NY Gen City L § 25-A-61 (2021)
2021 New York Laws GCT - General City Article 2-D - City Personal Income Tax on Residents 25-A-61 - Notice of Deficiency.

§ 61. Notice  of  deficiency.--(a)  General.--If upon examination of a taxpayer's return under this local law the administrator determines that there is a deficiency of income tax, he may mail a notice of  deficiency to  the  taxpayer.  If  a  taxpayer  fails  to file an income tax return required under this  local  law,  the  administrator  is  authorized  to estimate  the  taxpayer's  city taxable income and tax thereon, from any information in its possession, and to mail a notice of deficiency to the taxpayer. A notice  of  deficiency  shall  be  mailed  by  certified  or registered  mail  to the taxpayer at his last known address in or out of the city. If a husband and wife are jointly liable for tax, a notice  of deficiency   may   be   a  single  joint  notice,  except  that  if  the administrator  has  been  notified  by  either  spouse   that   separate residences  have  been  established,  then,  in lieu of the single joint notice, a duplicate original of the joint notice shall be mailed to each spouse at his or her last known address in or out of the  city.  If  the taxpayer is deceased or under a legal disability, a notice of deficiency may  be  mailed  to his last known address in or out of the city, unless the administrator has received notice of the existence  of  a  fiduciary relationship with respect to the taxpayer.  (b)  Notice  of  deficiency as assessment.--After ninety days from the mailing of a notice of deficiency, such notice shall be an assessment of the amount of tax specified in such notice, together with the  interest, additions  to  tax  and penalties stated in such notice, except only for any such tax or other amounts as to which the taxpayer has  within  such ninety  day period filed with the administrator a petition under section sixty-nine. If the notice of deficiency is addressed to a person outside of the United States, such  period  shall  be  one  hundred  fifty  days instead of ninety days.  (c)   Restrictions   on  assessment  and  levy.--No  assessment  of  a deficiency in tax and no levy or proceeding in court for its  collection shall  be  made,  begun  or  prosecuted, except as otherwise provided in section seventy-four, until a notice of deficiency has  been  mailed  to the taxpayer, nor until the expiration of the time for filing a petition contesting  such  notice, nor, if a petition with respect to the taxable year has been filed with the administrator, until the  decision  of  the tax  commission  has become final. For exception in the case of judicial review of the decision of the  administrator,  see  subdivision  (c)  of section seventy.  (d)  Exceptions  for  mathematical  errors.--If  a  mathematical error appears on a return (including an overstatement of the credit for income tax withheld at the source or of the amount  paid  as  estimated  income tax),  the administrator shall notify the taxpayer that an amount of tax in excess of that shown upon the return is due, and that such excess has been assessed. Such notice shall  not  be  considered  as  a  notice  of deficiency  for the purposes of this section, subdivision (f) of section sixty-seven  (limiting  credits  or  refunds  after  petition   to   the administrator),  or  subdivision  (b) of section sixty-nine (authorizing the filing of a petition with the administrator based  on  a  notice  of deficiency) nor shall such assessment or collection be prohibited by the provisions of subdivision (c).  (e)   Exception   where  change  in  federal  taxable  income  is  not reported.--(1) If the taxpayer fails to comply with section  thirty-nine in  not  reporting a change or correction increasing his federal taxable income as reported on his federal income tax return or in not  reporting a change or correction which is treated in the same manner as if it were a deficiency for federal income tax purposes or in not filing an amended return or in not reporting the execution of a notice of waiver described in such section, instead of the mode and time of assessment provided for  in  subdivision  (b)  of  this  section,  the administrator may assess a deficiency based upon such changed or corrected federal  taxable  income by mailing to the taxpayer a notice of additional tax due specifying the amount  of  the  deficiency,  and  such  deficiency,  together  with the interest, additions to tax and penalties stated in such notice, shall be deemed assessed on the date such notice is mailed unless  within  thirty days  after the mailing of such notice a report of the federal change or correction or an amended return,  where  such  return  was  required  by section thirty-nine, is filed accompanied by a statement showing wherein such  federal  determination  and  such notice of additional tax due are erroneous.  (2) Such notice shall not be considered as a notice of deficiency  for the  purposes  of  this  section, subdivision (f) of section sixty-seven (limiting credits or refunds after petition to  the  administrator),  or subdivision  (b)  of  section  sixty-nine  (authorizing  the filing of a petition with the administrator based on a notice  of  deficiency),  nor shall  such  assessment  or  the collection thereof be prohibited by the provisions of subdivision (c).  (3) If a husband and wife are jointly liable  for  tax,  a  notice  of additional  tax  due  may  be  a single joint notice, except that if the administrator  has  been  notified  by  either  spouse   that   separate residences  have  been established, then, in lieu of the joint notice, a duplicate original of the joint notice shall be mailed to each spouse at his or her last known address in or out of the city. If the taxpayer  is deceased or under a legal disability, a notice of additional tax due may be  mailed  to  his last known address in or out of the city, unless the administrator has received  notice  of  the  existence  of  a  fiduciary relationship with respect to the taxpayer.  (f)  Waiver  of restrictions.--The taxpayer shall at any time (whether or not a notice of deficiency has been issued) have the right  to  waive the restriction on assessment and collection of the whole or any part of the   deficiency   by   a  signed  notice  in  writing  filed  with  the administrator.  (g) Deficiency defined.--For purposes of this local law, a  deficiency means  the  amount  of  the  tax imposed by this local law, less (1) the amount shown as the tax upon the taxpayer's return (whether  the  return was  made or the tax computed by him or by the administrator), and less, (2) the amounts previously assessed (or collected without assessment) as a deficiency and plus (3) the amount of any rebates. For the purpose  of this  definition, the tax imposed by this local law and the tax shown on the return shall both  be  determined  without  regard  to  payments  on account of estimated tax or the credit for withholding tax; and a rebate means  so  much  of  an  abatement,  credit,  refund  or other repayment (whether or not erroneous) made on the ground that the amounts  entering into  the  definition  of  a deficiency showed a balance in favor of the taxpayer.