NY Tax L § 697 (2021)
2021 New York Laws TAX - Tax Article 22 - Personal Income Tax Part 6 - Procedure and Administration 697 - General Powers of Tax Commission.

§  697.  General  powers  of  tax  commission.--(a)  General.--The tax commission shall administer and enforce the tax imposed by this  article and  it is authorized to make such rules and regulations, and to require such facts and information to be reported, as it may deem  necessary  to enforce  the  provisions  of this article. The tax commission may divide the state into districts in  each  of  which  a  branch  office  may  be maintained  by it, but in no case shall a county be divided in forming a district.  (b) Examination of books and witnesses.--(1) The  tax  commission  for the  purpose  of  ascertaining the correctness of any return, or for the purpose of making an estimate of taxable income  of  any  person,  shall have  power  to  examine  or  to cause to have examined, by any agent or representative designated by it for that  purpose,  any  books,  papers, records or memoranda bearing upon the matters required to be included in the  return,  and may require the attendance of the person rendering the return or any officer or employee of such person, or the  attendance  of any  other  person  having  knowledge  in  the  premises,  and  may take testimony and require proof material for its information, with power  to administer oaths to such person or persons.  (2) The tax commission may take any action under paragraph one of this subdivision  to inquire into the commission of an offense connected with the administration or enforcement of this  article,  provided,  however, that  notwithstanding the provisions of section one hundred seventy-four of this chapter no such action shall be taken when  a  referral  by  the department  or  the  tax  commission to the attorney general, a district attorney or any other  prosecutorial  agency  is  in  effect.  Provided, however,  the  tax  commission  shall have power, during the period when such referral is in effect, to examine or to cause to have examined,  by any  agent  or  representative  designated  by  it for that purpose, any books, papers, records or memoranda bearing upon the matters required to be included  in  the  return,  where  such  books,  papers,  records  or memoranda are in its possession, or where such books, papers, records or memoranda  are  in  the  possession  of  the  attorney general, district attorney or other prosecutorial agency to which such referral is made.  (c) Abatement authority.--The tax commission, of its own  motion,  may abate  any  small  unpaid balance of an assessment of income tax, or any liability in respect thereof, if the  tax  commission  determines  under uniform  rules  prescribed  by it that the administration and collection costs involved would not warrant collection of the amount  due.  It  may also  abate,  of its own motion, the unpaid portion of the assessment of any tax or any liability in  respect  thereof,  which  is  excessive  in amount,  or is assessed after the expiration of the period of limitation properly applicable thereto, or is erroneously or illegally assessed. No claim for abatement under this subsection shall be filed by a taxpayer.  (d) Special refund authority.--Where no questions of fact or  law  are involved  and it appears from the records of the tax commission that any moneys have been erroneously or illegally collected from any taxpayer or other person, or paid by such taxpayer or other person under  a  mistake of facts, pursuant to the provisions of this article, the tax commission at any time, without regard to any period of limitations, shall have the power, upon making a record of its reasons therefor in writing, to cause such  moneys  so  paid  and  being  erroneously and illegally held to be refunded and to issue therefor its certificate to the comptroller.  (e) Secrecy requirement and penalties for  violation.--(1)  Except  in accordance  with  proper judicial order or as otherwise provided by law, it shall be unlawful for the commissioner, any officer  or  employee  of the  department, any person engaged or retained by such department on an independent contract basis, any depositary to which any  return  may  be  delivered  as  provided  in  subsection  (h) or (i) of this section, any officer or employee of such depositary, or any person who,  pursuant  to this  section, is permitted to inspect any report or return or to whom a copy,  an abstract or a portion of any report or return is furnished, or to whom any information contained in any report or return is  furnished, to  divulge  or  make  known  in  any manner the amount of income or any particulars set forth or disclosed in  any  report  or  return  required under  this  article, under section one hundred seventy-one-a or section one hundred seventy-one-h of this chapter, or  under  this  article  and article eighteen of the labor law.  (2)  The officers charged with the custody of such reports and returns shall not be required to produce any of them  or  evidence  of  anything contained  in  them  in any action or proceeding in any court, except on behalf of  the  commissioner  in  an  action  or  proceeding  under  the provisions  of  this  chapter  or  in  any  other  action  or proceeding involving the collection of a tax due under this chapter  to  which  the state  or the commissioner is a party or a claimant, or on behalf of any party to any action or proceeding under the provisions of this  article, or  under  the  provisions  of  this article and article eighteen of the labor law, when the reports, returns or facts shown thereby are directly involved in such action or proceeding, in any of which events the  court may  require  the  production  of, and may admit in evidence, so much of said reports, returns or of the facts shown thereby, as are pertinent to the  action  or  proceeding  and  no   more.   The   commissioner   may, nevertheless, publish a copy or a summary of any decision rendered after the  hearing  required  under  section  six  hundred eighty-nine of this article.  (3) Nothing herein shall be construed to prohibit the department,  its officers  or  employees  from  furnishing  information  to the office of temporary and disability assistance  relating  to  the  payment  of  the credit  for  certain household and dependent care services necessary for gainful employment under subsection (c) of section six  hundred  six  of this  article  and  the  earned  income  credit  under subsection (d) of section six hundred six of this article and the enhanced  earned  income credit  under  subsection  (d-1)  of  section  six  hundred  six of this article, or pursuant  to  a  local  law  enacted  by  a  city  having  a population  of one million or more pursuant to subsection (f) of section thirteen hundred ten of this chapter, only to the  extent  necessary  to calculate   qualified   state  expenditures  under  paragraph  seven  of subdivision (a) of section four  hundred  nine  of  the  federal  social security  act or to document the proper expenditure of federal temporary assistance for needy families funds under section four hundred three  of such  act.  The  office  of  temporary  and  disability  assistance  may redisclose such information to the United States  department  of  health and  human  services  only  to  the  extent  necessary to calculate such qualified state expenditures or to document the  proper  expenditure  of such  federal  temporary  assistance  for  needy families funds. Nothing herein shall be construed to prohibit the delivery by  the  commissioner to  a commissioner of jurors, appointed pursuant to section five hundred four of the judiciary law,  or,  in  counties  within  cities  having  a population  of  one million or more, to the county clerk of such county, or to the clerk of the court or jury administrator of  a  United  States district  court  appointed  pursuant to title twenty-eight of the United States Code, section 1836(b)(2), of a mailing  list  of  individuals  to whom  income  tax  forms  are  mailed  by  the commissioner for the sole purpose of compiling a list of prospective jurors as provided in article sixteen of the judiciary law or title twenty-eight of the United  States Code. Provided, however, such delivery shall only be made pursuant to an  order  of  the  chief administrator of the courts, appointed pursuant to section two hundred ten of the judiciary law or  an  order  of  a  chief judge  of  any  United  States district court in New York State. No such order  may  be  issued unless such chief administrator or chief judge of such United States district court is satisfied that such mailing list is needed to compile a proper list of prospective jurors for the county  or such  United  States  district  court for which such order is sought and that, in view of the responsibilities imposed by the various laws of the state on the department, it is reasonable to require the commissioner to furnish such list. Such order shall provide that such list shall be used for the sole purpose of compiling a list of prospective jurors and  that such commissioner of jurors, or such county clerk, or clerk of the court or  jury  administrator  of such United States district court shall take all necessary steps to insure that the list  is  kept  confidential  and that   there  is  no  unauthorized  use  or  disclosure  of  such  list. Furthermore, nothing herein shall be construed to prohibit the  delivery to  a  taxpayer  or  his  or  her  duly  authorized  representative of a certified copy of any return or report filed in connection with  his  or her tax or to prohibit the publication of statistics so classified as to prevent  the  identification  of  particular  reports or returns and the items thereof, or the inspection by the attorney general or other  legal representatives  of the state of the report or return of any taxpayer or of any employer filed under section one hundred  seventy-one-h  of  this chapter, where such taxpayer or employer shall bring action to set aside or review the tax based thereon, or against whom an action or proceeding under  this  chapter  or  under this chapter and article eighteen of the labor law has been recommended by the commissioner, the commissioner  of labor  with  respect  to unemployment insurance matters, or the attorney general or has been instituted, or the  inspection  of  the  reports  or returns   required  under  this  article  by  the  comptroller  or  duly designated officer or employee of the  state  department  of  audit  and control,  for  purposes  of  the  audit of a refund of any tax paid by a taxpayer under this article, or the furnishing to the  state  department of  labor of unemployment insurance information obtained or derived from quarterly  combined  withholding,  wage   reporting   and   unemployment insurance  returns  required  to  be  filed  by  employers  pursuant  to paragraph four of subsection (a) of section six hundred seventy-four  of this  article,  for  purposes  of  administration  of  such department's unemployment insurance program, employment services program, federal and state employment and training programs, employment statistics and  labor market   information   programs,  worker  protection  programs,  federal programs for which the department has administrative  responsibility  or for  other  purposes  deemed  appropriate  by  the commissioner of labor consistent with the provisions of the labor  law,  and  redisclosure  of such  information  in  accordance  with  the provisions of sections five hundred thirty-six and five hundred thirty-seven of the labor law or any other applicable law, or the furnishing to the state office of temporary and disability assistance of information obtained or  derived  from  New York  state personal income tax returns as described in paragraph (b) of subdivision two of section one hundred seventy-one-g of this chapter for the purpose of reviewing support orders enforced pursuant to title six-A of article three of the social services law to aid in the  determination of  whether  such  orders  should  be  adjusted,  or  the  furnishing of information obtained from  the  reports  required  to  be  submitted  by employers  regarding  newly  hired  or  re-hired  employees  pursuant to section one hundred seventy-one-h of this chapter to the state office of temporary and disability assistance, the state department of health, the state department of  labor  and  the  workers'  compensation  board  for  purposes  of  administration  of  the child support enforcement program, verification of individuals' eligibility for one or more of the programs specified in subsection (b) of section eleven  hundred  thirty-seven  of the federal social security act and for other public assistance programs authorized  by  state  law, and administration of the state's employment security  and  workers'  compensation  programs,  and  to  the  national directory  of  new  hires  established  pursuant to section four hundred fifty-three-A of the  federal  social  security  act  for  the  purposes specified  in  such  section,  or  the furnishing to the state office of temporary and disability assistance of the amount of an  overpayment  of income  tax  and  interest  thereon  certified  to the comptroller to be credited against  past-due  support  pursuant  to  section  one  hundred seventy-one-c of this chapter and of the name and social security number of  the  taxpayer  who  made  such overpayment, or the disclosing to the commissioner of finance of the city of New York, pursuant to section one hundred seventy-one-l of this chapter, of the amount of  an  overpayment and interest thereon certified to the comptroller to be credited against a  city of New York tax warrant judgment debt and of the name and social security number of the  taxpayer  who  made  such  overpayment,  or  the furnishing  to  the New York state higher education services corporation of the amount of an overpayment  of  income  tax  and  interest  thereon certified  to  the  comptroller  to  be credited against the amount of a default in repayment of any education loan  debt,  including  judgments, owed to the federal or New York state government that is being collected by  the New York state higher education services corporation, and of the name  and  social  security  number  of  the  taxpayer  who  made   such overpayment,  or the furnishing to the state department of health of the information required by paragraph (f) of subdivision two and subdivision two-a of section two thousand five hundred eleven of the  public  health law and by subdivision eight of section three hundred sixty-six-a of the social  services  law,  or the furnishing to the state university of New York or the city university of New York  respectively  or  the  attorney general  on  behalf  of  such  state or city university the amount of an overpayment  of  income  tax  and  interest  thereon  certified  to  the comptroller  to be credited against the amount of a default in repayment of a state university loan pursuant to section one hundred seventy-one-e of this chapter and of the  name  and  social  security  number  of  the taxpayer who made such overpayment, or the disclosing to a state agency, pursuant  to  section  one hundred seventy-one-f of this chapter, of the amount  of  an  overpayment  and  interest  thereon  certified  to   the comptroller  to  be credited against a past-due legally enforceable debt owed to such agency and of the name and social security  number  of  the taxpayer  who  made  such overpayment, or the furnishing of employee and employer  information  obtained  through  the  wage  reporting   system, pursuant  to section one hundred seventy-one-a of this chapter, as added by chapter five hundred forty-five  of  the  laws  of  nineteen  hundred seventy-eight,   to   the  state  office  of  temporary  and  disability assistance, the department of health or  to  the  state  office  of  the medicaid  inspector general for the purpose of verifying eligibility for and entitlement to amounts of benefits under the social services law  or similar  law  of  another jurisdiction, locating absent parents or other persons legally  responsible  for  the  support  of  applicants  for  or recipients  of  public assistance and care under the social services law and persons legally responsible  for  the  support  of  a  recipient  of services  under  section one hundred eleven-g of the social services law and, in appropriate cases, establishing support obligations pursuant  to the social services law and the family court act or similar provision of law  of another jurisdiction for the purpose of evaluating the effect on  earnings of participation in  employment,  training  or  other  programs designed  to  promote self-sufficiency authorized pursuant to the social services law by current recipients of public assistance and care and  by former  applicants and recipients of public assistance and care, (except that with regard to former recipients, information which  relates  to  a particular  former  recipient  shall be provided with client identifying data  deleted),  to  the  state  office  of  temporary  and   disability assistance  for  the purpose of determining the eligibility of any child in the custody, care and custody or custody and guardianship of a  local social  services  district  or  of  the  office  of  children and family services for federal payments for foster care  and  adoption  assistance pursuant  to the provisions of title IV-E of the federal social security act  by  providing  information  with  respect  to  the   parents,   the stepparents,  the child and the siblings of the child who were living in the same household as  such  child  during  the  month  that  the  court proceedings  leading  to  the  child's  removal  from the household were initiated, or the written instrument transferring care  and  custody  of the   child   pursuant  to  the  provisions  of  section  three  hundred fifty-eight-a or three hundred eighty-four-a of the social services  law was signed, provided however that the office of temporary and disability assistance  shall  only  use  the  information obtained pursuant to this subdivision for the purpose of determining the eligibility of such child for federal payments for foster care and adoption assistance pursuant to the provisions of title IV-E of the federal social security act, and  to the  state  department  of labor, or other individuals designated by the commissioner of labor, for the purpose of  the  administration  of  such department's   unemployment   insurance   program,  employment  services program, federal and state employment and training programs,  employment statistics  and  labor  market  information  programs, worker protection programs, federal programs for which the department  has  administrative responsibility   or   for  other  purposes  deemed  appropriate  by  the commissioner of labor consistent with the provisions of the  labor  law, and  redisclosure  of such information in accordance with the provisions of sections five hundred thirty-six and five hundred thirty-seven of the labor law, or the furnishing of information, which is obtained from  the wage   reporting   system  operated  pursuant  to  section  one  hundred seventy-one-a  of  this  chapter,  as  added  by  chapter  five  hundred forty-five  of  the laws of nineteen hundred seventy-eight, to the state office of temporary and disability assistance so  that  it  may  furnish such  information  to  public agencies of other jurisdictions with which the state office of temporary and disability assistance has an agreement pursuant to paragraph (h) or (i) of subdivision three of section  twenty of  the  social  services  law, and to the state office of temporary and disability assistance for the  purpose  of  fulfilling  obligations  and responsibilities otherwise incumbent upon the state department of labor, under  section one hundred twenty-four of the federal family support act of nineteen hundred eighty-eight, by giving the federal  parent  locator service,  maintained  by  the  federal  department  of  health and human services, prompt access to such information as required by such act,  or to  the state department of health to verify eligibility under the child health insurance plan pursuant to subdivisions two and two-a of  section two  thousand  five  hundred  eleven of the public health law, to verify eligibility under the medical assistance and family health plus programs pursuant to subdivision eight of section three  hundred  sixty-six-a  of the  social  services law, and to verify eligibility for the program for elderly pharmaceutical insurance coverage under title three  of  article two  of  the  elder  law, or to the office of vocational and educational services for individuals with disabilities of the education  department,  the   commission   for   the   blind  and  any  other  state  vocational rehabilitation agency, for purposes of obtaining reimbursement from  the federal  social  security  administration  for expenditures made by such office,  commission or agency on behalf of disabled individuals who have achieved economic self-sufficiency or to the higher  education  services corporation  for  the  purpose  of  assisting the corporation in default prevention and default collection  of  education  loan  debt,  including judgments,  owed  to the federal or New York state government; provided, however, that such information shall be limited  to  the  names,  social security  numbers, home and/or business addresses, and employer names of defaulted or delinquent student loan borrowers, or to the office of  the state  comptroller  for  purposes  of  verifying the income of a retired member of a retirement system or pension plan administered by the  state or any of its political subdivisions who returns to public employment.   Provided,  however,  that  with  respect  to  employee information the office of temporary and disability assistance shall  only  be  furnished with the names, social security account numbers and gross wages of those employees who are (A) applicants for or recipients of benefits under the social services law, or similar provision of law of another jurisdiction (pursuant  to  an agreement under subdivision three of section twenty of the social services law) or, (B) absent parents or other persons legally responsible for the support of applicants for or  recipients  of  public assistance  and  care under the social services law or similar provision of  law  of  another  jurisdiction  (pursuant  to  an  agreement   under subdivision  three of section twenty of the social services law), or (C) persons legally responsible for the support of a recipient  of  services under section one hundred eleven-g of the social services law or similar provision of law of another jurisdiction (pursuant to an agreement under subdivision  three of section twenty of the social services law), or (D) employees  about  whom  wage  reporting  system  information  is   being furnished  to  public  agencies  of  other jurisdictions, with which the state office of temporary and disability  assistance  has  an  agreement pursuant  to paragraph (h) or (i) of subdivision three of section twenty of the social services law, or (E) employees about whom  wage  reporting system  information  is  being  furnished  to the federal parent locator service, maintained by  the  federal  department  of  health  and  human services,  for the purpose of enabling the state office of temporary and disability  assistance  to  fulfill  obligations  and   responsibilities otherwise  incumbent  upon  the state department of labor, under section one hundred twenty-four of the federal family support  act  of  nineteen hundred  eighty-eight,  and,  only  if,  the  office  of  temporary  and disability assistance certifies to the commissioner  that  such  persons are  such  applicants,  recipients,  absent  parents  or persons legally responsible for support or  persons  about  whom  information  has  been requested  by  a public agency of another jurisdiction or by the federal parent locator service  and  further  certifies  that  in  the  case  of information  requested under agreements with other jurisdictions entered into pursuant to subdivision three  of  section  twenty  of  the  social services  law,  that  such  request is in compliance with any applicable federal law. Provided, further, that where the office of  temporary  and disability  assistance  requests employee information for the purpose of evaluating the effects  on  earnings  of  participation  in  employment, training   or   other  programs  designed  to  promote  self-sufficiency authorized pursuant to the social services law, the office of  temporary and  disability  assistance  shall  only be furnished with the quarterly gross wages (excluding any reference to the name, social security number or any other information which could be used to identify any employee or the name or identification number of any employer) paid to employees who  are former applicants for or recipients of public  assistance  and  care and  who are so certified to the commissioner by the commissioner of the office of temporary and disability assistance. Provided,  further,  that with  respect  to  employee  information, the department of health shall only  be  furnished  with  the  information  required  pursuant  to  the provisions  of paragraph (f) of subdivision two and subdivision two-a of section two thousand five hundred eleven of the public  health  law  and subdivision  eight  of  section  three hundred sixty-six-a of the social services law, with respect to those individuals whose eligibility  under the  child health insurance plan, medical assistance program, and family health plus program is to be determined pursuant to such provisions  and with  respect  to those members of any such individual's household whose income affects such individual's eligibility and who are so certified to the commissioner or by the department of health. Provided, further, that wage  reporting  information  shall  be  furnished  to  the  office   of vocational and educational services for individuals with disabilities of the  education  department,  the  commission for the blind and any other state vocational rehabilitation agency only if such  office,  commission or  agency,  as  applicable,  certifies  to  the  commissioner that such information is necessary to obtain reimbursement from the federal social security administration for expenditures  made  on  behalf  of  disabled individuals  who  have  achieved  self-sufficiency.  Reports and returns shall be preserved for three years and thereafter until the commissioner orders them to be destroyed.  (3-a)  Notwithstanding  the  provisions  of  paragraph  one  of   this subsection,  the commissioner may disclose to a taxpayer or a taxpayer's related member, as defined in subsection  (r)  of  section  six  hundred twelve  of  this  article,  information  relating  to  any royalty paid, incurred or received by such taxpayer or related member to or  from  the other,  including  the treatment of such payments by the taxpayer or the related member in any report or return transmitted to  the  commissioner under this chapter.  (4)  (A)  Any  officer or employee of the state who willfully violates the provisions of this subsection shall be dismissed from office and  be incapable  of  holding  any  public office in this state for a period of five years thereafter.  (B) Cross-reference: For criminal penalties, see article  thirty-seven of this chapter.  (f)   Cooperation   with   the   United  States  and  other  states.-- Notwithstanding the provisions of subsection (e), the tax commission may permit the secretary of  the  treasury  of  the  United  States  or  his delegates, or the proper tax officer of any state imposing an income tax upon  the  incomes  of  individuals, or the authorized representative of either such officer, to inspect any return filed under this article,  or may furnish to such officer or his authorized representative an abstract of  any  such  return  or supply him with information concerning an item contained in any such return, or disclosed by any investigation  of  tax liability  under  this  article, but such permission shall be granted or such information furnished to such officer or his representative only if the laws of the United States or of such other state, as  the  case  may be,  grant substantially similar privileges to the commission or officer of this state charged with the administration of the tax imposed by this article and such information is to be used for tax  purposes  only;  and provided further the commissioner of taxation and finance may furnish to the  commissioner  of  internal revenue or his authorized representative such returns filed under this article and other tax information,  as  he may  consider  proper, for use in court actions or proceedings under the internal revenue code,  whether  civil  or  criminal,  where  a  written  request  therefor  has  been  made  to  the commissioner of taxation and finance by the secretary of the treasury of the  United  States  or  his delegates,  provided  the  laws of the United States grant substantially similar  powers to the secretary of the treasury of the United States or his delegates. Where the commissioner of taxation  and  finance  has  so authorized  use  of  returns  and  other  information in such actions or proceedings, officers and employees of the department  of  taxation  and finance  may  testify  in such actions or proceedings in respect to such returns or other information.  (f-1) Cooperation with investigations by  certain  committees  of  the United   States   Congress.--(1)   Notwithstanding   the  provisions  of subsection  (e)  of  this  section,  upon  written  request   from   the chairperson  of  the  committee  on  ways and means of the United States House of Representatives, the chairperson of the committee on finance of the United States Senate, or the chairperson of the joint  committee  on taxation  of  the United States Congress, the commissioner shall furnish such committee with  any  current  or  prior  year  reports  or  returns specified  in  such  request  that  were filed under this article by the president of the United States, vice-president  of  the  United  States, member of the United States Congress representing New York state, or any person  who  served  in  or  was employed by the executive branch of the government of the United States on the executive staff of the president, in the executive office of the president, or in an acting  or  confirmed capacity  in  a  position  subject  to confirmation by the United States senate; or, in New York state: a statewide elected official, as  defined in  paragraph  (a)  of subdivision one of section seventy-three-a of the public officers  law;  a  state  officer  or  employee,  as  defined  in subparagraph  (i)  of  paragraph  (c) of subdivision one of such section seventy-three-a; a political party chairperson, as defined in  paragraph (h)  of subdivision one of such section seventy-three-a; a local elected official, as defined in  subdivisions  one  and  two  of  section  eight hundred  ten  of the general municipal law; a person appointed, pursuant to law, to serve due to vacancy or otherwise in the position of a  local elected  official,  as  defined  in  subdivisions one and two of section eight hundred ten of the general municipal law; a member  of  the  state legislature; or a judge or justice of the unified court system; provided however that, prior to furnishing any report or return, the commissioner shall  redact any copy of a federal return (or portion thereof) attached to, or any information on a federal return that is  reflected  on,  such report  or  return, and any social security numbers, account numbers and residential address information.  (2) No  reports  or  returns  shall  be  furnished  pursuant  to  this subsection  unless the chairperson of the requesting committee certifies in writing that such reports or returns have been requested related  to, and  in  furtherance  of,  a  legitimate  task of the Congress, that the requesting committee has made a written request  to  the  United  States secretary  of  the  treasury  for  related  federal  returns  or  return information, pursuant to 26 U.S.C. Section 6103(f),  and  that  if  such requested  reports  or  returns  are  inspected  by  and/or submitted to another committee, to the United States House of Representatives, or  to the  United  States Senate, then such inspection and/or submission shall occur in a manner  consistent  with  federal  law  as  informed  by  the requirements and procedures established in 26 U.S.C. Section 6103(f).  (g)   Cooperation   with   the  cities  of  the  state  of  New  York. Notwithstanding the provisions of subsection (e), the tax commission may permit the proper city officer of any city of  the  state  of  New  York imposing  a  personal  income  tax  upon the incomes of residents, or an unincorporated business income tax, or an earnings tax on  nonresidents,  or  the  authorized  representative  of any such officer, to inspect any return filed under  this  article,  or  article  twenty-three  (as  such article  was in effect on or before December thirtieth, nineteen hundred eighty-two),   or   may  furnish  to  such  officer  or  his  authorized representative an abstract  of  any  such  return  or  supply  him  with information  concerning  an  item  contained  in  any  such  return,  or disclosed by any investigation of tax liability under  this  article  or article  twenty-three  (as  such  article  was  in  effect  on or before December thirtieth, nineteen hundred eighty-two),  but  such  permission shall  be  granted  or such information furnished to such officer or his representative only if the local laws of such city  grant  substantially similar  privileges  to  the commission or officer of this state charged with the administration of the tax imposed  by  this  article  and  such information  is  to  be used for tax purposes only; and provided further the commissioner of taxation  and  finance  may  furnish  to  such  city officer  or  the  legal  representative  of such city such returns filed under this article or article  twenty-three  (as  such  article  was  in effect on or before December thirtieth, nineteen hundred eighty-two) and other  tax  information,  as  he  may  consider proper, for use in court actions or proceedings under such local law, whether civil or  criminal, where  a  written  request therefor has been made to the commissioner of taxation and finance by such city officer or his delegate, provided  the local  law of such city grants substantially similar powers to such city officer or his delegate. Where the commissioner of taxation and  finance has  so  authorized use of returns and other information in such actions or proceedings, officers and employees of the department of taxation and finance may testify in such actions or proceedings in  respect  to  such returns or other information.  (h) Withholding returns.--Notwithstanding the provisions of subsection (e)  of  this  section the tax commission in its discretion, when making deposits,  pursuant  to  section  six  hundred  ninety-eight,  of  taxes withheld  by  employers,  may  deliver to the depositary the withholding returns filed by such employers  as  provided  in  section  six  hundred seventy-four,  for  the  purpose of insuring that all money so deposited shall be correctly credited to taxpayers' accounts.  (i)  Filing  returns  and  making  payments  to  depository   banks.-- Notwithstanding  the  provisions  of subsection (e) of this section, the tax commission, in its discretion, may require  or  permit  any  or  all individuals,  estates  or  trusts  liable  for  any  tax imposed by this article, to make payments on account of estimated tax and payment of any tax, penalty or interest imposed  by  this  article  to  banks,  banking houses  or  trust companies designated by the tax commission and to file reports and returns which such banks, banking houses or trust  companies as  agents  of the tax commission, in lieu of making any such payment to the tax commission. However, the tax  commission  shall  designate  only such  banks,  banking  houses  or  trust  companies  as  are or shall be designated by the comptroller as depositories pursuant  to  section  six hundred ninety-eight.  (j)  Authority  to set interest rates.--(1) The commissioner shall set the overpayment and underpayment rates of interest to be  paid  pursuant to  sections  six  hundred  eighty-four, six hundred eighty-five and six hundred eighty-eight of this part, but if no such rates of interest  are set,  such overpayment rate shall be deemed to be set at six percent per annum and such underpayment rate shall be deemed to be set at seven  and one-half  percent per annum. Such rates shall be the rates prescribed in paragraphs two and four of this subsection, but  the  underpayment  rate shall  not  be  less than seven and one-half percent per annum. Any such rates set by the commissioner shall  apply  to  taxes,  or  any  portion  thereof,  which remain or become due or overpaid on or after the date on which such rates become effective and shall apply only with  respect  to interest  computed  or  computable  for  periods  or portions of periods occurring in the period during which such rates are in effect.  (2)  Rates  of interest. (A) Overpayment rate. The overpayment rate of interest set under this subsection shall be the sum of (i)  the  federal short-term  rate  as  provided under paragraph three of this subsection, plus (ii) two percentage points.  (B) Underpayment rate. The underpayment rate  of  interest  set  under this  subsection  shall be the sum of (i) the federal short-term rate as provided under paragraph three of this subsection, plus  (ii)  five  and one-half percentage points.  (3) Federal short-term rate. For purposes of this subsection:  (A)  The  federal  short-term  rate for any month shall be the federal short-term rate  determined  by  the  United  States  secretary  of  the treasury  during such month in accordance with subsection (d) of section twelve hundred seventy-four of the internal  revenue  code  for  use  in connection  with  section  six  thousand  six  hundred twenty-one of the internal revenue code. Any such rate shall be  rounded  to  the  nearest full  percent  (or,  if a multiple of one-half of one percent, such rate shall be increased to the next highest full percent).  (B) Period during which rate applies.  (i) In general. Except as provided in clauses (ii) and (iii)  of  this subparagraph,  the  federal  short-term rate for the first month in each calendar quarter shall apply during the first calendar quarter beginning after such month.  (ii) Special rule for individual estimated  tax.  In  determining  the addition  to tax under subsection (c) of section six hundred eighty-five for failure to pay estimated tax  for  any  taxable  year,  the  federal short-term  rate  which  applies  during  the  third month following the taxable year shall also apply during  the  first  fifteen  days  of  the fourth month following such taxable year.  (iii)  Special  rule  for  the  month  of  September, nineteen hundred eighty-nine. The  federal  short-term  rate  for  the  month  of  April, nineteen  hundred  eighty-nine  shall  apply with respect to setting the rate  of  interest  for  the  month  of  September,   nineteen   hundred eighty-nine.  (4) Notwithstanding the provisions of paragraph two of this subsection to  the  contrary,  in  the case of interest payable by an employer with respect to income taxes required to be withheld and  paid  over  by  him pursuant to the provisions of part five of this article and with respect to interest payable to an employer pursuant to subsection (c) of section six hundred eighty-six, the rates of interest prescribed by this section shall  be  the overpayment and underpayment rates of interest prescribed in paragraph two of subsection (e) of section one thousand ninety-six of this chapter.  (5) In computing the amount of any interest required to be paid  under this  article  by  the  commissioner  of  taxation and finance or by the taxpayer, or any other amount determined by reference to such amount  of interest,  such  interest and such amount shall be compounded daily. The preceding sentence shall not apply for purposes of computing the  amount of any addition to tax for failure to pay estimated tax under subsection (c) of section six hundred eighty-five.  (6)  Publication  of  interest rates. The commissioner of taxation and finance shall cause to be published in  the  section  for  miscellaneous notices in the state register, and give other appropriate general notice of,  the  interest  rates  to be set under this subsection no later than twenty days preceding the first day of the calendar quarter during which  such interest rates apply. The setting and publication of such  interest rates  shall  not be included within paragraph (a) of subdivision two of section one hundred  two  of  the  state  administrative  procedure  act relating to the definition of a rule.  (7)  Cross-reference.  For  provisions  relating  to  the power of the commissioner of taxation and finance to abate small amounts of interest, see subsection (c) of this section.  (k) (1) For school aid payable in the school  years  nineteen  hundred eighty-five--eighty-six         through         nineteen         hundred ninety-three--ninety-four, notwithstanding the provisions of  subsection (e)  of  this section, the department or authorized vendor contracted by the department  shall  furnish,  as  required  pursuant  to  subdivision twenty-fifth  of section one hundred seventy-one of this chapter, to the commissioner  of  education  and  school  district  superintendents   of identified  school  districts  and  district  superintendents  appointed pursuant to section nineteen hundred fifty of the education law,  having an  identified  school  district  within  their supervisory district, an ordered listing, for such identified school districts  participating  in the  temporary  school district address review validation and correction process, of the permanent resident address  of  each  taxpayer  who  has filed  a  personal  income  tax return with the department with a school district code which indicates that the taxpayer is a  resident  of  such school  district  at  the close of the taxable year for which the return was filed.  (2)  For  school  aid  payable  in  school  years   nineteen   hundred eighty-eight--eighty-nine         through        nineteen        hundred ninety-three--ninety-four, notwithstanding the provisions of  subsection (e)  of  this section, a receiver school district may review the ordered listing wherein an identified school district that participated  in  the temporary  school  district  address  review  validation  and correction process identified personal income tax  returns  as  belonging  to  such receiver  district.  The  information  provided  to a receiving district pursuant to this subdivision and subdivision twenty-fifth of section one hundred seventy-one of this chapter shall be used solely for the purpose of verifying the legal residence and school district of a taxpayer whose return was identified as belonging to a receiver school district  by  an identified school district.  (4)  Notwithstanding the provisions of subsection (e) of this section, the department or an authorized  vendor  contracted  by  the  department shall  furnish,  as  required  pursuant  to  subdivision twenty-fifth of section one hundred seventy-one of this chapter, to the  superintendents of  schools  of identified school districts and district superintendents of schools appointed pursuant to section nineteen hundred fifty  of  the education  law,  having  an  identified  school  district  within  their supervisory district, an ordered listing,  for  such  identified  school districts  electing  to participate in the appeals process for a limited school district address review validation and correction process.  (5) The information provided pursuant to this section and  subdivision twenty-fifth of section one hundred seventy-one of this chapter shall be used  solely for the purpose of verifying the legal residence and school district of a taxpayer in determining the distribution of state aid  for education   and   such   information  may  only  be  disclosed  by  such commissioner, superintendents and authorized vendor  contracted  by  the department  for  such  purposes  to  employees  of  the  state education department, and to employees under the control of such  superintendents. In  addition,  notwithstanding  the provisions of subsection (e) of this section, the department may furnish to an authorized  vendor  contracted by  the  department  the permanent resident address and school code data  necessary for  the  implementation  of  the  temporary  school  district address review validation and correction process, the pilot computerized address   match  and  income  verification  project,  or  the  permanent computerized   statewide   school  district  address  match  and  income verification system pursuant to subdivision twenty-fifth of section  one hundred  seventy-one of this chapter. Any violation of the provisions of this  section  shall  be  punishable  in  the  manner  provided  for  in subsection  (e)  of this section. Any information obtained by any agency or person pursuant to the provisions of this section shall not be deemed a "record", as defined in subdivision four of section eighty-six of  the public officers law.  (l)  Exchange of information within the state department of labor. (1) Notwithstanding  any  provision  of  law  to  the  contrary,  the  state department of labor shall furnish to the department information required from  employers  pursuant  to article eighteen of the labor law, and the department shall furnish to the state  department  of  labor,  or  other individuals  designated  by the commissioner of labor who are engaged in purposes deemed appropriate by the commissioner of labor consistent with the provisions of the labor law, withholding tax information obtained or derived pursuant to part V of this article, or  pursuant  to  equivalent provisions  enacted  under  the authority of article thirty, thirty-A or thirty-B  of  this  chapter,  and  taxpayer  identification  information acquired   under  any  of  the  provisions  of  this  chapter,  for  tax administration and employment security program purposes.  (2)(A) For purposes of this subsection, the term  "tax  administration purposes" means and includes:  (i)   the   administration,   management,   conduct,   direction,  and supervision of  the  execution  and  application  of  any  tax,  special assessment, fee or other imposition administered by the commissioner,  (ii)  the  development  and  formulation  of  state policy relating to existing or proposed tax laws and related statutes, and  (iii) the assessment, collection, enforcement, litigation, publication and statistical gathering functions under such laws or statutes.  (B) For purposes of this subsection, the term "employment security and public  assistance  work  program  purposes"  means   the   unemployment insurance programs administered by the commissioner of labor pursuant to the labor law and those employment and training programs with respect to which the department of labor has administrative, reporting, monitoring, or evaluating responsibilities.  (3)  Information  obtained by the department from the state department of labor  pursuant  to  the  provisions  of  this  subsection  shall  be confidential,  and  shall not be disclosed or redisclosed except for tax administration and employment security  and  public  assistance  program purposes.  (4)   The   commissioner  shall  enter  into  an  agreement  with  the commissioner of the state department of labor in  order  to  ensure  the confidentiality  of  tax and unemployment insurance information and that such information is disclosed only for authorized purposes in connection with the implementation of the provisions of this subsection  and  those provisions  of  subsection  (e) of this section relating to unemployment insurance  information  obtained  or  derived  by  the  department  from quarterly   combined   withholding,   wage  reporting  and  unemployment insurance returns required to be filed pursuant  to  paragraph  four  of subsection (a) of section six hundred seventy-four of this article.  (m)   Disclosure  of  collection  activities  with  respect  to  joint return.--Notwithstanding  the  provisions  of  subsection  (e)  of  this section,  if  any  deficiency  of  tax with respect to a joint return is assessed and the individuals filing such return are no longer married or  no longer reside in the same  household,  upon  request  in  writing  by either  of  such individuals, the commissioner shall disclose in writing to the individual  making  the  request  whether  the  commissioner  has attempted  to  collect  such  deficiency from such other individual, the general nature of such collection activities, and the amount  collected. The  preceding  sentence shall not apply to any deficiency which may not be collected by reason of the expiration of time within which to issue a warrant under subsection (c) of section six hundred ninety-two  of  this article  or within which to collect such tax by execution and levy or by court proceeding.  (n) Disclosure of certain information where more than  one  person  is subject  to  penalty.--If  the  commissioner determines that a person is liable for a  penalty  under  subsection  (g)  of  section  six  hundred eighty-five of this article with respect to any failure, upon request in writing  of  such  person, the commissioner shall disclose in writing to such person (1) the name of any other person whom the  commissioner  has determined  to  be liable for such penalty with respect to such failure, and (2) whether the commissioner has attempted to collect  such  penalty from   such   other  person,  the  general  nature  of  such  collection activities, and the amount collected.  (o)  Exchange  of  information  with  the  office  of  temporary   and disability  assistance.--Notwithstanding  any  provision  of  law to the contrary, the department shall furnish to the office  of  temporary  and disability  assistance,  or  as  designated  by  the commissioner of the office of children and family services, to employees of a  local  social services  district  who  are  engaged  in the process of determining the eligibility of children in the custody, care and custody or custody  and guardianship  of  a  local social services district for federal payments for foster care and adoption assistance pursuant to  the  provisions  of title IV-E of the federal social security act, the name, social security number  and  wages  of  the  parents, the stepparents, the child and the siblings of the child who were living in the same household as  a  child who is in the custody, care and custody or custody and guardianship of a local  social  services district or of the office of children and family services during the month that the  court  proceedings  leading  to  the child's  removal  from  the  household  were  initiated,  or the written instrument transferring care and custody of the child  pursuant  to  the provisions  of  section  three  hundred  fifty-eight-a  or three hundred eighty-four-a of the social services law was signed;  provided  however, that  the  office  of temporary and disability assistance or such social services district shall only use the information  obtained  pursuant  to this  subsection  for the purpose of determining the eligibility of such child for federal payments  for  foster  care  and  adoption  assistance pursuant  to the provisions of title IV-E of the federal social security act.