§ 1096 — General powers of tax commission

New York § 1096

• Jurisdiction: New York
• Law TAX: Tax
• Art. 27: Corporate Tax Procedure and Administration

Text

§ 1096. General powers of tax commission.---(a) General.---The tax\ncommission shall administer and enforce the tax imposed by article nine,\nnine-a, nine-b and nine-c, and it is authorized to make such rules and\nregulations, and to require such facts and information to be reported,\nas it may deem necessary to enforce the provisions of such articles and\nof this article.\n (b) Examination of books and witnesses.---(1) The tax commission for\nthe purpose of ascertaining the correctness of any return, or for the\npurpose of making an estimate of tax liability of any corporation, shall\nhave power to examine or to cause to have examined, by any agent or\nrepresentative designated by it for that purpose, any books, papers,\nrecords or memoranda bearing upon the matters required to be included in\nthe return, and may require the attendance of the corporation rendering\nthe return through any officer or employee of such corporation, or the\nattendance of any other person having knowledge in the premises, and may\ntake testimony and require proof material for its information, with\npower to administer oaths to such person or persons.\n (2) The commissioner may take any action under paragraph one of this\nsubdivision to inquire into the commission of an offense connected with\nthe administration or enforcement of this article or article nine,\nnine-A, thirteen, thirteen-A or thirty-three of this chapter, provided,\nhowever, that notwithstanding the provisions of section one hundred\nseventy-four of this chapter no such action shall be taken when a\nreferral by the department or the commissioner to the attorney general,\na district attorney or any other prosecutorial agency is in effect.\nProvided, however, the commissioner shall have power, during the period\nwhen such referral is in effect, to examine or to cause to have\nexamined, by any agent or representative designated by it for that\npurpose, any books, papers, records or memoranda bearing upon the\nmatters required to be included in the return, where such books, papers,\nrecords or memoranda are in its possession, or where such books, papers,\nrecords or memoranda are in the possession of the attorney general,\ndistrict attorney or other prosecutorial agency to which such referral\nis made.\n (c) Abatement authority.---The tax commission, of its own motion, may\nabate any small unpaid balance of an assessment of tax, or any liability\nin respect thereof, if the tax commission determines under uniform rules\nprescribed by it that the administration and collection costs involved\nwould not warrant collection of the amount due. It may also abate, of\nits own motion, the unpaid portion of the assessment of any tax or any\nliability in respect thereof, which is excessive in amount, or is\nassessed after the expiration of the period of limitation properly\napplicable thereto, or is erroneously or illegally assessed. No claim\nfor abatement under this subsection shall be filed by a taxpayer.\n (d) Special refund authority.---Where no questions of fact or law are\ninvolved and it appears from the records of the tax commission that any\nmoneys have been erroneously or illegally collected from any taxpayer or\nother person, or paid by such taxpayer or other person under a mistake\nof facts, pursuant to the provisions of this article or of article nine,\nnine-a, nine-b or nine-c, the tax commission at any time, without regard\nto any period of limitations, shall have the power, upon making a record\nof its reasons therefor in writing, to cause such moneys so paid and\nbeing erroneously and illegally held to be refunded and to issue\ntherefor its certificate to the comptroller.\n (e) (1) Authority to set interest rates.---The commissioner shall set\nthe overpayment and underpayment rates of interest to be paid pursuant\nto sections two hundred thirteen, two hundred thirteen-b, two hundred\nfifty-eight, two hundred sixty-three, two hundred ninety-four, one\nthousand eighty-four, one thousand eighty-five and one thousand\neighty-eight of this chapter, but if no such rate or rates of interest\nare set, such overpayment rate shall be deemed to be set at six percent\nper annum and such underpayment rate shall be deemed to be set at seven\nand one-half percent per annum. Such overpayment and underpayment rates\nshall be the rates prescribed in paragraph two of this subsection, but\nthe underpayment rate shall not be less than seven and one-half percent\nper annum. Any such rates set by the commissioner shall apply to taxes,\nor any portion thereof, which remain or become due or overpaid on or\nafter the date on which such rates become effective and shall apply only\nwith respect to interest computed or computable for periods or portions\nof periods occurring in the period during which such rates are in\neffect.\n (2) General rule. (A) Overpayment rate. The overpayment rate set under\nthis subsection shall be the sum of (i) the federal short-term rate as\nprovided under paragraph three of this subsection, plus (ii) two\npercentage points.\n (B) Underpayment rate. The underpayment rate set under this subsection\nshall be the sum of (i) the federal short-term rate as provided under\nparagraph three of this subsection, plus (ii) seven percentage points.\n (3) Federal short-term rate. For purposes of this subsection:\n (A) The federal short-term rate for any month shall be the federal\nshort-term rate determined by the United States secretary of the\ntreasury during such month in accordance with subsection (d) of section\ntwelve hundred seventy-four of the internal revenue code for use in\nconnection with section six thousand six hundred twenty-one of the\ninternal revenue code. Any such rate shall be rounded to the nearest\nfull percent (or, if a multiple of one-half of one percent, such rate\nshall be increased to the next highest full percent).\n (B) Period during which rate applies.\n (i) In general. Except as provided in clause (ii) of this\nsubparagraph, the federal short-term rate for the first month in each\ncalendar quarter shall apply during the first calendar quarter beginning\nafter such month.\n (ii) Special rule for the month of September, nineteen hundred\neighty-nine. The federal short-term rate for the month of April,\nnineteen hundred eighty-nine shall apply with respect to setting the\noverpayment and underpayment rates for the month of September, nineteen\nhundred eighty-nine.\n (4) In computing the amount of any interest required to be paid under\nthis article by the commissioner of taxation and finance or by the\ntaxpayer, or any other amount determined by reference to such amount of\ninterest, such interest and such amount shall be compounded daily. The\npreceding sentence shall not apply for purposes of computing the amount\nof any addition to tax for failure to pay estimated tax under subsection\n(c) of section one thousand eighty-five of this article.\n (5) Publication of interest rates. The commissioner of taxation and\nfinance shall publish the interest rates set under this subsection on\nthe website of the department of taxation and finance. Immediately\nfollowing such publication, the commissioner shall cause such interest\nrates to be published in the section for miscellaneous notices in the\nstate register and give other appropriate general notice of such\ninterest rates. The setting and publication of such interest rates shall\nnot be included within paragraph (a) of subdivision two of section one\nhundred two of the state administrative procedure act relating to the\ndefinition of a rule.\n (6) Cross-reference. For provisions relating to the power of the\ncommissioner of taxation and finance to abate small amounts of interest,\nsee subsection (c) of this section.\n