2023 New York Laws › TAX - Tax › Article 22 - Personal Income Tax › Part 6 - Procedure and Administration › 696 - Income Taxes of Members of Armed Forces, Astronauts, and Victims of Certain Terrorist Attacks.

§  696.  Income  taxes  of  members  of  armed forces, astronauts, and
victims of certain terrorist attacks.--(a) Time to  be  disregarded.--In
the  case  of  an  individual  serving in the armed forces of the United
States, or  serving  in  support  of  such  armed  forces,  in  an  area
designated by the president of the United States by executive order as a
"combat  zone" at any time during the period designated by the president
by executive order as the period of combatant activities in  such  zone,
or  when  deployed  outside the United States away from the individual's
permanent duty station while  participating  in  an  operation  that  is
either  designated  by  the  United  States  secretary  of  defense as a
"contingency operation" or which became a contingency operation  due  to
operation  of  law  during  the period of such contingency operation, or
hospitalized inside or outside the state as a result of injury  received
while  serving in such an area or operation during such time, the period
of service in such area or operation,  plus  the  period  of  continuous
hospitalization inside or outside the state attributable to such injury,
and the next one hundred eighty days thereafter, shall be disregarded in
determining,  under this article, in respect of the income tax liability
(including any interest, penalty,  or  addition  to  the  tax)  of  such
individual --
(1)  Whether  any  of the following acts was performed within the time
prescribed therefor:
(A) filing any return of income tax (except withholding tax);
(B) payment  of  any  income  tax  (except  withholding  tax)  or  any
installment  thereof  or of any other liability to the state, in respect
thereof;
(C) filing a petition with the tax commission for credit or refund  or
for  redetermination  of  a  deficiency,  or application for review of a
decision rendered by the tax commission;
(D) allowance of a credit or refund of income tax;
(E) filing a claim for credit or refund of income tax;
(F) assessment of income tax;
(G) giving or making any notice or  demand  for  the  payment  of  any
income  tax, or with respect to any liability to the state in respect of
income tax;
(H) collection, by the tax commission, by levy  or  otherwise  of  the
amount of any liability in respect of income tax;
(I)  bringing  suit  by  the  state, or any officer, on its behalf, in
respect of any liability in respect of income tax; and
(J) any  other  act  required  or  permitted  under  this  article  or
specified  in  regulations  prescribed  under  this  section  by the tax
commission.
(2) The amount of any credit or refund.
(b) Special rule for overpayments.  --  (1)  Subsection  (a)  of  this
section  shall  not  apply  for  purposes  of  determining the amount of
interest on any overpayment of tax.
(2) If an individual is entitled to the benefits of subsection (a)  of
this  section  with  respect to any return, amended return, or claim for
credit or refund, and such return, amended return  or  claim  is  timely
filed  (determined  after the application of such subsection), paragraph
three of subsection (a)  and  subsection  (c)  of  section  six  hundred
eighty-eight of this article shall not apply.
(c)  Action  taken  before  ascertainment  of  right to benefits.--The
assessment or collection of the tax imposed by this article  or  of  any
liability  to  the  state  in  respect  of  such  tax,  or any action or
proceeding by or on behalf of the state in connection therewith, may  be
made, taken, begun, or prosecuted in accordance with law, without regard
to  the  provisions  of subsection (a), unless prior to such assessment,

collection, action, or proceeding it  is  ascertained  that  the  person
concerned is entitled to the benefits of subsection (a).
(d)  Members  of  armed  forces  dying  in action.--In the case of any
person who dies while in active service as a member of the armed  forces
of  the  United States, if such death occurred while serving in a combat
zone during a period of combatant activities in such zone, as  described
in  subsection (a), or as a result of wounds, disease or injury incurred
while so serving, the tax imposed by this article shall not  apply  with
respect to the taxable year in which falls the date of his or her death,
or  with  respect to any prior taxable year ending on or after the first
day so served in a combat zone, and no  returns  shall  be  required  in
behalf  of  such  person or his or her estate for such year; and the tax
for any such taxable  year  which  is  unpaid  at  the  date  of  death,
including interest, additions to tax and penalties, if any, shall not be
assessed  and,  if  assessed,  the  assessment  shall  be abated and, if
collected, shall be refunded to the legal representative of such  estate
if   one  has  been  appointed  and  has  qualified,  or,  if  no  legal
representative has been appointed or has  qualified,  to  the  surviving
spouse.
(e) Treatment of individuals performing Desert Shield services. -- (1)
Any individual who performed Desert Shield services shall be entitled to
the  benefits  of  subsections  (a)  and (b) of this section in the same
manner as if such services were services referred to in  subsection  (a)
of this section.
(2) For purposes of this subsection, the term "Desert Shield services"
means  any  services  in  the  armed  forces  of the United States or in
support of such armed forces if
(A) such  services  are  performed  in  the  area  designated  by  the
president of the United States as the "Persian Gulf Desert Shield area",
and
(B)  such services are performed during the period beginning on August
second, nineteen hundred ninety, and ending on the  date  on  which  any
portion of the area referred to in subparagraph (A) of this paragraph is
designated  by  the  president  as a combat zone pursuant to section one
hundred twelve of the internal revenue code.
(f) Relief for personnel under hostile fire. -- For purposes  of  this
section,  members  of  the armed forces of the United States who perform
military service in an area outside an area designated by the  president
of  the  United  States  by  executive  order  as a "combat zone", which
service is in direct support of military operations in such zone and  is
performed  under  conditions which qualify such members for hostile fire
pay, as authorized under subdivision (a) of section nine of the  federal
uniformed  services  pay  act  of  nineteen  hundred sixty-three, shall,
during the period of such qualifying service, be deemed to  have  served
in such combat zone.
(g)  Application  to spouse.-- The provisions of subsections (a), (b),
(c), (e) and (f) of this section  shall  apply  to  the  spouse  of  any
individual  entitled  to the benefits of subsection (a) of this section;
provided, however, that such subsections shall not apply for any  spouse
for  any  taxable  year  beginning  more  than  two years after the date
designated under section one hundred twelve of the internal revenue code
as the date of termination of combatant activities in a combat zone.
(h)  Individuals  dying  as  a   result   of   certain   attacks   and
astronauts.--(1) General. In the case of a specified terrorist victim or
astronaut, any tax imposed by this article shall not apply--
(A) with respect to the taxable year in which falls the date of death;
and
(B)  with  respect  to  any prior taxable year in the period beginning
with the last taxable year ending before the taxable year in  which  the
wounds  or injury referred to in paragraph three of this subsection were
incurred.
(2)  Taxation  of  certain  benefits. Paragraph one of this subsection
shall not apply to the amount of any tax imposed by this  article  which
would be computed by only taking into account the items of income, gain,
or  other  amounts  determined  by  the  United  States secretary of the
treasury to be taxable pursuant to paragraph 692(d)(3) of  the  internal
revenue code.
(3)  Specified  terrorist victim. For purposes of this subsection, the
term "specified terrorist victim" means  any  decedent  who  dies  as  a
result of wounds or injury incurred as a result of the terrorist attacks
against  the  United  States  on  September  eleventh, two thousand one,
provided, however, such term shall not include any individual identified
by the attorney general of the United States to have been a  participant
or  conspirator  in  any  such  attack  or  a  representative of such an
individual.
(4) Astronaut. For purposes of this subsection, the  term  "astronaut"
means  any  astronaut  whose  death  occurs  in  the  line of duty after
December thirty-first, two thousand two.
(i) Collection period after assessment not extended  as  a  result  of
hospitalization.    With   respect   to   any   period   of   continuous
hospitalization described in subsection (a) and  the  next  one  hundred
eighty   days   thereafter,  subsection  (a)  shall  not  apply  to  the
collection, by the tax commission, by levy or otherwise of the amount of
any liability  pursuant  to  section  six  hundred  ninety-two  of  this
article.