Bill Text: NY S04722 | 2017-2018 | General Assembly | Introduced

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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-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________
                                          4722
                               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
        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
    22  appears that any part of the refund was induced by fraud or a  misrepre-
    23  sentation of a material fact.
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD10172-02-7
        S. 4722                             2
     1    §  2.  Subparagraphs (i) and (vi) of paragraph 1 of subdivision (a) of
     2  section 1145 of the tax law, subparagraph (i) as amended by chapter  411
     3  of  the  laws  of 1986 and subparagraph (vi) as amended by chapter 65 of
     4  the laws of 1985, are amended to read as follows:
     5    (i)  Any person failing to file a return or to pay or pay over any tax
     6  to the tax commission within the time required by or  pursuant  to  this
     7  article  (determined  with regard to any extension of time for filing or
     8  paying) shall be subject to a penalty  of  [ten]  five  percent  of  the
     9  amount  of  tax due if such failure is for not more than one month, with
    10  an additional [one] one-half percent for each additional month or  frac-
    11  tion  thereof  during which such failure continues, not exceeding thirty
    12  percent in the aggregate. Provided, however, in the case of a failure to
    13  file such return within sixty days of the date prescribed for filing  of
    14  such  return  by  or pursuant to this article (determined with regard to
    15  any extension of time for filing), the penalty imposed by this  subpara-
    16  graph  shall  not  be less than the lesser of one hundred dollars or one
    17  hundred percent of the amount required  to  be  shown  as  tax  on  such
    18  return.  For  the  purpose  of the preceding sentence, the amount of tax
    19  required to be shown on the return shall be reduced by the amount of any
    20  part of the tax which is paid on  or  before  the  date  prescribed  for
    21  payment of the tax and by the amount of any credit against the tax which
    22  may  be  claimed  upon  the  return.  In the case of a failure to file a
    23  return by a person required to  register  with  the  tax  commission  as
    24  provided  in  section  eleven hundred thirty-four, in no event shall the
    25  penalty for failure to file a return be less than fifty dollars.
    26    (vi) Any person required by this article to file a return,  who  omits
    27  from  the  total  amount  of  state and local sales and compensating use
    28  taxes required to be shown on a return an amount which is in  excess  of
    29  twenty-five  percent of the amount of such taxes required to be shown on
    30  the return shall be subject to a penalty equal to [ten] five percent  of
    31  the  amount  of  such  omission.  The  amount  of the omission under the
    32  preceding sentence shall be reduced by  that  portion  of  the  omission
    33  which is attributable to the tax treatment of any item by such person if
    34  there  is  or  was substantial authority for such treatment, or any item
    35  with respect to which the relevant facts affecting the item's tax treat-
    36  ment are adequately disclosed in the return or in a  statement  attached
    37  to  the  return. If the tax commission determines that such omission was
    38  due to reasonable cause and not due to willful neglect, it  shall  remit
    39  all of such penalty. The penalty provided for in this subparagraph shall
    40  not  apply  to  any  return  of estimated tax required to be filed under
    41  section eleven hundred thirty-seven-A.
    42    § 3. This act shall take effect immediately and shall apply to all tax
    43  years commencing on and after January 1, 2018.