S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  7238

                       2011-2012 Regular Sessions

                          I N  A S S E M B L Y

                             April 19, 2011
                               ___________

Introduced by M. of A. FARRELL -- (at request of the Department of Taxa-
  tion  and  Finance) -- read once and referred to the Committee on Ways
  and Means

AN ACT to amend the tax law, in relation to providing  a  limit  on  the
  time to collect tax liabilities

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. The tax law is amended by adding a  new  section  174-b  to
read as follows:
  S  174-B.  LIMITATION  ON  THE  TIME  TO COLLECT TAX LIABILITIES.   1.
NOTWITHSTANDING ANY PROVISION OF LAW  TO  THE  CONTRARY  AND  EXCEPT  AS
OTHERWISE  PROVIDED  IN  THIS  SECTION,  A  TAX  LIABILITY  SHALL NOT BE
ENFORCEABLE AND EVERY TAX LIABILITY SHALL BE EXTINGUISHED  AFTER  TWENTY
YEARS  FROM THE FIRST DATE A WARRANT COULD BE FILED BY THE COMMISSIONER,
WITHOUT REGARD TO WHETHER THE WARRANT IS FILED. THE FIRST DATE A WARRANT
COULD BE FILED MEANS THE DAY AFTER THE LAST DAY SPECIFIED FOR PAYMENT BY
THE NOTICE AND DEMAND ISSUED FOR THE TAX LIABILITY  WHERE  THERE  IS  NO
RIGHT TO A HEARING WITH RESPECT TO SUCH NOTICE AND DEMAND. THE FIRST DAY
A  WARRANT  COULD  BE  FILED  SHALL  BE  DETERMINED  WITHOUT  REGARD  TO
SUBSECTION (C) OF SECTION  SIX  HUNDRED  NINETY  OR  SUBSECTION  (C)  OF
SECTION  ONE  THOUSAND  NINETY  OF THIS CHAPTER, UNLESS THE COMMISSIONER
ASSESSES THE LIABILITY UNDER EITHER SUCH SUBSECTION (C). WHEN THERE IS A
RIGHT TO A HEARING WITH RESPECT TO A NOTICE AND DEMAND FOR A TAX LIABIL-
ITY, THE FIRST DATE A WARRANT COULD BE FILED MEANS THE DAY THAT OPPORTU-
NITY FOR A HEARING OR REVIEW HAS BEEN EXHAUSTED.
  2. THIS SECTION SHALL APPLY TO ANY TAX THAT  IS  ADMINISTERED  BY  THE
COMMISSIONER.  ANY  REFERENCE  TO  "TAX" IN THIS SECTION SHALL BE DEEMED
ALSO TO REFER TO SPECIAL ASSESSMENTS, FEES, INTEREST, ADDITIONS TO  TAX,
PENALTIES AND OTHER IMPOSITIONS THAT ARE ADMINISTERED BY THE COMMISSION-
ER.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD09470-01-1

              

A. 7238                             2

  3.  WHEN, BEFORE THE EXPIRATION OF THE TIME PRESCRIBED IN THIS SECTION
TO ENFORCE THE COLLECTION OF TAX, BOTH THE COMMISSIONER AND THE TAXPAYER
HAVE CONSENTED IN WRITING TO ITS COLLECTION AFTER  SUCH  TIME,  THE  TAX
LIABILITY  SHALL NOT BE EXTINGUISHED AND THE TAX MAY BE COLLECTED AT ANY
TIME  PRIOR  TO  THE EXPIRATION OF THE PERIOD AGREED UPON. THE PERIOD SO
AGREED UPON MAY BE EXTENDED BY ANY SUBSEQUENT AGREEMENT IN WRITING  MADE
BEFORE THE EXPIRATION OF THE PERIOD PREVIOUSLY AGREED UPON.
  4.  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.  FOR  PURPOSES  OF
SUBSECTION  (C)  OF SECTION SIX HUNDRED NINETY-TWO AND SUBSECTION (C) OF
SECTION ONE THOUSAND NINETY-TWO OF THIS  CHAPTER,  IF  THE  COMMISSIONER
DOES NOT FILE A WARRANT WITHIN SIX YEARS OF ASSESSMENT, THE TIME LIMITA-
TIONS  IN  THIS  SECTION SHALL NOT APPLY AND THE TAX LIABILITY IS EXTIN-
GUISHED. NOTHING IN THIS SECTION  SHALL  BE  CONSTRUED  TO  PREVENT  THE
COMMISSIONER  FROM ACCEPTING ANY PAYMENT FOR A TAX LIABILITY MADE VOLUN-
TARILY BY A TAXPAYER AFTER  THE  TIME  TO  COLLECT  SUCH  LIABILITY  HAS
EXPIRED  AND THE LIABILITY IS EXTINGUISHED. WHEN A WARRANT IS FILED, THE
COMMISSIONER MAY INCLUDE A DATE ON THAT  WARRANT  INDICATING  WHEN  SUCH
WARRANT EXPIRES AND TAX LIABILITY IS EXTINGUISHED.
  5.  IF  A  TAX  LIABILITY  COULD  HAVE BEEN FIRST WARRANTED BEFORE THE
EFFECTIVE DATE OF THIS SECTION, SUCH LIABILITY SHALL NOT BE  ENFORCEABLE
AND  SHALL  BE  EXTINGUISHED  AFTER TWENTY YEARS FROM THE FIRST DATE THE
WARRANT COULD HAVE BEEN FILED BY THE COMMISSIONER.
  S 2. This act shall take effect immediately.