Bill Text: NY S04722 | 2017-2018 | General Assembly | Amended
Bill Title: Decreases interest due on underpayment of tax or erroneous refunds relating to personal income tax and sales and compensating use taxes.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2017-03-08 - PRINT NUMBER 4722A [S04722 Detail]
Download: New_York-2017-S04722-Amended.html
STATE OF NEW YORK ________________________________________________________________________ 4722--A 2017-2018 Regular Sessions IN SENATE February 24, 2017 ___________ Introduced by Sen. LATIMER -- read twice and ordered printed, and when printed to be committed to the Committee on Investigations and Govern- ment Operations -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee AN ACT to amend the tax law, in relation to decreasing interest due on underpayment of tax or erroneous refunds relating to personal income tax and sales and compensating use taxes The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Subsections (a) and (j) of section 684 of the tax law, as 2 amended by section 2 of subpart D of part V-1 of chapter 57 of the laws 3 of 2009, are amended to read as follows: 4 (a) General.--If any amount of income tax is not paid on or before the 5 last date prescribed in this article for payment, interest on such 6 amount at the underpayment rate set [by the commissioner pursuant to7section six hundred ninety-seven of this part, or if no rate is set,] at 8 the rate of [seven and one-half] three percent per annum shall be paid 9 for the period from such last date to the date paid, whether or not any 10 extension of time for payment was granted. Interest under this 11 subsection shall not be paid if the amount thereof is less than one 12 [dollar] hundred dollars. If the time for filing of a return of tax 13 withheld by an employer is extended, the employer shall pay interest for 14 the period for which the extension is granted and may not charge such 15 interest to the employee. 16 (j) Interest on erroneous refund.--Any portion of tax or other amount 17 which has been erroneously refunded, and which is recoverable by the 18 commissioner, shall bear interest at the underpayment rate set [by the19commissioner pursuant to section six hundred ninety-seven of this part,20or if no rate is set,] at the rate of [seven and one-half] three percent 21 per annum from the date of the payment of the refund, but only if it EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD10172-05-7S. 4722--A 2 1 appears that any part of the refund was induced by fraud or a misrepre- 2 sentation of a material fact. 3 § 2. Subparagraphs (i), (ii) and (vi) of paragraph 1 of subdivision 4 (a) of section 1145 of the tax law, subparagraph (i) as amended by chap- 5 ter 411 of the laws of 1986, subparagraph (ii) as amended by section 12 6 of subpart D of part V-1 of chapter 57 of the laws of 2009 and subpara- 7 graph (vi) as amended by chapter 65 of the laws of 1985, are amended to 8 read as follows: 9 (i) Any person failing to file a return or to pay or pay over any tax 10 to the tax commission within the time required by or pursuant to this 11 article (determined with regard to any extension of time for filing or 12 paying) shall be subject to a penalty of [ten] five percent of the 13 amount of tax due if such failure is for not more than one month, with 14 an additional [one] one-half percent for each additional month or frac- 15 tion thereof during which such failure continues, not exceeding thirty 16 percent in the aggregate. Provided, however, in the case of a failure to 17 file such return within sixty days of the date prescribed for filing of 18 such return by or pursuant to this article (determined with regard to 19 any extension of time for filing), the penalty imposed by this subpara- 20 graph shall not be less than the lesser of one hundred dollars or one 21 hundred percent of the amount required to be shown as tax on such 22 return. For the purpose of the preceding sentence, the amount of tax 23 required to be shown on the return shall be reduced by the amount of any 24 part of the tax which is paid on or before the date prescribed for 25 payment of the tax and by the amount of any credit against the tax which 26 may be claimed upon the return. In the case of a failure to file a 27 return by a person required to register with the tax commission as 28 provided in section eleven hundred thirty-four, in no event shall the 29 penalty for failure to file a return be less than fifty dollars. 30 (ii) If any amount of tax is not paid on or before the last date 31 prescribed in this article for payment, interest on such amount at the 32 rate of [fourteen and one-half] seven and one-quarter percent per annum 33 or at the underpayment rate set by the commissioner pursuant to section 34 eleven hundred forty-two of this part, whichever is greater, shall be 35 paid for the period from such last date to the date paid, whether or not 36 any extension of time for payment was granted. Interest under this 37 subparagraph shall not be paid if the amount thereof is less than one 38 dollar. 39 (vi) Any person required by this article to file a return, who omits 40 from the total amount of state and local sales and compensating use 41 taxes required to be shown on a return an amount which is in excess of 42 twenty-five percent of the amount of such taxes required to be shown on 43 the return shall be subject to a penalty equal to [ten] five percent of 44 the amount of such omission. The amount of the omission under the 45 preceding sentence shall be reduced by that portion of the omission 46 which is attributable to the tax treatment of any item by such person if 47 there is or was substantial authority for such treatment, or any item 48 with respect to which the relevant facts affecting the item's tax treat- 49 ment are adequately disclosed in the return or in a statement attached 50 to the return. If the tax commission determines that such omission was 51 due to reasonable cause and not due to willful neglect, it shall remit 52 all of such penalty. The penalty provided for in this subparagraph shall 53 not apply to any return of estimated tax required to be filed under 54 section eleven hundred thirty-seven-A. 55 § 3. This act shall take effect immediately and shall apply to all tax 56 years commencing on and after January 1, 2018.