) employees about whom wage reporting system information is being furnished to the federal parent locator service, maintained by the federal department of health and human services, for the purpose of enabling the state office of temporary and disability assistance to fulfill obligations and responsibilities otherwise incumbent upon the state department of labor, under section one hundred twenty-four of the federal family support act of nineteen hundred eighty-eight, and, only if, the office of temporary and disability assistance certifies to the commissioner that such persons are such applicants, recipients, absent parents or persons legally responsible for support or persons about whom information has been requested by a public agency of another jurisdiction or by the federal parent locator service and further certifies that in the case of information requested under agreements with other jurisdictions entered into pursuant to subdivision three of Social Services Law § 20 (Powers and duties of the department)section twenty of the social services law, that such request is in compliance with any applicable federal law. Provided, further, that where the office of temporary and disability assistance requests employee information for the purpose of evaluating the effects on earnings of participation in employment, training or other programs designed to promote self-sufficiency authorized pursuant to the social services law, the office of temporary and disability assistance shall only be furnished with the quarterly gross wages (excluding any reference to the name, social security number or any other information which could be used to identify any employee or the name or identification number of any employer) paid to employees who are former applicants for or recipients of public assistance and care and who are so certified to the commissioner by the commissioner of the office of temporary and disability assistance. Provided, further, that with respect to employee information, the department of health shall only be furnished with the information required pursuant to the provisions of paragraph (f) of subdivision two and subdivision two-a of Public Health Law § 2511 (Child health insurance plan 1)section two thousand five hundred eleven of the public health law and subdivision eight of Social Services Law § 366-A (Applications for assistance)section three hundred sixty-six-a of the social services law, with respect to those individuals whose eligibility under the child health insurance plan, medical assistance program, and family health plus program is to be determined pursuant to such provisions and with respect to those members of any such individual’s household whose income affects such individual’s eligibility and who are so certified to the commissioner or by the department of health. Provided, further, that wage reporting information shall be furnished to the office of vocational and educational services for individuals with disabilities of the education department, the commission for the blind and any other state vocational rehabilitation agency only if such office, commission or agency, as applicable, certifies to the commissioner that such information is necessary to obtain reimbursement from the federal social security administration for expenditures made on behalf of disabled individuals who have achieved self-sufficiency. Reports and returns shall be preserved for three years and thereafter until the commissioner orders them to be destroyed. (3-a) Notwithstanding the provisions of paragraph one of this subsection, the commissioner may disclose to a taxpayer or a taxpayer’s related member, as defined in subsection (r) of § 612 (New York adjusted gross income of a resident individual)section six hundred twelve of this article, information relating to any royalty paid, incurred or received by such taxpayer or related member to or from the other, including the treatment of such payments by the taxpayer or the related member in any report or return transmitted to the commissioner under this chapter.(4)
(A) Any officer or employee of the state who willfully violates the provisions of this subsection shall be dismissed from office and be incapable of holding any public office in this state for a period of five years thereafter. (B) Cross-reference: For criminal penalties, see article 37 (Crimes and Other Offenses, Seizures and Forfeitures)article thirty-seven of this chapter.(f)
Cooperation with the United States and other states.-- Notwithstanding the provisions of subsection (e), the tax commission may permit the secretary of the treasury of the United States or his delegates, or the proper tax officer of any state imposing an income tax upon the incomes of individuals, or the authorized representative of either such officer, to inspect any return filed under this article, or may furnish to such officer or his authorized representative an abstract of any such return or supply him with information concerning an item contained in any such return, or disclosed by any investigation of tax liability under this article, but such permission shall be granted or such information furnished to such officer or his representative only if the laws of the United States or of such other state, as the case may be, grant substantially similar privileges to the commission or officer of this state charged with the administration of the tax imposed by this article and such information is to be used for tax purposes only; and provided further the commissioner of taxation and finance may furnish to the commissioner of internal revenue or his authorized representative such returns filed under this article and other tax information, as he may consider proper, for use in court actions or proceedings under the internal revenue code, whether civil or criminal, where a written request therefor has been made to the commissioner of taxation and finance by the secretary of the treasury of the United States or his delegates, provided the laws of the United States grant substantially similar powers to the secretary of the treasury of the United States or his delegates. Where the commissioner of taxation and finance has so authorized use of returns and other information in such actions or proceedings, officers and employees of the department of taxation and finance may testify in such actions or proceedings in respect to such returns or other information. (f-1) Cooperation with investigations by certain committees of the United States Congress.--(1) Notwithstanding the provisions of subsection (e) of this section, upon written request from the chairperson of the committee on ways and means of the United States House of Representatives, the chairperson of the committee on finance of the United States Senate, or the chairperson of the joint committee on taxation of the United States Congress, the commissioner shall furnish such committee with any current or prior year reports or returns specified in such request that were filed under this article by the president of the United States, vice-president of the United States, member of the United States Congress representing New York state, or any person who served in or was employed by the executive branch of the government of the United States on the executive staff of the president, in the executive office of the president, or in an acting or confirmed capacity in a position subject to confirmation by the United States senate; or, in New York state: a statewide elected official, as defined in paragraph (a) of subdivision one of Public Officers Law § 73-A (Financial disclosure)section seventy-three-a of the public officers law; a state officer or employee, as defined in subparagraph (i) of paragraph (c) of subdivision one of such section seventy-three-a; a political party chairperson, as defined in paragraph (h) of subdivision one of such section seventy-three-a; a local elected official, as defined in subdivisions one and two of General Municipal Law § 810 (Additional definitions)section eight hundred ten of the general municipal law; a person appointed, pursuant to law, to serve due to vacancy or otherwise in the position of a local elected official, as defined in subdivisions one and two of General Municipal Law § 810 (Additional definitions)section eight hundred ten of the general municipal law; a member of the state legislature; or a judge or justice of the unified court system; provided however that, prior to furnishing any report or return, the commissioner shall redact any copy of a federal return (or portion thereof) attached to, or any information on a federal return that is reflected on, such report or return, and any social security numbers, account numbers and residential address information.(2)
No reports or returns shall be furnished pursuant to this subsection unless the chairperson of the requesting committee certifies in writing that such reports or returns have been requested related to, and in furtherance of, a legitimate task of the Congress, that the requesting committee has made a written request to the United States secretary of the treasury for related federal returns or return information, pursuant to 26 U.S.C. Section 6103(f), and that if such requested reports or returns are inspected by and/or submitted to another committee, to the United States House of Representatives, or to the United States Senate, then such inspection and/or submission shall occur in a manner consistent with federal law as informed by the requirements and procedures established in 26 U.S.C. Section 6103(f).(g)
Cooperation with the cities of the state of New York. Notwithstanding the provisions of subsection (e), the tax commission may permit the proper city officer of any city of the state of New York imposing a personal income tax upon the incomes of residents, or an unincorporated business income tax, or an earnings tax on nonresidents, or the authorized representative of any such officer, to inspect any return filed under this article, or article twenty-three (as such article was in effect on or before December thirtieth, nineteen hundred eighty-two), or may furnish to such officer or his authorized representative an abstract of any such return or supply him with information concerning an item contained in any such return, or disclosed by any investigation of tax liability under this article or article twenty-three (as such article was in effect on or before December thirtieth, nineteen hundred eighty-two), but such permission shall be granted or such information furnished to such officer or his representative only if the local laws of such city grant substantially similar privileges to the commission or officer of this state charged with the administration of the tax imposed by this article and such information is to be used for tax purposes only; and provided further the commissioner of taxation and finance may furnish to such city officer or the legal representative of such city such returns filed under this article or article twenty-three (as such article was in effect on or before December thirtieth, nineteen hundred eighty-two) and other tax information, as he may consider proper, for use in court actions or proceedings under such local law, whether civil or criminal, where a written request therefor has been made to the commissioner of taxation and finance by such city officer or his delegate, provided the local law of such city grants substantially similar powers to such city officer or his delegate. Where the commissioner of taxation and finance has so authorized use of returns and other information in such actions or proceedings, officers and employees of the department of taxation and finance may testify in such actions or proceedings in respect to such returns or other information.(h)
Withholding returns.--Notwithstanding the provisions of subsection (e) of this section the tax commission in its discretion, when making deposits, pursuant to section six hundred ninety-eight, of taxes withheld by employers, may deliver to the depositary the withholding returns filed by such employers as provided in section six hundred seventy-four, for the purpose of insuring that all money so deposited shall be correctly credited to taxpayers’ accounts.(i)
Filing returns and making payments to depository banks.-- Notwithstanding the provisions of subsection (e) of this section, the tax commission, in its discretion, may require or permit any or all individuals, estates or trusts liable for any tax imposed by this article, to make payments on account of estimated tax and payment of any tax, penalty or interest imposed by this article to banks, banking houses or trust companies designated by the tax commission and to file reports and returns which such banks, banking houses or trust companies as agents of the tax commission, in lieu of making any such payment to the tax commission. However, the tax commission shall designate only such banks, banking houses or trust companies as are or shall be designated by the comptroller as depositories pursuant to section six hundred ninety-eight.(j)
Authority to set interest rates.--(1) The commissioner shall set the overpayment and underpayment rates of interest to be paid pursuant to sections six hundred eighty-four, six hundred eighty-five and six hundred eighty-eight of this part, but if no such 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 rates shall be the rates prescribed in paragraphs two and four 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)
Rates of interest. (A) Overpayment rate. The overpayment rate of interest 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 of interest 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) five and one-half 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 clauses (ii) and (iii) 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 individual estimated tax. In determining the addition to tax under subsection (c) of section six hundred eighty-five for failure to pay estimated tax for any taxable year, the federal short-term rate which applies during the third month following the taxable year shall also apply during the first fifteen days of the fourth month following such taxable year.(iii)
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 rate of interest for the month of September, nineteen hundred eighty-nine.(4)
Notwithstanding the provisions of paragraph two of this subsection to the contrary, in the case of interest payable by an employer with respect to income taxes required to be withheld and paid over by him pursuant to the provisions of part five of this article and with respect to interest payable to an employer pursuant to subsection (c) of section six hundred eighty-six, the rates of interest prescribed by this section shall be the overpayment and underpayment rates of interest prescribed in paragraph two of subsection (e) of § 1096 (General powers of tax commission)section one thousand ninety-six of this chapter.(5)
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 six hundred eighty-five.(6)
Publication of interest rates. The commissioner of taxation and finance shall publish the interest rates set under this subsection on the website of the department of taxation and finance. Immediately following such publication, the commissioner shall cause such interest rates to be published in the section for miscellaneous notices in the state register and give other appropriate general notice of such interest rates. 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.(7)
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.(k)
(1) For school aid payable in the school years nineteen hundred eighty-five--eighty-six through nineteen hundred ninety-three--ninety-four, notwithstanding the provisions of subsection (e) of this section, the department or authorized vendor contracted by the department shall furnish, as required pursuant to subdivision twenty-fifth of § 171 (Powers and duties of commissioner of taxation and finance)section one hundred seventy-one of this chapter, to the commissioner of education and school district superintendents of identified school districts and district superintendents appointed pursuant to Education Law § 1950 (Establishment of boards of cooperative educational services pending the creation of intermediate districts)section nineteen hundred fifty of the education law, having an identified school district within their supervisory district, an ordered listing, for such identified school districts participating in the temporary school district address review validation and correction process, of the permanent resident address of each taxpayer who has filed a personal income tax return with the department with a school district code which indicates that the taxpayer is a resident of such school district at the close of the taxable year for which the return was filed.(2)
For school aid payable in school years nineteen hundred eighty-eight--eighty-nine through nineteen hundred ninety-three--ninety-four, notwithstanding the provisions of subsection (e) of this section, a receiver school district may review the ordered listing wherein an identified school district that participated in the temporary school district address review validation and correction process identified personal income tax returns as belonging to such receiver district. The information provided to a receiving district pursuant to this subdivision and subdivision twenty-fifth of § 171 (Powers and duties of commissioner of taxation and finance)section one hundred seventy-one of this chapter shall be used solely for the purpose of verifying the legal residence and school district of a taxpayer whose return was identified as belonging to a receiver school district by an identified school district.(4)
Notwithstanding the provisions of subsection (e) of this section, the department or an authorized vendor contracted by the department shall furnish, as required pursuant to subdivision twenty-fifth of § 171 (Powers and duties of commissioner of taxation and finance)section one hundred seventy-one of this chapter, to the superintendents of schools of identified school districts and district superintendents of schools appointed pursuant to Education Law § 1950 (Establishment of boards of cooperative educational services pending the creation of intermediate districts)section nineteen hundred fifty of the education law, having an identified school district within their supervisory district, an ordered listing, for such identified school districts electing to participate in the appeals process for a limited school district address review validation and correction process.(5)
The information provided pursuant to this section and subdivision twenty-fifth of section one hundred seventy-one of this chapter shall be used solely for the purpose of verifying the legal residence and school district of a taxpayer in determining the distribution of state aid for education and such information may only be disclosed by such commissioner, superintendents and authorized vendor contracted by the department for such purposes to employees of the state education department, and to employees under the control of such superintendents. In addition, notwithstanding the provisions of subsection (e) of this section, the department may furnish to an authorized vendor contracted by the department the permanent resident address and school code data necessary for the implementation of the temporary school district address review validation and correction process, the pilot computerized address match and income verification project, or the permanent computerized statewide school district address match and income verification system pursuant to subdivision twenty-fifth of § 171 (Powers and duties of commissioner of taxation and finance)section one hundred seventy-one of this chapter. Any violation of the provisions of this section shall be punishable in the manner provided for in subsection (e) of this section. Any information obtained by any agency or person pursuant to the provisions of this section shall not be deemed a “record”, as defined in subdivision four of Public Officers Law § 86 (Definitions)section eighty-six of the public officers law.(l)
Exchange of information within the state department of labor.(1)
Notwithstanding any provision of law to the contrary, the state department of labor shall furnish to the department information required from employers pursuant to article eighteen of the labor law, and the department shall furnish to the state department of labor, or other individuals designated by the commissioner of labor who are engaged in purposes deemed appropriate by the commissioner of labor consistent with the provisions of the labor law, withholding tax information obtained or derived pursuant to part V of this article, or pursuant to equivalent provisions enacted under the authority of article thirty, thirty-A or thirty-B of this chapter, and taxpayer identification information acquired under any of the provisions of this chapter, for tax administration and employment security program purposes.(2)
(A) For purposes of this subsection, the term “tax administration purposes” means and includes:(i)
the administration, management, conduct, direction, and supervision of the execution and application of any tax, special assessment, fee or other imposition administered by the commissioner, (ii) the development and formulation of state policy relating to existing or proposed tax laws and related statutes, and(iii)
the assessment, collection, enforcement, litigation, publication and statistical gathering functions under such laws or statutes. (B) For purposes of this subsection, the term “employment security and public assistance work program purposes” means the unemployment insurance programs administered by the commissioner of labor pursuant to the labor law and those employment and training programs with respect to which the department of labor has administrative, reporting, monitoring, or evaluating responsibilities.(3)
Information obtained by the department from the state department of labor pursuant to the provisions of this subsection shall be confidential, and shall not be disclosed or redisclosed except for tax administration and employment security and public assistance program purposes.(4)
The commissioner shall enter into an agreement with the commissioner of the state department of labor in order to ensure the confidentiality of tax and unemployment insurance information and that such information is disclosed only for authorized purposes in connection with the implementation of the provisions of this subsection and those provisions of subsection (e) of this section relating to unemployment insurance information obtained or derived by the department from quarterly combined withholding, wage reporting and unemployment insurance returns required to be filed pursuant to paragraph four of subsection (a) of § 674 (Employer’s return and payment of withheld taxes)section six hundred seventy-four of this article.(m)
Disclosure of collection activities with respect to joint return.--Notwithstanding the provisions of subsection (e) of this section, if any deficiency of tax with respect to a joint return is assessed and the individuals filing such return are no longer married or no longer reside in the same household, upon request in writing by either of such individuals, the commissioner shall disclose in writing to the individual making the request whether the commissioner has attempted to collect such deficiency from such other individual, the general nature of such collection activities, and the amount collected. The preceding sentence shall not apply to any deficiency which may not be collected by reason of the expiration of time within which to issue a warrant under subsection (c) of § 692 (Collection, levy and liens)section six hundred ninety-two of this article or within which to collect such tax by execution and levy or by court proceeding.(n)
Disclosure of certain information where more than one person is subject to penalty.--If the commissioner determines that a person is liable for a penalty under subsection (g) of § 685 (Additions to tax and civil penalties)section six hundred eighty-five of this article with respect to any failure, upon request in writing of such person, the commissioner shall disclose in writing to such person (1) the name of any other person whom the commissioner has determined to be liable for such penalty with respect to such failure, and(2)
whether the commissioner has attempted to collect such penalty from such other person, the general nature of such collection activities, and the amount collected.(o)
Exchange of information with the office of temporary and disability assistance.--Notwithstanding any provision of law to the contrary, the department shall furnish to the office of temporary and disability assistance, or as designated by the commissioner of the office of children and family services, to employees of a local social services district who are engaged in the process of determining the eligibility of children in the custody, care and custody or custody and guardianship of a local social services district for federal payments for foster care and adoption assistance pursuant to the provisions of title IV-E of the federal social security act, the name, social security number and wages of the parents, the stepparents, the child and the siblings of the child who were living in the same household as a child who is in the custody, care and custody or custody and guardianship of a local social services district or of the office of children and family services during the month that the court proceedings leading to the child’s removal from the household were initiated, or the written instrument transferring care and custody of the child pursuant to the provisions of section three hundred fifty-eight-a or three hundred eighty-four-a of the social services law was signed; provided however, that the office of temporary and disability assistance or such social services district shall only use the information obtained pursuant to this subsection for the purpose of determining the eligibility of such child for federal payments for foster care and adoption assistance pursuant to the provisions of title IV-E of the federal social security act.
Source:
Section 697 — General powers of tax commission, https://www.nysenate.gov/legislation/laws/TAX/697 (updated Apr. 29, 2022; accessed Oct. 26, 2024).
