2023 New York Laws › TAX - Tax › Article 8 - Department of Taxation and Finance; Commissioner of Taxation and Finance › 173-A - Hearing Rights Upon Notice and Demand

§  173-a.  Hearing rights upon notice and demand. 1. Applicability and
construction. (a) Applicability. Except as otherwise  provided  in  this
section,  this  section  shall  apply  with  respect to any tax which is
administered by the commissioner and which is imposed by  or  authorized
to  be  imposed  pursuant  to  this  chapter  or any other law. Unless a
different meaning is clearly required, any reference to "tax" or "taxes"
in this section shall be deemed also to refer  to  special  assessments,
fees,  interest,  additions to tax, penalties or other impositions which
are administered by the commissioner.
(b) Exceptions to applicability. This section shall not apply  to  any
tax which is administered by the commissioner and which is imposed by or
authorized to be imposed pursuant to:
(i) Article ten of this chapter (taxable transfers - residents).
(ii) Article eleven of this chapter (tax on mortgages).
(iii)  Article  twelve  of this chapter (tax on transfers of stock and
other corporate certificates).
(c) Construction. The provisions of this section shall  supplement  or
be   in   addition   to   the   procedures  relating  to  collection  or
administration provided with respect to any tax covered by this section.
Where a  provision  of  this  section  is  inconsistent  with  any  such
provision with respect to such tax, the provisions of this section shall
apply.
2.  Corporate and personal income taxes. With respect to any tax which
incorporates or otherwise utilizes the procedures set forth in  part  VI
of   article   twenty-two  or  article  twenty-seven  of  this  chapter,
provisions of law which authorize the issuance of a  notice  and  demand
for  an  amount  without the issuance of a notice of deficiency for such
amount, including any interest, additions to tax  or  penalties  related
thereto,  in  cases of mathematical or clerical errors or failure to pay
tax shown on a  return,  or  authorize  the  issuance  of  a  notice  of
additional  tax  due,  including  any  interest,  additions  to  tax  or
penalties related thereto, shall be construed  as  specifically  denying
and modifying the right to a hearing with respect to any such notice and
demand  or notice of additional tax due for purposes of subdivision four
of section two thousand six of this chapter. Any such notice and  demand
or notice of additional tax due shall not be construed as a notice which
gives  a  person  the  right  to  a  hearing under article forty of this
chapter.
3. Sales and compensating use and miscellaneous taxes. With respect to
any tax to which this section  applies  and  which  is  not  covered  by
subdivision two of this section:
(a)  Final  determination.  The amount of tax which a return or report
shows to be due, the amount of tax which a return or report  would  have
shown  to  be  due  but for a mathematical or clerical error (including,
with respect to a tax payable by the purchase of stamps, the  amount  of
stamps  purchased)  or  the  amount  of penalty and any interest due for
failing to file a return or report or to pay or pay over any tax (or  to
pay  for  any  stamps  purchased)  to  the  commissioner within the time
required by or pursuant to any such tax  (but  not  including  any  such
penalty  or  interest  attributable to any amount of tax with respect to
which a notice of determination is  required  to  be  issued)  shall  be
deemed  to be finally determined to be due not later than on the date of
the filing of such return or report (including  any  amended  return  or
report  showing  an  increase  of  tax or in the case of the purchase of
stamps, such date of purchase). Such amount of tax, penalty or  interest
shall  be  paid  upon notice and demand and shall be assessed, collected
and paid in the manner provided for in each of the several taxes covered
under  this  subdivision  and  such  notice  and  demand  shall  not  be

considered  as  a  notice  of  determination  for  purposes of the taxes
covered under this subdivision. If a notice of  determination  has  been
mailed  with respect to a tax covered under this subdivision, the amount
of the determination shall be deemed to be finally and irrevocably fixed
on  the date specified in any such tax if no petition to the division of
tax appeals is filed, or, if a petition is filed,  then  upon  the  date
when a determination or decision rendered in the division of tax appeals
establishing  the  amount  of  the notice of determination becomes final
pursuant to article forty of this chapter.
(b) Notice  and  demand.  (1)  The  commissioner  shall,  as  soon  as
practicable,  give  notice  to each person liable for any amount of tax,
addition to tax, penalty or interest, which has been finally  determined
to  be  due or which has been finally and irrevocably fixed, as the case
may be, but remains unpaid, stating the  amount  and  demanding  payment
thereof.  Such  notice  shall  be left at the dwelling or usual place of
business of such person or shall be sent by mail to such  person's  last
known  address. Except where the commissioner determines that collection
would be jeopardized by delay and the applicable tax contains provisions
authorizing a jeopardy procedure, if any tax is finally determined to be
due or  is  finally  and  irrevocably  fixed  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. If
the commissioner finds that the determination, assessment or  collection
of  tax,  addition  to  tax,  penalty or interest is in jeopardy and the
applicable tax  contains  provisions  authorizing  procedures  regarding
early  determination,  the  commissioner  may  immediately determine the
amount of such tax, addition to tax, penalty or interest (whether before
or after the due date of any return or report required to show such tax,
addition to tax, penalty or interest)  and  assess  the  same  and  give
notice and demand for the payment thereof.
(2)  If  notice  and  demand  is  made for payment of any amount under
subparagraph one of this paragraph, and if such amount  is  paid  within
twenty-one calendar days (ten business days if the amount for which such
notice  and  demand  is  made  equals  or  exceeds  one hundred thousand
dollars) after the date of such notice and demand,  interest  under  the
applicable tax on the amount so paid shall not be imposed for the period
after the date of such notice and demand.
(c)  Hearing  rights  upon  notice and demand. Provisions of law which
authorize the issuance of a notice and demand for an amount without  the
issuance  of  a  notice  of determination for such amount, including any
interest  or  penalties  related  thereto,   shall   be   construed   as
specifically  denying  and modifying the right to a hearing with respect
to any such notice and  demand  for  purposes  of  subdivision  four  of
section  two  thousand  six  of this chapter in cases of mathematical or
clerical errors or failure to pay the tax due shown on the return or for
any stamps purchased, and any interest or penalties related thereto. Any
such notice and demand shall not be construed as a notice which gives  a
person the right to a hearing under article forty of this chapter.