2023 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.