Eliminates the one-year time requirement for aggregation payments.
TITLE OF BILL: An act to amend the tax law, in relation to eliminating the one-year time requirement for aggregation payments
PURPOSE OR GENERAL IDEA OF BILL: This legislation allows unpaid taxes to be collected in one aggregate payment, rather than in one-year increments.
SUMMARY OF SPECIFIC PROVISIONS:
Section 1 amends section 1807 of the tax law by removing the phrase "within one year".
Section 2 provides that this act shall take effect on the first of January next succeeding the date upon which it shall have become a law.
JUSTIFICATION: Currently, individuals being prosecuted for unpaid tax liability in the state of New York must be charged with separate counts of aggregate unpaid taxes for each year that the defendant has an outstanding unpaid tax liability. This is often not reflective of the overall lump sum of tax evaded by the defendant over several years.
This legislation would allow the aggregation of all unpaid taxes into a single charge in tax evasion cases. This eliminates the need to charge someone with multiple lower-level crimes when a single, higher-level charge would be more reflective of the scope of the defendant's crime if the defendant had intentionally under-reported a significant amount of tax liability for several years.
PRIOR LEGISLATIVE HISTORY: New Legislation
FISCAL IMPLICATIONS: None to the state.
EFFECTIVE DATE: This act shall take effect on the first of January next succeeding the date upon which it shall have become a law.
STATE OF NEW YORK ________________________________________________________________________ 7539 IN SENATE May 15, 2014 ___________Introduced by Sen. HOYLMAN -- read twice and ordered printed, and when printed to be committed to the Committee on Investigations and Govern- ment Operations AN ACT to amend the tax law, in relation to eliminating the one-year time requirement for aggregation payments THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Section 1807 of the tax law, as amended by section 5 of subpart A of part S of chapter 57 of the laws of 2010, is amended to read as follows: S 1807. Aggregation. For purposes of this article, the payments due and not paid under a single article of this chapter pursuant to a common scheme or plan or due and not paid,
[within one year,]may be charged in a single count, and the amount of underpaid tax liability incurred, within one year, may be aggregated in a single count. S 2. This act shall take effect on the first of January next succeed- ing the date upon which it shall have become a law.EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD15170-01-4