NY Tax L § 1613-C (2021)
2021 New York Laws TAX - Tax Article 34 - New York State Lottery for Education 1613-C - Crediting of Lottery Prizes Against Liabilities for Taxes Administered by the Commissioner.

§  1613-c.  Crediting  of lottery prizes against liabilities for taxes administered by the commissioner. (1) The director,  on  behalf  of  the division, shall enter into a written agreement with the commissioner, on behalf  of  the  department,  within sixty days of the effective date of this section, which will set  forth  procedures  for  crediting  lottery prizes  of  more  than six hundred dollars awarded to holders of winning lottery  tickets,  whether  individuals,   corporations,   associations, companies,  partnerships,  limited  liability partnerships or companies, partners, members, managers, estates,  trust  fiduciaries  or  entities, against  past  due  tax  liabilities  owed  by  such holders for any tax administered by the commissioner, about  which  the  director  has  been notified  by  the  commissioner  pursuant  to  the  provisions  of  such agreement.  (2) Such agreement shall apply to any past  due  tax  liability  which arises  from (i) an enforceable warrant or judgment, (ii) an enforceable determination of an administrative body which is no  longer  subject  to administrative   or   judicial   review,   or  (iii)  an  assessment  or determination (including self-assessment or self-assessed determination) which has become final or finally and irrevocably fixed  and  no  longer subject to administrative or judicial review.  (3) Such agreement shall include:  (a)  the procedure under which the department will notify the division of tax liabilities, including when the division will be notified and the content of that notification;  (b) the procedure for reimbursement of the division by the  department for  the cost of carrying out the procedures authorized by this section; and  (c) any other matters the parties to the agreement deem  necessary  to carry out the provisions of this section.  (4) Prior to awarding lottery prizes of more than six hundred dollars, the  division  shall  review  the  most recent notice of tax liabilities provided by the commissioner. For holders  of  winning  lottery  tickets identified  on  that notice, the division shall credit to the department the amount of each holder's prize necessary to satisfy that holder's tax liability, and the remainder of the prize shall be awarded to the holder of the winning ticket.  (5) If the division has also received a notice of liability of a prize winner for past-due support or public assistance  benefits  pursuant  to section sixteen hundred thirteen-a or sixteen hundred thirteen-b of this article, then the amount of any prize shall be first credited or applied to  the  income  tax required to be withheld by law, then as required by section sixteen hundred thirteen-a or sixteen hundred thirteen-b of this article, then to the past due tax liability as required by this section. The balance will then be paid to  the  holder  of  the  winning  lottery ticket.  (6)  The division shall certify to the comptroller the total amount of the lottery prize to be credited against past due  tax  liabilities  and the  remainder  of  the prize to be awarded to the holder of the winning lottery ticket.  (7) The division shall  notify  the  holder  of  the  winning  lottery ticket,  in  writing,  of the total amount of the lottery prize credited against past due tax liabilities and the remainder of the  prize  to  be awarded  to the holder. That notice must also advise the holder that the department will provide separate notice, in writing,  of  the  procedure for and time frame by which the holder may contest such crediting.  (8)  The  department  shall  notify  the holder of the winning lottery ticket, in writing, of the amount of a prize to be credited against past  due tax liabilities and the procedure for and time frame  by  which  the holder may contest the crediting of the prize.  (9) From the time the division is notified by the department of a past due  tax liability of a holder of a winning lottery ticket, the division shall be relieved from all liability to the  holder,  and  the  holder's heirs,  representatives, estate, successors or assigns for the amount of a prize certified to the comptroller to be credited against past due tax liabilities and the holder  and  the  holder's  heirs,  representatives, estate,  successor  or  assigns  shall have no right to commence a court action or proceeding or to any other legal recourse against the division to recover any amount  certified  to  the  comptroller  to  be  credited against past due tax liabilities. Provided however, nothing herein shall be  construed  to  prohibit a holder of a winning lottery ticket and the holder's heirs, representatives,  estate,  successors  or  assigns  from proceeding  against  the  department  to  recover  the part of the prize certified to the comptroller and credited to past  due  tax  liabilities which  is  greater  than  the amount of past due tax liabilities owed by that holder on the date of certification.  (10) Notwithstanding any law to the contrary, the department  and  its officers  and  employees may furnish to the division any abstract of any tax return or report, or any information concerning an item contained in any such return or report or  disclosed  by  any  investigation  of  tax liability  under  this  chapter,  but  only for the purpose of crediting lottery prizes against past due tax liabilities described in subdivision two of this section.