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 to
     7  section 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  the
    19  commissioner  pursuant to section six hundred ninety-seven of this part,
    20  or 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.
                                                                   LBD10172-05-7

        S. 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.
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