2023 New York Laws › TAX - Tax › Article 1 - Short Title; Definitions; Miscellaneous › 25 - Disclosure of Certain Transactions and Related Information.

* §  25.  Disclosure  of certain transactions and related information.
(a) (1) Every taxpayer, or person as defined in section  seven  thousand
seven  hundred  one  of  the  internal  revenue code, required to file a
disclosure statement with  the  internal  revenue  service  pursuant  to
section  six  thousand  eleven  of  the  internal  revenue  code, or the
regulations promulgated thereunder, related to a reportable  transaction
or  a  listed transaction, as those terms are defined in such section or
regulations, must attach a duplicate of such disclosure statement to the
return or report required to be filed by such taxpayer or person for the
taxable year under article nine, nine-A, twenty-two or  thirty-three  of
this  chapter,  and  provide  such  other  information  related  to such
disclosure as prescribed by the commissioner. Such disclosure  shall  be
made  notwithstanding that one member of an affiliated group, as defined
by section fifteen hundred four of the internal revenue code,  may  file
such disclosure statement with the internal revenue service on behalf of
its affiliates including such taxpayer or person.
(2)  Every  taxpayer  or  such  person  who participates in a New York
reportable  transaction  for  a  taxable   year   must   disclose   such
participation  with  its  return  or  report  required to be filed under
article nine, nine-A, twenty-two or thirty-three of this chapter for the
taxable year in a form prescribed by the commissioner, and provide  such
other  information  related  to  such  transaction  as prescribed by the
commissioner. A New York reportable transaction is  a  transaction  that
has the potential to be a tax avoidance transaction as determined by the
commissioner.
(3)  The  commissioner may in his discretion prescribe, by regulation,
New York reportable transactions.
(4) Provided the commissioner has prescribed regulations  pursuant  to
paragraph  three  of  this subdivision the commissioner is authorized to
designate specific transactions that are the same as,  or  substantially
similar  to, transactions that the commissioner has determined to be tax
avoidance transactions. The provisions  of  article  two  of  the  state
administrative  procedure  act  shall  not apply to the designation of a
specific transaction as a tax avoidance transaction; provided,  however,
that  the commissioner shall designate any such transaction by notice or
other form of published guidance.
(b)(1) Every person required to make and file a  statement  or  return
pursuant  to  section  six  thousand  one hundred eleven of the internal
revenue code  must  file  a  duplicate  of  such  statement  or  return,
including all documentation submitted to the internal revenue service in
connection  with  such statement or return, with the commissioner if any
of the following conditions apply:
(A) the person is organized in this state,
(B) the person is doing business in this state,
(C) the person is deriving income in this state, or
(D) (i) the list required to be maintained by such person pursuant  to
section  six  thousand  one  hundred twelve of the internal revenue code
identifies or is required to identify a taxpayer subject  to  tax  under
article nine, nine-A, twenty-two or thirty-three of this chapter, and
(ii)  such  person  is  a  material advisor, as defined in section six
thousand one hundred eleven of the internal revenue code,  who  provides
any  material  aid,  assistance,  or  advice with respect to organizing,
managing,  promoting,  selling,  implementing,  or  carrying   out   any
reportable transaction.
(2) Such duplicate statement or return must be filed within sixty days
of the later of:
(A)  the  date  required  for  filing the statement or return with the
internal revenue service,
(B) the date that any of the conditions described in paragraph (1)  of
this subdivision first applies, or
(C) ninety days after the enactment of this section.
(c)  Every  person  who  is  required  to  maintain  a list of persons
pursuant to section six thousand one  hundred  twelve  of  the  internal
revenue code, or the regulations promulgated thereunder, must maintain a
duplicate  of  such list if any of the conditions described in paragraph
one of subdivision (b) of this section applies to such person  and  must
furnish  a  copy  thereof  to  the commissioner within twenty days after
written request is made for such list by the commissioner.
(d) Every person required by this section to disclose any transaction,
file any duplicate  return,  or  maintain  any  list  shall  retain  all
relevant  correspondence,  memoranda,  notes, valuation studies, meeting
minutes, spreadsheets, models, opinions, records required to be retained
pursuant to section six thousand eleven of the internal revenue code, or
the  regulations  promulgated  thereunder,  and  all  other  records  or
documents  related  to  the  disclosure,  filing  and  list  maintenance
requirements  of  this  section  for  six  years  and  must  make   such
information  available  for inspection by the commissioner in connection
with any examination.
(e) The filing, disclosure and retention requirements of this  section
shall  be  in  addition  to  any  other  filing, disclosure or retention
requirements, general or specific, provided by law. The commissioner may
require electronic filing  or  disclosure  of  any  or  all  submissions
required  under  this  section,  shall  have  the authority to prescribe
whether a signature, including an electronic signature, is  required  on
any  or  all filings or disclosures under this section. If an electronic
signature is so required, it shall be in  a  form  consistent  with  the
provisions  of  the  electronic  signatures and records act of the state
technology law.
(f)(1) The penalties imposed for a violation  of  subdivision  (a)  of
this  section  are  contained  in  subsection (x) of section six hundred
eighty-five and subsection (p) of section one  thousand  eighty-five  of
this chapter.
(2)  The  penalties imposed for a violation of subdivision (b) of this
section  are  contained  in  subsection  (y)  of  section  six   hundred
eighty-five  and  subsection  (q) of section one thousand eighty-five of
this chapter.
(3) The penalties imposed for a violation of subdivision (c)  of  this
section   are  contained  in  subsection  (z)  of  section  six  hundred
eighty-five and subsection (r) of section one  thousand  eighty-five  of
this chapter.
* NB Repealed July 1, 2029