N.Y. Tax Law § 478: Determination of tax

§ 478. Determination of tax. If any person files any return under this

article, but such return is incorrect or insufficient, the commissioner

of taxation and finance shall determine the amount of tax due at any

time within three years after the return was filed (whether or not such

return was filed on or after the due date), and give written notice of

such determination to such person, except that if such person fails to

file a return or files a willfully false or fraudulent return with

intent to evade the tax, such determination may be made at any time.

Notwithstanding any of the foregoing provisions of this section, where,

before the expiration of the time prescribed in this section for the

determination of tax, both the commissioner of taxation and finance and

the taxpayer have consented in writing to its determination after such

time, the tax may be determined at any time prior to the expiration of

the period agreed upon. The period so agreed upon may be extended by

subsequent agreements in writing made before the expiration of the

period previously agreed upon. Any determination made pursuant to this

section shall finally and irrevocably fix the tax unless the person

against whom it is assessed shall, within ninety days after the giving

of notice of such determination, petition the division of tax appeals

for a hearing. After such hearing, the division of tax appeals shall

give notice of the determination of the administrative law judge to the

person liable for the tax and to the commissioner of taxation and

finance. Such determination may be reviewed by the tax appeals tribunal

as provided in article forty of this chapter. The decision of the tax

appeals tribunal may be reviewed as provided in section two thousand

sixteen of this chapter, but the proceeding may not be commenced unless

the amount of tax stated or referred to in the decision, with penalties

and interest thereon, if any, shall have been first deposited with the

commissioner of taxation and finance, and an undertaking filed with him,

in such amount and with such sureties as a justice of the supreme court

shall approve, to the effect that if the proceeding be dismissed or the

decision confirmed, the petitioner will pay all costs and charges which

may accrue against him in the prosecution of the proceeding, or at the

option of the petitioner such undertaking may be in a sum sufficient to

cover the tax, penalties, interest, costs and charges aforesaid, in

which event the petitioner shall not be required to pay such tax,

penalties and interest as a condition precedent to the commencement of

the proceeding.

The remedy provided by this section for review of a decision of the

tax appeals tribunal shall be the exclusive remedy available to any

taxpayer to judicially determine the liability of such taxpayer for

taxes under this article.