N.Y. Tax Law § 173-a: Hearing rights upon notice and demand

§ 173-a. Hearing rights upon notice and demand. 1. Applicability and

construction. (a) Applicability. Except as otherwise provided in this

section, this section shall apply with respect to any tax which is

administered by the commissioner and which is imposed by or authorized

to be imposed pursuant to this chapter or any other law. Unless a

different meaning is clearly required, any reference to "tax" or "taxes"

in this section shall be deemed also to refer to special assessments,

fees, interest, additions to tax, penalties or other impositions which

are administered by the commissioner.

(b) Exceptions to applicability. This section shall not apply to any

tax which is administered by the commissioner and which is imposed by or

authorized to be imposed pursuant to:

(i) Article ten of this chapter (taxable transfers - residents).

(ii) Article eleven of this chapter (tax on mortgages).

(iii) Article twelve of this chapter (tax on transfers of stock and

other corporate certificates).

(c) Construction. 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.

2. Corporate and personal income taxes. With respect to any tax which

incorporates or otherwise utilizes the procedures set forth in part VI

of article twenty-two or article twenty-seven of this chapter,

provisions of law which authorize the issuance of a notice and demand

for an amount without the issuance of a notice of deficiency for such

amount, including any interest, additions to tax or penalties related

thereto, in cases of mathematical or clerical errors or failure to pay

tax shown on a return, or authorize the issuance of a notice of

additional tax due, including any interest, additions to tax or

penalties related thereto, shall be construed as specifically denying

and modifying the right to a hearing with respect to any such notice and

demand or notice of additional tax due for purposes of subdivision four

of section two thousand six of this chapter. Any such notice and demand

or notice of additional tax due shall not be construed as a notice which

gives a person the right to a hearing under article forty of this

chapter.

3. Sales and compensating use and miscellaneous taxes. With respect to

any tax to which this section applies and which is not covered by

subdivision two of this section:

(a) Final determination. The amount of tax which a return or report

shows to be due, the amount of tax which a return or report would have

shown to be due but for a mathematical or clerical error (including,

with respect to a tax payable by the purchase of stamps, the amount of

stamps purchased) or the amount of penalty and any interest due for

failing to file a return or report or to pay or pay over any tax (or to

pay for any stamps purchased) to the commissioner within the time

required by or pursuant to any such tax (but not including any such

penalty or interest attributable to any amount of tax with respect to

which a notice of determination is required to be issued) shall be

deemed to be finally determined to be due not later than on the date of

the filing of such return or report (including any amended return or

report showing an increase of tax or in the case of the purchase of

stamps, such date of purchase). Such amount of tax, penalty or interest

shall be paid upon notice and demand and shall be assessed, collected

and paid in the manner provided for in each of the several taxes covered

under this subdivision and such notice and demand shall not be

considered as a notice of determination for purposes of the taxes

covered under this subdivision. If a notice of determination has been

mailed with respect to a tax covered under this subdivision, the amount

of the determination shall be deemed to be finally and irrevocably fixed

on the date specified in any such tax if no petition to the division of

tax appeals is filed, or, if a petition is filed, then upon the date

when a determination or decision rendered in the division of tax appeals

establishing the amount of the notice of determination becomes final

pursuant to article forty of this chapter.

(b) Notice and demand. (1) The commissioner shall, as soon as

practicable, give notice to each person liable for any amount of tax,

addition to tax, penalty or interest, which has been finally determined

to be due or which has been finally and irrevocably fixed, as the case

may be, but remains unpaid, stating the amount and demanding payment

thereof. Such notice shall be left at the dwelling or usual place of

business of such person or shall be sent by mail to such person's last

known address. Except where the commissioner determines that collection

would be jeopardized by delay and the applicable tax contains provisions

authorizing a jeopardy procedure, if any tax is finally determined to be

due or is finally and irrevocably fixed prior to the last date

(including any date fixed by extension) prescribed for payment of such

tax, payment of such tax shall not be demanded until after such date. If

the commissioner finds that the determination, assessment or collection

of tax, addition to tax, penalty or interest is in jeopardy and the

applicable tax contains provisions authorizing procedures regarding

early determination, the commissioner may immediately determine the

amount of such tax, addition to tax, penalty or interest (whether before

or after the due date of any return or report required to show such tax,

addition to tax, penalty or interest) and assess the same and give

notice and demand for the payment thereof.

(2) If notice and demand is made for payment of any amount under

subparagraph one of this paragraph, and if such amount is paid within

twenty-one calendar days (ten business days if the amount for which such

notice and demand is made equals or exceeds one hundred thousand

dollars) after the date of such notice and demand, interest under the

applicable tax on the amount so paid shall not be imposed for the period

after the date of such notice and demand.

(c) Hearing rights upon notice and demand. Provisions of law which

authorize the issuance of a notice and demand for an amount without the

issuance of a notice of determination for such amount, including any

interest or penalties related thereto, shall be construed as

specifically denying and modifying the right to a hearing with respect

to any such notice and demand for purposes of subdivision four of

section two thousand six of this chapter in cases of mathematical or

clerical errors or failure to pay the tax due shown on the return or for

any stamps purchased, and any interest or penalties related thereto. Any

such notice and demand shall not be construed as a notice which gives a

person the right to a hearing under article forty of this chapter.