NY Tax L § 1083 (2021)
2021 New York Laws TAX - Tax Article 27 - Corporate Tax Procedure and Administration 1083 - Limitations on Assessment.

§  1083.  Limitations  on  assessment.---  (a)  General.---  Except as otherwise provided in this section, any tax under article nine,  nine-a, nine-b  or  nine-c shall be assessed within three years after the return was filed (whether or not such return was filed on  or  after  the  date prescribed).  (b) Time return deemed filed.---For purposes of this section, a return of  tax  filed  before  the last day prescribed by law or by regulations promulgated pursuant to law for the filing thereof shall be deemed to be filed on such last day.  (c) Exceptions.---  (1) Assessment at any time.---The tax may  be  assessed  at  any  time if---  (A) no return is filed,  (B) a false or fraudulent return is filed with intent to evade tax,  (C)  in  the  case  of the tax imposed under article nine-a, nine-b or nine-c, the taxpayer fails to file a report or amended  return  required under  subdivision  three  of  section two hundred eleven or section two hundred nineteen-bb  or  two  hundred  nineteen-zz,  in  respect  of  an increase  or  decrease  in federal taxable income or federal alternative minimum taxable income or federal tax, or in  respect  of  a  change  or correction  or  renegotiation,  or  computation or recomputation of tax, which is treated in the same manner as  if  it  were  a  deficiency  for federal income tax purposes, or  (D)  it is assessed in respect of a final determination of a refund or credit of retaliatory taxes or other charges as prescribed by paragraphs (1) and (2) of subsection (i) of section one  thousand  eighty-one.  For any  such  assessment,  the  amount  of  the assessment of tax shall not exceed the amount of the increase in New York tax attributable  to  such refund  or  credit. The provisions of this subparagraph shall not extend the time within which or affect the amount for which an  assessment  may otherwise be made.  (2) Extension by agreement.---Where, before the expiration of the time prescribed  in  this  section  for  the  assessment of tax, both the tax commission and the taxpayer have consented in writing to its  assessment after  such  time,  the  tax  may  be  assessed at any time prior to the expiration of the period agreed upon. The period so agreed upon  may  be extended  by subsequent agreements in writing made before the expiration of the period previously agreed upon.  (3) Report of changed or corrected federal income.---In  the  case  of the  tax imposed under article nine-a, nine-b or nine-c, if the taxpayer files a report or amended return required  under  subdivision  three  of section  two  hundred  eleven  or section two hundred nineteen-bb or two hundred nineteen-zz, in respect of an increase or  decrease  in  federal taxable  income or federal alternative minimum taxable income or federal tax, or in respect of  a  change  or  correction  or  renegotiation,  or computation or recomputation of tax, which is treated in the same manner as  if  it  were  a  deficiency  for  federal  income  tax purposes, the assessment (if not deemed to have been  made  upon  the  filing  of  the report or amended return) may be made at any time within two years after such  report  or amended return was filed. The amount of such assessment of tax shall not exceed the amount of  the  increase  in  New  York  tax attributable  to  such federal change or correction or renegotiation, or computation or recomputation of tax. The provisions  of  this  paragraph shall  not  affect  the  time  within  which  or the amount for which an assessment may otherwise be made.  (4) Deficiency attributable to carryback.---If  a  deficiency  of  tax under  article nine-a is attributable to the application to the taxpayer of a net operating loss carryback or a capital loss carryback, it may be  assessed at any time that a deficiency for the taxable year of the  loss may be assessed.  (5)  Recovery  of  erroneous  refund.---An  erroneous  refund shall be considered an underpayment of tax on the date made, and an assessment of a deficiency arising out of an erroneous refund may be made at any  time within  two  years  from  the  making  of  the  refund,  except that the assessment may be made within five years from the making of  the  refund if  it  appears  that  any  part  of  the refund was induced by fraud or misrepresentation of a material fact.  (6) Request for prompt assessment.---The tax shall be assessed  within eighteen months after written request therefor (made after the return is filed)  by the taxpayer or by a fiduciary representing the taxpayer, but not more than  three  years  after  the  return  was  filed,  except  as otherwise   provided   in  this  subsection  and  subsection  (d).  This subsection shall not apply unless---  (A) (i) such written request notifies  the  tax  commission  that  the taxpayer  contemplates  dissolution  at or before the expiration of such eighteen-month period, (ii) the  dissolution  is  in  good  faith  begun before  the  expiration  of  such  eighteen-month  period, and (iii) the dissolution is completed;  (B) (i) such written  request  notifies  the  tax  commission  that  a dissolution  has  in  good faith been begun, and (ii) the dissolution is completed; or  (C) a dissolution has been completed at the time such written  request is made.  (7)  Change  of  the  allocation of taxpayer's income or capital.---No change of the allocation of income or capital upon which the  taxpayer's return  (or  any additional assessment) was based shall be made where an assessment of tax is made during the  additional  period  of  limitation under  subparagraph (C) of paragraph (1), or under paragraph (3) or (4); and where any such assessment has  been  made,  or  where  a  notice  of deficiency  has  been  mailed  to  the taxpayer on the basis of any such proposed assessment, no change of the allocation of  income  or  capital shall be made in a proceeding on the taxpayer's claim for refund of such assessment  or  on  the  taxpayer's petition for redetermination of such deficiency.  (8) Report concerning waste treatment facility, air pollution  control facility   or   eligible  business  facility.  Under  the  circumstances described in subparagraph (3) of paragraph (g) of  subdivision  nine  of section  two  hundred  eight,  paragraph  (f)  of  subdivision eleven of section two hundred ten  or  paragraph  (f)  of  subdivision  eleven  of section  two hundred nineteen-q of this chapter, the tax may be assessed within three years  after  the  filing  of  the  report  containing  the information  required  by  such  paragraph,  or,  if  a  certificate  of compliance in respect to an air  pollution  control  facility  shall  be revoked,  within  three  years  after  the  tax commission shall receive notice  of  such  revocation  from  the  taxpayer  or  as  required   by subdivision  three  of section 19-0309 of the environmental conservation law, whichever notice is received earlier.  (9)  Reports  concerning  empire  zone  credits.   If   a   taxpayer's certification  under  article eighteen-B of the general municipal law is revoked with respect to an empire zone or zone equivalent area, any  tax liability  generated  by  reason of such decertification may be assessed within three years after the commissioner has received  notice  of  such decertification  as  required by subdivision (a) of section nine hundred fifty-nine of the general municipal law.  (10) Reports concerning a certificate of completion. If  a  taxpayer's certificate  of  completion  issued  pursuant  to section 27-1419 of the  environmental conservation law is  revoked  by  a  determination  issued pursuant  to  section 27-1419 of the environmental conservation law, any tax liability generated by reason of such  revocation  may  be  assessed within  one  year  after  such  determination  is final and is no longer subject to judicial review.   * (11)   Extended   statute   of   limitations   for   tax   avoidance transactions.--(A)  If a taxpayer fails to file, disclose or provide any statement, return or other information for any taxable year with respect to a listed transaction (as defined in paragraph three of subsection (p) of section one thousand eighty-five of this article) which  is  required under  subdivision  (a) of section twenty-five of this chapter, the time for assessment of any tax imposed by this article with respect  to  such transaction shall not expire before the date which is one year after the earlier of:  (i)  the  date  on  which the commissioner is furnished the statement, return, or information so required, or  (ii) the date that the requirements  of  subdivision  (c)  of  section twenty-five of this chapter are met with respect to a request under such subdivision by the commissioner relating to such transaction.  (B)  If  later than the time for assessment otherwise provided by this section, tax may be assessed at any time  within  six  years  after  the return  was  filed  if  the deficiency is attributable to an abusive tax avoidance transaction.  (C) For purposes of subparagraph (B) of this  paragraph,  an  "abusive tax  avoidance  transaction" means a plan or arrangement devised for the principal purpose of avoiding tax. Abusive  tax  avoidance  transactions include,  but  are  not  limited  to,  listed  transactions described in paragraph five of subsection (k-1) of section one  thousand  eighty-five of this article.   * NB Repealed July 1, 2024  (12)   Except  as  otherwise  provided  in  paragraph  three  of  this subsection, or as otherwise provided in  this  section  where  a  longer period  of  time  may  apply,  if a taxpayer files an amended return, an assessment of tax (if not deemed to have been made upon  the  filing  of the  amended  return),  including  recovery of a previously paid refund, attributable to a change or correction on  the  amended  return  from  a prior  return may be made at any time within one year after such amended return is filed.  (d) Omission of income on return.---The tax may  be  assessed  at  any time within six years after the return was filed if (i) a taxpayer omits from  gross  income  required  to  be reported on a return under article nine, nine-a, nine-b or nine-c an  amount  properly  includible  therein which  is in excess of twenty-five percent of the amount of gross income stated in the return or, (ii) a taxpayer omits from the sum of its items of tax preference and its adjustment  required  in  the  computation  of minimum taxable income an amount properly includible therein which is in excess of twenty-five percent of such sum as stated in the return.   For purposes of this subsection---  (1)  the  term  gross income means gross income for federal income tax purposes as reportable on a return  under  article  nine-a,  and  "gross earnings",  "gross  income",  "gross operating income" and "gross direct premiums less return premiums", as those terms are used in article nine, nine-b or nine-c, whichever is applicable;  (2) there shall not be taken into account any amount which is  omitted in  the  return  if  such  amount  is  disclosed  in the return, or in a statement attached to the return, in a manner adequate  to  apprise  the tax commission of the nature and amount of such item.  (e)  Suspension  of  running of period of limitation.---The running of the period of limitations on assessment or collection of  tax  or  other amount  (or  of  a transferee's liability) shall, after the mailing of a notice of deficiency, be suspended for the period during which  the  tax commission  is  prohibited  under subsection (c) of section one thousand eighty-one from making the assessment or from collecting by levy.