2023 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.