N.Y. Tax Law § 174-b: Limitation on the time to collect tax liabilities

§ 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

liability, the first date a warrant could be filed means the day that

opportunity 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

commissioner.

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

limitations in this section shall not apply and the tax liability is

extinguished. Nothing in this section shall be construed to prevent the

commissioner from accepting any payment for a tax liability made

voluntarily 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.