NY Tax L § 1096 (2021)
2021 New York Laws TAX - Tax Article 27 - Corporate Tax Procedure and Administration 1096 - General Powers of Tax Commission.

§  1096.  General  powers  of tax commission.---(a) General.---The tax commission shall administer and enforce the tax imposed by article nine, nine-a, nine-b and nine-c, 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 such articles  and of this article.  (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 tax liability of any corporation, 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 corporation rendering the return through any officer or employee of such corporation,  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 commissioner 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  or  article  nine, nine-A,  thirteen, thirteen-A or thirty-three of this chapter, 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 commissioner to the attorney  general, a  district  attorney  or  any  other prosecutorial agency is in effect. Provided, however, the commissioner 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 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 or of article nine, nine-a, nine-b or nine-c, 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) (1) Authority to set interest rates.---The commissioner shall  set the  overpayment  and underpayment rates of interest to be paid pursuant to sections two hundred thirteen, two hundred  thirteen-b,  two  hundred fifty-eight,  two  hundred  sixty-three,  two  hundred  ninety-four, one  thousand  eighty-four,  one  thousand  eighty-five  and   one   thousand eighty-eight  of  this chapter, but if no such rate or 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 overpayment and underpayment  rates shall  be  the rates prescribed in paragraph two 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) General rule. (A) Overpayment rate. The overpayment rate 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 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) seven 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  clause  (ii)  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  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 overpayment and underpayment rates for the month of September,  nineteen hundred eighty-nine.  (4)  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 one thousand eighty-five of this article.  (5) 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.  (6) 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.