Bill Text: NY A08180 | 2011-2012 | General Assembly | Introduced

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Bill Title: Reforms the offer-in-compromise program.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2011-06-17 - substituted by s3945a [A08180 Detail]

Download: New_York-2011-A08180-Introduced.html

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                           S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________
                                         8180
                              2011-2012 Regular Sessions
                                 I N  A S S E M B L Y
                                     June 3, 2011
                                      ___________
       Introduced by M. of A. FARRELL -- (at request of the Department of Taxa-
         tion  and  Finance) -- read once and referred to the Committee on Ways
         and Means
       AN ACT to amend the tax law, in relation to reforming the  offer-in-com-
         promise program
         THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
       BLY, DO ENACT AS FOLLOWS:
    1    Section 1. Subdivision fifteenth of section 171 of  the  tax  law,  as
    2  amended  by  chapter  513  of  the  laws  of 2002, is amended to read as
    3  follows:
    4    Fifteenth. Have authority to compromise any taxes OR OTHER IMPOSITIONS
    5  or any warrant or judgment for taxes OR OTHER  IMPOSITIONS  administered
    6  by the commissioner, and the penalties and interest in connection there-
    7  with, if the tax debtor has been discharged in bankruptcy, [or] is shown
    8  by  proofs  submitted  to  be  insolvent,  [but] OR SHOWS BY PROOFS THAT
    9  COLLECTION IN FULL WOULD CAUSE THE TAX DEBTOR UNDUE  ECONOMIC  HARDSHIP,
   10  PROVIDED  THAT  the  amount  payable in compromise [shall in no event be
   11  less than the amount, if any, recoverable through legal proceedings, and
   12  provided that where] REASONABLY  REFLECTS  COLLECTION  POTENTIAL  OR  IS
   13  OTHERWISE  JUSTIFIED BY THE PROOFS OFFERED BY THE TAX DEBTOR.  PROVIDED,
   14  FURTHER, THE COMMISSIONER SHALL NOT ACCEPT ANY AMOUNT PAYABLE IN COMPRO-
   15  MISE THAT WOULD UNDERMINE COMPLIANCE WITH THE TAXES OR OTHER IMPOSITIONS
   16  ADMINISTERED BY THE COMMISSIONER, NOR SHALL THE COMMISSIONER ENTER  INTO
   17  ANY  OFFER  OF COMPROMISE THAT WOULD BE ADVERSE TO THE BEST INTERESTS OF
   18  THE STATE. WHERE the amount owing for taxes OR OTHER IMPOSITIONS or  the
   19  warrant  or  judgment,  exclusive of any penalties and interest, is more
   20  than one hundred thousand dollars, such compromise  shall  be  effective
   21  only  when approved by a justice of the supreme court.  THE COMMISSIONER
   22  SHALL PROMULGATE REGULATIONS DEFINING WHAT  CONSTITUTES  UNDUE  ECONOMIC
   23  HARDSHIP.  THE  INABILITY TO MAINTAIN AN AFFLUENT OR LUXURIOUS LIFESTYLE
   24  SHALL NOT CONSTITUTE UNDUE ECONOMIC HARDSHIP.
        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD09464-03-1
       A. 8180                             2
    1    S 2. Subdivision eighteenth-a of  section  171  of  the  tax  law,  as
    2  amended  by  chapter  577  of  the  laws  of 1997, is amended to read as
    3  follows:
    4    Eighteenth-a.  Have authority to compromise civil liability, with such
    5  qualifications and limitations as may be established  pursuant  to  such
    6  rules  and  regulations  as  the  commissioner may prescribe, where such
    7  liability arises under [this chapter, or under a law enacted pursuant to
    8  the authority of this chapter] A TAX OR OTHER IMPOSITION which is admin-
    9  istered by the [department, or under  a  law  enacted  pursuant  to  the
   10  authority of article two-E of the general city law] COMMISSIONER, at any
   11  time  prior  to  the  time  the  tax, OTHER IMPOSITION or administrative
   12  action becomes finally and irrevocably fixed and no  longer  subject  to
   13  administrative  review. Upon acceptance of an offer in compromise by the
   14  commissioner, the matter may not be reopened except upon  a  showing  of
   15  fraud, malfeasance or misrepresentation of a material fact. The attorney
   16  general may compromise any such liability after reference to the depart-
   17  ment of law for prosecution or defense at any time prior to the time the
   18  tax, OTHER IMPOSITION or administrative action taken by the [department]
   19  COMMISSIONER is no longer subject to judicial review. Whenever a compro-
   20  mise  is  made  by  the [department] COMMISSIONER of any such liability,
   21  there shall be placed on file in the  office  of  the  commissioner  the
   22  opinion  of  the  counsel  for  such department, with his OR HER reasons
   23  therefor, with a statement of: (a) the amount of tax OR OTHER IMPOSITION
   24  and any other issues which may be the subject of  such  compromise,  (b)
   25  the  amount of interest, additions to the tax, or penalty imposed by law
   26  on the taxpayer or other persons against whom the administrative  action
   27  was taken by the department, and (c) the amount actually paid in accord-
   28  ance  with  the  terms of the compromise.  Notwithstanding the preceding
   29  sentence, no such opinion shall be required with respect to the  compro-
   30  mise  of  any civil liability in which the unpaid amount of tax OR OTHER
   31  IMPOSITION which was the subject of the administrative action (including
   32  any interest, additions to tax, or penalty) is less  than  [twenty-five]
   33  FIFTY thousand dollars.
   34    S 3. This act shall take effect immediately.