NY Tax L § 1092 (2021)
2021 New York Laws TAX - Tax Article 27 - Corporate Tax Procedure and Administration 1092 - Collection, Levy and Liens.

§ 1092. Collection, levy and liens.---(a) Collection procedures.---The taxes  imposed  by  articles  nine,  nine-a,  nine-b  or nine-c shall be collected by the tax commission, and it may establish the mode  or  time for  the  collection  of  any  amount due it under these articles if not otherwise specified. The tax commission  shall,  upon  request,  give  a receipt  for  any  sum collected under such articles. The tax commission may authorize  banks  or  trust  companies  which  are  depositaries  or financial  agents of the state to receive and give a receipt for any tax imposed under such articles in such manner, at  such  times,  and  under such  conditions  as  the  tax  commission  may  prescribe;  and the tax commission shall prescribe the manner, times and conditions under  which the  receipt  of  such  tax  by  such banks and trust companies is to be treated as payment of such tax to the tax commission.  (b) Notice and demand for tax.---The tax commission shall as  soon  as practicable  give  notice to each taxpayer liable for any amount of tax, addition to tax, penalty  or  interest,  which  has  been  assessed  but remains  unpaid,  stating the amount and demanding payment thereof. Such notice shall be left at the principal office of  the  taxpayer  in  this state  or  shall  be sent by mail to such taxpayer's last known address. Except where the tax commission  determines  that  collection  would  be jeopardized  by  delay,  if  any  tax is assessed prior to the last date (including any date fixed by extension) prescribed for payment  of  such tax, payment of such tax shall not be demanded until after such date.  (c)  Issuance of warrant after notice and demand.---If any corporation or other person liable under articles nine or nine-a for the payment  of any tax, addition to tax, penalty or interest neglects or refuses to pay the  same  within  twenty-one  calendar  days  after  notice  and demand therefor is given to such corporation or other person  under  subsection (b)  of  this  section  (ten  business days if the amount for which such notice and demand  is  made  equals  or  exceeds  one  hundred  thousand dollars),  the  commissioner may within six years after the date of such assessment issue  a  warrant  under  the  commissioner's  official  seal directed to the sheriff of any county of the state, or to any officer or employee  of  the  department,  commanding him to levy upon and sell the real and personal property of such corporation or other person  for  the payment  of the amount assessed, with the cost of executing the warrant, and to return such warrant to the commissioner and pay to him or her the money collected by virtue thereof within sixty days after the receipt of the warrant. If the commissioner finds that the collection of the tax or other amount is in jeopardy, notice and demand for immediate payment  of such  tax may be made by the commissioner and upon failure or refusal to pay such tax or other  amount  the  commissioner  may  issue  a  warrant without  regard  to  the  twenty-one  day  period  (or ten-day period if applicable)  provided  in  this  subsection.    For  purposes  of   this subsection,  the  term  corporation shall include an exempt QSSS of such corporation.  (d) Copy of warrant to be filed and lien to be created.---Any  sheriff or officer or employee who receives a warrant under subsection (c) shall within  five  days  thereafter  file  a  copy  with  the  clerk  of  the appropriate county. The clerk shall  thereupon  enter  in  the  judgment docket,  in  the  column  for judgment debtors, the name of the taxpayer mentioned in the warrant, and in appropriate columns the  tax  or  other amounts  for  which the warrant is issued and the date when such copy is filed; and such amount shall thereupon be a lien upon the title  to  and interest in real, personal and other property of the taxpayer. Such lien shall not apply to personal property unless such warrant is filed in the department of state.  For purposes of this subsection, the term taxpayer shall include an exempt QSSS of such taxpayer.  (e)  Judgment.---When  a  warrant has been filed with the county clerk the tax commission shall, in the right of the people of the state of New York, be deemed to have obtained judgment against the taxpayer  for  the tax  or  other  amounts.    For  purposes  of  this subsection, the term taxpayer shall include an exempt QSSS of such taxpayer.  (f)  Execution.---The  sheriff  or officer or employee shall thereupon proceed upon the warrant in all respects, with like effect, and  in  the same  manner  prescribed  by law in respect to executions issued against property upon judgments of a court of record, and  a  sheriff  shall  be entitled  to the same fees for his services in executing the warrant, to be collected  in  the  same  manner.  An  officer  or  employee  of  the department of taxation and finance may proceed in any county or counties of  this  state  and shall have all the powers of execution conferred by law upon sheriffs, but shall be entitled to no fee  or  compensation  in excess  of  actual expenses paid in connection with the execution of the warrant.  (g) Foreign corporations.---Where a notice and demand under subsection (b) shall have been given to a foreign corporation or other  person  who is  not then a resident, and it appears to the tax commission that it is not  practicable  to  find  in  this  state  property  of  such  foreign corporation  or  nonresident person sufficient to pay the entire balance of tax or other amount owing by such foreign corporation or  nonresident person, the tax commission may, in accordance with subsection (c), issue a  warrant  directed  to  an  officer  or  employee of the department of taxation and finance, a  copy  of  which  warrant  shall  be  mailed  by certified  or registered mail to such foreign corporation or nonresident person at its last known address,  subject  to  the  rules  for  mailing provided  in  subsection  (a)  of section one thousand eighty-one.  Such warrant shall command the officer  or  employee  to  proceed  in  Albany county,  and  he  shall,  within five days after receipt of the warrant, file the warrant and obtain a judgment in accordance with this  section. Thereupon the tax commission may authorize the institution of any action or proceeding to collect or enforce the judgment in any place and by any procedure that a civil judgment of the supreme court of the state of New York could be collected or enforced. The tax commission may also, in its discretion,  designate  agents  or  retain  counsel  for  the purpose of collecting, outside the state of New York, any unpaid  taxes,  additions to  tax,  penalties  or  interest  which  have  been assessed under this article or under article nine, nine-a, nine-b or nine-c, against foreign corporations or other nonresident persons, may fix the  compensation  of such  agents  and  counsel  to  be  paid  out  of  money appropriated or otherwise lawfully available for payment thereof,  and  may  require  of them  bonds  or  other  security  for  the faithful performance of their duties, in such form and in such amount as the tax commission shall deem proper and sufficient.   For  purposes  of  this  subsection,  the  term corporation shall include an exempt QSSS of such corporation.  (h)  Action by state for recovery of taxes.---Action may be brought by the attorney general at the instance of the tax commission in  the  name of  the  state  to  recover the amount of any unpaid taxes, additions to tax, penalties or interest which have been assessed under  this  article or  under  article nine, nine-a, nine-b or nine-c within six years prior to the date the action is commenced.  (i) Release of lien.---The  tax  commission,  if  it  finds  that  the interests  of  the  state will not thereby be jeopardized, and upon such conditions as it may require, may release any property from the lien  of any  warrant  filed  under  subsection  (d)  or  (g)  for  unpaid taxes, additions to tax, penalties and interest filed pursuant to this section,  and such release may be recorded in the office of any recording  officer in which such warrant has been filed.  (j)  Lien from due date of return.---(1) In addition to any other lien provided for in this section, each tax imposed by article nine,  nine-a, nine-b  or nine-c shall become a lien on the date on which the return is required to be filed (without regard to any extension of time for filing such return), except that such tax shall become a lien  not  later  than the  date  the  taxpayer  ceases to be subject to the tax imposed by any such article or to exercise its franchise, or to  do  business  in  this state  in  a  corporate  or organized capacity. Each such tax shall be a lien and binding upon the real and personal property of the taxpayer, or of a transferee liable to pay the same, until the same is paid in  full, except  that  no  lien  for any additional tax assessed pursuant to this article shall  be  enforceable  against  property  which  prior  to  the issuance  to  the  taxpayer  of a notice of deficiency under section one thousand eighty-one had been transferred in good faith to  a  bona  fide transferee  for value. But the lien of each such tax shall be subject to the lien of any mortgage indebtedness  existing  against  real  property previous  to the time when the tax became a lien and where such mortgage indebtedness has been incurred in good faith and was not given, directly or indirectly, to any officer or stockholder of the  corporation  owning such  real  property, whether as a purchase money mortgage or otherwise, and shall also be subject to the lien of local  taxes  and  assessments, without  regard to when the lien for such taxes and assessments may have accrued. If the return is filed and the tax shown on the  report  to  be due  is paid on or before the date on which the report is required to be filed, without regard to any extensions of time for filing such  report, the  lien shall not be enforceable against the interest of any purchaser or mortgagee in property which is thereafter, but prior to the  issuance to  the  taxpayer  of  a notice of deficiency under section one thousand eighty-one, transferred to a bona fide purchaser for value, or mortgaged where the mortgage indebtedness  is  incurred  in  good  faith  and  the mortgage  is  not  given,  directly  or  indirectly,  to  any officer or stockholder of the corporation. In any  action  to  foreclose  any  such mortgage,  or  to  foreclose  the lien of local taxes or assessments, to which the people of the state of New York shall have been made  a  party defendant  by  reason of the existence of a lien for any such tax, or if no such tax was due or was a lien at the time  of  the  commencement  of such action and the filing of the notice of pendency thereof, but such a tax  becomes  due  or  becomes  a  lien  subsequent  to  the time of the commencement of such action and the filing of  the  notice  of  pendency thereof,  such  real  property shall be sold and conveyed in such action free from any such tax lien, and any such tax lien may become a lien  on any  surplus moneys which may result from such sale, to be determined in the proceedings for the distribution of such surplus moneys. Where title to real property passes from an individual, or from a corporation  owing no  franchise  tax,  to another corporation which is in default for such tax, the lien herein provided shall not be enforceable except as to  any equity  after the prior mortgage or purchase money mortgage encumbrance. For purposes of this paragraph, the terms taxpayer and corporation shall include an exempt QSSS of such taxpayer or corporation.  (2) The tax commission may,  upon  application  made  to  it  and  the payment  of  a  fee of fifty dollars, release any real property from the lien under  this  subsection,  provided  payment  be  made  to  the  tax commission  of  such  a  sum  as  the tax commission shall deem adequate consideration for such release, or deposit be made of such  security  or such  bond  be  filed  as the tax commission shall deem proper to secure payment of any such tax. The application for such release shall  contain  an  accurate  description  of  the property to be released together with such other information as the tax commission may require.  Such  release may  be  recorded  in any office in which conveyances of real estate are entitled to be recorded.  (3)  All  taxes,  additions  to tax, penalties and interest which have become a lien under this subsection shall cease to be a lien  after  the expiration of twenty years from date they become due and payable, except that taxes, additions to tax, penalties and interest which have become a lien under this subsection (i) as to real estate in the hands of persons who  are  owners  thereof  who would be purchasers in good faith but for such taxes, additions to tax, penalties or interest and (ii) as  to  the lien  on  real  estate of mortgages held by persons who would be holders thereof in good faith but for such taxes, additions to tax, penalties or interest, as against such purchasers or holders shall cease to be a lien after the expiration of ten years from date they become due and payable. The limitations herein provided for shall not apply to any transfer from a corporation to a person or corporation with intent to avoid payment of any taxes, or where with like intent the transfer is made to  a  grantee corporation,  or  any subsequent grantee corporation, controlled by such grantor or which has any community of interest with it,  either  through stock ownership or otherwise.