NY Tax L § 1555 (2021)
2021 New York Laws TAX - Tax Article 33-A - Tax on Independently Procured Insurance 1555 - Secrecy Required of Officials; Penalty for Violation.

§  1555.  Secrecy  required  of  officials; penalty for violation. (a) Except in accordance with the proper  judicial  order  or  as  otherwise provided  by  law, it shall be unlawful for the commissioner of taxation and finance, the superintendent of financial services,  any  officer  or employee of the department of taxation and finance, or the department of financial  services  or  any  person  who,  pursuant to this section, is permitted to inspect any return, or any person engaged  or  retained  by such  department  on an independent contract basis, or any person who in any manner may acquire knowledge of  the  contents  of  a  return  filed pursuant  to  this  article,  to divulge or make known in any manner any particulars set forth or disclosed in any  return  required  under  this article. The officers charged with the custody of such 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 state  or  the  commissioner  of  taxation  and finance in any 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 of  taxation  and  finance  is  a party or a claimant or on behalf of any party in an action or proceeding under  the  provisions  of  this article when the 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 returns or  the  facts  shown  thereby  as  are pertinent  to  the action or proceeding and no more. The commissioner of taxation and finance may, nevertheless, publish a copy or a  summary  of any determination or decision rendered after the hearing provided for in section  one  thousand  eighty-nine of this chapter. Notwithstanding any provisions of this section, the commissioner of taxation and finance may permit the  superintendent  of  financial  services  or  his  authorized representative to inspect the returns filed with such commissioner under this  article,  or  may furnish to such superintendent or his authorized representative an abstract of any return or supply him with  information concerning  an  item  contained  in  any  return,  or  disclosed  by  an investigation of tax liability under this article. Nothing herein  shall be  construed  to  prohibit  the  delivery  to  a  taxpayer  or its duly authorized representative of a certified copy of  any  return  filed  in connection with its tax nor to prohibit the publication of statistics so classified  as  to  prevent the identification of particular returns and the items thereof, or the inspection by the attorney  general  or  other legal  representatives  of the state of the return of any taxpayer which shall bring action to set aside or review  the  tax  based  thereon,  or against  which  an  action  or  proceeding  under  this chapter has been recommended by the commissioner of taxation and finance or the  attorney general  or has been instituted; or the inspection of the returns of any taxpayer 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  such  taxpayer  under  this article. The provisions of this section shall not be construed to prohibit  or  limit the  superintendent of financial services from divulging or making known any information pursuant to the authority of the insurance law and shall not be construed to prohibit the attorney general or  superintendent  of financial  services  or any officer or employee of the department of law or the department of financial services from using  information  derived independently  of  any  return filed under this article in any action or proceeding under the insurance law. Returns shall be preserved for three years and thereafter until the  commissioner  of  taxation  and  finance orders them to be destroyed.  (b)  (1)  Any  officer or employee of the state who willfully violates the provisions of subdivision (a) of this  section  shall  be  dismissed from  office and be incapable of holding any public office in this state for a period of five years thereafter.  (2)  Cross reference: For criminal penalties, see article thirty-seven of this chapter.  (c) Notwithstanding any provisions of this section,  the  commissioner of  taxation and finance may permit the secretary of the treasury of the United States or his delegates, or the proper officer of any other state charged with tax administration, or  the  authorized  representative  of either  of  such  officers,  to  inspect  the  returns  filed under this article, or may furnish to such officer or his authorized representative an abstract of any return or supply him with information  concerning  an item  contained  in  any return, or disclosed by an 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  commissioner  of taxation  and  finance  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 secretary of the treasury of the United States or his delegates 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 or his delegates provided the laws of the United  States  grant substantially  similar  powers  to  the secretary of the treasury or his delegates. Where  the  commissioner  of  taxation  and  finance  has  so authorized  use  of  returns  or  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 tax information.  (d) Notwithstanding the provisions of subdivision (a) of this section, the commissioner of taxation and finance may permit the officer  charged with the administration of a tax on or measured by income imposed by any city  of the state of New York, or the authorized representative of such officer, to inspect the returns filed under this article, or may furnish to such officer or his authorized representative an abstract of any such return or supply information concerning an item contained  in  any  such return,  or  disclosed  by  an 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 local laws of such city grant substantially similar privileges to the  commissioner of  taxation  and  finance  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 his delegates and the legal representative of  such  city  such  returns filed  under  this article 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 delegates or by such legal representative of such city, provided the local law of such city grants substantially similar powers to  the  city officer  charged  with  the administration of the city income tax or his delegates. Where  the  commissioner  of  taxation  and  finance  has  so  authorized  use  of  returns or other tax 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 tax information.  (e) Notwithstanding the provisions of subdivision (a) of this section, the commissioner of taxation and finance, in his discretion, may require or permit any or all persons liable for any tax imposed by this article, to  make payment of any tax, penalty or interest imposed by this article to  banks,  banking  houses  or  trust  companies  designated   by   the commissioner  of  taxation  and  finance  and  to  file applications for extensions of time to file returns, and returns with such banks, banking houses or trust companies as agents of the commissioner of taxation  and finance, in lieu of making any such payment directly to the commissioner of  taxation  and  finance.  However,  the  commissioner of taxation and finance shall  designate  only  such  banks,  banking  houses  or  trust companies   as  are  or  shall  be  designated  by  the  comptroller  as depositories pursuant to section fifteen  hundred  fifty-seven  of  this article.  (f)  (1)  Notwithstanding  the  provisions  of subdivision (a) 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 returns filed specified in such request  that  were  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; or filed  by  a  partnership,  firm,  association,  corporation, joint-stock  company,  trust  or  similar  entity directly or indirectly controlled by any  individual  listed  in  this  paragraph,  whether  by contract,  through  ownership  or control of a majority interest in such entity, or otherwise, or filed  by  a  partnership,  firm,  association, corporation,  joint-stock  company, trust or similar entity of which any individual listed in this paragraph holds ten percent  or  more  of  the voting  securities  of  such  entity;  provided  however  that, prior to furnishing any 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  return,  and any social security numbers, account numbers and residential address information.  (2) No returns shall be furnished pursuant to this subdivision  unless the  chairperson  of  the requesting committee certifies in writing that such 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 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   the requirements and procedures established in 26 U.S.C. Section 6103(f).