2023 New York Laws › TAX - Tax › Article 36 - Compliance and Enforcement Initiatives › 1700 - Voluntary Disclosure and Compliance Program.

§    1700.   Voluntary   disclosure   and   compliance   program.   1.
Notwithstanding the provisions of any other law to the  contrary,  there
is  hereby established a voluntary disclosure and compliance program, as
described in this section, to be administered by the  commissioner,  for
all  eligible  taxpayers  as  described  in  this section, owing any tax
imposed or previously imposed under this chapter or administered by  the
commissioner.
2.  For  purposes  of  the voluntary disclosure and compliance program
established under this section, an eligible taxpayer is  an  individual,
partnership,  estate,  trust,  corporation,  limited  liability company,
joint stock company, or any other company, trustee, receiver,  assignee,
referee, society, association, business or any other person subject to a
tax imposed by or pursuant to the authority of this chapter or any other
law imposing administrative tax responsibilities on the commissioner and
who  meets  the  following  criteria:  (1) the taxpayer is not currently
under  audit  by  the  department;  (2)  the  taxpayer  is  one  who  is
voluntarily  disclosing a New York tax liability that the department has
not determined, calculated, researched or identified at the time of  the
disclosure;  (3)  the  taxpayer is not currently a party to any criminal
investigation being conducted by an agency of the state or any political
subdivision thereof; and (4) the taxpayer is  not  seeking  to  disclose
participation  in  a  tax avoidance transaction that is a federal or New
York state reportable or listed transaction.
3.  Under  the  voluntary  disclosure  and  compliance  program,  upon
execution  of  a  voluntary  disclosure  and compliance agreement by the
eligible taxpayer and the commissioner, the commissioner shall waive any
applicable  penalties  (including  the  additional  rate   of   interest
prescribed  under section eleven hundred forty-five of this chapter) for
the following: (1) failure to pay any such tax liability; (2) failure to
file a return or report with respect to any such tax liability; and  (3)
failure  to  pay  estimated  tax.  In  addition,  no  criminal action or
proceeding shall be brought against an eligible taxpayer relating to the
tax liability  covered  by  the  agreement.  This  agreement  shall  not
preclude the auditing of the returns filed to determine if those returns
were   completed   in  accordance  with  existing  law  and  regulation.
Intentional failure  to  pay  all  the  taxes,  plus  related  interest,
pursuant  to  the  voluntary disclosure and compliance agreement entered
into between the taxpayer and the  commissioner,  shall  invalidate  any
waiver  of  penalty, invalidate the forbearance of any administrative or
criminal action or proceeding.
4. To participate in the voluntary disclosure and compliance  program,
an  eligible taxpayer must apply by submitting a disclosure statement in
the form and manner  prescribed  by  the  commissioner.  The  disclosure
statement  shall contain all the information the commissioner reasonably
deems necessary to effectively administer the program. As  long  as  all
the  requirements of the voluntary disclosure and compliance program are
met, no application shall be denied  solely  because  the  taxpayer  has
admitted  that  the  delinquency was the result of willful or fraudulent
conduct.  Except in instances where the taxpayer has  failed  to  comply
with  the  terms of a voluntary disclosure and compliance agreement, the
commissioner shall not use the taxpayer's disclosure as evidence in  any
proceeding  brought  against  the taxpayer or reveal the contents of the
disclosure  to  any  law  enforcement  or  other  agency.  However,  the
disclosure  of  any returns or reports filed under this program with the
secretary of the treasury of the United States, his or her delegates, or
the proper tax officer of any state or city is  permitted  as  otherwise
provided for in this chapter.
5.  (a)  If  the taxpayer and the tax liability are eligible under the
voluntary  disclosure  and  compliance  program,  the  commissioner   is
authorized to enter into a voluntary disclosure and compliance agreement
with  the taxpayer. A voluntary disclosure and compliance agreement will
be  in  a  form  to  be established by the commissioner and include such
terms  as  the  commissioner  may  reasonably  require  to  satisfy  the
taxpayer's disclosed tax obligations and enable and require the taxpayer
to  comply with the tax law in the future. The taxpayer must pay the tax
and  the  related  interest  that  are  the  subject  of  the  voluntary
disclosure  and  compliance  agreement when the agreement is executed or
within the time  stated  on  a  bill  issued  to  the  taxpayer  by  the
commissioner.  In  the  event  the  commissioner  is  satisfied that the
taxpayer cannot  make  immediate  full  payment  of  the  disclosed  tax
liability,  the  commissioner  may  enter  into  an  installment payment
program with the taxpayer for the payment of the tax and  interest  due.
The  commissioner  may  require a financial disclosure statement setting
forth information concerning the taxpayer's current assets, liabilities,
earnings, and  other  financial  information  before  entering  into  an
installment  payment  plan  with  the taxpayer. In addition to any other
information and terms that the commissioner determines are  appropriate,
the voluntary disclosure and compliance agreement shall provide that, if
the  taxpayer  complies  with the terms of the compliance agreement, the
taxpayer will not be subject to any criminal tax prosecution in New York
state for the conduct disclosed by the taxpayer.
(b) If the taxpayer intentionally provides false material  information
or  omits  material  information  in  his  or  her  submissions  to  the
commissioner, or attempts to intentionally defeat or  evade  a  tax  due
pursuant  to the agreement executed under this article, or intentionally
fails to comply  with  the  terms  of  the  compliance  agreement,  such
agreement shall be deemed rescinded.
6.  Unless  the commissioner on his or her own motion redetermines the
amount of tax due, including applicable interest,  no  refund  shall  be
granted   or  credit  allowed  with  respect  to  any  taxes,  including
applicable interest, paid under this program.
7. The  commissioner  may  promulgate  regulations,  issue  forms  and
instructions,  and take any and all other actions necessary to implement
the provisions of  the  program  established  under  this  section.  The
commissioner shall publicize the program provided for in this section so
as to maximize public awareness of and participation in such program.
8.  For  purposes  of  this  section, the term "taxpayer" includes any
person required to collect any of the taxes specified in subdivision one
of this section.
9. The voluntary disclosure and compliance application, the disclosure
statement, the voluntary disclosure and compliance agreement, and  other
documents  filed  by  an  eligible  taxpayer  pursuant  to  the  program
established by this section are deemed to be reports and returns:
(a) subject to the secrecy provisions of  this  chapter  in  the  same
manner  and  to the same extent as if such documents were referred to in
any of the secrecy provisions of this chapter; and
(b) for purposes of the criminal provisions of article thirty-seven of
this chapter.