2023 New York Laws › TAX - Tax › Article 22 - Personal Income Tax › Part 6 - Procedure and Administration › 697 - General Powers of Tax Commission.

§  697.  General  powers  of  tax  commission.--(a)  General.--The tax
commission shall administer and enforce the tax imposed by this  article
and  it is authorized to make such rules and regulations, and to require
such facts and information to be reported, as it may deem  necessary  to
enforce  the  provisions  of this article. The tax commission may divide
the state into districts in  each  of  which  a  branch  office  may  be
maintained  by it, but in no case shall a county be divided in forming a
district.
(b) Examination of books and witnesses.--(1) The  tax  commission  for
the  purpose  of  ascertaining the correctness of any return, or for the
purpose of making an estimate of taxable income  of  any  person,  shall
have  power  to  examine  or  to cause to have examined, by any agent or
representative designated by it for that  purpose,  any  books,  papers,
records or memoranda bearing upon the matters required to be included in
the  return,  and may require the attendance of the person rendering the
return or any officer or employee of such person, or the  attendance  of
any  other  person  having  knowledge  in  the  premises,  and  may take
testimony and require proof material for its information, with power  to
administer oaths to such person or persons.
(2) The tax commission may take any action under paragraph one of this
subdivision  to inquire into the commission of an offense connected with
the administration or enforcement of this  article,  provided,  however,
that  notwithstanding the provisions of section one hundred seventy-four
of this chapter no such action shall be taken when  a  referral  by  the
department  or  the  tax  commission to the attorney general, a district
attorney or any other  prosecutorial  agency  is  in  effect.  Provided,
however,  the  tax  commission  shall have power, during the period when
such referral is in effect, to examine or to cause to have examined,  by
any  agent  or  representative  designated  by  it for that purpose, any
books, papers, records or memoranda bearing upon the matters required to
be included  in  the  return,  where  such  books,  papers,  records  or
memoranda are in its possession, or where such books, papers, records or
memoranda  are  in  the  possession  of  the  attorney general, district
attorney or other prosecutorial agency to which such referral is made.
(c) Abatement authority.--The tax commission, of its own  motion,  may
abate  any  small  unpaid balance of an assessment of income tax, or any
liability in respect thereof, if the  tax  commission  determines  under
uniform  rules  prescribed  by it that the administration and collection
costs involved would not warrant collection of the amount  due.  It  may
also  abate,  of its own motion, the unpaid portion of the assessment of
any tax or any liability in  respect  thereof,  which  is  excessive  in
amount,  or is assessed after the expiration of the period of limitation
properly applicable thereto, or is erroneously or illegally assessed. No
claim for abatement under this subsection shall be filed by a taxpayer.
(d) Special refund authority.--Where no questions of fact or  law  are
involved  and it appears from the records of the tax commission that any
moneys have been erroneously or illegally collected from any taxpayer or
other person, or paid by such taxpayer or other person under  a  mistake
of facts, pursuant to the provisions of this article, the tax commission
at any time, without regard to any period of limitations, shall have the
power, upon making a record of its reasons therefor in writing, to cause
such  moneys  so  paid  and  being  erroneously and illegally held to be
refunded and to issue therefor its certificate to the comptroller.
(e) Secrecy requirement and penalties for  violation.--(1)  Except  in
accordance  with  proper judicial order or as otherwise provided by law,
it shall be unlawful for the commissioner, any officer  or  employee  of
the  department, any person engaged or retained by such department on an
independent contract basis, any depositary to which any  return  may  be

delivered  as  provided  in  subsection  (h) or (i) of this section, any
officer or employee of such depositary, or any person who,  pursuant  to
this  section, is permitted to inspect any report or return or to whom a
copy,  an abstract or a portion of any report or return is furnished, or
to whom any information contained in any report or return is  furnished,
to  divulge  or  make  known  in  any manner the amount of income or any
particulars set forth or disclosed in  any  report  or  return  required
under  this  article, under section one hundred seventy-one-a or section
one hundred seventy-one-h of this chapter, or  under  this  article  and
article eighteen of the labor law.
(2)  The officers charged with the custody of such reports and returns
shall not be required to produce any of them  or  evidence  of  anything
contained  in  them  in any action or proceeding in any court, except on
behalf of  the  commissioner  in  an  action  or  proceeding  under  the
provisions  of  this  chapter  or  in  any  other  action  or proceeding
involving the collection of a tax due under this chapter  to  which  the
state  or the commissioner is a party or a claimant, or on behalf of any
party to any action or proceeding under the provisions of this  article,
or  under  the  provisions  of  this article and article eighteen of the
labor law, when the reports, returns or facts shown thereby are directly
involved in such action or proceeding, in any of which events the  court
may  require  the  production  of, and may admit in evidence, so much of
said reports, returns or of the facts shown thereby, as are pertinent to
the  action  or  proceeding  and  no   more.   The   commissioner   may,
nevertheless, publish a copy or a summary of any decision rendered after
the  hearing  required  under  section  six  hundred eighty-nine of this
article.
(3) Nothing herein shall be construed to prohibit the department,  its
officers  or  employees  from  furnishing  information  to the office of
temporary and disability assistance  relating  to  the  payment  of  the
credit  for  certain household and dependent care services necessary for
gainful employment under subsection (c) of section six  hundred  six  of
this  article  and  the  earned  income  credit  under subsection (d) of
section six hundred six of this article and the enhanced  earned  income
credit  under  subsection  (d-1)  of  section  six  hundred  six of this
article, or pursuant  to  a  local  law  enacted  by  a  city  having  a
population  of one million or more pursuant to subsection (f) of section
thirteen hundred ten of this chapter, only to the  extent  necessary  to
calculate   qualified   state  expenditures  under  paragraph  seven  of
subdivision (a) of section four  hundred  nine  of  the  federal  social
security  act or to document the proper expenditure of federal temporary
assistance for needy families funds under section four hundred three  of
such  act.  The  office  of  temporary  and  disability  assistance  may
redisclose such information to the United States  department  of  health
and  human  services  only  to  the  extent  necessary to calculate such
qualified state expenditures or to document the  proper  expenditure  of
such  federal  temporary  assistance  for  needy families funds. Nothing
herein shall be construed to prohibit the delivery by  the  commissioner
to  a commissioner of jurors, appointed pursuant to section five hundred
four of the judiciary law,  or,  in  counties  within  cities  having  a
population  of  one million or more, to the county clerk of such county,
or to the clerk of the court or jury administrator of  a  United  States
district  court  appointed  pursuant to title twenty-eight of the United
States Code, section 1836(b)(2), of a mailing  list  of  individuals  to
whom  income  tax  forms  are  mailed  by  the commissioner for the sole
purpose of compiling a list of prospective jurors as provided in article
sixteen of the judiciary law or title twenty-eight of the United  States
Code. Provided, however, such delivery shall only be made pursuant to an

order  of  the  chief administrator of the courts, appointed pursuant to
section two hundred ten of the judiciary law or  an  order  of  a  chief
judge  of  any  United  States district court in New York State. No such
order  may  be  issued unless such chief administrator or chief judge of
such United States district court is satisfied that such mailing list is
needed to compile a proper list of prospective jurors for the county  or
such  United  States  district  court for which such order is sought and
that, in view of the responsibilities imposed by the various laws of the
state on the department, it is reasonable to require the commissioner to
furnish such list. Such order shall provide that such list shall be used
for the sole purpose of compiling a list of prospective jurors and  that
such commissioner of jurors, or such county clerk, or clerk of the court
or  jury  administrator  of such United States district court shall take
all necessary steps to insure that the list  is  kept  confidential  and
that   there  is  no  unauthorized  use  or  disclosure  of  such  list.
Furthermore, nothing herein shall be construed to prohibit the  delivery
to  a  taxpayer  or  his  or  her  duly  authorized  representative of a
certified copy of any return or report filed in connection with  his  or
her tax or to prohibit the publication of statistics so classified as to
prevent  the  identification  of  particular  reports or returns and the
items thereof, or the inspection by the attorney general or other  legal
representatives  of the state of the report or return of any taxpayer or
of any employer filed under section one hundred  seventy-one-h  of  this
chapter, where such taxpayer or employer shall bring action to set aside
or review the tax based thereon, or against whom an action or proceeding
under  this  chapter  or  under this chapter and article eighteen of the
labor law has been recommended by the commissioner, the commissioner  of
labor  with  respect  to unemployment insurance matters, or the attorney
general or has been instituted, or the  inspection  of  the  reports  or
returns   required  under  this  article  by  the  comptroller  or  duly
designated officer or employee of the  state  department  of  audit  and
control,  for  purposes  of  the  audit of a refund of any tax paid by a
taxpayer under this article, or the furnishing to the  state  department
of  labor of unemployment insurance information obtained or derived from
quarterly  combined  withholding,  wage   reporting   and   unemployment
insurance  returns  required  to  be  filed  by  employers  pursuant  to
paragraph four of subsection (a) of section six hundred seventy-four  of
this  article,  for  purposes  of  administration  of  such department's
unemployment insurance program, employment services program, federal and
state employment and training programs, employment statistics and  labor
market   information   programs,  worker  protection  programs,  federal
programs for which the department has administrative  responsibility  or
for  other  purposes  deemed  appropriate  by  the commissioner of labor
consistent with the provisions of the labor  law,  and  redisclosure  of
such  information  in  accordance  with  the provisions of sections five
hundred thirty-six and five hundred thirty-seven of the labor law or any
other applicable law, or the furnishing to the state office of temporary
and disability assistance of information obtained or  derived  from  New
York  state personal income tax returns as described in paragraph (b) of
subdivision two of section one hundred seventy-one-g of this chapter for
the purpose of reviewing support orders enforced pursuant to title six-A
of article three of the social services law to aid in the  determination
of  whether  such  orders  should  be  adjusted,  or  the  furnishing of
information obtained from  the  reports  required  to  be  submitted  by
employers  regarding  newly  hired  or  re-hired  employees  pursuant to
section one hundred seventy-one-h of this chapter to the state office of
temporary and disability assistance, the state department of health, the
state department of  labor  and  the  workers'  compensation  board  for

purposes  of  administration  of  the child support enforcement program,
verification of individuals' eligibility for one or more of the programs
specified in subsection (b) of section eleven  hundred  thirty-seven  of
the federal social security act and for other public assistance programs
authorized  by  state  law, and administration of the state's employment
security  and  workers'  compensation  programs,  and  to  the  national
directory  of  new  hires  established  pursuant to section four hundred
fifty-three-A of the  federal  social  security  act  for  the  purposes
specified  in  such  section,  or  the furnishing to the state office of
temporary and disability assistance of the amount of an  overpayment  of
income  tax  and  interest  thereon  certified  to the comptroller to be
credited against  past-due  support  pursuant  to  section  one  hundred
seventy-one-c of this chapter and of the name and social security number
of  the  taxpayer  who  made  such overpayment, or the disclosing to the
commissioner of finance of the city of New York, pursuant to section one
hundred seventy-one-l of this chapter, of the amount of  an  overpayment
and interest thereon certified to the comptroller to be credited against
a  city of New York tax warrant judgment debt and of the name and social
security number of the  taxpayer  who  made  such  overpayment,  or  the
furnishing  to  the New York state higher education services corporation
of the amount of an overpayment  of  income  tax  and  interest  thereon
certified  to  the  comptroller  to  be credited against the amount of a
default in repayment of any education loan  debt,  including  judgments,
owed to the federal or New York state government that is being collected
by  the New York state higher education services corporation, and of the
name  and  social  security  number  of  the  taxpayer  who  made   such
overpayment,  or the furnishing to the state department of health of the
information required by paragraph (f) of subdivision two and subdivision
two-a of section two thousand five hundred eleven of the  public  health
law and by subdivision eight of section three hundred sixty-six-a of the
social  services  law,  or the furnishing to the state university of New
York or the city university of New York  respectively  or  the  attorney
general  on  behalf  of  such  state or city university the amount of an
overpayment  of  income  tax  and  interest  thereon  certified  to  the
comptroller  to be credited against the amount of a default in repayment
of a state university loan pursuant to section one hundred seventy-one-e
of this chapter and of the  name  and  social  security  number  of  the
taxpayer who made such overpayment, or the disclosing to a state agency,
pursuant  to  section  one hundred seventy-one-f of this chapter, of the
amount  of  an  overpayment  and  interest  thereon  certified  to   the
comptroller  to  be credited against a past-due legally enforceable debt
owed to such agency and of the name and social security  number  of  the
taxpayer  who  made  such overpayment, or the furnishing of employee and
employer  information  obtained  through  the  wage  reporting   system,
pursuant  to section one hundred seventy-one-a of this chapter, as added
by chapter five hundred forty-five  of  the  laws  of  nineteen  hundred
seventy-eight,   to   the  state  office  of  temporary  and  disability
assistance, the department of health or  to  the  state  office  of  the
medicaid  inspector general for the purpose of verifying eligibility for
and entitlement to amounts of benefits under the social services law  or
similar  law  of  another jurisdiction, locating absent parents or other
persons legally  responsible  for  the  support  of  applicants  for  or
recipients  of  public assistance and care under the social services law
and persons legally responsible  for  the  support  of  a  recipient  of
services  under  section one hundred eleven-g of the social services law
and, in appropriate cases, establishing support obligations pursuant  to
the social services law and the family court act or similar provision of
law  of another jurisdiction for the purpose of evaluating the effect on

earnings of participation in  employment,  training  or  other  programs
designed  to  promote self-sufficiency authorized pursuant to the social
services law by current recipients of public assistance and care and  by
former  applicants and recipients of public assistance and care, (except
that with regard to former recipients, information which  relates  to  a
particular  former  recipient  shall be provided with client identifying
data  deleted),  to  the  state  office  of  temporary  and   disability
assistance  for  the purpose of determining the eligibility of any child
in the custody, care and custody or custody and guardianship of a  local
social  services  district  or  of  the  office  of  children and family
services for federal payments for foster care  and  adoption  assistance
pursuant  to the provisions of title IV-E of the federal social security
act  by  providing  information  with  respect  to  the   parents,   the
stepparents,  the child and the siblings of the child who were living in
the same household as  such  child  during  the  month  that  the  court
proceedings  leading  to  the  child's  removal  from the household were
initiated, or the written instrument transferring care  and  custody  of
the   child   pursuant  to  the  provisions  of  section  three  hundred
fifty-eight-a or three hundred eighty-four-a of the social services  law
was signed, provided however that the office of temporary and disability
assistance  shall  only  use  the  information obtained pursuant to this
subdivision for the purpose of determining the eligibility of such child
for federal payments for foster care and adoption assistance pursuant to
the provisions of title IV-E of the federal social security act, and  to
the  state  department  of labor, or other individuals designated by the
commissioner of labor, for the purpose of  the  administration  of  such
department's   unemployment   insurance   program,  employment  services
program, federal and state employment and training programs,  employment
statistics  and  labor  market  information  programs, worker protection
programs, federal programs for which the department  has  administrative
responsibility   or   for  other  purposes  deemed  appropriate  by  the
commissioner of labor consistent with the provisions of the  labor  law,
and  redisclosure  of such information in accordance with the provisions
of sections five hundred thirty-six and five hundred thirty-seven of the
labor law, or the furnishing of information, which is obtained from  the
wage   reporting   system  operated  pursuant  to  section  one  hundred
seventy-one-a  of  this  chapter,  as  added  by  chapter  five  hundred
forty-five  of  the laws of nineteen hundred seventy-eight, to the state
office of temporary and disability assistance so  that  it  may  furnish
such  information  to  public agencies of other jurisdictions with which
the state office of temporary and disability assistance has an agreement
pursuant to paragraph (h) or (i) of subdivision three of section  twenty
of  the  social  services  law, and to the state office of temporary and
disability assistance for the  purpose  of  fulfilling  obligations  and
responsibilities otherwise incumbent upon the state department of labor,
under  section one hundred twenty-four of the federal family support act
of nineteen hundred eighty-eight, by giving the federal  parent  locator
service,  maintained  by  the  federal  department  of  health and human
services, prompt access to such information as required by such act,  or
to  the state department of health to verify eligibility under the child
health insurance plan pursuant to subdivisions two and two-a of  section
two  thousand  five  hundred  eleven of the public health law, to verify
eligibility under the medical assistance and family health plus programs
pursuant to subdivision eight of section three  hundred  sixty-six-a  of
the  social  services law, and to verify eligibility for the program for
elderly pharmaceutical insurance coverage under title three  of  article
two  of  the  elder  law, or to the office of vocational and educational
services for individuals with disabilities of the education  department,

the   commission   for   the   blind  and  any  other  state  vocational
rehabilitation agency, for purposes of obtaining reimbursement from  the
federal  social  security  administration  for expenditures made by such
office,  commission or agency on behalf of disabled individuals who have
achieved economic self-sufficiency or to the higher  education  services
corporation  for  the  purpose  of  assisting the corporation in default
prevention and default collection  of  education  loan  debt,  including
judgments,  owed  to the federal or New York state government; provided,
however, that such information shall be limited  to  the  names,  social
security  numbers, home and/or business addresses, and employer names of
defaulted or delinquent student loan borrowers, or to the office of  the
state  comptroller  for  purposes  of  verifying the income of a retired
member of a retirement system or pension plan administered by the  state
or any of its political subdivisions who returns to public employment.
Provided,  however,  that  with  respect  to  employee information the
office of temporary and disability assistance shall  only  be  furnished
with the names, social security account numbers and gross wages of those
employees who are (A) applicants for or recipients of benefits under the
social services law, or similar provision of law of another jurisdiction
(pursuant  to  an agreement under subdivision three of section twenty of
the social services law) or, (B) absent parents or other persons legally
responsible for the support of applicants for or  recipients  of  public
assistance  and  care under the social services law or similar provision
of  law  of  another  jurisdiction  (pursuant  to  an  agreement   under
subdivision  three of section twenty of the social services law), or (C)
persons legally responsible for the support of a recipient  of  services
under section one hundred eleven-g of the social services law or similar
provision of law of another jurisdiction (pursuant to an agreement under
subdivision  three of section twenty of the social services law), or (D)
employees  about  whom  wage  reporting  system  information  is   being
furnished  to  public  agencies  of  other jurisdictions, with which the
state office of temporary and disability  assistance  has  an  agreement
pursuant  to paragraph (h) or (i) of subdivision three of section twenty
of the social services law, or (E) employees about whom  wage  reporting
system  information  is  being  furnished  to the federal parent locator
service, maintained by  the  federal  department  of  health  and  human
services,  for the purpose of enabling the state office of temporary and
disability  assistance  to  fulfill  obligations  and   responsibilities
otherwise  incumbent  upon  the state department of labor, under section
one hundred twenty-four of the federal family support  act  of  nineteen
hundred  eighty-eight,  and,  only  if,  the  office  of  temporary  and
disability assistance certifies to the commissioner  that  such  persons
are  such  applicants,  recipients,  absent  parents  or persons legally
responsible for support or  persons  about  whom  information  has  been
requested  by  a public agency of another jurisdiction or by the federal
parent locator service  and  further  certifies  that  in  the  case  of
information  requested under agreements with other jurisdictions entered
into pursuant to subdivision three  of  section  twenty  of  the  social
services  law,  that  such  request is in compliance with any applicable
federal law. Provided, further, that where the office of  temporary  and
disability  assistance  requests employee information for the purpose of
evaluating the effects  on  earnings  of  participation  in  employment,
training   or   other  programs  designed  to  promote  self-sufficiency
authorized pursuant to the social services law, the office of  temporary
and  disability  assistance  shall  only be furnished with the quarterly
gross wages (excluding any reference to the name, social security number
or any other information which could be used to identify any employee or
the name or identification number of any employer) paid to employees who

are former applicants for or recipients of public  assistance  and  care
and  who are so certified to the commissioner by the commissioner of the
office of temporary and disability assistance. Provided,  further,  that
with  respect  to  employee  information, the department of health shall
only  be  furnished  with  the  information  required  pursuant  to  the
provisions  of paragraph (f) of subdivision two and subdivision two-a of
section two thousand five hundred eleven of the public  health  law  and
subdivision  eight  of  section  three hundred sixty-six-a of the social
services law, with respect to those individuals whose eligibility  under
the  child health insurance plan, medical assistance program, and family
health plus program is to be determined pursuant to such provisions  and
with  respect  to those members of any such individual's household whose
income affects such individual's eligibility and who are so certified to
the commissioner or by the department of health. Provided, further, that
wage  reporting  information  shall  be  furnished  to  the  office   of
vocational and educational services for individuals with disabilities of
the  education  department,  the  commission for the blind and any other
state vocational rehabilitation agency only if such  office,  commission
or  agency,  as  applicable,  certifies  to  the  commissioner that such
information is necessary to obtain reimbursement from the federal social
security administration for expenditures  made  on  behalf  of  disabled
individuals  who  have  achieved  self-sufficiency.  Reports and returns
shall be preserved for three years and thereafter until the commissioner
orders them to be destroyed.
(3-a)  Notwithstanding  the  provisions  of  paragraph  one  of   this
subsection,  the commissioner may disclose to a taxpayer or a taxpayer's
related member, as defined in subsection  (r)  of  section  six  hundred
twelve  of  this  article,  information  relating  to  any royalty paid,
incurred or received by such taxpayer or related member to or  from  the
other,  including  the treatment of such payments by the taxpayer or the
related member in any report or return transmitted to  the  commissioner
under this chapter.
(4)  (A)  Any  officer or employee of the state who willfully violates
the provisions of this subsection shall be dismissed from office and  be
incapable  of  holding  any  public office in this state for a period of
five years thereafter.
(B) Cross-reference: For criminal penalties, see article  thirty-seven
of this chapter.
(f)   Cooperation   with   the   United  States  and  other  states.--
Notwithstanding the provisions of subsection (e), the tax commission may
permit the secretary of  the  treasury  of  the  United  States  or  his
delegates, or the proper tax officer of any state imposing an income tax
upon  the  incomes  of  individuals, or the authorized representative of
either such officer, to inspect any return filed under this article,  or
may furnish to such officer or his authorized representative an abstract
of  any  such  return  or supply him with information concerning an item
contained in any such return, or disclosed by any investigation  of  tax
liability  under  this  article, but such permission shall be granted or
such information furnished to such officer or his representative only if
the laws of the United States or of such other state, as  the  case  may
be,  grant substantially similar privileges to the commission or officer
of this state charged with the administration of the tax imposed by this
article and such information is to be used for tax  purposes  only;  and
provided further the commissioner of taxation and finance may furnish to
the  commissioner  of  internal revenue or his authorized representative
such returns filed under this article and other tax information,  as  he
may  consider  proper, for use in court actions or proceedings under the
internal revenue code,  whether  civil  or  criminal,  where  a  written

request  therefor  has  been  made  to  the commissioner of taxation and
finance by the secretary of the treasury of the  United  States  or  his
delegates,  provided  the  laws of the United States grant substantially
similar  powers to the secretary of the treasury of the United States or
his delegates. Where the commissioner of taxation  and  finance  has  so
authorized  use  of  returns  and  other  information in such actions or
proceedings, officers and employees of the department  of  taxation  and
finance  may  testify  in such actions or proceedings in respect to such
returns or other information.
(f-1) Cooperation with investigations by  certain  committees  of  the
United   States   Congress.--(1)   Notwithstanding   the  provisions  of
subsection  (e)  of  this  section,  upon  written  request   from   the
chairperson  of  the  committee  on  ways and means of the United States
House of Representatives, the chairperson of the committee on finance of
the United States Senate, or the chairperson of the joint  committee  on
taxation  of  the United States Congress, the commissioner shall furnish
such committee with  any  current  or  prior  year  reports  or  returns
specified  in  such  request  that  were filed under this article by the
president of the United States, vice-president  of  the  United  States,
member of the United States Congress representing New York state, or any
person  who  served  in  or  was employed by the executive branch of the
government of the United States on the executive staff of the president,
in the executive office of the president, or in an acting  or  confirmed
capacity  in  a  position  subject  to confirmation by the United States
senate; or, in New York state: a statewide elected official, as  defined
in  paragraph  (a)  of subdivision one of section seventy-three-a of the
public officers  law;  a  state  officer  or  employee,  as  defined  in
subparagraph  (i)  of  paragraph  (c) of subdivision one of such section
seventy-three-a; a political party chairperson, as defined in  paragraph
(h)  of subdivision one of such section seventy-three-a; a local elected
official, as defined in  subdivisions  one  and  two  of  section  eight
hundred  ten  of the general municipal law; a person appointed, pursuant
to law, to serve due to vacancy or otherwise in the position of a  local
elected  official,  as  defined  in  subdivisions one and two of section
eight hundred ten of the general municipal law; a member  of  the  state
legislature; or a judge or justice of the unified court system; provided
however that, prior to furnishing any report or return, the commissioner
shall  redact any copy of a federal return (or portion thereof) attached
to, or any information on a federal return that is  reflected  on,  such
report  or  return, and any social security numbers, account numbers and
residential address information.
(2) No  reports  or  returns  shall  be  furnished  pursuant  to  this
subsection  unless the chairperson of the requesting committee certifies
in writing that such reports or returns have been requested related  to,
and  in  furtherance  of,  a  legitimate  task of the Congress, that the
requesting committee has made a written request  to  the  United  States
secretary  of  the  treasury  for  related  federal  returns  or  return
information, pursuant to 26 U.S.C. Section 6103(f),  and  that  if  such
requested  reports  or  returns  are  inspected  by  and/or submitted to
another committee, to the United States House of Representatives, or  to
the  United  States Senate, then such inspection and/or submission shall
occur in a manner  consistent  with  federal  law  as  informed  by  the
requirements and procedures established in 26 U.S.C. Section 6103(f).
(g)   Cooperation   with   the  cities  of  the  state  of  New  York.
Notwithstanding the provisions of subsection (e), the tax commission may
permit the proper city officer of any city of  the  state  of  New  York
imposing  a  personal  income  tax  upon the incomes of residents, or an
unincorporated business income tax, or an earnings tax on  nonresidents,

or  the  authorized  representative  of any such officer, to inspect any
return filed under  this  article,  or  article  twenty-three  (as  such
article  was in effect on or before December thirtieth, nineteen hundred
eighty-two),   or   may  furnish  to  such  officer  or  his  authorized
representative an abstract  of  any  such  return  or  supply  him  with
information  concerning  an  item  contained  in  any  such  return,  or
disclosed by any investigation of tax liability under  this  article  or
article  twenty-three  (as  such  article  was  in  effect  on or before
December thirtieth, nineteen hundred eighty-two),  but  such  permission
shall  be  granted  or such information furnished to such officer or his
representative only if the local laws of such city  grant  substantially
similar  privileges  to  the commission or officer of this state charged
with the administration of the tax imposed  by  this  article  and  such
information  is  to  be used for tax purposes only; and provided further
the commissioner of taxation  and  finance  may  furnish  to  such  city
officer  or  the  legal  representative  of such city such returns filed
under this article or article  twenty-three  (as  such  article  was  in
effect on or before December thirtieth, nineteen hundred eighty-two) and
other  tax  information,  as  he  may  consider proper, for use in court
actions or proceedings under such local law, whether civil or  criminal,
where  a  written  request therefor has been made to the commissioner of
taxation and finance by such city officer or his delegate, provided  the
local  law of such city grants substantially similar powers to such city
officer or his delegate. Where the commissioner of taxation and  finance
has  so  authorized use of returns and other information in such actions
or proceedings, officers and employees of the department of taxation and
finance may testify in such actions or proceedings in  respect  to  such
returns or other information.
(h) Withholding returns.--Notwithstanding the provisions of subsection
(e)  of  this  section the tax commission in its discretion, when making
deposits,  pursuant  to  section  six  hundred  ninety-eight,  of  taxes
withheld  by  employers,  may  deliver to the depositary the withholding
returns filed by such employers  as  provided  in  section  six  hundred
seventy-four,  for  the  purpose of insuring that all money so deposited
shall be correctly credited to taxpayers' accounts.
(i)  Filing  returns  and  making  payments  to  depository   banks.--
Notwithstanding  the  provisions  of subsection (e) of this section, the
tax commission, in its discretion, may require  or  permit  any  or  all
individuals,  estates  or  trusts  liable  for  any  tax imposed by this
article, to make payments on account of estimated tax and payment of any
tax, penalty or interest imposed  by  this  article  to  banks,  banking
houses  or  trust companies designated by the tax commission and to file
reports and returns which such banks, banking houses or trust  companies
as  agents  of the tax commission, in lieu of making any such payment to
the tax commission. However, the tax  commission  shall  designate  only
such  banks,  banking  houses  or  trust  companies  as  are or shall be
designated by the comptroller as depositories pursuant  to  section  six
hundred ninety-eight.
(j)  Authority  to set interest rates.--(1) The commissioner shall set
the overpayment and underpayment rates of interest to be  paid  pursuant
to  sections  six  hundred  eighty-four, six hundred eighty-five and six
hundred eighty-eight of this part, but if no such rates of interest  are
set,  such overpayment rate shall be deemed to be set at six percent per
annum and such underpayment rate shall be deemed to be set at seven  and
one-half  percent per annum. Such rates shall be the rates prescribed in
paragraphs two and four of this subsection, but  the  underpayment  rate
shall  not  be  less than seven and one-half percent per annum. Any such
rates set by the commissioner shall  apply  to  taxes,  or  any  portion

thereof,  which remain or become due or overpaid on or after the date on
which such rates become effective and shall apply only with  respect  to
interest  computed  or  computable  for  periods  or portions of periods
occurring in the period during which such rates are in effect.
(2)  Rates  of interest. (A) Overpayment rate. The overpayment rate of
interest set under this subsection shall be the sum of (i)  the  federal
short-term  rate  as  provided under paragraph three of this subsection,
plus (ii) two percentage points.
(B) Underpayment rate. The underpayment rate  of  interest  set  under
this  subsection  shall be the sum of (i) the federal short-term rate as
provided under paragraph three of this subsection, plus  (ii)  five  and
one-half percentage points.
(3) Federal short-term rate. For purposes of this subsection:
(A)  The  federal  short-term  rate for any month shall be the federal
short-term rate  determined  by  the  United  States  secretary  of  the
treasury  during such month in accordance with subsection (d) of section
twelve hundred seventy-four of the internal  revenue  code  for  use  in
connection  with  section  six  thousand  six  hundred twenty-one of the
internal revenue code. Any such rate shall be  rounded  to  the  nearest
full  percent  (or,  if a multiple of one-half of one percent, such rate
shall be increased to the next highest full percent).
(B) Period during which rate applies.
(i) In general. Except as provided in clauses (ii) and (iii)  of  this
subparagraph,  the  federal  short-term rate for the first month in each
calendar quarter shall apply during the first calendar quarter beginning
after such month.
(ii) Special rule for individual estimated  tax.  In  determining  the
addition  to tax under subsection (c) of section six hundred eighty-five
for failure to pay estimated tax  for  any  taxable  year,  the  federal
short-term  rate  which  applies  during  the  third month following the
taxable year shall also apply during  the  first  fifteen  days  of  the
fourth month following such taxable year.
(iii)  Special  rule  for  the  month  of  September, nineteen hundred
eighty-nine. The  federal  short-term  rate  for  the  month  of  April,
nineteen  hundred  eighty-nine  shall  apply with respect to setting the
rate  of  interest  for  the  month  of  September,   nineteen   hundred
eighty-nine.
(4) Notwithstanding the provisions of paragraph two of this subsection
to  the  contrary,  in  the case of interest payable by an employer with
respect to income taxes required to be withheld and  paid  over  by  him
pursuant to the provisions of part five of this article and with respect
to interest payable to an employer pursuant to subsection (c) of section
six hundred eighty-six, the rates of interest prescribed by this section
shall  be  the overpayment and underpayment rates of interest prescribed
in paragraph two of subsection (e) of section one thousand ninety-six of
this chapter.
(5) In computing the amount of any interest required to be paid  under
this  article  by  the  commissioner  of  taxation and finance or by the
taxpayer, or any other amount determined by reference to such amount  of
interest,  such  interest and such amount shall be compounded daily. The
preceding sentence shall not apply for purposes of computing the  amount
of any addition to tax for failure to pay estimated tax under subsection
(c) of section six hundred eighty-five.
(6)  Publication  of  interest rates. The commissioner of taxation and
finance shall publish the interest rates set under  this  subsection  on
the  website  of  the  department  of  taxation and finance. Immediately
following such publication, the commissioner shall cause  such  interest
rates  to  be  published in the section for miscellaneous notices in the

state register  and  give  other  appropriate  general  notice  of  such
interest rates. The setting and publication of such interest rates shall
not  be  included within paragraph (a) of subdivision two of section one
hundred  two  of  the state administrative procedure act relating to the
definition of a rule.
(7) Cross-reference. For provisions  relating  to  the  power  of  the
commissioner of taxation and finance to abate small amounts of interest,
see subsection (c) of this section.
(k)  (1)  For  school aid payable in the school years nineteen hundred
eighty-five--eighty-six         through         nineteen         hundred
ninety-three--ninety-four,  notwithstanding the provisions of subsection
(e) of this section, the department or authorized vendor  contracted  by
the  department  shall  furnish,  as  required  pursuant  to subdivision
twenty-fifth of section one hundred seventy-one of this chapter, to  the
commissioner   of  education  and  school  district  superintendents  of
identified  school  districts  and  district  superintendents  appointed
pursuant  to section nineteen hundred fifty of the education law, having
an identified school district  within  their  supervisory  district,  an
ordered  listing,  for such identified school districts participating in
the temporary school district address review validation  and  correction
process,  of  the  permanent  resident  address of each taxpayer who has
filed a personal income tax return with the  department  with  a  school
district  code  which  indicates that the taxpayer is a resident of such
school district at the close of the taxable year for  which  the  return
was filed.
(2)   For   school  aid  payable  in  school  years  nineteen  hundred
eighty-eight--eighty-nine        through        nineteen         hundred
ninety-three--ninety-four,  notwithstanding the provisions of subsection
(e) of this section, a receiver school district may review  the  ordered
listing  wherein  an identified school district that participated in the
temporary school  district  address  review  validation  and  correction
process  identified  personal  income  tax  returns as belonging to such
receiver district. The information  provided  to  a  receiving  district
pursuant to this subdivision and subdivision twenty-fifth of section one
hundred seventy-one of this chapter shall be used solely for the purpose
of verifying the legal residence and school district of a taxpayer whose
return  was  identified as belonging to a receiver school district by an
identified school district.
(4) Notwithstanding the provisions of subsection (e) of this  section,
the  department  or  an  authorized  vendor contracted by the department
shall furnish, as  required  pursuant  to  subdivision  twenty-fifth  of
section  one hundred seventy-one of this chapter, to the superintendents
of schools of identified school districts and  district  superintendents
of  schools  appointed pursuant to section nineteen hundred fifty of the
education  law,  having  an  identified  school  district  within  their
supervisory  district,  an  ordered  listing, for such identified school
districts electing to participate in the appeals process for  a  limited
school district address review validation and correction process.
(5)  The information provided pursuant to this section and subdivision
twenty-fifth of section one hundred seventy-one of this chapter shall be
used solely for the purpose of verifying the legal residence and  school
district  of a taxpayer in determining the distribution of state aid for
education  and  such  information  may  only  be   disclosed   by   such
commissioner,  superintendents  and  authorized vendor contracted by the
department for  such  purposes  to  employees  of  the  state  education
department,  and to employees under the control of such superintendents.
In addition, notwithstanding the provisions of subsection  (e)  of  this
section,  the  department may furnish to an authorized vendor contracted

by the department the permanent resident address and  school  code  data
necessary  for  the  implementation  of  the  temporary  school district
address review validation and correction process, the pilot computerized
address   match  and  income  verification  project,  or  the  permanent
computerized  statewide  school  district  address  match   and   income
verification  system pursuant to subdivision twenty-fifth of section one
hundred seventy-one of this chapter. Any violation of the provisions  of
this  section  shall  be  punishable  in  the  manner  provided  for  in
subsection (e) of this section. Any information obtained by  any  agency
or person pursuant to the provisions of this section shall not be deemed
a  "record", as defined in subdivision four of section eighty-six of the
public officers law.
(l) Exchange of information within the state department of labor.  (1)
Notwithstanding  any  provision  of  law  to  the  contrary,  the  state
department of labor shall furnish to the department information required
from employers pursuant to article eighteen of the labor  law,  and  the
department  shall  furnish  to  the  state department of labor, or other
individuals designated by the commissioner of labor who are  engaged  in
purposes deemed appropriate by the commissioner of labor consistent with
the provisions of the labor law, withholding tax information obtained or
derived  pursuant  to  part V of this article, or pursuant to equivalent
provisions enacted under the authority of article  thirty,  thirty-A  or
thirty-B  of  this  chapter,  and  taxpayer  identification  information
acquired  under  any  of  the  provisions  of  this  chapter,  for   tax
administration and employment security program purposes.
(2)(A)  For  purposes of this subsection, the term "tax administration
purposes" means and includes:
(i)  the   administration,   management,   conduct,   direction,   and
supervision  of  the  execution  and  application  of  any  tax, special
assessment, fee or other imposition administered by the commissioner,
(ii) the development and  formulation  of  state  policy  relating  to
existing or proposed tax laws and related statutes, and
(iii) the assessment, collection, enforcement, litigation, publication
and statistical gathering functions under such laws or statutes.
(B) For purposes of this subsection, the term "employment security and
public   assistance   work  program  purposes"  means  the  unemployment
insurance programs administered by the commissioner of labor pursuant to
the labor law and those employment and training programs with respect to
which the department of labor has administrative, reporting, monitoring,
or evaluating responsibilities.
(3) Information obtained by the department from the  state  department
of  labor  pursuant  to  the  provisions  of  this  subsection  shall be
confidential, and shall not be disclosed or redisclosed except  for  tax
administration  and  employment  security  and public assistance program
purposes.
(4)  The  commissioner  shall  enter  into  an  agreement   with   the
commissioner  of  the  state  department of labor in order to ensure the
confidentiality of tax and unemployment insurance information  and  that
such information is disclosed only for authorized purposes in connection
with  the  implementation of the provisions of this subsection and those
provisions of subsection (e) of this section  relating  to  unemployment
insurance  information  obtained  or  derived  by  the  department  from
quarterly  combined  withholding,  wage   reporting   and   unemployment
insurance  returns  required  to  be filed pursuant to paragraph four of
subsection (a) of section six hundred seventy-four of this article.
(m)  Disclosure  of  collection  activities  with  respect  to   joint
return.--Notwithstanding  the  provisions  of  subsection  (e)  of  this
section, if any deficiency of tax with respect  to  a  joint  return  is

assessed and the individuals filing such return are no longer married or
no  longer  reside  in  the  same  household, upon request in writing by
either of such individuals, the commissioner shall disclose  in  writing
to  the  individual  making  the  request  whether  the commissioner has
attempted to collect such deficiency from  such  other  individual,  the
general  nature of such collection activities, and the amount collected.
The preceding sentence shall not apply to any deficiency which  may  not
be collected by reason of the expiration of time within which to issue a
warrant  under  subsection (c) of section six hundred ninety-two of this
article or within which to collect such tax by execution and levy or  by
court proceeding.
(n)  Disclosure  of  certain information where more than one person is
subject to penalty.--If the commissioner determines  that  a  person  is
liable  for  a  penalty  under  subsection  (g)  of  section six hundred
eighty-five of this article with respect to any failure, upon request in
writing of such person, the commissioner shall disclose  in  writing  to
such  person  (1) the name of any other person whom the commissioner has
determined to be liable for such penalty with respect to  such  failure,
and  (2)  whether the commissioner has attempted to collect such penalty
from  such  other  person,  the  general  nature  of   such   collection
activities, and the amount collected.
(o)   Exchange  of  information  with  the  office  of  temporary  and
disability assistance.--Notwithstanding any  provision  of  law  to  the
contrary,  the  department  shall furnish to the office of temporary and
disability assistance, or as  designated  by  the  commissioner  of  the
office  of  children and family services, to employees of a local social
services district who are engaged in  the  process  of  determining  the
eligibility  of children in the custody, care and custody or custody and
guardianship of a local social services district  for  federal  payments
for  foster  care  and adoption assistance pursuant to the provisions of
title IV-E of the federal social security act, the name, social security
number and wages of the parents, the  stepparents,  the  child  and  the
siblings  of  the child who were living in the same household as a child
who is in the custody, care and custody or custody and guardianship of a
local social services district or of the office of children  and  family
services  during  the  month  that  the court proceedings leading to the
child's removal from  the  household  were  initiated,  or  the  written
instrument  transferring  care  and custody of the child pursuant to the
provisions of section  three  hundred  fifty-eight-a  or  three  hundred
eighty-four-a  of  the social services law was signed; provided however,
that the office of temporary and disability assistance  or  such  social
services  district  shall  only use the information obtained pursuant to
this subsection for the purpose of determining the eligibility  of  such
child  for  federal  payments  for  foster  care and adoption assistance
pursuant to the provisions of title IV-E of the federal social  security
act.