2023 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).