N.Y. Tax Law § 683: Limitations on assessment

§ 683. Limitations on assessment.--(a) General.--Except as otherwise

provided in this section, any tax under this article shall be assessed

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

return was filed on or after the date prescribed).

(b) Time return deemed filed.--

(1) Early return.--For purposes of this section a return of income

tax, except withholding tax, filed before the last day prescribed by law

or by regulations promulgated pursuant to law for the filing thereof,

shall be deemed to be filed on such last day.

(2) Return of withholding tax.--For purposes of this section, if a

return of withholding tax for any period ending with or within a

calendar year is filed before April fifteenth of the succeeding calendar

year, such return shall be deemed to be filed on April fifteenth of such

succeeding calendar year.

(c) Exceptions.--

(1) Assessment at any time.--The tax may be assessed at any time if--

(A) no return is filed,

(B) a false or fraudulent return is filed with intent to evade tax, or

(C) the taxpayer or employer fails to comply with section six hundred

fifty-nine or six hundred fifty-nine-a.

(2) Extension by agreement.--Where, before the expiration of the time

prescribed in this section for the assessment of tax, both the

commissioner and the taxpayer have consented in writing to its

assessment after such time, the tax may be assessed 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.

(3) Report of federal changes, corrections or disallowances.--If the

taxpayer or employer complies with section six hundred fifty-nine or six

hundred fifty-nine-a, the assessment (if not deemed to have been made

upon the filing of the report or amended return) may be made at any time

within two years after such report or amended return was filed. The

amount of such assessment of tax shall not exceed the amount of the

increase in New York tax attributable to such federal change or

correction. The provisions of this paragraph shall not affect the time

within which or the amount for which an assessment may otherwise be

made.

(4) Deficiency attributable to net operating loss carryback.--If a

deficiency is attributable to the application to the taxpayer of a net

operating loss carryback, it may be assessed at any time that a

deficiency for the taxable year of the loss may be assessed.

(5) Recovery of erroneous refund.--An erroneous refund shall be

considered an underpayment of tax on the date made, and an assessment of

a deficiency arising out of an erroneous refund may be made at any time

within two years from the making of the refund, except that the

assessment may be made within five years from the making of the refund

if it appears that any part of the refund was induced by fraud or

misrepresentation of a material fact.

(6) Request for prompt assessment.--If a return is required for a

decedent or for his estate during the period of administration, the tax

shall be asseessed within eighteen months after written request therefor

(made after the return is filed) by the executor, administrator or other

person representing the estate of such decedent, but not more than three

years after the return was filed, except as otherwise provided in this

subsection and subsection (d).

(7) Report on use of certain property.--Under the circumstances

described in paragraph two of subsection (g) of section six hundred

twelve, the tax may be assessed within three years after the filing of a

return reporting that property has been used for purposes other than

research and development to a greater extent than originally reported.

(8) Report concerning waste treatment facility, air pollution control

facility or eligible business facility. Under the circumstances

described in paragraph (3) of subsection (h) of section six hundred

twelve or in paragraph four of subsection (c) of section seven hundred

one, the tax may be assessed within three years after the filing of the

return containing the information required by such paragraph, or, if a

certificate of compliance in respect to an air pollution control

facility shall be revoked, within three years after the tax commission

shall receive notice of such revocation from the taxpayer or as required

by subdivision three of section 19-0309 of the environmental

conservation law, whichever notice is received earlier.

(9) Reports concerning empire zone credits. If a taxpayer's

certification under article eighteen-B of the general municipal law is

revoked with respect to an empire zone or zone equivalent area, any tax

liability generated by reason of such decertification may be assessed

within three years after the commissioner has received notice of such

decertification as required by subdivision (a) of section nine hundred

fifty-nine of the general municipal law.

(10) Reports concerning a certificate of completion. If a taxpayer's

certificate of completion issued pursuant to section 27-1419 of the

environmental conservation law is revoked by a determination issued

pursuant to section 27-1419 of the environmental conservation law, any

tax liability generated by reason of such revocation may be assessed

within one year after such determination is final and is no longer

subject to judicial review.

* (11) Extended statute of limitations for tax avoidance transactions.

(A) If a taxpayer or person fails to file, disclose or provide any

statement, return or other information for any taxable year with respect

to a listed transaction, as defined in paragraph three of subsection (x)

of section six hundred eighty-five of this article, which is required

under subdivision (a) of section twenty-five of this chapter, the time

for assessment of any tax imposed by this article with respect to such

transaction shall not expire before the date which is one year after the

earlier of:

(i) the date on which the commissioner is furnished the statement,

return, or information so required, or

(ii) the date that the requirements of subdivision (c) of section

twenty-five of this chapter are met with respect to a request under such

subdivision by the commissioner relating to such transaction.

(B) If later than the time for assessment otherwise provided by this

section, tax may be assessed at any time within six years after the

return was filed if the deficiency is attributable to an abusive tax

avoidance transaction.

(C) For purposes of subparagraph (B) of this paragraph, an "abusive

tax avoidance transaction" means a plan or arrangement devised for the

principal purpose of avoiding tax. Abusive tax avoidance transactions

include, but are not limited to, listed transactions described in

paragraph five of subsection (p-1) of section six hundred eighty-five of

this article.

* NB Repealed July 1, 2029

(12) Except as otherwise provided in paragraph three of this

subsection, or as otherwise provided in this section where a longer

period of time may apply, if a taxpayer files an amended return, an

assessment of tax (if not deemed to have been made upon the filing of

the amended return), including recovery of a previously paid refund,

attributable to a change or correction on the amended return from a

prior return may be made at any time within one year after such amended

return is filed.

(d) Omission of income, total taxable amount or ordinary income

portion of a lump sum distribution on return.--The tax may be assessed

at any time within six years after the return was filed if--

(1) an individual omits from his New York adjusted gross income, or

the total taxable amount or ordinary income portion of a lump sum

distribution an amount properly includible therein which is in excess of

twenty-five percent of the amount of New York adjusted gross income, or

the total taxable amount or ordinary income portion of a lump sum

distribution stated in the return, or

(2) an estate or trust omits from its New York adjusted gross income,

or the total taxable amount or ordinary income portion of a lump sum

distribution an amount properly includible therein which is in excess of

twenty-five percent of the amount stated in the return of New York

adjusted gross income determined in accordance with paragraph four of

subsection (e) of section six hundred one, or the total taxable amount

or ordinary income portion of a lump sum distribution, respectively. For

purposes of this subsection there shall not be taken into account any

amount which is omitted in the return if such amount is disclosed in the

return, or in a statement attached to the return, in a manner adequate

to apprise the commissioner of the nature and amount of the item of

income, total taxable amount or ordinary income portion of a lump sum

distribution.

(e) Suspension of running of period of limitation.--The running of the

period of limitations on assessment or collection of tax or other amount

(or of a transferee's liability) shall, after the mailing of a notice of

deficiency, be suspended for the period during which the tax commission

is prohibited under subsection (c) of section six hundred eighty-one

from making the assessment or from collecting by levy.