N.Y. Tax Law § 1555: Secrecy required of officials; penalty for violation

§ 1555. Secrecy required of officials; penalty for violation. (a)

Except in accordance with the proper judicial order or as otherwise

provided by law, it shall be unlawful for the commissioner of taxation

and finance, the superintendent of financial services, any officer or

employee of the department of taxation and finance, or the department of

financial services or any person who, pursuant to this section, is

permitted to inspect any return, or any person engaged or retained by

such department on an independent contract basis, or any person who in

any manner may acquire knowledge of the contents of a return filed

pursuant to this article, to divulge or make known in any manner any

particulars set forth or disclosed in any return required under this

article. The officers charged with the custody of such 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

state or the commissioner of taxation and finance in any 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 of taxation and finance is a

party or a claimant or on behalf of any party in an action or proceeding

under the provisions of this article when the 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 returns or the facts shown thereby as are

pertinent to the action or proceeding and no more. The commissioner of

taxation and finance may, nevertheless, publish a copy or a summary of

any determination or decision rendered after the hearing provided for in

section one thousand eighty-nine of this chapter. Notwithstanding any

provisions of this section, the commissioner of taxation and finance may

permit the superintendent of financial services or his authorized

representative to inspect the returns filed with such commissioner under

this article, or may furnish to such superintendent or his authorized

representative an abstract of any return or supply him with information

concerning an item contained in any return, or disclosed by an

investigation of tax liability under this article. Nothing herein shall

be construed to prohibit the delivery to a taxpayer or its duly

authorized representative of a certified copy of any return filed in

connection with its tax nor to prohibit the publication of statistics so

classified as to prevent the identification of particular returns and

the items thereof, or the inspection by the attorney general or other

legal representatives of the state of the return of any taxpayer which

shall bring action to set aside or review the tax based thereon, or

against which an action or proceeding under this chapter has been

recommended by the commissioner of taxation and finance or the attorney

general or has been instituted; or the inspection of the returns of any

taxpayer 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 such taxpayer under this article. The

provisions of this section shall not be construed to prohibit or limit

the superintendent of financial services from divulging or making known

any information pursuant to the authority of the insurance law and shall

not be construed to prohibit the attorney general or superintendent of

financial services or any officer or employee of the department of law

or the department of financial services from using information derived

independently of any return filed under this article in any action or

proceeding under the insurance law. Returns shall be preserved for three

years and thereafter until the commissioner of taxation and finance

orders them to be destroyed.

(b) (1) Any officer or employee of the state who willfully violates

the provisions of subdivision (a) of this section shall be dismissed

from office and be incapable of holding any public office in this state

for a period of five years thereafter.

(2) Cross reference: For criminal penalties, see article thirty-seven

of this chapter.

(c) Notwithstanding any provisions of this section, the commissioner

of taxation and finance may permit the secretary of the treasury of the

United States or his delegates, or the proper officer of any other state

charged with tax administration, or the authorized representative of

either of such officers, to inspect the returns filed under this

article, or may furnish to such officer or his authorized representative

an abstract of any return or supply him with information concerning an

item contained in any return, or disclosed by an 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 commissioner of

taxation and finance 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 secretary of the

treasury of the United States or his delegates 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 or his delegates provided the laws of the United States grant

substantially similar powers to the secretary of the treasury or his

delegates. Where the commissioner of taxation and finance has so

authorized use of returns or 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 tax information.

(d) Notwithstanding the provisions of subdivision (a) of this section,

the commissioner of taxation and finance may permit the officer charged

with the administration of a tax on or measured by income imposed by any

city of the state of New York, or the authorized representative of such

officer, to inspect the returns filed under this article, or may furnish

to such officer or his authorized representative an abstract of any such

return or supply information concerning an item contained in any such

return, or disclosed by an 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 local laws

of such city grant substantially similar privileges to the commissioner

of taxation and finance 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

his delegates and the legal representative of such city such returns

filed under this article 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 delegates or by such legal representative of such city, provided the

local law of such city grants substantially similar powers to the city

officer charged with the administration of the city income tax or his

delegates. Where the commissioner of taxation and finance has so

authorized use of returns or other tax 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 tax information.

(e) Notwithstanding the provisions of subdivision (a) of this section,

the commissioner of taxation and finance, in his discretion, may require

or permit any or all persons liable for any tax imposed by this article,

to make payment of any tax, penalty or interest imposed by this article

to banks, banking houses or trust companies designated by the

commissioner of taxation and finance and to file applications for

extensions of time to file returns, and returns with such banks, banking

houses or trust companies as agents of the commissioner of taxation and

finance, in lieu of making any such payment directly to the commissioner

of taxation and finance. However, the commissioner of taxation and

finance shall designate only such banks, banking houses or trust

companies as are or shall be designated by the comptroller as

depositories pursuant to section fifteen hundred fifty-seven of this

article.

(f) (1) Notwithstanding the provisions of subdivision (a) 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 returns filed specified in such request that were 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; or filed by a partnership, firm, association, corporation,

joint-stock company, trust or similar entity directly or indirectly

controlled by any individual listed in this paragraph, whether by

contract, through ownership or control of a majority interest in such

entity, or otherwise, or filed by a partnership, firm, association,

corporation, joint-stock company, trust or similar entity of which any

individual listed in this paragraph holds ten percent or more of the

voting securities of such entity; provided however that, prior to

furnishing any 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 return, and any social

security numbers, account numbers and residential address information.

(2) No returns shall be furnished pursuant to this subdivision unless

the chairperson of the requesting committee certifies in writing that

such 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 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 the

requirements and procedures established in 26 U.S.C. Section 6103(f).