Bill Text: NY A01810 | 2011-2012 | General Assembly | Introduced

New York Assembly Bill 1810 (Prior Session Legislation)

Bill Title: Provides that employers shall notify employees of potential state and federal earned income tax credits and delineates the contents, timing and manner of providing notice as well as options available to the employer.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2012-04-19 - advanced to third reading cal.443 [A01810 Detail]

Download: New_York-2011-A01810-Introduced.html

                           S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________
                                         1810
                              2011-2012 Regular Sessions
                                 I N  A S S E M B L Y
                                   January 12, 2011
                                      ___________
       Introduced  by M. of A. FARRELL -- read once and referred to the Commit-
         tee on Ways and Means
       AN ACT to amend the tax law,  in  relation  to  requiring  employers  to
         provide notice of potential eligibility for federal and New York state
         earned income tax credits
         THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
       BLY, DO ENACT AS FOLLOWS:
    1    Section 1. Paragraph 6 of subsection (d) of section  606  of  the  tax
    2  law,  as  amended  by  section  3 of part V of chapter 60 of the laws of
    3  2004, is amended to read as follows:
    4    (6) Notification.  (I) The commissioner shall  periodically,  but  not
    5  less than every three years, make efforts to alert taxpayers that may be
    6  currently eligible to receive the credit provided under this subsection,
    7  and  the  credit  provided  under  any  local  law  enacted  pursuant to
    8  subsection (f) of section thirteen hundred ten of this  chapter,  as  to
    9  their  potential  eligibility.  In making the determination of whether a
   10  taxpayer may be eligible for such credit,  the  commissioner  shall  use
   11  such data as may be appropriate and available, including, but not limit-
   12  ed  to,  data  available  from the United States Department of Treasury,
   13  Internal Revenue Service and New  York  state  income  tax  returns  for
   14  preceding tax years.
   15    (II) EXCEPT AS SET FORTH IN CLAUSE (D) OF THIS SUBPARAGRAPH, EMPLOYERS
   16  WITH  PERSONS  IN  THEIR  EMPLOY  IN  NEW  YORK STATE FOR WHOM THEY MUST
   17  PROVIDE AN ANNUAL WAGE SUMMARY SHALL EACH  YEAR  FURNISH  TO  EACH  SUCH
   18  PERSON A NOTICE THAT HE OR SHE MAY BE ELIGIBLE FOR A STATE EARNED INCOME
   19  TAX  CREDIT  PURSUANT TO THIS SUBSECTION AND A FEDERAL EARNED INCOME TAX
   20  CREDIT PURSUANT TO SECTION THIRTY-TWO OF THE INTERNAL REVENUE CODE.  FOR
   21  PURPOSES OF THIS SUBPARAGRAPH, EMPLOYER SHALL HAVE THE SAME  MEANING  AS
   22  SET  FORTH IN SUBSECTION (A) OF SECTION THREE THOUSAND THREE HUNDRED SIX
   23  OF THE INTERNAL REVENUE CODE.
        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD02360-01-1
       A. 1810                             2
    1    (A) CONTENTS OF NOTICE. THE NEW YORK STATE DEPARTMENT OF TAXATION  AND
    2  FINANCE  SHALL  PROMULGATE  GUIDANCE AS NECESSARY SPECIFYING THE MINIMUM
    3  REQUIREMENTS OF SUCH NOTICE, WHICH WILL INCLUDE, BUT NOT BE LIMITED  TO,
    4  INFORMATION  AS TO THE AVAILABILITY OF AND POTENTIAL ELIGIBILITY FOR THE
    5  FEDERAL  EARNED  INCOME  TAX CREDIT AND THE NEW YORK STATE EARNED INCOME
    6  TAX CREDIT. SUCH NOTICE SHALL REFER PERSONS TO BOTH THE INTERNAL REVENUE
    7  SERVICE AND THE NEW YORK STATE DEPARTMENT OF  TAXATION  AND  FINANCE  BY
    8  TELEPHONE  AND  THROUGH  THEIR WEBSITES FOR INFORMATION REGARDING ANNUAL
    9  ELIGIBILITY THRESHOLDS BY HOUSEHOLD TYPE, FILING REQUIREMENTS,  AND  HOW
   10  TO OBTAIN NECESSARY FORMS AND INSTRUCTIONS.
   11    (B)  TIMING  OF NOTICE. THE EMPLOYER SHALL PROVIDE THE NOTICE REQUIRED
   12  BY THIS SUBPARAGRAPH WITHIN ONE WEEK BEFORE OR AFTER,  OR  AT  THE  SAME
   13  TIME,  THE  EMPLOYER PROVIDES THE ANNUAL WAGE SUMMARY, INCLUDING BUT NOT
   14  LIMITED TO, A FORM W-2 OR A FORM 1099.  THE  NOTICE  SHALL  BE  PROVIDED
   15  EITHER SEPARATELY OR AS PART OF THE ANNUAL WAGE SUMMARY.
   16    (C)  MANNER OF PROVIDING NOTICE. THE EMPLOYER SHALL PROVIDE THE NOTICE
   17  REQUIRED BY THIS SUBPARAGRAPH TO EACH PERSON BY HAND DELIVERY, OR  ELEC-
   18  TRONIC MAIL, OR BY MAIL TO THE LAST KNOWN ADDRESS.
   19    (D)  EMPLOYER'S  OPTION.  AT  THE  EMPLOYER'S OPTION, THE EMPLOYER MAY
   20  CHOOSE TO PROVIDE THE NOTICE REQUIRED PURSUANT TO THIS SUBPARAGRAPH ONLY
   21  TO THOSE EMPLOYEES WHOSE GROSS ANNUAL INCOMES DO  NOT  EQUAL  OR  EXCEED
   22  SIXTY THOUSAND DOLLARS OR THE MAXIMUM INCOME AT WHICH AN EMPLOYEE MAY BE
   23  ELIGIBLE FOR THE EARNED INCOME TAX CREDIT, WHICHEVER IS HIGHER.
   24    S 2. This act shall take effect January 1, 2013.